INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 8 - Bonus shares  

SECTION 160ZYH   CONSIDERATION IN RESPECT OF ACQUISITION  

160ZYH(1A)   [Application to bonus shares]  

This section does not apply in respect of the bonus shares if section 160ZYHA applies in respect of the bonus shares.

160ZYH(1)   [Deemed acquisition cost of original and bonus shares]  

The shareholder shall be deemed, for the purposes of this Part, to have paid in respect of the acquisition of the original shares or of the bonus shares a consideration equal to the amount, or the sum of the amounts, that would be deemed to be payable in respect of the original shares or the bonus shares, as the case may be, if it were necessary for the purposes of a provision of this Act (other than this Part) to determine the amount of any profit or loss arising on the sale or disposal of the original shares or the bonus shares, as the case may be.

160ZYH(2)   [Relevant amount not excluded by sec 6BA]  

If the whole or a part of a relevant amount (as defined in section 6BA ):

(a) which is applied by the company in payment or part payment of the moneys payable by the shareholder in respect of the bonus shares; or

(b) the liability of the company to pay which is otherwise satisfied by the issue of the bonus shares,

is not excluded by section 6BA from being treated as being an amount paid or payable by the shareholder in respect of the bonus shares or as in any other way constituting any part of the cost to the shareholder of the bonus shares (which relevant amount or part of a relevant amount is referred to in this subsection as the ``non-excluded amount'' ), so much of the consideration that, by virtue of subsection (1), the shareholder is deemed for the purposes of this Part to have paid in respect of the acquisition of the bonus shares as consists of the non-excluded amount shall be deemed for the purposes of this Part to have been paid at the time when the bonus shares were issued to the shareholder.

160ZYH(3)   [When deemed consideration for bonus shares paid]  

If an amount (in this subsection referred to as the ``original amount'' ) paid or payable by the shareholder in respect of the original shares (whether on purchase of the shares, on application for or allotment of the shares, to meet calls or otherwise) is deemed by subsection 6BA(3) to have been paid or to be payable by the shareholder in respect of the bonus shares, so much of the consideration that, by virtue of subsection (1), the shareholder is deemed for the purposes of this Part to have paid in respect of the acquisition of the bonus shares as consists of the original amount shall be deemed for the purposes of this Part to have been paid at the time when the original amount was paid by the shareholder in respect of the original shares or, if the original amount formed part of a larger amount, at the time when the larger amount was paid by the shareholder in respect of the original shares.

160ZYH(4)   [When deemed consideration for bonus shares paid]  

If the consideration that, by virtue of subsection (1), the shareholder is deemed for the purposes of this Part to have paid in respect of the acquisition of the bonus shares includes an amount to which neither subsection (2) nor (3) applies, so much of that consideration as consists of that amount shall be deemed for the purposes of this Part to have been paid at the time when that amount was paid.