INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES

Division 9A - Employees' shares - Division 13A of Part III

History

Div 9A inserted by No 169 of 1995. No 169 of 1995, Pt 4 Sch 2, contains the following application and transitional provisions:

11. Application of amendments
(1)
Subject to this section, the amendments made by this Schedule apply to the acquisition of a share, or right to acquire a share, if it occurs after 6 p.m. by legal time in the Australian Capital Territory on 28 March 1995.

(2)
The amendments made by this Schedule do not apply to the acquisition of a share where the share was acquired as a result of the exercise of a right that:

(a) was acquired at or before 6 p.m. by legal time in the Australian Capital Territory on 28 March 1995; or

(b) is covered by subitem (3), (4) or (5).

(3)
Subject to item 12, the amendments made by this Schedule do not apply to the acquisition of a share or right before 1 July 1995 where:

(a) the share or right was acquired as a result of an offer, or an invitation, made at or before 6 p.m. by legal time in the Australian Capital Territory on 28 March 1995; and

(b) the offer or invitation was made to employees of a company to acquire shares, or rights to acquire shares, in the company or in a holding company of the company.

(4)
Subject to item 12, the amendments made by this Schedule do not apply to the acquisition of a share or right before 1 July 1996 where:

(a) the offer or invitation is to acquire shares, or rights to acquire shares, in a public company; and

(b) the share or right is acquired as a result of an offer, or an invitation, to employees of the public company or a subsidiary of the public company; and

(c) if the approval of shareholders is required for the scheme under which the offer or invitation was made - the scheme was approved by shareholders of the public company before 6 p.m. by legal time in the Australian Capital Territory on 28 March 1995.

(5)
A taxpayer may make an election that the amendments made by this Schedule do not apply to the acquisition of particular shares or rights where:

(a) the total market value, when acquired, of the shares or rights covered by the election, does not exceed $1000; and

(b) the shares or rights were acquired before 1 July 1995 as a result of an offer, or an invitation, made at or before 6 p.m. by legal time in the Australian Capital Territory on 28 March 1995.

(6)
For the purposes of subitem (5), the market value of a right is taken to be the same as the market value of the share to which it relates.

(7)
In this item:
public company
means:

(a) a public company within the meaning of the Corporations Law ; or

(b) a company established by Commonwealth, State or Territory legislation; or

(c) a company listed on an approved stock exchange.
Note: Approved stock exchange is defined in section 139GD of the Income Tax Assessment Act 1936 .

subsidiary
has the same meaning as in the Corporations Law .

Taxpayer may elect that amendments apply
12.
The amendments made by this Schedule apply to the acquisition of a share or right by a taxpayer if:

(a) apart from subitem 11(3) or 11(4), the amendments would apply to the acquisition; and

(b) the taxpayer elects that the amendments apply to the acquisition. Application of amendments - election that amendments apply
13.
A taxpayer may make an election that the amendments made by this Schedule apply to the acquisition of a share, or a right to acquire a share, if the acquisition occurs after 7.30 p.m. by legal time in the Australian Capital Territory on 10 May 1994 and at or before 6 p.m. by legal time in the Australian Capital Territory on 28 March 1995. Elections
14.
An election under this Part must be in writing in a form approved by the Commissioner and be made before the later of:

(a) the end of 90 days after the commencement of this item; and

(b) the time when the taxpayer lodges his or her return for the 1994-95 year of income;
or within such further time as the Commissioner allows.

SECTION 160ZYJB SHARES OR RIGHTS UNDER EMPLOYEE SHARE SCHEME

160ZYJB(1) [Acquisition of share or right by taxpayer]

This section applies if an amount is, or apart from section 139BA would be, included in a taxpayer's assessable income under Division 13A of Part III as a result of the taxpayer acquiring a share or right.

160ZYJB(2) [Amount deemed paid on acquisition]

If subsection 139CC(2) applies, the taxpayer is taken for the purposes of this Part to have paid, at the time when the share or right is acquired by the taxpayer, as consideration in respect of the acquisition, the greater of:

(a) the amount paid by the taxpayer as consideration in respect of the acquisition; and

(b) the market value of the share or right at the time of the acquisition.

Note:

Market Value is defined in Subdivision F of Division 13A of Part III .

160ZYJB(3) [Share or right disposed of at cessation time]

If subsection 139CC(3) applies, this Part does not apply in respect of the disposal mentioned in that subsection.

160ZYJB(4) [Amount deemed paid at cessation time]

If subsection 139CC(4) applies, the taxpayer is taken for the purposes of this Part to have paid, at the cessation time, an amount equal to the market value of the share or right at that time as consideration in respect of the acquisition.

Note:

Cessation time is defined in sections 139CA and 139CB.

View history note

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