House of Representatives

Tax Laws Amendment (Budget Measures) Bill 2008

Explanatory Memorandum

Circulated by the authority of the Treasurer, the Hon Wayne Swan MP

He will be assessable on a capital gain if and when he disposes of the shares, but this can benefit from discounting. The taxation of the capital gain is also deferred to a time of his choosing.

Subsection 139C(4) of the ITAA 1936 provides that shares acquired by the employee as a result of exercising the rights are treated as not having been acquired under an ESS.

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