Taxation Laws Amendment Act (No. 2) 1995 (169 of 1995)
Schedule 2 EMPLOYEE SHARE SCHEMES
Part 1 INCOME TAX ASSESSMENT ACT 1936
Division 2 Other amendments of the Income Tax Assessment Act 1936
7 After Division 9 of Part IIIA
Insert:
"Division 9A-Employees' shares-Division 13A of Part III
Shares or rights under employee share scheme
"160ZYJB.(1) 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.
"(2) 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.
"(3) If subsection 139CC(3) applies, this Part does not apply in
respect of the disposal mentioned in that subsection.
"(4) 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.
Shares or rights under employee share scheme-associates
"160ZYJC.(1) This section applies if an amount is included in a
taxpayer's assessable income under Division 13A of Part III as a
result of an associate of the taxpayer acquiring a share or right.
Note: Associate is defined in section 139GE.
"(2) The associate is taken for the purposes of this Part to have
paid, at the time when the share or right is acquired by the
associate, as consideration in respect of the acquisition, the greater
of:
(a) the amount paid by the associate as consideration in respect of
the acquisition; and
(b) the market value of the share or right at the time of the
acquisition.
Employee share trusts
"160ZYJD.(1) For the purposes of this Part, if:
(a) 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 acquisition by the taxpayer of a share or right in a
company; and
(b) the share or right was acquired by the taxpayer under the terms
of a trust deed under which the trustee is required or authorised to
sell, or otherwise to transfer, the share, or right, to:
(i) an employee of the company or of another company;
(ii) an associate of such an employee; and
(c) either no amount was paid by the taxpayer as consideration for
the share or, if an amount was paid, that amount is equal to or less
than the indexed cost base to the trustee of the share or right;
this Part does not apply in respect of the disposal by the trustee of
the share or right to the taxpayer.
Note: Employee is defined in section 139GA.
"(2) If the trust disposed of the share or right within 12 months
after the share or right was acquired by the trust, the reference in
paragraph (1)(c) to the indexed cost base to the trustee is to be read
as a reference to the cost base to the trustee.
Terms have same meaning as in Division 13A of Part III
"160ZYJE. Despite section 160E, associate, cessation time, employee
and market value have the same meaning in this Division as in Division
13 of Part III.".