Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-1
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CAPITAL GAINS AND LOSSES: GENERAL TOPICS
CGT event C3 happens if an option a company or a trustee of a unit trust granted to an entity to *acquire a *CGT asset that is:
(a) *shares in the company or units in the unit trust; or
(b) *debentures of the company or unit trust;
(c) it is not exercised by the latest time for its exercise;
(d) it is cancelled;
(e) it is released or abandoned.
The time of the event is when the option ends. 104-30(3)
The company or trustee makes a capital gain if the *capital proceeds from the grant of the option are more than the expenditure incurred in granting it. It makes a capital loss if those capital proceeds are less . 104-30(4)
The expenditure can include giving property: see section 103-5 . However, it does not include an amount you have received as *recoupment of it and that is not included in your assessable income. Exception 104-30(5)
A *capital gain or *capital loss the company or trustee makes is disregarded if it granted the option before 20 September 1985.
Division 104
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CGT events
Subdivision 104-C
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End of a CGT asset
SECTION 104-30
End of option to acquire shares etc.: CGT event C3
104-30(1)
CGT event C3 happens if an option a company or a trustee of a unit trust granted to an entity to *acquire a *CGT asset that is:
(a) *shares in the company or units in the unit trust; or
(b) *debentures of the company or unit trust;
ends in one of these ways:
(c) it is not exercised by the latest time for its exercise;
(d) it is cancelled;
(e) it is released or abandoned.
104-30(2)
The time of the event is when the option ends. 104-30(3)
The company or trustee makes a capital gain if the *capital proceeds from the grant of the option are more than the expenditure incurred in granting it. It makes a capital loss if those capital proceeds are less . 104-30(4)
The expenditure can include giving property: see section 103-5 . However, it does not include an amount you have received as *recoupment of it and that is not included in your assessable income. Exception 104-30(5)
A *capital gain or *capital loss the company or trustee makes is disregarded if it granted the option before 20 September 1985.
Note:
This subsection is modified for the purpose of calculating the attributable income of a CFC: see section 418 of the Income Tax Assessment Act 1936 .
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