INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 130 - Investments  

Subdivision 130-D - Employee share schemes  

SECTION 130-85   Interests in employee share trusts  

Scope

130-85(1)  
This section applies if:


(a) you *acquire an *ESS interest under an *employee share scheme; and


(b) Subdivision 83A-B or 83A-C applies to the ESS interest; and


(c) the ESS interest is, or arises because of, an interest you hold in an *employee share trust. Application of Division 83A, Part 3-1 and this Part

130-85(2)  
Division 83A (Employee share schemes), Part 3-1 (Capital gains and losses: general topics) and this Part apply as if you were absolutely entitled to the relevant *share or right:


(a) from the time of acquisition of the *ESS interest; and


(b) until you no longer have an ESS interest in the share or right.

130-85(3)  


However, if this section applies to you because an *associate of yours *acquired the *ESS interest, Division 83A, this Part and Part 3-3 apply as if your associate were absolutely entitled to the relevant *share or right (instead of you):


(a) either:


(i) if Subdivision 83A-B applies to the ESS interest - from the time of acquisition; or

(ii) if Subdivision 83A-C applies to the ESS interest - from immediately after the *ESS deferred taxing point for the ESS interest; and


(b) until your associate no longer has an ESS interest in the share or right.

Meaning of employee share trust

130-85(4)  


An employee share trust , for an *employee share scheme, is a trust whose sole activities are:


(a) obtaining *shares or rights in a company; and


(b) ensuring that *ESS interests in the company that are beneficial interests in those shares or rights are provided under the employee share scheme to employees, or to *associates of employees, of:


(i) the company; or

(ii) a *subsidiary of the company; and


(c) other activities that are merely incidental to the activities mentioned in paragraphs (a) and (b).


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