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 130-80   ESS interests acquired under employee share schemes  

Capital gains and losses

130-80(1)  


Disregard any *capital gain or *capital loss to the extent that it results from a *CGT event if:


(a) the CGT event happens in relation to an *ESS interest you *acquire under an *employee share scheme; and


(b) the CGT event is not CGT event E4, G1 or K8; and


(c) if Subdivision 83A-B applies to the interest - the time of the acquisition is the time when the CGT event happens; and


(d) if Subdivision 83A-C applies to the interest:


(i) the time of the acquisition is the time when the CGT event happens; or

(ii) the CGT event happens on or before the *ESS deferred taxing point for the ESS interest.

130-80(2)  


Subsection (1) does not apply if:


(a) Subdivision 83A-C applies to the *ESS interest; and


(b) the *CGT event happens because you forfeit or lose the ESS interest (other than by disposing of it) on or before the *ESS deferred taxing point for the interest. General acquisition rule

130-80(3)  


Subsection 109-5(2) (about when you acquire a CGT asset) does not apply to a *CGT asset and a *CGT event if:


(a) the CGT asset is:


(i) a *share; or

(ii) a right to acquire a beneficial interest in a share; and


(b) the CGT event is CGT event A1; and


(c) you acquire an *ESS interest; and


(d) the ESS interest is a beneficial interest in the share or right; and


(e) Subdivision 83A-B or 83A-C (about employee share schemes) applies to the ESS interest. Market value substitution rule

130-80(4)  


Sections 112-20 and 116-30 (about the market value substitution rule) do not apply to the extent that they relate to:


(a) you acquiring an *ESS interest to which Subdivision 83A-C (about employee share schemes) applies; or


(b) you:


(i) forfeiting an ESS interest; or

(ii) forfeiting or losing an ESS interest that is a beneficial interest in a right (without you having disposed of the interest or exercised the right);
if Subdivision 83A-B or 83A-C applies to the ESS interest (ignoring section 83A-310 ); or


(c) you acquiring an ESS interest that:


(i) is a beneficial interest in a right; and

(ii) is an ESS interest to which the provisions referred to in paragraphs 83A-33(1)(a) to (c) (about start ups) apply.

View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.