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.


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