Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-40 - RULES AFFECTING EMPLOYEES AND OTHER TAXPAYERS RECEIVING PAYG WITHHOLDING PAYMENTS  

Division 83A - Employee share schemes  

Subdivision 83A-D - Deduction for employer  

Operative provisions

SECTION 83A-205   Deduction for employer  

83A-205(1)    
You can deduct an amount for an income year if:

(a) during the year you provided one or more *ESS interests to an individual under an *employee share scheme; and

(b) you did so as:

(i) the employer of the individual; or

(ii) a holding company (within the meaning of the Corporations Act 2001 ) of the employer of the individual; and

(c) section 83A-35 applies to reduce the amount included in the individual ' s assessable income under subsection 83A-25(1) in relation to some or all of the interests.

83A-205(2)    
Disregard paragraph 83A-35(2)(b) (income test) for the purposes of paragraph (1)(c) of this section.

83A-205(3)    
The amount of the deduction is the amount of the reduction mentioned in paragraph (1)(c).

Deduction to be apportioned if interest provided by multiple entities

83A-205(4)    
The amount of the deduction worked out under subsection (3) must be apportioned between 2 or more entities on a reasonable basis if the entities jointly provide an *ESS interest for which an amount can be deducted under subsection (1).