New Business Tax System (Taxation of Financial Arrangements) Act (No. 1) 2003 (133 of 2003)

Modifications on exercise of rights

Item

In this situation:

The modification is...

1

You exercise rights issued to you to *acquire the *shares, units or options.

The first element of your *cost base for the shares, units or options is the sum of:

(a) the cost base of the rights at the time of exercise; and

(b) any amount paid to exercise the rights, except to the extent that the amount is represented in the paragraph (a) amount; and

(c) all the amounts to be added under subsection (6A).

The first element of their *reduced cost base is worked out similarly.

2

You exercise rights you *acquired from another entity to acquire the *shares, units or options.

The first element of your *cost base for the shares, units or options is the sum of:

(a) the cost base of the rights at the time of exercise; and

(b) any amount paid to exercise the rights, except to the extent that the amount is represented in the paragraph (a) amount; and

(c) all the amounts to be added under subsection (6A).

The first element of their *reduced cost base is worked out similarly.

3

You exercise rights issued to you to *acquire the *shares, units or options, and you acquired the original shares or *convertible interests, or the original units or convertible interests, before 20 September 1985.

The first element of your *cost base for the shares, units or options is the sum of:

(a) the *market value of the rights when they were exercised; and

(b) any amount paid to exercise the rights, except to the extent that the amount is represented in the paragraph (a) amount; and

(c) all the amounts to be added under subsection (6A).

The first element of their *reduced cost base is worked out similarly.