INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 11A - Unit trust-issued options to unitholders to acquire unissued units  

SECTION 160ZYXE   EXERCISE OF OPTION  

160ZYXE(1)   [Acquisition of new units deemed at time option exercised]  

When the option is exercised, whether by the unitholder or by a person who acquired the option directly or indirectly as a result of the disposal of the option by the unitholder, the person who exercised the option shall be deemed, for the purposes of this Part, to have acquired the new units at the time when the option was exercised.

160ZYXE(2)   [Option exercised by unitholder]  

Subject to subsection (4), if the option is exercised by the unitholder, the unitholder shall be deemed, for the purposes of this Part, to have paid or given as consideration in respect of the acquisition of the new units an amount equal to the amount paid in respect of the exercise of the option.

160ZYXE(3)   [Option exercised by person who acquired it from disposal by unitholder]  

If the option is exercised by a person who acquired the option directly or indirectly as a result of the disposal of the option by the unitholder, that person shall be deemed, for the purposes of this Part, to have paid or given as consideration in respect of the acquisition of the new units an amount equal to the sum of the consideration paid or given by that person for the acquisition of the option and the amount paid in respect of the exercise of the option.

160ZYXE(4)   [Where option deemed to have been acquired before 20/9/85]  

Where:

(a) the option is exercised by the unitholder; and

(b) the option is deemed, by virtue of section 160ZYXC , to have been acquired by the unitholder before 20 September 1985;

the unitholder shall be deemed, for the purposes of this Part, to have paid or given as consideration in respect of the acquisition of the new units an amount equal to the sum of the market value of the option at the time when the option is exercised and the amount paid in respect of the exercise of the option.