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-B - Immediate inclusion of discount in assessable income  

Operative provisions

SECTION 83A-45   Further conditions for reducing amounts included in assessable income  

Employment

83A-45(1)    
This subsection applies to an * ESS interest in a company if, when you acquire the interest, you are employed by:

(a) the company; or

(b) a * subsidiary of the company.

Employee share scheme relates only to ordinary shares

83A-45(2)    
This subsection applies to an * ESS interest you acquire under an * employee share scheme if, when you acquire the interest, all the ESS interests available for acquisition under the scheme relate to ordinary * shares.

Integrity rule about share trading and investment companies.

83A-45(3)    
This subsection applies to an * ESS interest in a company unless, when you acquire the interest:

(a) the predominant business of the company (whether or not stated in its constituent documents) is the acquisition, sale or holding of * shares, securities or other investments (whether directly or indirectly through one or more companies, partnerships or trusts); and

(b) you are employed by the company; and

(c) you are also employed by any other company that is:

(i) a * subsidiary of the first company; or

(ii) a holding company (within the meaning of the Corporations Act 2001 ) of the first company; or

(iii) a subsidiary of a holding company (within the meaning of the Corporations Act 2001 ) of the first company.

Minimum holding period

83A-45(4)    
This subsection applies to an * ESS interest you acquire under an * employee share scheme if, at all times during the interest ' s * minimum holding period, the scheme is operated so that every acquirer of an ESS interest (the scheme interest ) under the scheme is not permitted to dispose of:

(a) the scheme interest; or

(b) a beneficial interest in a * share acquired as a result of the scheme interest;

during the scheme interest ' s minimum holding period.

Note:

This subsection is taken to apply in the case of a takeover or restructure: see subsection 83A-130(3) .

83A-45(5)    
An * ESS interest ' s minimum holding period is the period starting when the interest is acquired under the * employee share scheme and ending at the earlier of:

(a) 3 years later, or such earlier time as the Commissioner allows if the Commissioner is satisfied that:

(i) the operators of the scheme intended for subsection (4) to apply to the interest during the 3 years after that acquisition of the interest; and

(ii) at the earlier time that the Commissioner allows, all * membership interests in the relevant company were disposed of under a particular * scheme; and

(b) when the acquirer of the interest ceases being employed by the relevant employer.

10 % limit on shareholding and voting power

83A-45(6)    
This subsection applies to an * ESS interest in a company if, immediately after you acquire the interest:

(a) you do not hold a beneficial interest in more than 10 % of the * shares in the company; and

(b) you are not in a position to cast, or to control the casting of, more than 10 % of the maximum number of votes that might be cast at a general meeting of the company.

83A-45(7)    
For the purposes of subsection (6), you are taken to:

(a) hold a beneficial interest in any * shares in the company that you can acquire under an * ESS interest that is a beneficial interest in a right to acquire a beneficial interest in such shares; and

(b) be in a position to cast votes as a result of holding that interest in those shares.