New International Tax Arrangements (Foreign-owned Branches and Other Measures) Act 2005 (64 of 2005)

Schedule 4   Cross border employee shares or rights

Part 1   Amendments

Fringe Benefits Tax Assessment Act 1986

1   Subsection 136(1) (paragraph (hb) of the definition of fringe benefit )

Repeal the paragraph, substitute:

(hb) a benefit constituted by the acquisition by a trust of money or other property where the sole activities of the trust are obtaining shares, or rights to acquire shares, in a company, or a holding company (within the meaning of the Corporations Act 2001) of the first-mentioned company, and providing those shares or rights:

(i) to employees, or associates of employees, of the first-mentioned company; or

(ii) to persons who are engaged in foreign service (within the meaning of section 139GBA of the Income Tax Assessment Act 1936) for the first-mentioned company, or associates of those persons; or