INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 130 - Investments  

Subdivision 130-D - Employee share schemes  

SECTION 130-90   Shares held by employee share trusts  

Shares held for future acquisition under employee share schemes

130-90(1A)  


Disregard any *capital gain or *capital loss made by an *employee share trust to the extent that it results from a *CGT event, if:


(a) immediately before the event happens, an *ESS interest is a *CGT asset of the trust; and


(b) either of the following subparagraphs applies:


(i) the event is CGT event E5, and the event happens because a beneficiary of the trust becomes absolutely entitled to the ESS interest as against the trustee;

(ii) the event is CGT event E7, and the event happens because the trustee *disposes of the ESS interest to a beneficiary of the trust; and


(c) Subdivision 83A-B or 83A-C (about employee share schemes) applies to the ESS interest.

Shares held to satisfy the future exercise of rights acquired under employee share schemes

130-90(1)  


Disregard any *capital gain or *capital loss made by an *employee share trust, or a beneficiary of the trust, to the extent that it results from a *CGT event, if:


(a) the CGT event is CGT event E5 or E7; and


(b) the CGT event happens in relation to a *share; and


(c) the beneficiary had acquired a beneficial interest in the share by exercising a right; and


(d) the beneficiary ' s beneficial interest in the right was an *ESS interest to which Subdivision 83A-B or 83A-C (about employee share schemes) applied.

130-90(2)  


Subsection (1A) or (1) does not apply if the beneficiary acquired the beneficial interest in the *share for more than its *cost base in the hands of the *employee share trust at the time the *CGT event happens.

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