INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 208 - Exempting entities and former exempting entities  

Subdivision 208-G - Tax effects of distributions by exempting entities  

Operative provisions

SECTION 208-215   Eligible employee share schemes  

208-215(1)  
An individual acquires a beneficial interest in a *share in a company under an *employee share scheme in circumstances that are relevant for the purposes of paragraphs 208-205(b) and 208-235(b) if:


(a) all the *ESS interests available for acquisition under the scheme relate to:


(i) ordinary shares; or

(ii) preference shares to which are attached substantially the same rights as are attached to ordinary shares; and


(b) immediately after the individual acquires the interest:


(i) he or she does not hold a beneficial interest in more than 10% of the shares in the company; and

(ii) he or she is not in a position to control, 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; and


(c) the share is not a *non-equity share.

208-215(2)  


An individual also acquires a beneficial interest in a *share in a company under an *employee share scheme in circumstances that are relevant for the purposes of paragraphs 208-205(b) and 208-235(b) if:


(a) the share is part of a stapled security; and


(b) Subdivision 83A-B or 83A-C (about employee share schemes) applies to the beneficial interest in the stapled security.

208-215(3)  


For the purposes of paragraph (1)(b), 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.


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