Taxation Laws Amendment (Company Law Review) Act 1998 (63 of 1998)

Schedule 4   Bonus shares

Income Tax Assessment Act 1936

1   Subsections 6BA(1) to (2)

Repeal the subsections, substitute:

(1) This section applies if a shareholder holds shares in a company (the original shares ) and the company issues other shares (the bonus shares ) in respect of the original shares.

(2) If the bonus shares are a dividend, or taken to be a dividend, the consideration for the acquisition of the shares for the purposes of this Act is so much of the dividend as is:

(a) included in the taxpayer's assessable income; and

(b) is not rebatable under section 46 or 46A.

Note: The heading to section 6BA is altered by omitting " Cost " and substituting " Taxation treatment ".