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 130-75   130-75   Objects of Subdivision  


The objects of this Subdivision are:


(a) to recognise that:


(i) Division 83A contains the primary rules for taxing gains on *ESS interests acquired under *employee share schemes; and

(ii) *capital gains and *capital losses on such interests should usually be disregarded during the period in which Division 83A applies to them; and


(b) to align the treatment of ESS interests under Division 83A and the CGT provisions by, for example:


(i) turning off certain special CGT rules; and

(ii) extending some of the deeming provisions of that Division into the CGT provisions; and


(c) to disregard *employee share trusts for most CGT purposes, by treating ESS interests owned by such trusts as being directly owned by the beneficiaries of the trusts.


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