Income Tax Assessment Act 1936
View history note
Hide history noteDiv 13A repealed by No 133 of 2009, s 3 and Sch 1 item 18, applicable in relation to the ESS interests mentioned in subsections 83A-5(1) and (2) of the Income Tax (Transitional Provisions) Act 1997 .
Div 13A inserted by No 169 of 1995.
Former Div 13A repealed by No 224 of 1992 and inserted by No 126 of 1977.
Subdiv DA repealed by No 133 of 2009, s 3 and Sch 1 item 18, applicable in relation to the ESS interests mentioned in subsections 83A-5(1) and (2) of the Income Tax (Transitional Provisions) Act 1997 .
Subdiv DA inserted by No 41 of 2005, s 3 and Sch 3 item 11, effective 1 April 2005. No 41 of 2005, s 3 and Sch 3 item 22 contains the following application provision:
22 Application
(1)
The amendment is taken to have applied, to acquisitions of shares or rights on or after 1 July 2004.
(2)
In this item:acquisition
, of a share or right, has the same meaning as in Division 13A of Part III of the Income Tax Assessment Act 1936 .
(Repealed by No 133 of 2009)
S 139DQ repealed by No 133 of 2009, s 3 and Sch 1 item 18, applicable in relation to the ESS interests mentioned in subsections
83A-5(1)
and
(2)
of the
Income Tax (Transitional Provisions) Act 1997
. S 139DQ formerly read:
To the extent that:
then, if the conditions in section
139DR
are met, the matching shares or rights are treated, for the purposes of this Division and Subdivision
768-R
of the
Income Tax Assessment Act 1997
, as if they were a continuation of the shares or rights in the old company. In determining to what extent something can reasonably be regarded as matching shares or rights in the old company, one of the factors to consider is the respective market values of that thing and of those shares or rights.
SECTION 139DQ THE EFFECT OF 100% TAKEOVERS AND RESTRUCTURES ON EMPLOYEE SHARE SCHEMES
139DQ(1)
Treating acquisitions as continuations of existing shares etc.
(a)
a taxpayer acquires:
(i)
shares in a company (the
new company
) that can reasonably be regarded as matching shares in another company (the
old company
) that the taxpayer had acquired under an employee share scheme; or
(ii)
rights in a company (the
new company
) that can reasonably be regarded as matching rights in another company (the
old company
) that the taxpayer had acquired under an employee share scheme; and
(b)
the acquisition occurs in connection with a 100% takeover, or a restructure, of the old company; and
(c)
as a result of the takeover or restructure, the taxpayer ceased to hold the shares or rights in the old company;
Note:
S 139DQ(1) amended by No 32 of 2006, s 3 and Sch 1 item 8, by inserting " and Subdivision 768-R of the Income Tax Assessment Act 1997 " after " this Division " , effective 6 April 2006. No 32 of 2006, s 3 and Sch 1 item 40 also contains the following application provision:
40 Application
…
(3)
For the purposes of sections 768-920 , 768-925 , 768-930 , 768-935 , 768-940 and 768-945 of the Income Tax Assessment Act 1997 , item 8 applies if:
(a) the relevant CGT event happens on or after the 1 July next following 6 April 2006; and (b) the relevant matching shares or rights were acquired on or after 1 July 2004.
…
(6)
For the purposes of section 768-955 of the Income Tax Assessment Act 1997 , item 8 of this Schedule applies if:
(a) the individual ceases to be a temporary resident (but remains an Australian resident) on or after the 1 July next following 6 April 2006. (b) the relevant CGT asset is a matching share or right that was acquired on or after 1 July 2004.
139DQ(2) Treating acquisitions as disposals of existing shares etc.
However, to the extent that, in connection with the takeover or restructure, the taxpayer acquires anything that:
(a) can reasonably be regarded as matching shares or rights in the old company that the taxpayer had acquired under an employee share scheme; but
(b) is not a matching share or right to which subsection (1) applies;
the taxpayer is treated, for the purposes of this Division and Subdivision 768-R of the Income Tax Assessment Act 1997 , as having disposed of shares, or disposed of rights (other than by exercising them), that the taxpayer held, under an employee share scheme, in the old company immediately before the takeover or restructure.
S 139DQ(2) amended by No 32 of 2006, s 3 and Sch 1 item 9, by inserting " and Subdivision 768-R of the Income Tax Assessment Act 1997 " after " this Division " , effective 6 April 2006. For application provision see note under s 139DQ(1).
139DQ(3) Treating new employment as continuation of existing employment.
If subsection (1) applies, any employment of the taxpayer in:
(a) the new company; or
(b) a holding company of the new company; or
(c) a subsidiary of the new company or of a holding company of the new company;
is treated, for the purposes of this Division and Subdivision 768-R of the Income Tax Assessment Act 1997 , as a continuation of the employment in respect of which he or she acquired the shares or rights in the old company or in a subsidiary of the old company.
S 139DQ(3) amended by 32 of 2006, s 3 and Sch 1 item 10, by inserting " and Subdivision 768-R of the Income Tax Assessment Act 1997 " after " this Division " , effective 6 April 2006. For application provision see note under s 139DQ(1).
S 139DQ inserted by No 41 of 2005. No 41 of 2005, s 3 and Sch 3 item 22, contains the following application provision:
acquisition
22 Application
(1)
The amendment is taken to have applied, to acquisitions of shares or rights on or after 1 July 2004.
(2)
In this item:
, of a share or right, has the same meaning as in Division
13A
of Part
III
of the
Income Tax Assessment Act 1936
.