Income Tax Assessment Act 1997
CGT event C3 happens if an option a company or a trustee of a unit trust granted to an entity to *acquire a *CGT asset that is:
(a) *shares in the company or units in the unit trust; or
(b) *debentures of the company or unit trust;
ends in one of these ways:
(c) it is not exercised by the latest time for its exercise;
(d) it is cancelled;
(e) it is released or abandoned.
The time of the event is when the option ends. 104-30(3)
The company or trustee makes a capital gain if the *capital proceeds from the grant of the option are more than the expenditure incurred in granting it. It makes a capital loss if those capital proceeds are less . 104-30(4)
The expenditure can include giving property: see section 103-5 . However, it does not include an amount you have received as *recoupment of it and that is not included in your assessable income. Exception 104-30(5)
A *capital gain or *capital loss the company or trustee makes is disregarded if it granted the option before 20 September 1985.
This subsection is modified for the purpose of calculating the attributable income of a CFC: see section 418 of the Income Tax Assessment Act 1936 .
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