INCOME TAX ASSESSMENT ACT 1997
This Division (apart from this Subdivision) is taken never to have applied in relation to an *ESS interest acquired by an individual under an *employee share scheme if:
(a) disregarding this section, an amount is included in the individual ' s assessable income under this Division in relation to the interest; and
(i) the individual forfeits the interest; or
(ii) in the case of an ESS interest that is a beneficial interest in a right - the individual forfeits or loses the interest (without having disposed of the interest or exercised the right); and
(c) the forfeiture or loss is not the result of:
(i) a choice made by the individual (other than a choice to which subsection (2) applies); or
(ii) a condition of the scheme that has the direct effect of protecting (wholly or partly) the individual against a fall in the *market value of the interest.
This subsection applies to the following choices by the individual:
(a) a choice to cease particular employment;
(b) in the case of an *ESS interest that is a beneficial interest in a right:
(i) a choice not to exercise the right before it lapsed; or
(ii) a choice to allow the right to be cancelled.
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