Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) 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.
(2) The time of the event is when the option ends.
(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 .
(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
(5) A * capital gain or * capital loss the company or trustee makes is disregarded if it granted the option before 20 September 1985.
Note: 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 .
Table of sections
104 - 35 Creating contractual or other rights: CGT event D1
104 - 40 Granting an option: CGT event D2
104 - 45 Granting a right to income from mining: CGT event D3
104 - 47 Conservation covenants: CGT event D4