Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 130.90

Shares held for future acquisition under employee share schemes

  (1A)   Disregard any * capital gain or * capital loss made by an * employee share trust to the extent that it results from a * CGT event, if:

  (a)   immediately before the event happens, an * ESS interest is a * CGT asset of the trust; and

  (b)   either of the following subparagraphs applies:

  (i)   the event is CGT event E5, and the event happens because a beneficiary of the trust becomes absolutely entitled to the ESS interest as against the trustee;

  (ii)   the event is CGT event E7, and the event happens because the trustee * disposes of the ESS interest to a beneficiary of the trust; and

  (c)   Subdivision   83A - B or 83A - C (about employee share schemes) applies to the ESS interest.

Shares held to satisfy the future exercise of rights acquired under employee share schemes

  (1)   Disregard any * capital gain or * capital loss made by an * employee share trust, or a beneficiary of the trust, to the extent that it results from a * CGT event, if:

  (a)   the CGT event is CGT event E5 or E7; and

  (b)   the CGT event happens in relation to a * share; and

  (c)   the beneficiary had acquired a beneficial interest in the share by exercising a right; and

  (d)   the beneficiary's beneficial interest in the right was an * ESS interest to which Subdivision   83A - B or 83A - C (about employee share schemes) applied.

  (2)   Subsection   (1A) or (1) does not apply if the beneficiary acquired the beneficial interest in the * share for more than its * cost base in the hands of the * employee share trust at the time the * CGT event happens.