Commonwealth Consolidated Acts Commonwealth Consolidated Acts
Income Tax Assessment Act 1936
1 At the end of section 139FA
Add:
(3) This section does not apply to a share if section 139FAA applies to the share.
2 After section 139FA
Insert:
139FAA Listed shares--market value where public offer
(1) This section applies to a share in a company if:
(a) the share is acquired within the period starting 7 days before and ending 7 days after the day on which shares are first acquired under a public offer of shares in the company; and
(b) the following rights attached to the share are the same as those attached to the shares acquired under the public offer:
(i) rights in respect of voting;
(ii) rights in respect of dividends;
(iii) rights in respect of distribution of share capital in consequence of a reduction of share capital;
(iv) rights in respect of distribution of the property of the company in the event of the winding up of the company; and
(c) there is at least one price at which shares were sold under the public offer that satisfies the following requirements:
(i) 1,000 Australian residents (other than residents who are employees of the company or who held shares in the company immediately before the offer was made) acquired shares at the price;
(ii) the total cost of shares acquired by such Australian residents at the price was at least $1,000,000; and
(d) the company has been a listed public company for at least 6 months immediately before the share is acquired.
However, this section does not apply if subsection 139CC(4) applies to the share.
(2) The market value of a share is the lowest price that satisfies the requirements of subparagraphs ( 1)(c)(i) and (ii) at which shares were sold under the public offer.
What is a public offer?
(3) A public offer of shares is an offer of shares in a company where:
(a) the offer is by the company or by a person who, immediately before the offer is made, owns at least 20% of the shares with rights in respect of voting in the company; and
(b) the offer is made to at least 10,000 Australian residents (other than residents who are employees of the company or who held shares in the company immediately before the offer was made).
3 At the end of section 139FC
Add:
(2) In calculating, for the purpose of subsection ( 1), the market value of the share that may be acquired by exercising the right, subsection 139FAA(1) applies as if the share were acquired on the particular day.
4 At the end of section 139FE
Add:
(2) In calculating, for the purpose of subsection ( 1), the market value of the share that may be acquired by exercising the right, subsection 139FAA(1) applies as if the share were acquired on the particular day.
5 At the end of section 139FK
Add:
(2) In calculating, for the purpose of subsection ( 1), the market value of the share that is the subject of the right, subsection 139FAA(1) applies as if the share were acquired on the particular day.
6 Application
The amendments made by this Schedule apply to shares and rights acquired on or after 2 September 1999.