Capital gains and losses
(1) Disregard any * capital gain or * capital loss to the extent that it results from a * CGT event if:
(a) the CGT event happens in relation to an * ESS interest you * acquire under an * employee share scheme; and
(b) the CGT event is not CGT event E4, G1 or K8; and
(c) if Subdivision 83A-B applies to the interest--the time of the acquisition is the time when the CGT event happens; and
(d) if Subdivision 83A-C applies to the interest:
(i) the time of the acquisition is the time when the CGT event happens; or
(ii) the CGT event happens on or before the * ESS deferred taxing point for the ESS interest.
(2) Subsection (1) does not apply if:
(a) Subdivision 83A-C applies to the * ESS interest; and
(b) the * CGT event happens because you forfeit or lose the ESS interest (other than by disposing of it) on or before the * ESS deferred taxing point for the interest.
General acquisition rule
(3) Subsection 109-5(2) (about when you acquire a CGT asset) does not apply to a * CGT asset and a * CGT event if:
(a) the CGT asset is:
(i) a * share; or
(ii) a right to acquire a beneficial interest in a share; and
(b) the CGT event is CGT event A1; and
(c) you acquire an * ESS interest; and
(d) the ESS interest is a beneficial interest in the share or right; and
(e) Subdivision 83A-B or 83A-C (about employee share schemes) applies to the ESS interest.
Market value substitution rule
(4) Sections 112-20 and 116-30 (about the market value substitution rule) do not apply to the extent that they relate to:
(a) you acquiring an * ESS interest to which Subdivision 83A-C (about employee share schemes) applies; or
(i) forfeiting an ESS interest; or
(ii) forfeiting or losing an ESS interest that is a beneficial interest in a right (without you having disposed of the interest or exercised the right);
if Subdivision 83A-B or 83A-C applies to the ESS interest (ignoring section 83A- 310); or
(c) you acquiring an ESS interest that:
(i) is a beneficial interest in a right; and
(ii) is an ESS interest to which the provisions referred to in paragraphs 83A-33(1)(a) to (c) (about start ups) apply.