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INCOME TAX ASSESSMENT ACT 1997 - SECT 83A.45

Further conditions for reducing amounts included in assessable income

Employment

  (1)   This subsection applies to an * ESS interest in a company if, when you acquire the interest, you are employed by:

  (a)   the company; or

  (b)   a * subsidiary of the company.

Employee share scheme relates only to ordinary shares

  (2)   This subsection applies to an * ESS interest you acquire under an * employee share scheme if, when you acquire the interest, all the ESS interests available for acquisition under the scheme relate to ordinary * shares.

Integrity rule about share trading and investment companies.

  (3)   This subsection applies to an * ESS interest in a company unless, when you acquire the interest:

  (a)   the predominant business of the company (whether or not stated in its constituent documents) is the acquisition, sale or holding of * shares, securities or other investments (whether directly or indirectly through one or more companies, partnerships or trusts); and

  (b)   you are employed by the company; and

  (c)   you are also employed by any other company that is:

  (i)   a * subsidiary of the first company; or

  (ii)   a holding company (within the meaning of the Corporations Act 2001 ) of the first company; or

  (iii)   a subsidiary of a holding company (within the meaning of the Corporations Act 2001 ) of the first company.

Minimum holding period

  (4)   This subsection applies to an * ESS interest you acquire under an * employee share scheme if, at all times during the interest's * minimum holding period, the scheme is operated so that every acquirer of an ESS interest (the scheme interest ) under the scheme is not permitted to dispose of:

  (a)   the scheme interest; or

  (b)   a beneficial interest in a * share acquired as a result of the scheme interest;

during the scheme interest's minimum holding period.

Note:   This subsection is taken to apply in the case of a takeover or restructure: see subsection   83A - 130(3).

  (5)   An * ESS interest's minimum holding period is the period starting when the interest is acquired under the * employee share scheme and ending at the earlier of:

  (a)   3 years later, or such earlier time as the Commissioner allows if the Commissioner is satisfied that:

  (i)   the operators of the scheme intended for subsection   (4) to apply to the interest during the 3 years after that acquisition of the interest; and

  (ii)   at the earlier time that the Commissioner allows, all * membership interests in the relevant company were disposed of under a particular * scheme; and

  (b)   when the acquirer of the interest ceases being employed by the relevant employer.

10% limit on shareholding and voting power

  (6)   This subsection applies to an * ESS interest in a company if, immediately after you acquire the interest:

  (a)   you do not hold a beneficial interest in more than 10% of the * shares in the company; and

  (b)   you are not in a position to cast, or to control the casting of, more than 10% of the maximum number of votes that might be cast at a general meeting of the company.

  (7)   For the purposes of subsection   (6), you are taken to:

  (a)   hold a beneficial interest in any * shares in the company that you can acquire under an * ESS interest that is a beneficial interest in a right to acquire a beneficial interest in such shares; and

  (b)   be in a position to cast votes as a result of holding that interest in those shares.


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