Private ruling: Capital gains tax - Bonus options
Published: March 2012
Ruling period: Year ended 30 June 2010 | Year ended 30 June 2011 | Year ended 30 June 2012
Date scheme commenced: 1 July 2009

Ruling: Q1: Are bonus shares received under the ANZ Bonus Option Plan included in your assessable income? | A1: No. | Q2: When you sell your shares is Capital gains tax (CGT) applicable | A2: Yes.


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 6-5 | Income Tax Assessment Act 1997 Section 102-5 | Income Tax Assessment Act 1997 Section 102-20 | Income Tax Assessment Act 1997 Section 104-10 | Income Tax Assessment Act 1997 Section 130-20 | Income Tax Assessment Act 1936 Section 44

Reasons for decision: Summary: Bonus shares received under the ANZ Bonus Option Plan are not included in your assessable income because they do not fall within the definition of a dividend. Where bonus shares are issued for which no consideration is payable and without crediting any amount to the companies share capital account, no amount is considered a dividend. Your bonus shares are not treated as a dividend because ANZ has not credited the share capital accounts in connection with the issue of those shares. Consequently, you are treated as having acquired the bonus shares at the same time that you acquired the original shares for capital gains purposes, as this was after 20 September 1985 any subsequent sale will be subject to capital gains tax.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Relevant facts: You own a number of Australia and New Zealand Banking Group ordinary shares (ANZ). | You acquired these shares after 20 September 1985. | You have received a number of bonus option shares. | You have not included these bonus shares in your income tax returns.