Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:2_2:p11
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 2 cl 2 (pt 11/14)
Character Range: 743176–745756

associate.

 (4) The PAYE earner or associate must not have acquired the share or right for more than the cost base of the share or right (in the hands of the trustee) at the time of the transfer.

 (5) There must have been an acquisition of a share or a right to acquire a share by the PAYE earner or associate under a scheme for the acquisition of shares by employees to which section 26AAC of the Income Tax Assessment Act 1936 applies.

130‑115  Deceased estates

  A capital gain or capital loss a trustee makes from transferring a right to acquire shares in a company to an individual is disregarded if:

 (a) the individual dies and an amount is included in the assessable income of the trustee of the deceased's estate under subsection 26AAC(9) of the Income Tax Assessment Act 1936 as a result of that trustee acquiring shares because of the exercise or operation of the right; and

 (b) the deceased acquired the right under a trust the trustee of which is required or authorised to transfer shares in a company to employees of the company or another company or to relatives of those employees; and

 (c) the deceased did not acquire the right for more than the right's cost base (in the hands of the trustee) at the time of the transfer.

130‑120  Amendment of assessments

  Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment at any time for the purpose of giving effect to this Subdivision.

Division 134—Options

134‑1  Exercise of options

  The modification in item 1 in the table in subsection 134‑1(1) of the Income Tax Assessment Act 1997 does not apply to an option (that was granted before 20 September 1985 and exercised after that day) that binds the grantor to dispose of a CGT asset. Instead, the first element of the cost base and reduced cost base of the CGT asset acquired by the grantee by exercising the option includes the market value of the option when it was exercised.

Division 136—Non‑residents

Subdivision 136‑A—Making a capital gain or loss

136‑25  When an asset has the necessary connection with Australia

  A CGT asset a company owns has the necessary connection with Australia if:

 (a) the company acquired the asset after 28 January 1988 and on or before 25 May 1988; and

 (b) it acquired the asset as a result of a disposal (for the purposes of Part IIIA of the Income Tax Assessment Act 1936) for which there was a roll‑over under section 160ZZN or 160ZZO of that Act; and

 (c) that disposal was by:

 (i) an entity that was not a trustee, and not a resident