Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:2_2:p9
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 2 cl 2 (pt 9/14)
Character Range: 738421–741004

Assessment Act 1997 applies also to your exercise of rights (that you acquired before 20 September 1985) to acquire shares, or options to acquire shares, in a company.

Subdivision 130‑C—Convertible notes

130‑60  Shares or units acquired by converting a convertible note

 (1) The modification in item 1 of the table in subsection 130‑60(1) of the Income Tax Assessment Act 1997 does not apply to shares or units in a unit trust you acquire by converting a convertible note (that is a traditional security) that you acquired after 10 May 1989 and before 16 August 1989. Instead, the first element of the cost base and reduced cost base of the shares or units is the sum of:

 (a) what you paid or gave to acquire the note; and

 (b) any amount you paid in relation to the conversion;

if that sum is more than the market value of the shares or units (at the time of conversion).

 (2) The modification in item 2 of the table in subsection 130‑60(1) of the Income Tax Assessment Act 1997 does not apply to shares you acquire by converting a convertible note (that is not a traditional security) that you acquired before 20 September 1985 where you paid or gave something in relation to the conversion. Instead, the first element of the cost base and reduced cost base of the shares is the sum of:

 (a) the market value of the note at the time of the conversion; and

 (b) what you paid or gave in relation to the conversion.

 (3) Subsection 130‑60(2) of the Income Tax Assessment Act 1997 does not apply to the acquisition of shares by the conversion of a convertible note that you acquired before 20 September 1985 if you did not pay or give anything in relation to the conversion. Instead, you are taken to have acquired them when you acquired the convertible note.

Subdivision 130‑D—Employee share schemes

130‑95  Application of Division

 (1) This Subdivision applies to shares, or rights to acquire shares, you acquired under an employee share scheme if:

 (a) the acquisition occurred on or before 6 pm, by legal time in the Australian Capital Territory, on 28 March 1995; or

 (b) the acquisition occurred before 1 July 1995 as a result of an offer or invitation made on or before the time referred to in paragraph (a) made to employees of a company to acquire shares or rights in the company or in another company of which the first company was a 100% subsidiary; or

 (c) for shares in a public company—the acquisition occurred before 1 July 1996 where:

 (i) an offer or invitation to acquire the shares or rights was made to employees of the company