Document ID: chunk:federal_register_of_legislation:C2025C00014:section:26bc:p8
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 26BC (pt 8/9)
Character Range: 257122–259760

and
 (d) the lender had held the borrowed security at the time the notional bonus share was issued.
 (9E) If a distribution covered by subparagraph (3)(c)(i) consists of one or more units issued by the trustee of a unit trust to the borrower or to a third party in the circumstances covered by section 130‑20 of the Income Tax Assessment Act 1997, then, for the purposes of the application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to a unit (in this subsection called the notional bonus unit) received by the lender in relation to the distribution in the circumstances mentioned in sub‑subparagraph (3)(c)(iv)(A) or (B), the borrower and the lender are to be treated as if:
 (a) the trustee had issued the notional bonus unit to the lender instead of the borrower or the third party, as the case requires; and
 (b) the notional bonus unit had been issued in the circumstances covered by section 130‑20 of the Income Tax Assessment Act 1997; and
 (c) the notional bonus unit had been issued in respect of the borrowed security; and
 (d) the lender had held the borrowed security at the time the notional bonus unit was issued.
 (9F) If the lender receives a compensatory payment covered by sub‑subparagraph (3)(c)(v)(C), then, for the purposes of the application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to the lender, the lender is to be treated as if:
 (a) the lender had held the borrowed security at all relevant times during the borrowing period; and
 (b) the right or option had been issued directly to the lender in respect of the borrowed security; and
 (c) the lender had disposed of the right or option immediately after its issue and had received capital proceeds of an amount equal to the compensatory payment.
 (9G) If the lender receives a compensatory payment covered by sub‑subparagraph (3)(c)(vi)(C), then, for the purposes of the application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to the lender, the lender is to be treated as if:
 (a) the lender had held the right or option at all relevant times during the borrowing period; and
 (b) the lender had exercised the right or option; and
 (c) the lender had immediately disposed of the shares, units, bonds, debentures or financial instruments that resulted from exercising the right or option and had received capital proceeds of an amount equal to the compensatory payment.
 (11A) If:
 (a) the lender receives from the borrower a distribution or identical property covered by subparagraph (3)(c)(iv); and
 (b) assuming that the borrowed security had continued to be held by the lender, an amount (in this subsection