Document ID: chunk:federal_register_of_legislation:C2014C00751:clause:1_40:p2
Version: federal_register_of_legislation:C2014C00751
Segment Type: clause
Provision Reference: sch 1 cl 40 (pt 2/4)
Character Range: 64084–66752

an *ESS interest; and
 (d) the ESS interest is a beneficial interest in the share or right; and
 (e) Subdivision 83A‑B or 83A‑C (about employee share schemes) applies to the ESS interest.

Market value substitution rule
 (4) Sections 112‑20 and 116‑30 (about the market value substitution rule) do not apply to the extent that they relate to:
 (a) you acquiring an *ESS interest to which Subdivision 83A‑C (about employee share schemes) applies; or
 (b) you:
 (i) forfeiting an ESS interest; or
 (ii) forfeiting or losing an ESS interest that is a beneficial interest in a right (without you having disposed of the interest or exercised the right);
  if Subdivision 83A‑B or 83A‑C applies to the ESS interest (ignoring section 83A‑310).

130‑85  Interests in employee share trusts

Scope
 (1) This section applies if:
 (a) you *acquire an *ESS interest under an *employee share scheme; and
 (b) Subdivision 83A‑B or 83A‑C applies to the ESS interest; and
 (c) the ESS interest is, or arises because of, an interest you hold in an *employee share trust.

Application of Division 83A, Part 3‑1 and this Part
 (2) Division 83A (Employee share schemes), Part 3‑1 (Capital gains and losses: general topics) and this Part apply as if you were absolutely entitled to the relevant *share or right:
 (a) from the time of acquisition of the *ESS interest; and
 (b) until you no longer have an ESS interest in the share or right.
Note 1: An interest you hold in an employee share trust may give rise to an ESS interest because of the operation of section 83A‑320.
Note 2: As a result of subsection (2) of this section, CGT event E5 might happen at the time of acquisition. This may result in the trustee making a capital gain. However, any capital gain made by the beneficiary would be disregarded under section 130‑80.
 (3) However, if this section applies to you because an *associate of yours *acquired the *ESS interest, Division 83A, this Part and Part 3‑3 apply as if your associate were absolutely entitled to the relevant *share or right (instead of you):
 (a) either:
 (i) if Subdivision 83A‑B applies to the ESS interest—from the time of acquisition; or
 (ii) if Subdivision 83A‑C applies to the ESS interest—from immediately after the *ESS deferred taxing point for the ESS interest; and
 (b) until your associate no longer has an ESS interest in the share or right.
Note: Once the ESS interest has been taxed to you under Subdivision 83A‑B or 83A‑C, section 83A‑305 (which treats the interest as having been acquired by you, rather than your associate) is no longer relevant. Subsection (3) of this section ensures that your associate then gets the same tax treatment