Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:2_2:p10
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 2 cl 2 (pt 10/14)
Character Range: 740773–743386

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 or of another company that was a subsidiary of that company within the meaning of the Corporations Law; and

 (ii) if approval of shareholders was required for the scheme—that approval was given on or before the time referred to in paragraph (a); or

 (d) you elected under subitem 11(5) of Part 4 of Schedule 2 to the Taxation Laws Amendment Act (No. 2) 1995 that the amendments made by that Schedule not apply to the acquisition;

and an amount was included in your assessable income under section 26AAC of the Income Tax Assessment Act 1936 because of the acquisition.

 (2) Despite subsection (1), this Subdivision does not apply to the shares or rights if you elected under item 12 or 13 of Part 4 of Schedule 2 to the Taxation Laws Amendment Act (No. 2) 1995 that the amendments made by that Schedule apply to their acquisition.

130‑100  Cost base modification

  The first element of the cost base and reduced cost base of the shares or rights is their market value (at the time of acquisition) reduced by any amount that is excluded from being included in your assessable income under paragraph 26AAC(4F)(c) of the Income Tax Assessment Act 1936.

130‑105  Time of acquisition

  If subsection 26AAC(15) of the Income Tax Assessment Act 1936 applies to the acquisition, you are taken to have acquired the shares or rights at the time set out in that subsection.

Note: That subsection deals with the case where there are conditions or restrictions on your disposal of the shares or rights. The time of acquisition is when the conditions or restrictions end.

130‑110  Disposals by trustees

 (1) A capital gain or a capital loss a trustee makes when a beneficiary becomes absolutely entitled to a share or right in a company is disregarded if these conditions are satisfied.

 (2) The beneficiary must be:

 (a) a PAYE earner of the company or of another company (at the time the beneficiary first became beneficially entitled to the share or right); or

 (b) an associate or affiliate company of such a PAYE earner.

 (3) The terms of the trust must have required or authorised the trustee to transfer the share or right to the PAYE earner or 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