Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:2_2:p8
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 2 cl 2 (pt 8/14)
Character Range: 736061–738690

time in the Australian Capital Territory, on 20 August 1996.

Division 130—Investments

Table of Subdivisions

130‑A Bonus shares and units

130‑B Rights

130‑C Convertible notes

130‑D Employee share schemes

Subdivision 130‑A—Bonus shares and units

130‑20  Issue of bonus shares or units

 (1) This section modifies some of the rules in section 130‑20 of the Income Tax Assessment Act 1997 if:

 (a) you own shares in a company or units in a unit trust (the original equities); and

 (b) on or before the day specified in subsection (2) or (3), the company issues other shares, or the trustee issues other units, (the bonus equities) to you because it owes an amount to you in relation to the original equities.

 (2) If the bonus equities are shares and they were issued on or before 30 June 1987:

 (a) subsection 130‑20(2) of the Income Tax Assessment Act 1997 does not apply to you; and

 (b) you work out the cost base and reduced cost base of the bonus equities under subsection 130‑20(3) of that Act regardless of whether any part of the amount owed to you by the company is a dividend.

 (3) The rule in item 2 of the table in subsection 130‑20(3) of the Income Tax Assessment Act 1997 does not apply if the bonus equities were issued on or before 1 pm, by legal time in the Australian Capital Territory, on 10 December 1986 and you were required to pay or give something for them. Instead, you are taken to have acquired the bonus equities when you acquired the original equities.

Subdivision 130‑B—Rights

130‑40  Exercise of rights

 (1) The modifications in section 130‑40 of the Income Tax Assessment Act 1997 apply to you for rights (issued to you by a company before 16 August 1989) to acquire shares, or options to acquire shares, in that company, only if you were a shareholder of that company.

 (2) The modifications in section 130‑40 of the Income Tax Assessment Act 1997 apply to you for rights (issued to you by a company after 15 August 1989 and before the start of the 1993‑94 income year) to acquire shares, or options to acquire shares in the company because you were a shareholder of another company, only if the companies were members of the same wholly‑owned group for the whole of the income year in which the issue occurred.

 (3) The modification in item 3 of the table in section 130‑40 of the Income Tax 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