Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 5/13)
Character Range: 3661552–3664476

it appropriate, make a further determination under subsection (4).
 (7) A determination, unless it is revoked, has effect according to its terms.

Subdivision 208‑G—Tax effects of distributions by exempting entities

Guide to Subdivision 208‑G

208‑190  What this Subdivision is about

      Generally, a franked distribution from an exempting entity will only generate a tax effect for the recipient under Division 207 if the recipient is also an exempting entity.
      A concession is made to employees of the entity who receive a franked distribution because they hold shares acquired under an eligible employee share scheme.

Table of sections

Operative provisions
208‑195 Division 207 does not generally apply
208‑200 Distributions to exempting entities
208‑205 Distributions to employees acquiring shares under eligible employee share schemes
208‑215 Eligible employee share schemes

Operative provisions

208‑195  Division 207 does not generally apply
  Division 207 does not apply to a *distribution by an *exempting entity, unless expressly applied under this Subdivision.

208‑200  Distributions to exempting entities
 (1) Division 207 applies to a *franked distribution made by an *exempting entity to another exempting entity if the distribution gives rise to a *franking credit for the other exempting entity under item 5 or 6 of the table in section 208‑130.
 (2) Division 207 applies to a *franked distribution that is made by an *exempting entity and *flows indirectly to another exempting entity if the distribution gives rise to a *franking credit for that other entity under item 7 of the table in section 208‑130.

208‑205  Distributions to employees acquiring shares under eligible employee share schemes
  Division 207 also applies to a *franked distribution made by an *exempting entity if:
 (a) the distribution is made to an individual who, at the time the distribution is made, is an employee of:
 (i) the exempting entity; or
 (ii) a *subsidiary of the exempting entity; and
 (b) the employee acquired a beneficial interest in the *share on which the distribution is made:
 (i) under an *employee share scheme; and
 (ii) in circumstances specified as relevant in section 208‑215; and
 (c) the employee does not hold that beneficial interest as a trustee.

208‑215  Eligible employee share schemes
 (1) An individual acquires a beneficial interest in a *share in a company under an *employee share scheme in circumstances that are relevant for the purposes of paragraphs 208‑205(b) and 208‑235(b) if:
 (a) all the *ESS interests available for acquisition under the scheme relate to:
 (i) ordinary shares; or
 (ii) preference shares to which are attached substantially the same rights as are attached to ordinary shares; and
 (b) immediately after the individual acquires the interest:
 (i) he or she does not hold a beneficial interest in more than 10% of the shares in the company; and
 (ii) he