Document ID: chunk:federal_register_of_legislation:C2014C00751:clause:1_1:p8
Version: federal_register_of_legislation:C2014C00751
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 8/13)
Character Range: 22691–25328

mentioned in subsections (4) to (7).
 (3) However, the ESS deferred taxing point for the *ESS interest is:
 (a) the time you dispose of the ESS interest (other than by exercising the right); or
 (b) if you exercise the right—the time you dispose of the beneficial interest in the *share;
if that time occurs within 30 days after the time worked out under subsection (2).

No restrictions on disposing of right
 (4) The first possible taxing point is the earliest time when:
 (a) you have not exercised the right; and
 (b) there is no real risk that, under the conditions of the *employee share scheme, you will forfeit or lose the *ESS interest (other than by disposing of it, exercising the right or letting the right lapse); and
 (c) if, at the time you acquired the ESS interest, the scheme genuinely restricted you immediately disposing of the ESS interest—the scheme no longer so restricts you.

Cessation of employment
 (5) The 2nd possible taxing point is the time when the employment in respect of which you acquired the interest ends.

Maximum time period for deferral
 (6) The 3rd possible taxing point is the end of the 7 year period starting when you acquired the interest.

No restrictions on exercising right and disposing of share
 (7) The 4th possible taxing point is the earliest time when:
 (a) there is no real risk that, under the conditions of the scheme, you will forfeit or lose the *ESS interest (other than by disposing of it, exercising the right or letting the right lapse); and
 (b) if, at the time you acquired the ESS interest, the scheme genuinely restricted you immediately exercising the right—the scheme no longer so restricts you; and
 (c) there is no real risk that, under the conditions of the scheme, if you exercise the right, you will forfeit or lose the beneficial interest in the *share (other than by disposing of it); and
 (d) if, at the time you acquired the ESS interest, the scheme genuinely restricted you immediately disposing of the beneficial interest in the share if you exercised the right—the scheme no longer so restricts you.

83A‑125  Tax treatment of ESS interests held after ESS deferred taxing points
  For the purposes of this Act (other than this Division), the *ESS interest (and the *share or right of which it forms part) is taken to have been acquired immediately after the *ESS deferred taxing point for the interest for its *market value, unless the ESS deferred taxing point occurs at the time the interest is disposed of.
Note: Regulations made for the purposes of section 83A‑315 may substitute a different amount for the market value of the ESS interest.

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