Document ID: chunk:federal_register_of_legislation:C2025C00014:section:26bc:p7
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 26BC (pt 7/9)
Character Range: 254744–257347

the incidental costs to the borrower of the acquisition of an eligible security covered by sub‑subparagraph (3)(a)(ii)(B) include a compensatory payment incurred by the borrower (to the extent that the borrower has not deducted and cannot deduct it).
 (9B) For the purposes of the application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to a right or option received by the lender as mentioned in subparagraph (3)(c)(v), the borrower and lender are to be treated as if the eligible security in respect of which the right or option was issued had been held by the lender at the time of the acquisition of the right or option.
 (9C) For the purposes of the application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to a share, unit, bond, debenture or financial instrument received by the lender as mentioned in subparagraph (3)(c)(vi), the borrower and the lender are to be treated as if:
 (a) the share, unit, bond, debenture or financial instrument had been received as the result of the exercise of the borrowed security; and
 (b) the borrowed security had been held by the lender at the time of the exercise; and
 (c) the lender had exercised the borrowed security; and
 (d) the lender had exercised the borrowed security at the time the direction concerned was given; and
 (e) the amount of the contribution (if any) made by the lender to the borrower in respect of the carrying out of the direction were an amount paid as consideration by the lender in respect of the exercise.
 (9D) If a distribution covered by subparagraph (3)(c)(i) consists of one or more shares issued by a company to the borrower or to a third party in the circumstances mentioned in subsection 6BA(1), then, for the purposes of the application of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 to a share (in this subsection called the notional bonus share) received by the lender in relation to the distribution in the circumstances mentioned in sub‑subparagraph (3)(c)(iv)(A) or (B), the borrower and the lender are to be treated as if:
 (a) the company had issued the notional bonus share to the lender instead of the borrower or the third party, as the case requires; and
 (b) the notional bonus share had been issued in the circumstances mentioned in subsection 6BA(1); and
 (c) the notional bonus share had been issued in respect of the borrowed security; and
 (d) the lender had held the borrowed security at the time the notional bonus share was issued.
 (9E) If a distribution covered by subparagraph (3)(c)(i) consists of one or more units issued by the trustee of a unit trust