Document ID: chunk:federal_register_of_legislation:C2005A00147:clause:5_26aad:p2
Version: federal_register_of_legislation:C2005A00147
Segment Type: clause
Provision Reference: sch 5 cl 26AAD (pt 2/3)
Character Range: 150630–153360

ordinary shares; or
 (b) to the extent that the matching shares or rights are rights, they are rights to acquire ordinary shares.

 (5) The third condition is that the matching shares or rights are subject to:
 (a) the same conditions or restrictions as; or
 (b) conditions or restrictions that have the same effect as;
the conditions or restrictions (if any) that attached to the shares or rights in the old company that they can reasonably be regarded as matching.

Apportionment rules

 (6) If:
 (a) subsection (1) applies to shares or rights that the taxpayer has acquired; and
 (b) the taxpayer had paid or given consideration (the original consideration) for an acquisition, under a scheme for the acquisition of shares by employees, of any of the shares or rights in the old company (the original shares or rights);
the taxpayer is treated as having paid or given, for any of the apportionable assets for the original shares or rights, consideration of an amount worked out by spreading the original consideration proportionately among all the apportionable assets according to their market values immediately after the takeover or restructure.

 (7) The apportionable assets for the original shares or rights are:
 (a) all matching shares or rights held by the taxpayer that are treated because of this section as a continuation of the original shares or rights; and
 (b) anything else that the taxpayer acquired in connection with the takeover or restructure and that can reasonably be regarded as matching the original shares or rights; and
 (c) in the case of a restructure—any shares or rights in the old company that the taxpayer held immediately before, and continues to hold immediately after, the restructure and that can reasonably be regarded as matching the original shares or rights.

Definitions

 (8) In this section:

100% takeover has the same meaning as in section 139GCB.

conditions or restrictions, in relation to shares or rights, means conditions or restrictions (if any) relating to:
 (a) the shares or rights, or shares acquired as a result of the exercise of the rights; or
 (b) the issue or disposal of the shares or rights, or shares acquired as a result of the exercise of the rights.

employee, in relation to a company, includes a director of the company.

holding company has the same meaning as in the Corporations Act 2001.

market value has the same meaning as in Subdivision F of Division 13A, as that Subdivision applies for the purposes of section 139DS.

Note: Subsection 139FA(4) alters the meaning of market value of a share or right for the purposes of section 139DS.

restructure has the same meaning as in section 139GCC.

subsidiary has the same meaning as in the Corporations