Document ID: chunk:federal_register_of_legislation:C2014C00751:clause:1_40:p3
Version: federal_register_of_legislation:C2014C00751
Segment Type: clause
Provision Reference: sch 1 cl 40 (pt 3/4)
Character Range: 66501–69146

under Subdivision 83A‑B or 83A‑C, section 83A‑305 (which treats the interest as having been acquired by you, rather than your associate) is no longer relevant. Subsection (3) of this section ensures that your associate then gets the same tax treatment as you would have, had you originally acquired the interest. This does not, however, imply a disposal from you to your associate.

Meaning of employee share trust
 (4) An employee share trust, for an *employee share scheme, is a trust whose sole activities are:
 (a) obtaining *shares or rights in a company; and
 (b) ensuring that *ESS interests in the company that are beneficial interests in those shares or rights are provided under the employee share scheme to employees, or to *associates of employees, of:
 (i) the company; or
 (ii) a *subsidiary of the company; and
 (c) other activities that are merely incidental to the activities mentioned in paragraphs (a) and (b).

130‑90  Shares held by employee share trusts
 (1) Disregard any *capital gain or *capital loss made by an *employee share trust, or a beneficiary of the trust, to the extent that it results from a *CGT event, if:
 (a) the CGT event is CGT event E5 or E7; and
 (b) the CGT event happens in relation to a *share; and
 (c) the beneficiary had acquired a beneficial interest in the share by exercising a right; and
 (d) the beneficiary's beneficial interest in the right was an *ESS interest to which Subdivision 83A‑B or 83A‑C (about employee share schemes) applied.
 (2) Subsection (1) does not apply if the beneficiary acquired the beneficial interest in the *share for more than its *cost base in the hands of the *employee share trust at the time the *CGT event happens.

130‑95  Shares and rights in relation to ESS interests
  For the purposes of Part 3‑1 (Capital gains and losses: general topics) and this Part, treat a *CGT event that happens in relation to a *share or right in the same way as a CGT event that happens in relation to an *ESS interest, if:
 (a) Subdivision 83A‑B or 83A‑C (about employee share schemes) applies to the ESS interest; and
 (b) the ESS interest forms part of the share or right.

130‑100  Application of certain provisions of Division 83A
  The following provisions have effect for the purposes of this Subdivision in the same way as they have for the purposes of Division 83A:
 (a) section 83A‑130 (about takeovers and restructures);
 (b) section 83A‑305 (about associates);
 (c) section 83A‑320 (about trusts);
 (d) section 83A‑325 (about relationships similar to employment);
 (e) section 83A‑335 (about stapled securities);
 (f) section 83A‑340 (about indeterminate rights).