Document ID: chunk:federal_register_of_legislation:C2010C00260:clause:1_1:p3
Version: federal_register_of_legislation:C2010C00260
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 3/11)
Character Range: 7441–10034

immediately before, the CGT event happens; and
 (b) you would not make a capital gain or loss from the CGT event if you were a foreign resident when, or immediately before, the CGT event happens.

Note: Division 136 deals with capital gains and capital losses by foreign residents.

768‑920  Capital gains and losses on employee shares and rights where taxation of discount not deferred

When this section applies

 (1) This section applies to a *share or right if:
 (a) you *acquire the share or right under an *employee share scheme; and
 (b) you engage in employment, or render services, that affect the holding or acquisition of the shares or rights while you are a *temporary resident; and
 (c) the share or right does not have the *necessary connection with Australia; and
 (d) either:
 (i) the share or right is not a *qualifying share or *qualifying right; or
 (ii) the share or right is a qualifying share or qualifying right and you have made an election under section 139E of the Income Tax Assessment Act 1936 covering the share or right; and
 (e) a *CGT event happens in relation to the share or right; and
 (f) if the CGT event is CGT event I1—you are not a temporary resident immediately before the event happens; and
 (g) you would make a *capital gain or *capital loss from the CGT event, and the capital gain or capital loss would not be disregarded, if you were an Australian resident (but not a temporary resident) when the CGT event happens; and
 (h) this section has not previously applied to you in relation to a CGT event in relation to the share or right.

Note: Paragraph (a)—section 139DQ of the Income Tax Assessment Act 1936 applies for the purposes of this Subdivision to treat a matching share or right issued as part of a 100% takeover or restructure as a continuation of the share or right it matches.

 (2) This section also applies to a *share (the derived share) if:
 (a) you *acquire a right (the original right) under an *employee share scheme; and
 (b) you engage in employment, or render services, that affect the holding or acquisition of the original right, or the derived share, while you are a *temporary resident; and
 (c) you acquire the derived share by exercising the original right; and
 (d) the derived share does not have the *necessary connection with Australia; and
 (e) either:
 (i) the original right is not a *qualifying right; or
 (ii) the original right is a qualifying right and you have made an election under section 139E of the Income Tax Assessment Act 1936 covering the original right; and
 (f) a *CGT event happens in relation