Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:13_5:p5
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 13 cl 5 (pt 5/7)
Character Range: 182381–185193

exempting entity.
      A concession is made to employees of the entity who receive a franked distribution because they hold shares under an eligible employee share scheme.

Table of sections

Operative provisions
208‑195 Division 207 does not generally apply
208‑200 Distributions to exempting entities
208‑205 Distributions to employees acquiring shares under an eligible employee share scheme
208‑210 Subsidiaries
208‑215 Eligible employee share scheme
[This is the end of the Guide.]

Operative provisions

208‑195  Division 207 does not generally apply
  Division 207 does not apply to a *distribution by an *exempting entity, unless expressly applied under this Subdivision.

208‑200  Distributions to exempting entities
 (1) Division 207 applies to a *franked distribution made by an *exempting entity to another exempting entity if the distribution gives rise to a *franking credit for the other exempting entity under item 5 or 6 of the table in section 208‑130.
 (2) Division 207 applies to a *franked distribution that is made by an *exempting entity and *flows indirectly to another exempting entity if the distribution gives rise to a *franking credit for that other entity under item 7 of the table in section 208‑130.

208‑205  Distributions to employees acquiring shares under an eligible employee share scheme
  Division 207 also applies to a *franked distribution made by an *exempting entity if:
 (a) the distribution is made to a person who is an employee of the exempting entity, or of a *company that is a *subsidiary of the exempting entity, at the time the distribution is made; and
 (b) the recipient acquired the *share on which the distribution is made under an *employee share scheme in circumstances specified as relevant in section 208‑215; and
 (c) the recipient does not hold that share as a trustee.

208‑210  Subsidiaries
  The question whether a company is a subsidiary of another company is to be determined in the same way as the question whether a corporation is a subsidiary of another corporation is determined under the Corporations Act 2001.

208‑215  Eligible employee share scheme
  A *share in a *company is acquired by a person under an *employee share scheme in circumstances that are relevant for the purposes of paragraph 208‑205(b) and 208‑235(b) if:
 (a) the share is acquired by the person in respect of, or for or in relation directly or indirectly to, any employment of the person by the entity or by an entity that is a *subsidiary of the company; and
 (b) all the shares available for acquisition under the scheme are ordinary shares or are preference shares to which are attached substantially the same rights as are attached to ordinary shares; and
 (c) immediately after the acquisition of the shares:
 (i) the person does not hold a legal or beneficial