Document ID: chunk:federal_register_of_legislation:C2025C00014:section:159gv:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 159GV (pt 1/2)
Character Range: 1442845–1445484

159GV  Consequence of variation of terms of security
 (1) Where, after 22 May 1986, a material variation is made in the terms of a security, for the purposes of the application of this Division in relation to the security in respect of the period after the variation and before any subsequent material variation:
 (a) the security shall be taken to have been issued on the terms on which it was originally issued as varied by the material variation and any prior variation;
 (b) where consideration for the variation is paid or payable by the holder of the security—the issue price of the security shall be taken to be an amount equal to the amount that was the issue price of the security immediately before this application of this subsection increased by the amount of that consideration;
 (c) where consideration for the variation is paid or payable by the issuer of the security—the issue price of the security shall be taken to be an amount equal to the amount that was the issue price of the security immediately before this application of this subsection reduced by the amount of that consideration; and
 (d) paragraph (a) of the definition of qualifying security in subsection 159GP(1) shall be disregarded.
 (2) Where:
 (a) subsection (1) applies in relation to a security held by a taxpayer in relation to a material variation in the terms of the security; and
 (b) if:
 (i) that subsection had effect not only in relation to the period after the variation but also in relation to the whole of the term of the security before the variation; and
 (ii) any previous material variations were taken into account but any subsequent material variations were disregarded;
  the sum (in this subsection referred to as the  total notional taxable income) of the taxable incomes of the taxpayer in respect of the year of income in which the variation is made and all previous years of income would have differed from the sum (in this subsection referred to as the  total actual taxable income) of the actual taxable incomes of the taxpayer of those years of income;
the following provisions have effect:
 (c) where the total notional taxable income exceeds the total actual taxable income—an amount equal to the excess shall be included in the assessable income of the taxpayer of the year of income in which the variation is made;
 (d) where the total actual taxable income exceeds the total notional taxable income—an amount equal to the excess shall be allowable as a deduction from the assessable income of the taxpayer of the year of income in which the variation is made.
 (3) In this section, a reference to a material variation of