Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section sets out how to calculate the discount given in relation to a share or right.
Case 1--discount covered by subsection 139B(2) or (2A)
(2) If subsection 139B(2) or (2A) applies to the discount, the discount is the market value of the share or right at the time when it was acquired by the taxpayer less any consideration paid or given by the taxpayer as consideration for the acquisition of the share or right.
Case 2--discount covered by subsection 139B(3)--share or right disposed of at arm's length within 30 days
(3) If subsection 139B(3) applies to the discount, and the share or right (or any share acquired as a result of the exercise of the right) is disposed of by the taxpayer in an arm's length transaction at the cessation time or within 30 days after the cessation time, the discount is:
(a) the amount or value of any consideration received by the taxpayer for the disposal;
reduced by:
(b) the amount or value of any consideration paid or given by the taxpayer as consideration for the acquisition of the share or right; and
(c) for a right that has been exercised--the amount or value of any consideration paid or given to exercise the right.
Case 3--discount covered by subsection 139B(3)--share or right not disposed of at arm's length within 30 days
(4) If subsection 139B(3) applies to the discount, and the share or right (or any share acquired as a result of the exercise of the right) is not disposed of by the taxpayer in an arm's length transaction at the cessation time or within 30 days after the cessation time, the discount is:
(a) the market value of the share or right (or the share acquired as a result of the exercise of the right) at the cessation time;
reduced by:
(b) the amount of any consideration paid or given by the taxpayer as consideration for the acquisition of the share or right; and
(c) for a right that has been exercised--the amount of any consideration paid or given by the taxpayer to exercise the right.
Note: Section 139DS can affect the amount of consideration that the taxpayer is treated as having paid or given.