Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 139D

             (1)  This section applies if:

                     (a)  a taxpayer has acquired a share or right under an employee share scheme; and

                     (b)  the share or right was acquired by the taxpayer in respect of, or for or in relation directly or indirectly to, any employment of, or services rendered by, an associate of the taxpayer; and

                     (c)  apart from this section, an amount:

                              (i)  would be included in respect of the acquisition in the assessable income of the taxpayer of a year of income under this Division; or

                             (ii)  would have been so included if the taxpayer had been a resident at the time of the acquisition.

             (2)  Subject to subsection (3), if this section applies, the amount is included in the associate's assessable income of the year of income instead of in the taxpayer's assessable income.

             (3)  If:

                     (a)  this section applies; and

                     (b)  the taxpayer acquired the share or right while the associate was not an employee; and

                     (c)  the associate subsequently became an employee while the taxpayer was holding the share or right;

the amount is included in the associate's assessable income in the year of income in which, after the acquisition, the associate first becomes an employee in respect of employment or services that affect the acquisition or holding of the share or right.

Note:          Subsection 139GA(2) limits the meaning of employee in this subsection, so that engagement in foreign service is not of itself sufficient.