Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 139DS

             (1)  If:

                     (a)  subsection 139DQ(1) applies to shares or rights that the taxpayer has acquired; and

                     (b)  the taxpayer had paid or given consideration (the original consideration ) for an acquisition, under an employee share scheme, of any of the shares or rights in the old company (the original shares or rights );

the taxpayer is treated as having paid or given, for any of the apportionable assets for the original shares or rights, consideration of an amount worked out by spreading the original consideration proportionately among all the apportionable assets according to their market values immediately after the takeover or restructure.

Note:          Subsection 139FA(4) alters the meaning of market value of a share or right for the purposes of this section.

             (2)  The apportionable assets for the original shares or rights are:

                     (a)  all matching shares or rights held by the taxpayer that are treated because of this Division as a continuation of the original shares or rights; and

                     (b)  anything else that the taxpayer acquired in connection with the takeover or restructure and that can reasonably be regarded as matching the original shares or rights; and

                     (c)  in the case of a restructure--any shares or rights in the old company that the taxpayer held immediately before, and continues to hold immediately after, the restructure and that can reasonably be regarded as matching the original shares or rights.