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INCOME TAX ASSESSMENT ACT 1997 - SECT 104.30 End of option to acquire shares etc.: CGT event C3

INCOME TAX ASSESSMENT ACT 1997 - SECT 104.30

End of option to acquire shares etc.: CGT event C3

  (1)   CGT event C3 happens if an option a company or a trustee of a unit trust granted to an entity to * acquire a * CGT asset that is:

  (a)   * shares in the company or units in the unit trust; or

  (b)   * debentures of the company or unit trust;

ends in one of these ways:

  (c)   it is not exercised by the latest time for its exercise;

  (d)   it is cancelled;

  (e)   it is released or abandoned.

  (2)   The time of the event is when the option ends.

  (3)   The company or trustee makes a capital gain if the * capital proceeds from the grant of the option are more than the expenditure incurred in granting it. It makes a capital loss if those capital proceeds are less .

  (4)   The expenditure can include giving property: see section   103 - 5. However, it does not include an amount you have received as * recoupment of it and that is not included in your assessable income.

Exception

  (5)   A * capital gain or * capital loss the company or trustee makes is disregarded if it granted the option before 20   September 1985.

Note:   This subsection is modified for the purpose of calculating the attributable income of a CFC: see section   418 of the Income Tax Assessment Act 1936 .

Table of sections

104 - 35   Creating contractual or other rights: CGT event D1

104 - 40   Granting an option: CGT event D2

104 - 45   Granting a right to income from mining: CGT event D3

104 - 47   Conservation covenants: CGT event D4

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