Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 4) 1986 No. 154 of 1986 - SECT 35

35. Section 160ZZC of the Principal Act is amended-

   (a)  by inserting in sub-section (3) "sub-section (3A) and to" after

"Subject to"; and

   (b)  by inserting after sub-section (3) the following sub-sections:

"(3A) Where, on or after 20 September 1985-

   (a)  a company grants an option to-

        (i)    acquire shares in the company; or

        (ii)   acquire debentures of the company; or

   (b)  the trustee of a unit trust grants an option to-

        (i)    acquire units in the unit trust; or

        (ii)   acquire debentures of the unit trust,
the following provisions have effect:

   (c)  the grant of the option shall not be taken to have constituted a
        disposal of the option at the time when the grant took effect;

   (d)  if the option is exercised-the grant of the option shall not be taken
        to have constituted a disposal of the option at any time;

   (e)  if the option expires without being exercised or is cancelled,
        released or abandoned-

        (i)    the grant of the option shall be taken to have constituted a
               disposal of the option at the time when the option expires or
               is cancelled, released or abandoned, as the case may be; and

        (ii)   the option shall be deemed to have been owned by the grantor
               immediately before the disposal took place.

"(3B) A reference in sub-section (3A) to a debenture of a unit trust is a
reference to anything issued by the trustee of the unit trust that, if the
unit trust were a company, would be a debenture of the company.".