This TD issued on Wed 3.12.2014, states that where a right to acquire a beneficial interest in a share is granted subject to shareholder approval and an employee acquires only a right to have the matter put to the shareholders and nothing more, that right is not an “indeterminate right” within the meaning of s 83A-340(1) of the ITAA 1997. It also states that prior to shareholder approval being given, such a right is not an ESS interest within the meaning of s 83A-10(1) as it is not yet a right to acquire a beneficial interest in a share. Further, the Determination notes that it applies for the purposes of s 83A-15 of the Income Tax (Transitional Provisions) Act 1997. It was previously issued as Draft TD 2014/D16 and is the same.
DATE OF EFFECT: Applies to years of income commencing both before and after its date of issue.
[LTN 234, 3/12/14]