Issue
Will the Trustee of an employee share scheme Trust be assessed under sections 6-5 or 6-10 of the Income Tax Assessment Act 1997 (ITAA 1997) on contributions it receives from an employer made to it for the purpose of and under the employer's employee share scheme?
Decision
No. The Trustee of the employee share scheme Trust will not be assessed under sections 6-5 or 6-10 of the ITAA1997 on contributions made to it by an employer for the purpose of and under the employer's employee share scheme.
Facts
The employer's employee share scheme complies with the provisions of Division 83A of the Income Tax Assessment Act 1997 (ITAA 1997).
The taxpayer is a Trustee appointed for the purpose of and under the employer's employee share scheme to administer the scheme. The employer contributes amounts to the Trustee for the purpose of and under its employee share scheme.
Reasons for Decision
The funds provided to the Trustee are used in accordance with the Trust Deed and Plan Rules for the sole purpose of and under the employee share scheme. The contributions constitute capital receipts to the Trustee, and are not assessable under sections 6-5 or 6-10 of the ITAA 1997.
Amendment History
Date of Amendment Part Comment 7 August 2018 Facts Repealed Division 13A of the ITAA 1936 replaced with Division 83A of the ITAA 1997, the new employee share scheme provisions. Year of income Changed to 2010 to enable current provisions to be the relevant provisions.
Date of Amendment | Part | Comment
7 August 2018 | Facts | Repealed Division 13A of the ITAA 1936 replaced with Division 83A of the ITAA 1997, the new employee share scheme provisions.
Year of income | Changed to 2010 to enable current provisions to be the relevant provisions.