Non market value acquisition of shares or share options by a self-managed superannuation fund

A public or private company ('the company') establishes an employee share scheme ('ESS'). 2. The company invites any or all of the following parties to participate in the ESS: a. employees; b. directors; and/or c. independent contractors who are in relationships similar to employment. 3. The ESS allows the individual or their associates (including the trustee of an SMSF) to acquire shares or rights to acquire shares ('share options') in the company. 4. The shares or share options are provided in relation to employment or services provided similar to employment for no consideration or less than market value consideration. 5. The individual ('the taxpayer') nominates the trustee of their SMSF ('the trustee') as the acquirer of the shares or the share options. 6. The trustee pays no consideration for the shares or share options, or the consideration given is less than market value. 7. The trustee of the SMSF may not recognise and record the market value of the shares or the share options. 8. The taxpayer may not appropriately account for any income tax liability arising from the above transactions.