04 Jun 1313 Taxpayer assessable when rights to employee shares vested, not when granted
The AAT has held that the taxpayer, a senior officer in the Australian subsidiary of a large multi-national company listed on the London Stock Exchange, derived assessable income under the former Div 13A ITAA 1936 when rights that he acquired under an employee share scheme vested as shares, rather than when the rights were granted.
The AAT noted that the only way around this outcome was for the taxpayer to make an election under the former s 139E to allow the relevant amount to be assessed in the income years in which the rights were granted, but that was not done by the taxpayer.
The AAT also upheld the penalty imposed by the Commissioner, notwithstanding the taxpayer's claim of hardship due to the fact that the value of the shares that he continued to hold subsequently fell dramatically in the "global financial crisis".
The Taxpayer and FCT  AATA 367 (31 May 2013)