The Issues Log

Issue: DC 13(5)(d), DC 12(5)(d), DF 7(2)(h)(iii)

Submission Number	91
Submitter	Deloitte
Section / Provision Income Tax Act 2007	DC 13(5)(d)
Section / Provision Income Tax Act 2004	DC 12(5)(d)
Date Received	15/10/08
Description of issue	There appears to be an unintended change in the employee share purchase scheme rules relating to the requirements for shares held on trust. Section DC 13(5)(d) of the Income Tax Act 2007 (Section DC 12(5)(d) of the Income Tax Act 2004) requires the scheme to prohibit the employee from putting any dividends towards the repayment of their share purchase loan. Contrast this with the requirement in DF 7(2)(h)(iii) of the Income Tax Act 1994 that the trustee shall not appropriate the dividend towards the repayment of the employee’s share purchase loan. This has not been identified as an intended change in Schedule 22A of the Income Tax Act 2004.
Section / Provision Income Tax Act 1994	DF 7(2)(h)(iii)
Status	Finalised
Outcome	The Panel has concluded and agree an unintended legislative change arises in respect of section DC 12(5)(d) of the Income Tax Act 2004 – and has been carried over to section DC 13(5)(d) of the Income Tax Act 2007. Both the Income Tax Act 2004 and the Income Tax Act 2007 be amended retrospectively.