8B. Taxation of amounts derived from broad-based employee share plan

(1)     Notwithstanding section 9C, there must be included in the income of a person for a year of assessment any gain made by that person during that year from the disposal of any qualifying equity share or any right or interest in a qualifying equity share, which is disposed of by that person within five years from the date of grant of that qualifying equity share, otherwise than –

(a)     in exchange for another qualifying equity share as contemplated in subsection (2);

(b)     on the death of that person; or

(c)     on the insolvency of that person.

(2)    If a person disposes of a qualifying equity share in exchange solely for any other equity share in that employer or any company that is an associated institution as defined in the Seventh Schedule in relation to that employer, that other equity share acquired in exchange is deemed to be-

(a)     a qualifying equity share which was acquired by that person on the date of grant of the qualifying equity share disposed of in exchange; and

(b)     acquired for a consideration equal to any consideration given for the qualifying equity share disposed of in exchange.

(2A)  If a person acquires any equity share by virtue of any qualifying equity share held by that person, that other equity share so acquired is deemed to be a qualifying equity share which was acquired by that person on the date of grant of the qualifying equity share so held by that person.

(2B)   If a person disposes of any right or interest in a qualifying equity share, the amount of consideration incurred in respect of the acquisition of that qualifying equity share that is attributable to that right or interest must be determined in accordance with the ratio that the amount received for the disposal of that right or interest bears to the market value of that qualifying equity share immediately before that disposal.