Section 990: Withdrawal of deduction under section 989
2544.This section withdraws the relief given by section 989 if the shares acquired with the payment are not awarded within specified time limits. It is based on paragraph 10 of Schedule 4AA to ICTA.
2545.Subsection (4) provides that the relief is withdrawn by treating the deduction as an amount received by the company. This amount is taxed in accordance with the rules in section 986.
2546.This section refers to a deduction being given under section 989. It is possible that the deduction may have been given under paragraph 9 of Schedule 4AA to ICTA if the relief was given in an accounting period before this Act took effect. The general continuity of law provisions in Schedule 1 to this Act provide that where necessary references to the new legislation should be read as applying also to the source legislation. So the recovery provisions still apply.
2547.This section contains a change to clarify and make more consistent the way in which withdrawn relief is treated. See Change 76 in Annex 1 and the commentary on section 986.
