Income Tax Act 2007 section 378

Meaning of "issue of securities or shares"

Section 378 defines what constitutes an "issue of securities" and an "issue of shares" for the purposes of this Part of the Act, both in relation to the issuing body and in relation to an individual recipient.

• An "issue of securities" means all securities of a body that carry the same rights, are issued under the same terms, and are issued on the same day.
• An "issue of shares" means all shares in a body that are of the same class and are issued on the same day.
• Where securities or shares are issued to a particular individual, only those allocated to that individual acting in a single capacity form part of that individual's issue.
• These definitions ensure consistency when determining whether securities or shares form part of the same issue for tax purposes under this Part.