Commentary on Sections Overview Overview Section 489: “The applicable period” in relation to shares
1434.This section explains the meaning of “the applicable period”. It is based on sections 686B(3) to (5) and 686C(4) and (5) of ICTA.
1435.Subsections (2) to (4) state the basic rule that the applicable period ends at the earliest of:
	five years from the acquisition of the shares;
	two years from the acquisition of the shares if any shares in the company were readily convertible assets at that time; and
	two years from the date that any shares in the company became readily convertible assets.
1436.Subsections (5) and (6) provide that the basic rule is varied in a case where the shares were acquired in consequence of a contribution to the plan by the company for which it is allowed a deduction under paragraph 9 of Schedule 4AA to ICTA. In such a case the applicable period ends ten years after the shares were acquired.