The individual wants to get a tax incentive. I am quite sure that when you exercise an option and it becomes less than what is what paid for, it's like selling and re-buying without the brokerage expense added on. Very expensive method to reduce a capital gain though because there are better ways such as making tax deductible donations and then re-claiming them on income tax. Very interesting indeed.
(NOT HELD**)
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- Ann: Appendix 3B-AVQ.AX
Ann: Appendix 3B-AVQ.AX, page-7
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