Ann: Ceasing to be a substantial holder, page-29

Yes i do realise how the tax law works Mickey with first on first off. I was trying to make it simple without having to go into detail.

First on first off is assuming that the shares were bought as an investment and on an equal basis with others already held under that classification. If the shares were obtained via an option conversion that was made as part of reasonable remuneration ( as defined and stated under justification for their issue ) then it can be argued that they are indeed income. As such they can be treated as being part of normal remuneration and so taxed accordingly. Especially if there is a previous history of doing such transactions.

Its all about intent. The ATO would argue it is part of his income IMO.