Published on 09 Feb 10
by NEW SOUTH WALES DIVISION, THE TAX INSTITUTE
A new regime (Division 83A) has been introduced to tax the acquisition of shares and options under employee share arrangements.
This paper covers:
- the default position - taxed at time of acquisition
- $1,000 reduction available under broad based schemes
- deferral of taxing point where there is a "real risk of loss"
- revised timing of deductions for employers
- new reporting obligations directly impacting on employers
- likely audit activity around employee share plans (directly impacting on employees)
- what is happening with valuation rules?
Note: This paper was also delivered at the event Taxation of Employee Share Ownership
Schemes - The New Rules held in Adelaide on 16 March 2010.
David is a Strategic Adviser in relation to taxation matters operating principally in Sydney. He has been involved in taxation matters for over 35 years, the last 10 as a sole practitioner, and has been writing and presenting on the subject of tax fraud and tax offences since the 1980s with a more recent focus on lessons coming from Operation Wickenby and related investigations, and is the author of Investigations by Administrative Agencies. David was the President of The Tax Institute in 2010.
- Current at
18 September 2013