Income Tax – New Shares Issued to Employee - Shareholders - Resulting Benefit

Prebble KC, John

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Income Tax – New Shares Issued to Employee - Shareholders - Resulting Benefit

Recent Law, pp. 279-280, August 1978

3 Pages Posted: 1 Feb 2010 Last revised: 1 May 2015

See all articles by John Prebble KC

John Prebble KC

Victoria University of Wellington, Te Herenga Waka - Faculty of Law; Institut für Österreichisches und Internationales Steuerrecht, Wirtschaftsuniversität Wien; University of Notre Dame Australia - School of Law

Date Written: February 1, 2010

Abstract

Section 69 of the Income Tax Act 1976 was originally enacted to tax otherwise tax-free share option schemes. The section also catches direct issues of shares to employees without the added element of an option, as demonstrated in Hannigan v. CIR 3 NZTC 61,247.

Keywords: Income Tax Act 1976, Share Option Schemes, Avoidance

JEL Classification: K34

Suggested Citation: Suggested Citation

Prebble KC, John, Income Tax – New Shares Issued to Employee - Shareholders - Resulting Benefit (February 1, 2010). Recent Law, pp. 279-280, August 1978, Available at SSRN: https://ssrn.com/abstract=1545474