http://www.ird.govt.nz/yoursituation-bus/bus-aust-nz/tax-basics/comp-inctax/
And to add to Geoff very astute comment, an international wrinkle. Shares are essentially discounted cash-flow of future profits (expected margin between revenue and costs). NZ has ZERO capital gains tax (for the moment assuming govt doesn't loses sanity). Also under certain circumstances for a licensing trust, it imposes NO TAXES on overseas revenue (passthrough entity). You can have a NZ trust, and Australian operating company with final destination of the dividends in ... say HK with its low marginal personal tax. Yes, it's non-trivial (my client is planning on establishing multiple master licenses around the world given his market is potentially in the billions) but once established, it can be very efficient. Since the startup costs are high (international tax lawyers are NOT cheap) the only way it would be cost-effective for SiliconBeachAustralia participants is a once-off establishment fee (say for domain of Cloud Computing) with sub-trusts for IaaS, PaaS, SaaS plays and pool together all the IP (with pro-rata units granted to each company that contributes). Then once the unit trust with licensing revenue is well established, it can be listed for liquidity. As always, personal circumstances vary and always seek professional advice when undertaking complex transactions. Lawrence http://nz.linkedin.com/in/drllau On Feb 21, 8:35 am, "Geoff McQueen | AffinityLive" <geoff.mcqu...@affinitylive.com> wrote: > another option, which has setup costs, is to establish a unit trust which > owns the shares, and the company lends the trust money to buy them, which > means no tax liability anywhere. then employees are provided with units in > the unit trust, which are effectively stapled to the shares. when they > vest, and employee sells them, then they have a tax liability, but at least > they have the $$$ in their hands to pay the tax man. > > On Sun, Feb 19, 2012 at 23:06, Kev > <social%melon.com...@gtempaccount.com>wrote: > > > > > > > > > > > I chatted with an accountant and lawyer about this recently too. > > > Yes you are correct vesting shares can leave the shareholder with a > > tax liability. Apparently this differs to the US (I am unfamiliar > > with what the tax impact is in the US for this scenario). > > > Apparently one way around it is to provide all the shares upfront, but > > articulate in the shareholder agreement a buy back formula should the > > shareholder leave/be fired etc. > > > Another way around it that was suggested to me is to spell out some > > contribution towards the tax liability by the company after all the > > shares have vested and at the time of a liquidity event. > > > Hope this helps. > > > Kevin > > >http://twitter.com/ke_ga > > > On Feb 19, 11:21 pm, Michael Overell <michael.over...@gmail.com> > > wrote: > > > Do delayed vesting shares leave founders with personal tax > > > liabilities? > > > -- > > You received this message because you are subscribed to the Silicon Beach > > Australia mailing list. Visthttp://siliconbeachaustralia.orgfor more > > > Forum rules > > 1) No lurkers! It is expected that you introduce yourself. > > 2) No jobs postings. You can usehttp://siliconbeachaustralia.org/jobs > > > To post to this group, send email to > > silicon-beach-australia@googlegroups.com > > To unsubscribe from this group, send email to > > silicon-beach-australia+unsubscr...@googlegroups.com > > For more options, visit this group at > >http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en > > -- > *Geoff McQueen* > CEO > <http://www.affinitylive.com/?utm_source=signature&utm_medium=email&ut...> > Cell: +1 650.450.4384 > Skype: geoffmcqueen > GTalk: geoff.mcqu...@gmail.com > > <http://www.affinitylive.com/tour?utm_source=signature&utm_medium=emai...><http://www.affinitylive.com/product/demo?utm_source=signature&utm_med...><https://signup.affinitylive.com/?utm_source=signature&utm_medium=emai...> -- You received this message because you are subscribed to the Silicon Beach Australia mailing list. Vist http://siliconbeachaustralia.org for more Forum rules 1) No lurkers! It is expected that you introduce yourself. 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs To post to this group, send email to silicon-beach-australia@googlegroups.com To unsubscribe from this group, send email to silicon-beach-australia+unsubscr...@googlegroups.com For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en
