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by 1stop 3849 days ago
That's not true. The company gets 10M. The shareholder still received nothing, and thus has no tax liability.

When the shareholder sells their shares they will be taxed.

I don't understand your scenario at all... :\
1 comments
tim333 3849 days ago
His scenario was the company raises at 10M and afterwards gives 1% of it's shares to the employee. Actually I think most countries would treat that as taxable income which is why companies usually give options not shares once they get going.
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1stop 3847 days ago
That is still not a taxable event. Even if it's shares and not options.

The shares won't be taxed until they are sold.

I know this, because I've worked in an Australian company and been given shares and they made no difference to my tax liability.

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