YMMV. In some countries you have to pay taxes when you receive options -- as opposed to when you exercise them. This can make it impossible for some people to receive options, as they may not be able to afford the taxes.
If my company offered to reward me with a brand new car I might not be able to accept it because of the requirement to pay the taxes - but I wouldn't think that the tax man was being unreasonable.
I don't really understand why you'd expect the tax code to allow you to receive options tax free? If they have a fair market value then receiving them as part of comp should be taxed as such.
I don't really understand why you'd expect the tax code to allow you to receive options tax free? If they have a fair market value then receiving them as part of comp should be taxed as such.