You want your employees to take a stake in your business. Maybe this is to motivate your employees to perform, align employee objectives with those of shareholders, or maybe to offer greater reward than there is sufficient cash available. For some, offering shares is a way to kick-start your succession plan.
Whatever your motivation, getting the structure correct and understood from the start goes a long way to ensuring the success of the scheme, and a significant component of this is understanding the tax consequences.
This session will cover:
- Determining when employee share scheme income is taxable and the amount.
- Considerations for employers, such as deductibility.
- Reporting employee share scheme income to the IRD and options for paying any tax.
- Other implications for employers or employees.
Upon satisfactory completion of this activity you will be able to:
- Identify material tax issues involved with various employee share schemes;
- Have the ability to analyse and tailor the terms of an employee share scheme to best achieve the desired commercial position in a tax efficient manner.
Total CPD Hours: 1.25 (1 hour + 15 mins. Q&A)
- Those working in internal finance functions where share schemes are being contemplated or are in place – it is you who will field questions from employees as to what this means for them and will likely be faced with implementing and accounting for these schemes.
- Accountants and lawyers that commonly advise clients on arrangements to provide employees with an equity interest in their business.
- External and internal professional advisors and other personnel with an interest in employee remuneration and incentives and the benefits and pitfalls of implementing an employee share scheme.
Richard Muth, Senior Manager – Tax Advisory, Findex/Crowe
Richard Muth is an experienced taxation practitioner at Findex / Crowe having more than 10 years of experience with clients ranging from large multinational groups, Australasian groups, New Zealand based SMEs along with high net worth individuals.
Richard has significant experience with the tax consequences of employee remuneration and incentives, including employee share schemes.
- 29 July 2021
10:00 am - 11:15 am