The Government on Fri 2.8.2013, released a discussion paper on the Administrative and taxing arrangements of employee share schemes (ESS) of start-up companies. It outlines the current arrangements and canvasses possible options for changes to the ESS system. The review was originally announced by the Government on 12 June 2013 and aims to help address barriers facing start-up companies in attracting and maintaining staff.
The options canvassed in the paper are only proposed to apply to start-up companies. The Government said it is not looking to make general changes to the ESS arrangements or extend any of the options to other unlisted companies. The paper provides a proposed definition of a “start-up”. It also includes a range of options to address the ESS concerns of start-up companies. Some of the key concerns include: retaining the current ESS arrangements; retaining the current ESS valuation methodologies but updating the statutory tables; and deferring taxing point or payment of tax.
COMMENTS are due by 30 August 2013.
Source: Assistant Treasurer’s media release No 147, 2 August 2013
[LTN 148, 2/8/13]