Taxes and the backdating of stock option exercise dates dating celebs co cc

The effect of the demerger is that shareholders, instead of having one shareholding in the company, have two different shareholdings in separate companies and the shares can be traded separately.A demerger is generally undertaken by a company when its value is less than the sum of its constituent parts.Furthermore, dividend taxation for Australian demergers can seem particularly unfair for New Zealand shareholders, as Australian shareholders are not usually taxable on a demerger.The proposal in the Bill removes from the dividend rules in the Income Tax Act the receipt of shares by a New Zealand taxpayer when those shares are the result of a demerger by a listed Australian resident company, provided the shares received as a result of the demerger are not treated as a dividend under Australian tax law.The current tax treatment is a problem if the demerger is, in substance, the division of a corporate group rather than a distribution of income.

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Listed Australian companies, however, often have several thousand New Zealand shareholders that are taxable on any dividends received, but they do not structure their demergers to be efficient for New Zealand tax purposes.In the latter situation, this is the case if: Officials note that Australian companies are less inclined to take into account the tax treatment of their minority New Zealand shareholders to prevent dividend treatment when carrying out a demerger.Australian shareholders are generally not taxed on these transactions under Australian tax law, subject to specific anti-avoidance rules not applying.The Bill addresses, in a timely manner, the problem in practice.A comprehensive and robust set of rules for company demergers, including demergers by New Zealand companies, could not be developed in time for inclusion in the Bill.Section BB 1 of the Income Tax Act 2007 provides that the income tax rates must be fixed by an annual taxing Act.

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