Grant
The default position is that where an employee is provided with shares or options over shares in their employer's or their employer's parent company, at a discount to their market value, the employee will be subject to income tax on the discount at that time.
Where non-cash benefits are provided to employees, the general rule is that the employer is subject to fringe benefit tax (see 1.1.2), rather than the employee being subject to income tax. However, the relevant legislation explicitly provides that this general rule does not apply where an employee is provided with shares or options over shares at a discount to their market value.
However, a number of concessions can change this default position.
Concessions
Start-up company
In some circumstances, where an employee is provided
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