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Home / Simons-Taxes /Personal and employment tax /Part E4 Employment income /Division E4.5 Income and exemptions relating to securities /Employment related securities—legislative background and definitions / E4.507 Employment related securities current legislation—overview
Commentary

E4.507 Employment related securities current legislation—overview

Personal and employment tax

E4.507 Employment related securities current legislation—overview

This article provides some background explanation as to the structure and intention of the current share schemes legislation, including reference to some general calculation matters.

It is also useful to understand how the legislation defines certain terms and phrases, and further details on these definitions may be found at E4.507A.

As mentioned in E4.501, there is a tension between the desire of various governments to encourage remuneration in the form of equity in the employing body, and the opportunity this presents to avoid tax in ways that do not meet with official approval. Typically, schemes would involve employees receiving shares at an artificially contrived value below that of the real economic benefit conferred. Unsurprisingly, much of the legislation

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