2022 will be viewed as a year of political turmoil in the UK with three different prime ministers during the year. While all were leaders of the UK Conservative party, the tax policy objectives were significantly different leading to proposed changes being reversed in some cases. For more information on the latest developments in the UK, see our recent NASPP guest blog post here. *Thank you to our colleague Gillian Parnell in our London office…
Click here to read our guest blog on the NASPP blog.
Sweden has not been a country previously featured in this blog, but we have become aware that the Swedish Tax Agency (the “STA”) has contacted several local employers in recent months to seek clarification on the amounts withheld in relation to equity award income and correct the reporting where needed. We believe it is possible that many more companies could be audited with respect to their equity award tax withholding practices in 2019 and beyond.…
After discussing the issues for a tax deduction for share-based awards in Israel in my last blog, I wanted to revisit another tax deduction conundrum, this time in Canada. In the past, the Canada Revenue Agency (CRA) generally has not allowed a local tax deduction for the cost of share-settled awards (other than under very narrow circumstances). However, based on a technical interpretation released on April 12, 2017, the CRA updated its position such that…
I hope most of you have seen our client alert on the recent Israeli Supreme Court ruling that confirmed that stock-based compensation has to be included in the cost base of Israeli subsidiaries of multinational companies. As a result of the decision, we have already seen a flurry of activity as many companies are evaluating how to obtain a tax deduction for awards granted to Israeli employees. As a reminder, for companies with a cost-plus…
The proposed Tax Cuts and Jobs Act includes some very concerning changes to the tax treatment of equity-based awards granted to U.S. taxpayers. Please review our alert on these changes. We will monitor the proposed bill closely so please check back frequently. Best regards, Barbara