Forum Archive Index - October 2001

["graham jackson" <grahamjakson@hotmail.com>]

Hi Snoopy
Thanks for the good info.
Yes my marginal tax rate is 39percent.
Yes, the options are part of my salary package
and I do have to put money in, in order to exercise the options.
I have a 3 year period over wich I can choose to exercise.

The value is over 50000 dollars, and is counted as a foreign investment
as far as I know.

For point 3, yes I was referring to the point in time when I sell
my shares.
Thanks for the IRD info- I will get the form and work it all out.

Am I right in thinking I will be taxed 3 times -
once for the taxable benefit
again with the FIF tax
and again on the realised capital gain (when I sell the shares)

To me this sounds a bit harsh, especialy if it works out to be
about 3 lots of tax at around 39percent- I may have little money left at the 
end of exercising/selling all options.
Anyway I will work it out on the forms. Thanks for your help- you have
given lots of light in a hapless Tax players dark tunnel.

I have been made aware of another possible pitfall
-People with these kinds of options have to make sure
they have a residual income Tax liability at the end of the year
of more than $2500, otherwis IRD an charge 'Use of money interest'

Thanks
Graham





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