David Bowes (Bruce Sutherland & Co) answers a query on non-disclosure agreements on the sale of a company.
Question
A company received an offer to purchase it and the directors minded to accept entered into a non-disclosure agreement (NDA). Shares in an employee trust were issued to employees prior to acceptance. A post-transaction valuation check has commenced using a single heavily discounted value for all employees to determine the employment income charge. HMRC is saying that there may be more than one value and that it is entitled to have a copy of the non-disclosure agreement (NDA). Is HMRC right: is there more than one value; and do we have to disclose the NDA?
Answer
Multiple values?
It is presumed that all the shareholdings...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
David Bowes (Bruce Sutherland & Co) answers a query on non-disclosure agreements on the sale of a company.
Question
A company received an offer to purchase it and the directors minded to accept entered into a non-disclosure agreement (NDA). Shares in an employee trust were issued to employees prior to acceptance. A post-transaction valuation check has commenced using a single heavily discounted value for all employees to determine the employment income charge. HMRC is saying that there may be more than one value and that it is entitled to have a copy of the non-disclosure agreement (NDA). Is HMRC right: is there more than one value; and do we have to disclose the NDA?
Answer
Multiple values?
It is presumed that all the shareholdings...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
