The scope of negative earnings is almost certainly wider than has generally been appreciated, writes Nigel Doran (Macfarlanes).
The concept of earnings being negative although first appearing in tax legislation in 2003 really came to prominence for tax purposes a little later (at the time of the financial crisis) when the FSA (now FCA) introduced a code on bankers’ remuneration including rules on deferral clawback and malus. Such rules followed by remuneration codes imposed by other regulatory bodies gave rise to the possibility that cash or shares would be paid or transferred by employees to employers rather than moving in the more customary direction from employer to employee.
More recently renewed attention has been focused on negative earnings as a result of the Covid-19 pandemic for a number of reasons. These include:
directors and...
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The scope of negative earnings is almost certainly wider than has generally been appreciated, writes Nigel Doran (Macfarlanes).
The concept of earnings being negative although first appearing in tax legislation in 2003 really came to prominence for tax purposes a little later (at the time of the financial crisis) when the FSA (now FCA) introduced a code on bankers’ remuneration including rules on deferral clawback and malus. Such rules followed by remuneration codes imposed by other regulatory bodies gave rise to the possibility that cash or shares would be paid or transferred by employees to employers rather than moving in the more customary direction from employer to employee.
More recently renewed attention has been focused on negative earnings as a result of the Covid-19 pandemic for a number of reasons. These include:
directors and...
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:
