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You at the very least can once you're leaving the company, which were the circumstances of someone I know who has done this. Even if you are right (I can't quic

You at the very least can once you're leaving the company, which were the circumstances of someone I know who has done this. Even if you are right (I can't quickly find a good definition for "Arms length" as it relates to non-C level employees) it doesn't materially change my point that people in our position pay substantially less tax than people in the medical or legal profession. Whether it's bulk asset sales and dividends, or Hong Kong holding companies and tax treaties, or capital gains exemption to "retain top talent" if Canadians actually knew how it worked 90% of the time they would never stand for it.

cperciva 11y ago
You at the very least can once you're leaving the company, which were the circumstances of someone I know who has done this. Sure. But then you have to put in the shares (or options) at their fare market value, which is going to be pretty high if there's an IPO on the horizon.
- 3pt14159 11y ago
  Fair point. Although I still feel the way we value startups (at the last funding event) warps decision making greatly. The person I knew did this with a company about 6 months before they raised their next round. So the company was valued at around $15m for 2.5 years, person invests, then BAM company valued at $45m on year 3 6 months later. And I think if you're in a company that is really going to make it you know. Especially if you've been in startups for a while.
  - cperciva 11y ago
    the way we value startups (at the last funding event) That may be how you value startups, but I guarantee you that if the CRA looks closely it's not how they would value the shares on the eve of a deal which values the shares much higher.
    - 3pt14159 11y ago
      My experience is that short of being 60 days before a deal the CRA generally accepts the previous funding round as the valuation. I agree that the actual eve of the deal wouldn't fly though.

cperciva 11y ago

You at the very least can once you're leaving the company, which were the circumstances of someone I know who has done this. Sure. But then you have to put in the shares (or options) at their fare market value, which is going to be pretty high if there's an IPO on the horizon.

3pt14159 11y ago
Fair point. Although I still feel the way we value startups (at the last funding event) warps decision making greatly. The person I knew did this with a company about 6 months before they raised their next round. So the company was valued at around $15m for 2.5 years, person invests, then BAM company valued at $45m on year 3 6 months later. And I think if you're in a company that is really going to make it you know. Especially if you've been in startups for a while.
- cperciva 11y ago
  the way we value startups (at the last funding event) That may be how you value startups, but I guarantee you that if the CRA looks closely it's not how they would value the shares on the eve of a deal which values the shares much higher.
  - 3pt14159 11y ago
    My experience is that short of being 60 days before a deal the CRA generally accepts the previous funding round as the valuation. I agree that the actual eve of the deal wouldn't fly though.