Which of the Following Statements Regarding Employee Share Plans Is

question 40

Multiple Choice

Which of the following statements regarding employee share plans is false?

• A)The Commonwealth Government provides tax concessions where shares are issued to employees at a discount.
• B)An employee's gains under an employee share plan are taxable if the shares are purchased after 28 March 1995.
• C)Tax concessions are available if an employee purchases a qualifying share.
• D)Fringe benefits tax,capital gains tax and payroll tax are applicable under an employee share plan.

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Definitions:

Market

A venue or mechanism through which buyers and sellers interact to trade goods, services, or securities.

Business

An economic system where goods and services are exchanged for one another or for money, on the basis of their perceived value.

Factor Market

A factor market is a marketplace for the services of factors of production, such as labor, capital, and land, where these are bought and sold.

Circular Flow

An economic model depicting the continuous movement of money, goods and services, and factors of production between producers and consumers in the economy.