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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 374.27-0.2%Nov 21 4:00 PM EST
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To: TobagoJack who wrote (107997)10/13/2014 12:46:21 PM
From: Hawkmoon  Read Replies (1) of 217986
 
The Australian firm also clearly stated that the money was not paid in exchange for any service. Rather, it was paid [to guarantee] what I wouldn't do, which is to compete with it and poach its staff."
You know the HK income tax laws better than I..

But it sounds like compensation, and not a capital gain.. Compensation with the implicit service of being available for consultation, as well as not starting hiring away the staff of the acquired company.

Can someone be compensated, income wise, by providing a service of NOT doing something?

If I pay you to be available to consult for me, as well as not to compete against me, or hire my staff away, it sounds like I'm compensating you.

The question I have is how the Australian company accounted for the payment?

Hmmm... let the tax courts decide. But I doubt he actually received a written tax opinion at the time of the agreement.. Otherwise, he would have produced it, and the tax professional who wrote it.

Hawk
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