The Resource Income tax implications of investing in a combined share and rewards-based crowdfunding campaign in Australia

Income tax implications of investing in a combined share and rewards-based crowdfunding campaign in Australia

Label
Income tax implications of investing in a combined share and rewards-based crowdfunding campaign in Australia
Title
Income tax implications of investing in a combined share and rewards-based crowdfunding campaign in Australia
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Subject
Language
eng
Summary
Supporters of Oculus Rift who helped to fund the venture through crowdfunding platform Kickstarter lost out on the opportunity to share in the upside of its US$2 billion sale to Facebook because they were not equity investors. The incident however did stimulate discussion as to possible new combined share/rewards crowdfunding models that both relieve the company from the pressure of delivering monetary returns in its early days and enable funders to participate in the fruits of their investment should the business appreciate in value in future. While a share/rewards structure makes economic sense, it raises interesting questions as to how rewards given would be taxed in the hands of the funder. This article explores some of the challenges that may confront the Australian tax authority in seeking to tax participants in combined share/rewards crowdfunding campaigns under Australia's current income tax regime, in respect of rewards received from the investee company
Citation source
In: Australian tax review. - Pyrmont. - Vol. 46 (2017), no. 1 ; p. 48-60
http://library.link/vocab/creatorName
Jing, B
Language note
English
http://library.link/vocab/subjectName
  • income tax
  • investment
  • crowdfunding
Label
Income tax implications of investing in a combined share and rewards-based crowdfunding campaign in Australia
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Publication
Label
Income tax implications of investing in a combined share and rewards-based crowdfunding campaign in Australia
Publication

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