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Normally, and in most countries, some kind of
taxation is levied on Non-Monetary Transactions that requires all these to be
measured at fair value, unless:
1. The transaction lacks commercial substance,
2. the fair value of the investment cannot reliably be valued or assessed, as it
is non-transferable or tradable (no fair marked value can be established),
and
3. the transaction is a non-monetary, non-reciprocal transfer to owners that
represents a spin-off or other form of restructuring or liquidation.
None of the above conditions are applicable to this investment as the investment
is a one-time, one-way transaction and where the investment, or its conceived
proceeds cannot be transferred or traded, why no market value can reliably be
established, nor is it a result of a spin-off after a restructuring or
liquidation.
All investors are, however, strongly urged to seek personal advice in the
taxation matter from their accountants, as tax legislation differs wildly
between countries.
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