Employee Tax Benefits

  • Our employee benefits and ESOP practice advises on the full range of employee incentive schemes. The firm's multidisciplinary team advises on how best to structure, establish and operate employee incentive arrangements in compliance with Israeli employment, tax, companies and securities laws. As part of our service, we help determine the most tax-efficient manner of remunerating and incentivising individuals through the use of employee incentive and share option schemes.

     

    Our expertise includes obtaining the necessary tax rulings for operating an ESOP in Israel and, where necessary, rulings from the Israeli Securities Authority. We also act as trustee of many local and foreign ESOPs.

     

    Many of our clients are international corporates (listed on NASDAQ, NYSE, LSE as well as other exchanges) for whom we have extensive experience adapting the rules of their international incentive arrangements and option schemes in order to take into account Israeli tax, employment laws, securities laws and other regulatory issues.

     

    We also handle all ESOP-related issues arising from mergers and acquisitions, including due diligence of ESOP schemes, assessing the effect of a merger on employee incentive arrangements, cash-out agreements, conversion of options into options of the acquirer and obtaining the necessary tax authorities and securities authorities pre-rulings in order to effect any accelerated vesting, cashing out or issue of new options.

    • Providing on-going tax advice to Photomedex Inc & Radiancy (Israel) Ltd., including the drafting of addenda to employee benefit plans and advising in relation to shares and options granted to Israeli employees, as well as further advice following Radiancy's US$ 150 million reverse acquisition of PhotoMedex
    • Advising Ladbrokes plc regarding its employee benefit plan, including the drafting of an addendum in order that the benefit plan would comply with the requirements of the Israeli Income Tax Ordinance
    • Providing on-going tax advice to a number of major companies regarding various employee benefit plans, in particular Israeli tax aspects, including Morgan Stanley, Johnson & Johnson, UBS and Assa Abloy AB
    • Providing on-going tax advice to Pace Plc and to Vered International Inc. regarding the issuance of options to employees, including the drafting of an addendum in order that the benefit plan would comply with the requirements of the Israeli Income Tax Ordinance, reporting to the tax authorities regarding the grant of options, holding the options in trust until their expiration and assisting in the payment of on-going tax obligations arising from the sale of shares and the transfer of the profit thereon to employees
    • Providing tax advice to Griffey Investors LP and Griffey Global Holdings, Inc. regarding the issuance of options to the employees, including the drafting of an addendum in order that the benefit plan would comply with the requirements of the Israeli Income Tax Ordinance, and such that the employees would be able to benefit from a more beneficial tax course pursuant to the provisions of the Ordinance