QXL to shun government NIC proposal
Online auction website company QXL, has criticised the government for the National Insurance treatment of share options, following the release of disappointing full-year results.
The company criticised the government despite its recent compromise over the treatment after backing down over their initial reluctance to overhaul the national insurance treatment of dot.com companies’ share options.
The solution put forward by the government was to move the tax burden away from the companies and on to the individual shareowners when they exercise the options.
But QXL chief executive Jim Rose said the move was ‘not an appropriate or valid solution’ and added QXL would not adopt the policy.
The company had to set aside £11.6m for the last year and £4.4m in the last quarter ending 31 March – greater amounts than company turnover.
He reported a loss of £75.8m, with fourth quarter losses of £23.7m.