> late stage companies have valuations that are too high to IPO without taking a big valuation haircut.
AKA, we've made a loss, but don't want to admit it yet.
If I were tax policymaker, I would force all assets to have a valuation every year, and published in a register, and allow anyone else to buy any of those assets for the declared value.
If you over declare, you pay more tax. (you'd pay perhaps 1% of the asset value every year, and that would replace income tax, capital gains tax, etc)
If you under declare, someone else will come take your asset off you for whatever value you said.
Suddenly this whole idea of "unrealised gains/losses" goes away, as does fake valuations for tax avoidance.
AKA, we've made a loss, but don't want to admit it yet.
If I were tax policymaker, I would force all assets to have a valuation every year, and published in a register, and allow anyone else to buy any of those assets for the declared value.
If you over declare, you pay more tax. (you'd pay perhaps 1% of the asset value every year, and that would replace income tax, capital gains tax, etc)
If you under declare, someone else will come take your asset off you for whatever value you said.
Suddenly this whole idea of "unrealised gains/losses" goes away, as does fake valuations for tax avoidance.