ERHC Energy Inc (ERHE)

[vineseeker2]

Ponzi, the fair market value of the stock at date of issue is US income to Feltang. The highest stock value would result in more income being taxed in the US at higher rates, if you expect stock prices to be going down you wait and pay on less fair market value. with our average stock trades less than 250,000 per day Feltang would be exposed to market drop if they tried to sell all 5,250,000 shares, their sale would depress market & have them paying tax on more than they receive.
The tax treaty between Feltang's nation of origin and the US would control exactly how the transaction is recorded and taxed, but stock issued as compensation for services to a US company is normally US income taxed in the US at US rates and terms.