Consider the following statements regarding Angel Tax, which of the following statement is incorrect?
1
It is a tax levied on the capital raised via the issue of shares by unlisted companies if the share price of issued shares is seen in excess of the fair market value of the company.
2
It was introduced in the 2012 to arrest the laundering of funds.
3
Foreign investors are exempted from Angel Tax.
4
When an unlisted company, such as a start-up, receives equity investment from a resident for issue of shares that exceeds the face value of such shares, it will be counted as income for the start-up and be subject to income tax.