Slice Helps Avalor Avoid Potential Major Tax Penalties on Employee Options in Canada

Avalor, a cybersecurity startup founded in December 2021, has quickly risen in the competitive cybersecurity industry. Earlier this year, the company reached a major milestone when it was acquired by Zscaler, a prominent player in the industry. This acquisition highlighted Avalor’s innovative solutions and strategic value.
Shelly Poyastro and her team oversee Avalor's financial operations and ensure smooth transitions during these critical times. As a growing startup before  the acquisition, Shelly and the team faced challenges with managing equity compliance for Avalor's global employees.

Avalor’s Risk of Costly Mistakes: Navigating Cross-Border Equity Compliance in Canada

In 2023, Avalor encountered a unique issue when they hired a Canadian executive for their US office. This new hire revealed the complexities of handling equity across international borders.
Initially, Avalor consulted with their legal advisors and consulting firms to find solid answers for the challenges posed by this hire but ended up spending excessive time and resources without reaching a conclusive solution.
As time passed, with no clear resolution on equity compliance in Canada, the team at Avalor grew concerned about potential mistakes that could later result in significant tax penalties.

Slice Prevented Avalor from Significant Tax Penalties in Canada

Realizing the need for a better system and answers to address Canadian compliance issues, and prevent similar problems in the future, Avalor turned to Slice. Slice helped manage all aspects of options and grants, focusing on compliance with regulations in various countries. Implementing Slice was a quick and seamless process for the finance team taking no more than 3 weeks.
The platform immediately met their specific needs, especially regarding the complex tax implications for their Canadian executive situation.
Slice’s user-friendly interface allowed  Shelly and her team to efficiently navigate and manage the necessary documentation, ensuring everything was well-organized and compliant.

Saving Time and Money on Understanding Specific Tax Laws in Each Country

From the get-go, Slice demonstrated clear advantages.
Time and Effort Savings: It significantly cut down the time and effort the Avalor finance team needed to identify tax compliance issues and find the right answers. This allowed them to focus on critical tasks rather than repetitive work.
Streamlined Tax Compliance: Without Slice, managing tax compliance for their Canadian executive could have taken weeks, leading to extra costs and delays.
Automation of Processes: Slice's ability to automate bulk grant letters distribution was useful, eliminating the need for manual processes across  multiple tools and reducing the risk of errors.
Immediate ROI: The ROI for Slice in equity compliance was evident from the start. By ensuring that the Avalor equity  plans were accurately managed and compliant with tax regulations, Slice helped the finance team steer clear of potential financial pitfalls, especially during due diligence and Zscaler acquisition.
This efficiency is crucial for scaling global companies, where managing equity is vital.

“Slice's ability to automate bulk grant letters distribution was useful, eliminating the need for manual processes across  multiple tools and reducing the risk of errors.”

Make Your Option Plans and Equity Organized from Day One

For any CFO managing a growing company, particularly those expanding internationally, Avalor’s Director of Finance recommends making sure that the equity is well-organized and compliant from day one.

“Disorganization in this area can result in significant costs and complications during due diligence, acquisitions, or IPOs. Slice has proven to be an invaluable tool for Avalor, streamlining our equity management processes and giving us peace of mind as we continue to grow and succeed in the cybersecurity industry.”