I’m not asserting that the taxpayer isn’t on the hook. I’m asserting that as a shareholder they don’t have any legal right to void the contract.
Others have argued that the tax is just voiding an untenable contract. I am asserting that shareholders have no right to do so (no matter how powerful those shareholders might be). And, since they have no right to void the contract by tax, they are, in essence, imposing a penalty on the beneficiaries of the contract without due process of law.
MY MISTAKE - you have my deepest apologies and 100% concurrence with your position.