Where shares are acquired at an undervalue by an employee, then he or she will be potentially liable to income tax under Schedule E if such shares represent a perquisite or profit arising from his or her employment (Weight v Salmon 19 TC 174). The taxable amount of the benefit will consist of the value of the shares less any consideration paid by the employee. A similar analysis is likely to apply to foreign employments taxable under Schedule D Case III (i.e. those with non-Irish duties).Click the link to download the full article
If you need help and advice, feel free to contact any member of our tax team on (021) 4321321 or email:
Dara Burke or Stephanie Kirby on info@mcavoy.ie
Dara Burke or Stephanie Kirby on info@mcavoy.ie
*This article is written in general terms and should not be relied on as a comprehensive summary of the relevant tax law. Advice should always be sought before any action is taken.