897B Returns of information in respect of awards of shares to directors and employees

Summary

This section makes it mandatory for employers to file returns of information in relation to awards of shares, or a cash equivalent of shares, to directors and employees, except where the employer is already obliged to make such a return under another provision of this Act. Such returns are already required, for example, in respect of convertible securities (section 128C), restricted shares (section 128D), forfeitable shares (section 128E) and under various provisions governing Revenue approved employee share schemes. This reporting requirement applies from 1 January 2010 in respect of shares awarded on or after 1 January 2009. Schedule 29 provides for penalties where an employer fails to make a return of the required information.

Details

(1) A number of terms used in the section are defined. “Director”, “employee” and “employer” have the same meaning as in section 770(1) and “shares” has the same meaning as in section 135.

(2)(a) There is a mandatory requirement on any employer, or other person, who awards shares, or a cash equivalent of shares, in respect of which income tax is potentially chargeable, to a director or employee, to return particulars of such awards to Revenue. The return must be submitted in an electronic format approved by Revenue on or before 31 March in the year of assessment following that in which the shares are awarded.

(2)(a)(a) The reporting requirement of paragraph (a) also applies where a discount on the value of shares is awarded to a director or employee by an employer or other person.

(2)(b) The return referred to in paragraph (a) need not be submitted where the employer, or other person, is otherwise required to make such a return.

Relevant Date: Finance Act 2021