Dáil Éireann debate -
Thursday, 25 Jul 1996

Vol. 468 No. 4

Written Answers. - Tax Laws.

Eric J. Byrne

Question:

107 Mr. E. Byrne asked the Minister for Finance the proposals, if any, he has to ensure that the tax laws, particularly with regard to share schemes, are geared to the majority of employees rather than towards essentially risk-free and taxpayer funded executive share option schemes; and if he will make a statement on the matter. [15847/96]

Minister for Finance (Mr. Quinn)

I would draw to the Deputy's attention that existing share schemes for which tax relief is available are geared towards the generality of employees in a company.

The 1986 legislation in respect of approved profit sharing schemes provides that such schemes are approved only if open to all full-time employees in a company who satisfy a service requirement period not exceeding five years. Section 10 Finance Act, 1986 which provides tax relief in respect of share option schemes was repealed by section 12 Finance Act, 1992. Consequently, there is no tax relief available in respect of share options granted on or after 29 January 1992.