202 Mr. R. Bruton asked the Minister for Finance if his attention has been drawn to a new requirement by the Revenue Commissioners that workers who get shares at a discount as part of a profit sharing scheme must now report on a monthly basis the putative gains on shares; and if he will make a statement on the matter. [30854/03]
As the Deputy will be aware, the gain arising to employees from shares in their employer company acquired under an approved profit sharing scheme or an approved share option scheme is not, subject to conditions, chargeable to income tax. In the case of shares acquired under other share option schemes, the employee is charged income tax on the difference between the acquisition price of the shares and the market value of the shares at the date of exercise of the option.
The Finance Act 2003 introduced new arrangements regarding the payment of, and accounting for, income tax due on the exercise of share options. Where such options are exercised on or after 30 June 2003, an amount known as relevant tax on a share option, RTSO, must be paid to the Collector-General no later than 30 days after the date on which the share option is exercised. Each payment of this tax must be accompanied by a return setting out details of the gain and the tax due.
