Dáil Éireann Debate, Wednesday - 21 April 2021
526. Deputy John Paul Phelan asked the Minister for Finance the cost of the key employee engagement programme in the most recent reporting period arising from figures compiled up to 31 March 2021; the number of persons and companies and size of the companies that availed of same in that reporting period; and if he will make a statement on the matter. [20292/21]
View answer527. Deputy John Paul Phelan asked the Minister for Finance the cost of the employee share incentive schemes for the most recent period arising from figures compiled up to 31 March 2021 including save as you earn, RSS, approved profit-sharing schemes, the key employee engagement programme and employee share ownership trusts; the number of persons and companies that availed of same in that reporting period; and if he will make a statement on the matter. [20293/21]
View answerI propose to take Questions Nos. 526 and 527 together.
Revenue publishes an annual Cost of Tax Expenditures table, which shows the cost and numbers availing of a wide range of expenditures. I am advised by Revenue that it is available at:
www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx
This table includes the following:
- Approved Profit Sharing Schemes (2018: cost €55.2m, 34,000 participants);
- Approved Save as You Earn Schemes (2018: cost €1.3m, 1,100 participants); and
- Employee Share Ownership Trusts (2018: cost €0.1m, 11,900 participants).
The table provides data up to and including 2018 on the measures but does not include data on participating companies.
Due to the COVID-19 pandemic, Revenue extended the return filing deadlines in respect of 2019 returns. As a result, the full information for such returns was available to Revenue much later in 2020. These returns are being processed and analysed and the information in the table for 2019 will be updated by Revenue in due course. The tax returns for 2020 have very recently been filed and these are also being processed and analysed by Revenue. Information in the table for 2020 will be updated at a later date.
The Key Employee Engagement Programme (KEEP) was introduced with effect from 1 January 2018, but due to the holding period requirement, the first year that an actual cost occurred was in 2019 (when share options were exercised). Revenue advises me that information on KEEP for 2019 will be included when the Cost of Tax Expenditures table is up-dated.
Finally, I am also advised by Revenue that a new reporting return is being developed by Revenue that will capture details of restricted share schemes (RSS). The new electronic share return is expected to be available from mid-June with an extended filing deadline for the first year, which will cover the 2020 tax year
