Employee Shares Schemes

M

MisterMarkie

Registered User
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Anyone else been left with a large tax bill for these with very little gain? Does any other posters have experience of appealing to the Revenue office?
 
I can't afford the bill and was wondering if any other posters had ever appealed to the tax man to try and get the bill down.
 
Have you checked with the Revenue that any relevant Capital Gains Tax allowances have been factored in to the bill from them? That may reduce the cost somewhat.

I presume by saying you can't afford the bill, you're indicating that you spent the money.? If that is the case, I doubt very much if the Revenue will reduce the bill but you could ask them would they be open to some repayment schedule.
 
This is from company shares I received in an incentive scheme. If I sold the shares today I would get €500.00 approx but the tax bill is worked out on the value of the shares when I received them. I was hoping to hear from other posters in a similar position and if revenue are open to any sort of appeal on say the amount or interest charges. If I sold the shares for any sort of profit I'd have no problem paying a bill.
 
Just want to check if I understand what you're asking:

Did you exercise an option to buy shares at a price below the market value, and thereby incur a tax liability?

And if you did, am I right in saying that you could have just sold the shares as soon as you bought them, realised a profit, and paid the tax out of that?

If thats the case, I'm not quite sure what grounds you feel you would have to get special treatment, if you freely chose to speculate on the shares increasing in value? You'd just have to accept that you gambled and lost...

(Or maybe I've misunderstood your situation, in which case sorry!)
 
It was a "gift" from the company when they relaunched as a separate entity. All employees were given 100 shares at the opening price and if you stayed with the company for I think 4 years(the shares soared in value over this period) then you could access the shares. There were 3 options, 1: Sell the shares, 2: Buy the shares at the original opening price or 3: Sell enough shares to be able to purchase the remaining shares at there original price. If you didn't do one of these 3 options then you lost the shares. I choose option 3 as it was a cashless exercise but when I found out that there was a tax liability on it I wrote to the revenue commissioners who advised me that I could defer the tax for 7 years(I paid a lump sum of €1500). I did this in the hope that the shares might increase enough in value to cover the tax liability. The opposite happened and I now have shares worth $500.00 that I have never used and a bill of €10000.
I've entered into a repayment agreement with the Revenue but am so close to the bone on finances that with the upcoming budget I'm in real trouble. I am renegotiating my personnal loan terms with the bank and have to contact the credit card company to come to a reduced set monthly payment. I am wondering if there is any hope of Revenue reconsidering the repayment plan.
 
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