Undeclared RSU

F

Franc1

Registered User
Messages
53
Hello,

Every year for the last 5 years in December I vested a number of RSU shares that my company (a US multinational) gave me over the years.
I sold them immediately on the day when they vested or the day after in one case. The income tax is paid directly by payroll since this is the
arrangement that my company has. The net income to me after tax, each year was between 1500€ and 2500€ so not huge amounts
and because I had no capital gain over 1270€ on those shares (and no other capital gain) I never declared them, but I read that it is better to
declare them even if no tax is due. I wonder what are the implications for not declaring the RSU when no CGT tax is due and the income tax has
been paid throught payroll ? What should I do ?

Thanks
Franc
 
Franc1 said:
Hello,

Every year for the last 5 years in December I vested a number of RSU shares that my company (a US multinational) gave me over the years.
I sold them immediately on the day when they vested or the day after in one case. The income tax is paid directly by payroll since this is the
arrangement that my company has. The net income to me after tax, each year was between 1500€ and 2500€ so not huge amounts
and because I had no capital gain over 1270€ on those shares (and no other capital gain) I never declared them, but I read that it is better to
declare them even if no tax is due. I wonder what are the implications for not declaring the RSU when no CGT tax is due and the income tax has
been paid throught payroll ? What should I do ?

Thanks
Franc
Click to expand...

The CGT "clock" starts ticking once the stock vests. If you've sold them straight away then then it's highly unlikely you've any liability. The RSU itself is treated as income, ergo the 1.5-2.5k net you've received isn't subject to CGT on top.

CGT would only be due if the net amount of shares you received had increased in value by the time you sold them, which is unlikely if you're selling immediately.
 
Franc1 said:
Hello,

Every year for the last 5 years in December I vested a number of RSU shares that my company (a US multinational) gave me over the years.
I sold them immediately on the day when they vested or the day after in one case. The income tax is paid directly by payroll since this is the
arrangement that my company has. The net income to me after tax, each year was between 1500€ and 2500€ so not huge amounts
and because I had no capital gain over 1270€ on those shares (and no other capital gain) I never declared them, but I read that it is better to
declare them even if no tax is due. I wonder what are the implications for not declaring the RSU when no CGT tax is due and the income tax has
been paid throught payroll ? What should I do ?

Thanks
Franc
Click to expand...
I cant be 100% certain of this but I remember that a few years ago Revenue went to companies, mostly US multinationals ,and were told that they were to send annually the shares in RSUs , Trsus, options that were issued to employees including the vesting dates etc.

I would imagine Revenue knew of your awards and since you sold on vesting they haven't contacted you regarding any outstanding tax.

Additionally payroll will have told Revenue how many shares were sold to settle your income tax etc. Your statement of this transaction will also show this amount.

Where confusion arises is where the share price has increased during the 3 years vesting period but this is taxed as income tax on selling.

Finally, make sure you keep the records I assume you have a US account that keeps the records.
 
Paul O Mahoney said:
I cant be 100% certain of this but I remember that a few years ago Revenue went to companies, mostly US multinationals ,and were told that they were to send annually the shares in RSUs , Trsus, options that were issued to employees including the vesting dates etc.

I would imagine Revenue knew of your awards and since you sold on vesting they haven't contacted you regarding any outstanding tax.
Click to expand...
This is correct and is now law too where the companies have to submit notices to Revenue on all the grants.
 
Paul O Mahoney said:
I cant be 100% certain of this but I remember that a few years ago Revenue went to companies, mostly US multinationals ,and were told that they were to send annually the shares in RSUs , Trsus, options that were issued to employees including the vesting dates etc.

I would imagine Revenue knew of your awards and since you sold on vesting they haven't contacted you regarding any outstanding tax.

Additionally payroll will have told Revenue how many shares were sold to settle your income tax etc. Your statement of this transaction will also show this amount.

Where confusion arises is where the share price has increased during the 3 years vesting period but this is taxed as income tax on selling.

Finally, make sure you keep the records I assume you have a US account that keeps the records.
Click to expand...
In my case, as soon as the RSUs vest, shares equal to 52% of their value are sold to cover the tax liability.
In the following month's payroll, the value of the vest shows up under my earnings, and a tax credit is given for the value of the shares sold.
Everything is reported to Revenue, all information is available in myAccount after payroll has been run.
 
Paul O Mahoney said:
I cant be 100% certain of this but I remember that a few years ago Revenue went to companies, mostly US multinationals ,and were told that they were to send annually the shares in RSUs , Trsus, options that were issued to employees including the vesting dates etc.

I would imagine Revenue knew of your awards and since you sold on vesting they haven't contacted you regarding any outstanding tax.

Additionally payroll will have told Revenue how many shares were sold to settle your income tax etc. Your statement of this transaction will also show this amount.

Where confusion arises is where the share price has increased during the 3 years vesting period but this is taxed as income tax on selling.

Finally, make sure you keep the records I assume you have a US account that keeps the records.
Click to expand...
Thanks Paul , yes I have all the records online downloadable from the broker website
 
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