195 / 330
g a z e t t e
j u l y / a u g u s t 1986
Approval of Scheme
The approval of the Revenue Commissioners may be
granted to a body corporate (the company concerned)
which has established a profit sharing scheme which
complies with conditions set out in Part I of the Third
Schedule to the 1982 Act. There may not be approval if
there are rules which are not necessary for the purposes
of such a scheme. There is provision for a group scheme
where a body corporate which has control over one or
more other companies to establish a scheme 'expressed
to extend to all or any of the companies of which it has
control', (paragraph 2).
Trust
There must be provision for a body of persons known
as trustees who are resident in the State who may be a
body corporate, individuals or a combination thereof.
The trustees are required to acquire eligible shares
(considered below) and appropriate them to eligible
individuals who participate in the scheme. Their
functions are regulated by a trust deed (paragraph 3).
The trust deed and rules have to be drafted and
submitted to the Revenue for approval. The deed and
rules must include provisions for:—
- notice in writing to employees stating number,
description and initial market value of shares as
soon as possible after appropriation (paragraph
12)
period of retention (i.e. 2 years after appropria-
tion) except in cases of bonus issues, share
exchanges, etc. (paragraph 13(1))
- prohibiting the disposal of shares between the
second and fifth year after appropriation except
on the direction of the participant (or any person
in whom the beneficial interest is vested, e.g., if
participant is deceased) and at that time pays the
appropriate income tax and directs the best sale
price for the shares be obtained (s.52(l) (c) and (d)
and paragraph 13(2)).
- maintenance of scheme record and to inform
employees of their income tax liabilities (para-
graph 15).
It might be noted that the Confederation of Irish
Industry have a specimen trust deed which they have
approved with the Revenue Commissioners.
4
Eligibility to Participate
The Revenue must be satisfied that every person
who:—
- is a full-time employee or director of the company
- has been an employee at all times during the
qualifying period which may not be greater than
5 years
ing the disposal of shares during the
- pays income tax under Schedule E
\bur money deserves
the Ansbacner interest
With Ansbacher your deposit enjoys
a high interest rate, both at call and
for fixed periods - with complete
security.
You are assured of personal attention
and quality service at all times.
Call in and see us. Or ring our dealers
direct, at 760165. 766313, 766168
or 766267.
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ANSBACHER
BANKERS
52 Lower Leeson Street. Dublin 2.
185