The Gazette 1986

g a z e t t e

j u l y / a u g u s t 1986

in value of the shares (s.52(l)(c)) and s. 11 of 1986

Act).

Income tax is payable on a percentage of either their

value at the date they are set aside (i.e. locked in value

which is normally their initial market value (s.53(2)),

although this may have to be adjusted in some circum-

stances to take account of alteration of share capital

(s.52(2)) or the proceeds of the sale whichever is the

less.

Shares Held for

Under 2 years

2-4 years

4-5 years

5 years and over

If a participant has:—

Appropriate Percentage

Cannot normally be sold

100%

7 5 %

0 %

- ceased to be an employee or a director of a

relevant company; or

- reached 66

and that event takes place before the fifth

anniversary of the appropriation of shares, the

appropriate percentage is 50% (s. 11 1986 act).

Capital Gains Tax

If a participant sells his shares he may have a capital

gains tax liability under the Capital Gains Tax Act,

1975. The tax payable under this Act will depend on the

amount of the sales proceeds multiplied by the

appropriate indexation relief. The normal allowances

would apply.

Conclusion

Profit sharing through employee shareholding is,

undoubtedly, increasing in this country. Neither of the

Social Partners make any opposition to this develop-

ment.

The Government have a strong commitment to

develop profit sharing and worker shareholding. The

concept is viewed by many as having practical industrial

relations benefits: more motivation, communication

and participation by staff. Increased profit sharing may

well indicate the changing nature of wage bargaining in

so far as wage increases may be given in the form of

shares.

On the other hand, there are many obstacles to the

introduction of profit sharing in many companies,

namely the legal complexities, loss of confidentiality

and attitude of trade unions.

* (A ny views expressed are the A uthor's own.)

•

References

'Building on Reality', The National Plan, 1984-1987. Stationery

Office, Dublin.

'A Guide to Employee Shareholding through Profit Sharing'.

Irish Productivity Centre, Dublin.

Financial Times,

26th June, 1986.

Confederation of Irish Industry, Information Sheet, November

April, 1985, Dublin.

Bradley and Geib Share Ownership for Employees.

PPC, 1986,

London.

General

'Taxation Implications of Share Options as a Means of

employee Remuneration', Kieran Corrigan, Paper — Sharing in

Prosperity Conference, November, 1984, unpublished.

To/ley's

Profit

Sharing,

Francis G. Sandison, 1979 and

Supplement,

1980. Tolley Publishing Company

Limited,

London.

Correspondence

30th June, 1986

The Editor,

Law Society Gazette,

Blackhall Place,

Dublin 7.

Dear Editor,

The following proposed change in the Bar admission

requirements for the State of New York may be of

interest to your readers.

Under the current rules an Irish lawyer who has

practised for at least five of the last seven years may

apply for admission to practise in the State of New York

without examination. This privilege is available to

lawyers admitted in any State of the U.S. or in any other

common law country.

The proposed change presently under consideration

by the New York State Court of Appeals (which

regulates admissions) would eliminate this privilege for

lawyers admitted in countries outside of the U.S. The

WHERE THERE'S A WILL THIS IS THE WAY...

When a client makes a will in favour of the Society, it

would be appreciated if the bequest were stated in the

following words:

"I deviseand bequeath the sum of

Pounds to the

Irish CancerSocietyLimited to be applied by it forany

of the charitableobjects of the Society, as it, the Society,

at its absolute discretion, maydecide."

All monies received by the Society are expended

within the Republic of Ireland.

The Irish Cancer Soc iety Limited is a Company Limited

by Guarantee.

Registered No.:

R of 1.20868

Registered Office:

5 Northumberland Road, Dublin 4.

Solicitors

Arthur Cox & Co.

42 St. Stephen's Green, Dublin 2.

Bankers:

Allied Irish Banks.

"Conquer Cancer Campaign" is a Registered Business

Name and is used by the Society for some fund raising

purposes. The "Cancer Research Advancement Board"

allocates all Research Grants on behalf of the Society.

IRISH

CANCER

SOCIETY

5 Northumberland Road

Dublin 4

Ireland

Tel: 681855

187