Hi,
I need some advice. I have held shares in companies I worked for years and never sold any. I have only recently read about potential concerns over tax liabilities due to BIK. Forgive my ignorance here, I’ll try to share what I know in the hope someone can guide me.
I have 3 types of shares purchased via company schemes.
1) Company A (Shares sitting in a US account)
I enrolled in a US scheme where I got up to 15% discount on monthly share purchases. I have never sold these shares. The divided in automatically reinvested.
I think I have two issues here - a) being the BIK on the discount and b) being the income from the dividends.
a) Is this BIK liable from the point where I received it each month? If so, then from 2001 - 2005 when I received this I am overdue and will be penalised by the revenue? The total discount is about 3K.
b) I get charged withholding tax from the US, do I have any liability for the dividend ‘income’ in Ireland ?
2) Company A (Shares sitting in a Irish account)
I was in a yearly scheme and buying stock via a bonus. Again, I have never sold these, they were initially held in trust and then transferred to a broker.
I think the issue I may have is the income from the dividends, this goes into a broker a/c.
On top of all this I have a capital gain from Eircom, can this be still be offset against any potential gain?
The values above are not huge but I want to get all this cleared up. I think my next step will be to clarify with the revenue and maybe speak to an accountant/tax professional.
Thank you for your time
I need some advice. I have held shares in companies I worked for years and never sold any. I have only recently read about potential concerns over tax liabilities due to BIK. Forgive my ignorance here, I’ll try to share what I know in the hope someone can guide me.
I have 3 types of shares purchased via company schemes.
1) Company A (Shares sitting in a US account)
I enrolled in a US scheme where I got up to 15% discount on monthly share purchases. I have never sold these shares. The divided in automatically reinvested.
I think I have two issues here - a) being the BIK on the discount and b) being the income from the dividends.
a) Is this BIK liable from the point where I received it each month? If so, then from 2001 - 2005 when I received this I am overdue and will be penalised by the revenue? The total discount is about 3K.
b) I get charged withholding tax from the US, do I have any liability for the dividend ‘income’ in Ireland ?
2) Company A (Shares sitting in a Irish account)
I was in a yearly scheme and buying stock via a bonus. Again, I have never sold these, they were initially held in trust and then transferred to a broker.
I think the issue I may have is the income from the dividends, this goes into a broker a/c.
On top of all this I have a capital gain from Eircom, can this be still be offset against any potential gain?
The values above are not huge but I want to get all this cleared up. I think my next step will be to clarify with the revenue and maybe speak to an accountant/tax professional.
Thank you for your time