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Will i have to pay tax on this

  • 23-09-2009 3:51am
    #1
    Cindyss
    Registered Users Posts: 66 ✭✭


    Hi All,

    First contribution to boards so please go easy on me.

    10 Years ago I made a few thousand pound profit on shares bought in my
    company. I did not think i needed to pay tax on the profit, however in discussion with my fellow workers i am told that i should have paid tax and the tax man can still look for this outstanding tax, this is after 10 years. I still work in the same company,

    Does anyone know i am still liable or is there a time limit for the tax man to look for outstanding tax,

    Many thanks,

    CINDYSS


Comments

  • #2
    jeckle
    Closed Accounts Posts: 652 ✭✭✭jeckle


    According to Dominic Coyle of Irish Times.com
    '..from January 1st, 2005, you would only be able to claim back tax overpaid during the four previous years. Prior to that, taxpayers had been able to claim refunds arising anytime in the previous decade.Unfortunately, there is no such statute of limitations on the revenue pursuing you for failure to correctly pay your taxbill.'

    Of course, he may not necessarily be correct about them being able to pursue, & I'm sure the information is available somewhere on the revenue.ie website etc.

    For peace of mind you could always make a 'general' enquiry by phone, or maybe someone else has a link from a more official source.


  • #3
    buzzing
    Closed Accounts Posts: 42 ✭buzzing


    as far as i am aware CGT must be paid on the profits of Shares. In terms of the Revenue going back 10 years, its a chance you take. Maybe consult a tax consultant to see there advice.

    Best of luck
    Buzzing


  • #4
    dbran
    Registered Users, Registered Users 2 Posts: 2,094 ✭✭✭dbran


    Hi

    There are CGT implications, and if it is a revenue unapproved share option scheme then there are also income tax implications.

    The chances of them finding it after 10 years would be relatively low.

    But if they do.......it will be bad bad bad bad.

    The interest and the penalties would make the final tax bill many times the amount that you would have paid had you paid on time.

    Did you pay any stamp duty on the transfer of the shares?


    Regards

    dbran


  • #5
    buzzing
    Closed Accounts Posts: 42 ✭buzzing


    dbran wrote: »
    Hi

    There are CGT implications, and if it is a revenue unapproved share option scheme then there are also income tax implications.

    The chances of them finding it after 10 years would be relatively low.

    But if they do.......it will be bad bad bad bad.

    The interest and the penalties would make the final tax bill many times the amount that you would have paid had you paid on time.

    Did you pay any stamp duty on the transfer of the shares?


    Regards

    dbran


    fair play D Bran, excellant knowledge.

    by any chance do ya work in tax - big 4?


  • #6
    Cindyss
    Registered Users Posts: 66 ✭✭Cindyss


    Hi Dbran,

    Many thatnks for your reply.
    As far as i know it was sanctioned as a shares scheme as we are a multinational. Money was taken out of our wages after tax, I did not pay any stamp duty on these shares.
    To be honest i did not know i was liable to pay tax as i had just started working.

    Surely if they had an issue i would have heard by now,

    RGDS,
    CINDYSS


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  • #7
    castle
    Registered Users Posts: 497 ✭✭castle


    Cindyss wrote: »
    Hi Dbran,

    Many thatnks for your reply.
    As far as i know it was sanctioned as a shares scheme as we are a multinational. Money was taken out of our wages after tax, I did not pay any stamp duty on these shares.
    To be honest i did not know i was liable to pay tax as i had just started working.

    Surely if they had an issue i would have heard by now,

    RGDS,
    CINDYSS

    Cindy you could ask them for a tax clearance cert


  • #8
    dbran
    Registered Users, Registered Users 2 Posts: 2,094 ✭✭✭dbran


    methinks maybe best to draw a veil over it and take your chances:)

    dbran


  • #9
    Mr. Incognito
    Registered Users, Registered Users 2 Posts: 9,798 ✭✭✭Mr. Incognito


    If it is an approved share option scheme the Income tax was deducted from your wages.

    Now the CGT on the other hand should have been paid on disposal.

    I would guess that if it was a same day share then the vest date and the sale date were effectively the same date- taking into account the charge to income tax that is payable on the difference between the vest price and the market price and the fact this is deductible from the capital gain this usually gives rise to no CGT.

    If this is the case you have no outstanding tax issues.

    I would not ring Revenue as you are only putting yourself on their radar- I would contact the administrator of the scheme.

    In addition companies generally only hold records for seven years by statute so the chances of Revenue pursuing your for this small debt (if it exists) are practically nil.


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