Revenue have recently written to a number of taxpayers with a ‘Notification of Level 1 Compliance Intervention Re: Tax Liability of Share Options Exercised’. Below, we will provide an explanation of what this letter means and the steps involved.
So, what does this letter mean?
The purpose of Level 1 Compliance Interventions is to support taxpayers in achieving voluntary compliance. These interventions offer taxpayers the chance to rectify errors without facing penalties, thus avoiding further investigations by the Revenue.
So, what do you need to do next?
To begin, it is important for you to examine and verify whether you acquired any shares through your Employee Share Purchase Plan (ESPP) or disposed of any Restricted Stock Units (RSUs) during the specified years as requested by Revenue. Our informative infographic provided below highlights the circumstances and procedures that determine your tax liability in relation to these types of shares.
Please note, where a taxpayer does not respond to a Level 1 intervention, Revenue may proceed either a Level 2 or Level 3 intervention where a sufficient level of risk exists. Where a Level 2 or Level 3 intervention is planned, the taxpayer will receive an appropriate notification.
Should you need further assistance, please contact us on 01 5397999.