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.

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 I. '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 1. 'Taxation Implications of Share Options as a Means of employee Remuneration', Kieran Corrigan, Paper — Sharing in Prosperity Conference, November, 1984, unpublished. 2. To/ley's Profit Sharing, Francis G. Sandison, 1979 and Supplement, 1980. Tolley Publishing Company Limited, London. 2. 3. 4.

Appropriate Percentage Cannot normally be sold 100% 7 5 % 0 %

Shares Held for Under 2 years

2-4 years 4-5 years 5 years and over If a participant has:—

- 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. 5 On the other hand, there are many obstacles to the

Correspondence

The Editor, Law Society Gazette, Blackhall Place, Dublin 7. Dear Editor,

30th June, 1986

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 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.

IRISH CANCER SOCIETY 5 Northumberland Road Dublin 4 Ireland Tel: 681855

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.

"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.

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