Taxes Consolidation Act 1997 Schedule 12 paragraph 3

Withdrawal of approval for an employee share ownership trust (ESOT)

Schedule 12, paragraph 3 sets out the circumstances in which the Revenue Commissioners may withdraw approval of an employee share ownership trust (ESOT), and imposes information and reporting obligations on trustees and other persons.

• Revenue may withdraw approval where trust conditions are breached, scheme shares receive different treatment from other shares of the same class, or required information is not provided.
• If the terms of the trust are altered without Revenue approval, the approval automatically ceases from the date of the alteration.
• Revenue may require any person to provide information needed to decide whether to approve or withdraw approval of an ESOT, or to determine a beneficiary's tax liability.
• Trustees must file an annual return by 31 March following the year in question, with penalties applying for failure to do so.