Taxes Consolidation Act 1997 Schedule 11, paragraph 5

Withdrawal of approval for profit sharing scheme

Paragraph 5 of Schedule 11 sets out the circumstances in which Revenue may withdraw approval of a profit sharing scheme, and provides that any unapproved alteration to a scheme automatically terminates its approved status.

• Revenue may withdraw approval where a participant breaches obligations, the scheme contravenes the legislation or trust deed, scheme shares receive different treatment from other shares of the same class, or eligibility conditions cease to be met
• Failure by trustees to provide information requested or required by Revenue under section 510 is also a ground for withdrawal
• Any alteration to an approved scheme or its trust deed automatically ends the approval from the date of the change, unless Revenue have approved the alteration
• Newly issued shares that receive a lesser dividend entitlement for periods before their issue date (compared with existing shares of the same class) do not constitute grounds for withdrawal of approval