Taxes Consolidation Act 1997 section 128B

Payment of tax under section 128

Section 128B deals with the payment of income tax arising on the exercise of a share option, requiring the tax to be paid within 30 days and setting out the rules for returns, interest, appeals and set-off against income tax.

• When a share option is exercised, the gain is taxed at the higher rate of income tax and must be paid to the Collector-General within 30 days, accompanied by a return detailing the gain and tax due.
• If the tax is not paid on time, interest accrues at 0.0219% per day, and Revenue may raise assessments where returns are incomplete or incorrect.
• The tax paid can be set against income tax for the year and any excess refunded, but it does not count as preliminary tax and must still be included in the annual tax return.
• A person assessed under this section may appeal to the Appeal Commissioners within 30 days of notification, and individuals liable only at the standard rate may apply to have the tax calculated at that rate instead.