RD 7BTreatment of employee share schemes

1. This section applies for employees or a former employee in relation to benefits under an employee share scheme, if—

2. an employer has irrevocably chosen to withhold and pay tax for a benefit for an employee under the scheme in accordance with subsection (3); or
3. an employer chooses to withhold and pay tax for a benefit for an employee under the scheme in accordance with subsection (4).

4. An employer who has made an irrevocable election described in subsections (1)(a) and (3) must comply with subsection (4)(a) to (c) for—

5. the relevant benefit and employee under the scheme:
6. benefits offered or provided to the employee in replacement of the relevant benefit.

7. For the purposes of subsection (1)(a), an employer has irrevocably chosen to withhold and pay tax for a benefit for an employee, if it is a term of the offer of the benefit, or of the scheme under which the benefit is provided, that the employer must withhold and pay tax under this section.

8. For the purposes of subsection (1)(b), an employer chooses to withhold and pay tax for some benefits for some employees by—

9. calculating the amounts of tax that must be withheld for the relevant benefits and employees, and paying the amounts to the Commissioner as described in section RD 4(1); and
10. including the amounts in the employer’s employment income information under subpart 3C of the Tax Administration Act 1994, treating the relevant ESS deferral date as the relevant payday; and
11. making the disclosure referred to in paragraph (b) within the time required under section RD 6(3)(a).

Notes

• Section RD 7B: replaced (with effect on 1 April 2019), on 26 June 2019, by section 74(1) (and see section 74(2) for application) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).