Ciarán Cannon (Galway East, Fine Gael)

I move amendment No. 14:

In page 6, before section 8, but in Part 2, to insert the following new section: 9.—Section 13 of the Principal Act is amended by substituting the following subsection for subsection (4A) (inserted by section 13 of the Social Welfare Act 2011):

"(4A) Where a person realises a gain by—

(a) the exercise of a right in accordance with section 128 of the Act of 1997, or

(b) the exercise of a right in accordance with section 519A of the Act of 1997 and, at the time of realising that gain, that person has ceased to be an employee of the employer who granted that right,

subsection (4) shall not apply to—

(i) the employer who granted that right, or

(ii) if that person is employed by another employer at the time the gain is realised, that other employer.".".

These amendments are required to accommodate the payment directly to the Revenue Commissioners of PRSI on the gain from taxable share options. Currently, arrangements for the payment of PRSI on taxable share options is quite complex. If the individual is still employed by the company which awarded the share option, the employer is obliged to deduct the PRSI chargeable. If the individual has left the employment the PRSI must be paid directly to the special collection unit in the Department of Social Protection within 30 days. The tax and USC are paid separately to the Revenue through its relevant tax and share options system of collection. To rationalise the collection systems to allow PRSI to be paid by the individual directly to Revenue when they are paying the tax and USC payable it is necessary to relieve the employer of the obligation to deduct the PRSI and this section achieves this objective. This means that PRSI, together with a tax on the USC on gains from taxable share options can all be paid in one transaction directly to the Revenue Commissioners. To ensure that the necessary arrangements are fully in place these provisions will be brought in by commencement order.

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