Finance Act, 1993

Amendment of section 56 (taxation of shares issued in lieu of cash dividends) of Finance Act, 1974.

36.—(1) Section 56 of the Finance Act, 1974 , is hereby amended, as respects any option exercised on or after the 1st day of June, 1993—

(a) by the substitution for subsection (1) of the following subsection—

“(1) In this section—

‘company’ means any body corporate;

‘share’ means share in the share capital of a company and, other than in the definition of ‘quoted company’, includes stock and any other interest in the company;

‘quoted company’ means a company whose shares, or any class of whose shares—

(a) are listed in the official list of the Irish Stock Exchange or any other stock exchange, or

(b) are dealt in on the smaller companies market, the unlisted securities market or the exploration securities market of the Irish Stock Exchange or on any similar or corresponding market of any other stock exchange.”,


(b) in subsection (2) by the substitution for “company”, where it is first-mentioned, of “company which is not a quoted company”,

and the said subsection (2), as so amended, is set out in the Table to this section.

(2) Subsection (4) of section 56 of the said Act shall apply for the purposes of this section as it applies for the purposes of that section.


(2) If any person, as a consequence of the exercise, whether before, on or after the declaration of a distribution of profits by a company which is not a quoted company, of an option to receive in respect of shares in the company either a sum in cash or additional share capital of the company, receives such additional share capital, he shall be deemed to have received from the company, instead of such share capital, income equal to the sum he would have received if he had received the distribution in cash instead.