Share Scheme Manual - SSM12.6

Deferment of tax on option gains: dates of instalments

The local Collector of Taxes is responsible for determining the due and payable dates of the tax to be paid by dates of instalments. Broadly however the tax is due and payable as follows.

· The first instalment - 14 days after the Collector first

applies for payment

· The fifth instalment - on 5 April, five years after the

year in which the option is
exercised

· The second, third and - on intervening dates so that the

fourth instalments payment is evenly spread

It should be noted that, following an election, the tax is paid over five instalments - not over five years. Care should be taken when referring to the instalments to avoid reference to payment over a period of five years.

If a taxpayer who has elected for the instalment treatment later decides to pay any of the tax before the due and payable dates he or she is free to do so.

Bankruptcy: ICTA88/S137 (6)

If you hear that a taxpayer who is taking advantage of these provisions has become bankrupt, tell the Collector because in case of bankruptcy the tax becomes due and payable immediately.