Friday 24 November 2017

NTR seeks taxman deal on €100m payout

Tom Lyons

NTR has gone back to the Revenue Commissioners for a second time to try and get a better deal for hundreds of small shareholders who fear a hefty tax bill when the utility group completes a €100m share buy-back.

NTR has about 2,200 shareholders, of which hundreds hold their shares as individuals rather than companies, meaning that they look likely under rules for private companies to have to pay tax at income tax rates.

This means many smaller shareholders could lose about 50 per cent on any payment they receive from the company, which is redeeming 109 million shares at 92c each.

The utilities company has tried to argue to the Revenue that its grey-listed shares should be treated as similar to a stock exchange company, meaning they are subject to capital gains tax rules.

NTR made its second submission to Revenue seeking better terms for small shareholders in recent weeks. NTR's share-redemption plan will be put to shareholders next week but small shareholders have told the Sunday Independent they are concerned about their tax position, despite receiving regular communications from NTR.

A spokeswoman for NTR said: "The company is working with Revenue to clarify the tax implications for shareholders and will advise shareholders as soon as possible."

She declined to comment further.

Sunday Independent

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