Wednesday 23 May 2018

Deadline for 400,000 Vodafone shareholders

Louise McBride

Louise McBride

If you're one of the 400,000 or so Irish Vodafone shareholders, you have less than two weeks to return the form which will determine whether or not you pay tax on the payment you receive under the company's deal with the US telecoms giant Verizon.

Vodafone shareholders have until February 20 to return the Form of Election, where they state whether they will receive their payment as capital or income.

To avoid paying tax on your 'return of value' – that is the payment you get under the deal – you should indicate that you wish to receive your return of value as capital.

If you bought Eircom shares in 1999, those shares became Vodafone shares in 2001 when Eircom sold its mobile arm Eircell to Vodafone.

If you still hold those shares, you have most likely made a loss on your initial investment in Eircom and the Revenue Commissioners have indicated that you won't have to pay any tax as a result – as long as you receive your payment as capital.

However, if you don't return the Form of Election on time, or you choose to receive your Return of Value as income rather than capital, you will have to pay tax.

The deal between Vodafone and Verizon is expected to be completed by February 21. Shareholders will also get new Verizon shares under the deal – and will start to receive those shares from February 24.

Irish Independent

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