• Do you have an Employee Share Scheme reporting obligation?

Has your company (or parent company) provided free or discounted shares or rights to receive shares to employees, directors or individual consultants (Employees), or their nominees, during the 2017 income year?

Alternatively, have discounted shares or rights which were provided in a prior year vested, or been exercised, in 2017, or been allowed to be kept by an Employee who has ceased employment/providing services during this income year?

If the answer is ‘Yes’ to either of these questions then there’s a good chance that the provider company will need to report details of all or some of these shares or rights to:

  • the recipient Employee by 14 July 2017; and
  • the Australian Tax Office (ATO) by 14 August 2017.

In particular, a 2017 employee share scheme (ESS) reporting obligation will arise in respect of discounted shares or rights provided:

  • to an Employee (nominee) in 2017 which are structured to take advantage of the ‘start-up’ concessions in the ESS tax laws; or
  • to an Employee (nominee) in 2017, or an earlier income year, which have had (will have) an ESS taxing point during the 2017 income year (generating a taxable ESS discount for the Employee).