The co-op has held on to members' bonus shares for the past two years because of uncertainty surrounding Revenue's treatment of Kerry Co-op patronage shares.
The board of Dairygold co-op is considering what to do with bonus shares retained on behalf of members over concerns about how the shares would be treated by Revenue if distributed.
Under the co-op’s Loyalty Reward Scheme, milk suppliers qualify for bonus shares based on purchases of inputs and milk solids supplied each year. Grain growers also qualify.
The co-op allocated €1m in 2016 and again in 2017 for the issue of bonus shares to qualifying farmers.
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However, in late 2016 Revenue sought income tax, PRSI and USC from Kerry co-op members on patronage shares they had received. Dairygold then decided not to distribute its bonus shares to members.
Instead, it has held them within the co-op while awaiting clarity on Revenue’s tax demands. Kerry Co-op is currently contesting these demands.
Dairygold suppliers are now due a third year’s bonus shares for 2018. However, there is still no verdict on the appeal by Kerry to the Tax Appeals Commission and there is no indication of when this will be issued.
The Dairygold board is therefore understood to favour going ahead and distributing the bonus shares to qualifying farmers. A decision on the matter is expected to be announced at next month’s annual general meeting.
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The board of Dairygold co-op is considering what to do with bonus shares retained on behalf of members over concerns about how the shares would be treated by Revenue if distributed.
Under the co-op’s Loyalty Reward Scheme, milk suppliers qualify for bonus shares based on purchases of inputs and milk solids supplied each year. Grain growers also qualify.
The co-op allocated €1m in 2016 and again in 2017 for the issue of bonus shares to qualifying farmers.
However, in late 2016 Revenue sought income tax, PRSI and USC from Kerry co-op members on patronage shares they had received. Dairygold then decided not to distribute its bonus shares to members.
Instead, it has held them within the co-op while awaiting clarity on Revenue’s tax demands. Kerry Co-op is currently contesting these demands.
Dairygold suppliers are now due a third year’s bonus shares for 2018. However, there is still no verdict on the appeal by Kerry to the Tax Appeals Commission and there is no indication of when this will be issued.
The Dairygold board is therefore understood to favour going ahead and distributing the bonus shares to qualifying farmers. A decision on the matter is expected to be announced at next month’s annual general meeting.
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