The Government has released a document detailing the proposed changes to profit distribution plans, and are calling for public comment.

As announced on the 16th of April, the Government is looking to implement new legislation in regards to Profit Distribution Plans (PDP). Specifically it aimed to deal with the situation under PDP schemes where shares which are given to shareholders by a company are immediately sold back to the company, which not currently covered by tax legislation.

The Government is seeking feed back on the new legislative paper, but with greater eagerness towards the technical aspects of the law change.

The proposal paper can be viewed on the Inland Revenue Department’s Tax Policy website, here.