Commentary on Sections Overview Overview Section 488: Application of section 479 to trustees of approved share incentive plans
1429.This section sets out the circumstances in which section 479 applies to approved share incentive plans. It is based on sections 686B(1), (2) and (6) and 686C(3) of ICTA.
1430.Subsection (1) gives the basic condition that the section applies to dividends or other distributions received by the trustees of approved share incentive plans.
1431.Subsections (2) to (4) provide that the charge at the dividend trust rate under section 479 arises only if and when the shares are disposed of or the “applicable period” comes to an end without the shares having been awarded to participants in accordance with the plan.
1432.Subsection (5) provides that, if shares of the same class are acquired by the trustees at different times, they are treated as awarding shares acquired earlier before shares acquired later.
1433.Subsection (6) explains that, for the purposes of this section, shares are also treated as awarded when they are acquired on behalf of a participant as dividend shares.