€27.4m windfall on way for Vodafone shareholders
A windfall of more than €27.4m is coming to Ireland's Vodafone shareholders once a deal selling the company's US business gets the green light in the coming weeks.
The Revenue Commission has said that if shareholders choose to take the payment as capital, instead of income, they can avoid a tax bill on the money.
Eoin Magee from Prosperous Financial Planning said any gains on a capital payment would be subject to 33% tax.
There are 400,000 Vodafone shareholders in the country.
Magee said that in a lot of cases, shareholders were still operating at a loss.
"When you take into account the cost of their eircom shares in 1999, they'll actually make a loss," he said, adding most of the Vodafone shareholders had acquired their shares in 1999,.