Withholding Taxes
Chapter 8A
Dividend withholding tax (ss. 172A-172M)
172A.
Interpretation.
(1)
(a)In this Chapter and in Schedule 2A –
“American depositary receipt” has the same meaning as in section 207 of the Finance Act, 1992;
“approved body of persons” has the same meaning as in section 235;
“approved minimum retirement fund” has the same meaning as in section 784C;
“approved retirement fund” has the same meaning as in section 784A;
“auditor”, in relation to a company, means the person or persons appointed as statutory auditor of the company for the purposes of the Companies Act 2014, or under the law of the territory in which the company is incorporated and which corresponds to those Acts;
“authorised withholding agent”, in relation to a relevant distribution, has the meaning assigned to it by section 172G;
“collective investment undertaking” means –
(i)a collective investment undertaking within the meaning of section 734
(ii)an undertaking for collective investment within the meaning of section 738
(iii)an investment undertaking within the meaning of section 739B (inserted by the Finance Act, 2000), or
(iv)a common contractual fund within the meaning of section 739I (inserted by the Finance Act 2005)
not being an offshore fund within the meaning of section 743;
“designated broker” has the same meaning as in section 838;
“dividend withholding tax”, in relation to a relevant distribution, means a sum representing income tax on the amount of the relevant distribution at a rate of 25 per cent;
“EEA Agreement” means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by all subsequent amendments to that Agreement;
“EEA state” means a state which is a contracting party to the EEA Agreement;
“electronic dividend voucher” means a statement in electronic format that satisfies the requirements of section 172I(1A)(a);
“electronic number” means a unique number on an electronic dividend voucher;
“excluded person”, in relation to a relevant distribution, has the meaning assigned to it by section 172C(2);
“intermediary” means a person who carries on a trade which consists of or includes –
(i)the receipt of relevant distribution from a company or companies resident in the State, or
(ii)the receipt of amounts or other assets representing such distributions from another intermediary or intermediaries, on behalf of other persons;
“ISI Number”, in relation to a security issued by a company, means that security’s unique International Securities Identification Number (ISIN) issued by the Irish Stock Exchange plc trading as Euronext Dublin or by an equivalent authority in a relevant territory;
“non-liable person”, in relation to a relevant distribution, means the person beneficially entitled to the relevant distribution, being an excluded person or a qualifying non-resident person;
“pension scheme” means an exempt approved scheme within the meaning of section 774 or a retirement annuity contract or a trust scheme to which section 784 or 785 applies;
“PEPP assets” has the same meaning as in Chapter 2D of Part 30;
“PEPP provider” has the same meaning as in Chapter 2D of Part 30;
“PRSA administrator” has the same meaning as in section 787A;
“PRSA assets” has the same meaning as in section 787A;
“qualifying employee share ownership trust” means an employee share ownership trust which the Revenue Commissioners have approved of as a qualifying employee share ownership trust in accordance with Schedule 12 and which approval has not been withdrawn;
“qualifying fund manager” has the same meaning as in section 784A;
“qualifying intermediary”, in relation to a relevant distribution, has the meaning assigned to it by section 172E;
“qualifying non-resident person”, in relation to a relevant distribution, has the meaning assigned to it by section 172D(3);
“qualifying savings manager” has the same meaning as in section 848B (inserted by the Finance Act, 2001);
“relevant distribution” means –
(i)a distribution within the meaning of paragraph 1 of Schedule F in section 20(1), other than such a distribution made to –
(I)a Minister of the Government in his or her capacity as such a Minister
(IA)the National Treasury Management Agency
(IB)a Fund investment vehicle (within the meaning of section 37 of the National Treasury Management Agency (Amendment) Act 2014) of which the Minister for Finance is the sole beneficial owner
(II)[deleted]
(III)[deleted]
(IIIA)the Strategic Banking Corporation of Ireland or a subsidiary wholly owned by it or a subsidiary wholly owned by any such subsidiary
(IV)the National Asset Management Agency, or a company referred to in section 616(1)(g), and
(ii)any amount assessable and chargeable to tax under Case IV of Schedule D by virtue of section 816;
“recipient ID code”, in relation to the recipient of a dividend, means the unique code on an electronic dividend voucher that identifies that recipient;
“recognised qualifying intermediary”, , in relation to a relevant distribution, has the meaning assigned to it by section 172FA;
“relevant person”, in relation to a relevant distribution, means –
(i)where the relevant distribution is made by a company directly to the person beneficially entitled to the distribution, the company making the relevant distribution, and
(ii)where the relevant distribution is not made by the company directly to the person beneficially entitled to the relevant distribution but is made to that person through one or more than one qualifying intermediary, the qualifying intermediary from whom the relevant distribution, or an amount or other asset representing the relevant distribution, is receivable by the person beneficially entitled to the distribution;
“relevant territory” means –
(i)a Member State of the European Communities or an EEA state, other than the State
(ii)not being such a Member State or an EEA state, a territory with the government of which arrangements having the force of law by virtue of section 826(1) have been made, or
(iii)not being a territory referred to in subparagraph (i) or (ii), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law;
“special portfolio investment account” has the same meaning as in section 838;
“special savings incentive account” has the same meaning as in section 848M (inserted by the Finance Act, 2001);
“specified person”, in relation to a relevant distribution, means the person to whom the relevant distribution is made, whether or not that person is beneficially entitled to the relevant distribution;
“tax”, in relation to a relevant territory, means any tax imposed in that territory which corresponds to income tax or corporation tax in the State;
“tax reference number” means-
(i)in the case of an individual who is or was resident in the State, the Personal Public Service Number (within the meaning of section 262 of the Social Welfare Consolidation Act 2005) issued to the individual,
(ii)in the case of a person, not being a person to whom subparagraph (i) applies, or other body who or which is within the charge to income tax or corporation tax in the State, the reference number stated on any return of income form or notice of assessment issued to the person or other body by an officer of the Revenue Commissioners, and
(iii)in the case of any other person or body, the reference number stated on any return of income form or notice of assessment issued, or any other reference number allocated, to the person or body for the purposes of income tax or corporation tax or any tax which corresponds to income tax or corporation tax, by the tax authority of the country in which that person or other body is resident for the purposes of income tax or corporation tax or any tax which corresponds to income tax or corporation tax;
“ultimate payer” means the company, authorised withholding agent, qualifying intermediary or other person from whom a relevant distribution, or an amount or other asset representing a relevant distribution, is receivable by the person beneficially entitled to the distribution as referred to in paragraph (a), (b), (c) or (d), as the case may be, of section 172BA(1).
(b)In this Chapter and in Schedule 2A, references to the making of a relevant distribution by a company, or to a relevant distribution to be made by a company, or to the receipt of a relevant distribution from a company do not include, respectively, references to the making of a relevant distribution by a collective investment undertaking, or to a relevant distribution to be made by a collective investment undertaking, or to the receipt of a relevant distribution from a collective investment undertaking.
(2)For the purposes of this Chapter, the amount of a relevant distribution shall be an amount equal to –
(a)where the relevant distribution consists of a payment in cash, the amount of the payment,
(b)where the relevant distribution consists of an amount which is treated under section 816 as a distribution made by a company, the amount so treated,
(c)where the relevant distribution consists of an amount which is assessable and chargeable to tax under Case IV of Schedule D by virtue of section 816, the amount so assessable and chargeable, and
(d)where the relevant distribution consists of a non-cash distribution, not being a relevant distribution to which paragraph (b) or (c) applies, an amount which is equal to the value of the distribution,
and a reference in this Chapter to the amount of a relevant distribution shall be construed as a reference to the amount which would be the amount of the relevant distribution if no dividend withholding tax were to be deducted from the relevant distribution.
(3)Schedule 2A shall have effect for the purposes of supplementing this Chapter.
172B.
Dividend withholding tax on relevant distributions.
(1)Except where otherwise provided by this Chapter, where, on or after the 6th day of April, 1999, a company resident in the State makes a relevant distribution to a specified person –
(a)the company shall deduct out of the amount of the relevant distribution dividend withholding tax in relation to the relevant distribution,
(b)the specified person shall allow such deduction on the receipt of the residue of the relevant distribution, and
(c)the company shall be acquitted and discharged of so much money as is represented by the deduction as if that amount of money had actually been paid to the specified person.
(2)Except where otherwise provided by this Chapter, where, at any time on or after the 6th day of April, 1999, a company resident in the State makes a relevant distribution to a specified person and the relevant distribution consists of an amount referred to in paragraph (b) or (c) of section 172A(2) (being an amount equal to the amount which the specified person would have received if that person had received the relevant distribution in cash instead of in the form of additional share capital of the company), subsection (1) shall not apply, but –
(a)the company shall reduce the amount of the additional share capital to be issued to the specified person by such amount as will secure that the value at that time of the additional share capital issued to the specified person does not exceed an amount equal to the amount which the person would have received, after deduction of dividend withholding tax, if the person had received the relevant distribution in cash instead of in the form of additional share capital of the company,
(b)the specified person shall allow such reduction on the receipt of the residue of the additional share capital,
(c)the company shall be acquitted and discharged of so much money as is represented by the reduction in the value of the additional share capital as if that amount of money had actually been paid to the specified person,
(d)the company shall be liable to pay to the Collector-General an amount (which shall be treated for the purposes of this Chapter as if it were a deduction of dividend withholding tax in relation to the relevant distribution) equal to the dividend withholding tax which, but for this subsection, would have been required to be deducted from the relevant distribution, and
(e)the company shall be liable to pay that amount in the same manner in all respects as if it were the dividend withholding tax which, but for this subsection, would have been required to be deducted from the relevant distribution.
(3)Except where otherwise provided by this Chapter, where, on or after the 6th day of April, 1999, a company resident in the State makes a relevant distribution to a specified person and the relevant distribution consists of a non-cash distribution, not being a relevant distribution to which subsection (2) applies, subsection (1) shall not apply, but the company –
(a)shall be liable to pay to the Collector-General an amount (which shall be treated for the purposes of this Chapter as if it were a deduction of dividend withholding tax in relation to the relevant distribution) equal to the dividend withholding tax which, but for this subsection, would have been required to be deducted from the amount of the relevant distribution,
(b)shall be liable to pay that amount in the same manner in all respects as if it were the dividend withholding tax which, but for this subsection, would have been required to be deducted from the relevant distribution, and
(c)shall be entitled to recover a sum equal to that amount from the specified person as a simple contract debt in any court of competent jurisdiction.
(4)A company resident in the State shall treat every relevant distribution to be made by it on or after the 6th day of April, 1999, to a specified person as a distribution to which this section applies, but, where the company has satisfied itself that a relevant distribution to be made by it to a specified person is not, by virtue of the following provisions of this Chapter, a distribution to which this section applies, the company shall, subject to those provisions, be entitled to so treat relevant distributions to be made by it to the specified person until such time as it is in possession of information which can reasonably be taken to indicate that a relevant distribution to be made to the specified person is or may be a relevant distribution to which this section applies.
(4A)
(a)A company resident in the State shall keep and retain for the longer of the following periods –
(i)a period of 6 years, or
(ii)a period which, in relation to the relevant distributions in respect of which the declaration or notification is made or, as the case may be, given, ends not earlier than 3 years after the date on which the company has ceased to make relevant distributions to the person who made the declaration or, as the case may be, gave the notification to the company,
all declarations (and accompanying certificates) and notifications (not being a notice given to the company by the Revenue Commissioners) which are made or, as the case may be, given to the company in accordance with this Chapter and Schedule 2A.
(b)A company resident in the State shall, on being so required by notice in writing given to the company by the Revenue Commissioners, make available to the Commissioners, within the time specified in the notice –
(i)all declarations, certificates or notifications referred to in paragraph (a) which have been made or, as the case may be, given to the company, or
(ii)such class or classes of such declarations, certificates or notifications as may be specified in the notice.
(c)The Revenue Commissioners may examine or take extracts from or copies of any declarations, certificates or notifications made available to the Commissioners under paragraph (b).
(5)The provisions of the Tax Acts relating to the computation of profits or gains shall not be affected by the deduction of dividend withholding tax in relation to relevant distributions in accordance with this section and, accordingly, the amount of such relevant distributions shall, subject to section 129, be taken into account in computing for tax purposes the profits or gains of persons beneficially entitled to such distributions.
(6)This section shall not apply to a relevant distribution where section 831(5) applies in relation to that distribution.
(7)Subject to section 817X, this section shall not apply where a relevant distribution is made by a company resident in the State and that distribution is –
(a)a distribution made out of exempt profits within the meaning of section 140,
(b)a distribution made out of disregarded income within the meaning of section 141 and to which subsection (3)(a) of that section applies, or
(c)a distribution made out of exempted income within the meaning of section 142.
(8)This section shall not apply where a relevant distribution is made by a company resident in the State to another company so resident and the company making the relevant distribution is a 51 per cent subsidiary of that other company.
172BA.
Obligation on certain persons to obtain tax reference numbers of persons beneficially entitled to relevant distributions.
(1)As respects relevant distributions made on or after 1 January 2021 –
(a)where the relevant distribution is made by a company directly to the person beneficially entitled to the relevant distribution, the company making the relevant distribution,
(b)where the relevant distribution is not made by a company directly to the person beneficially entitled to the relevant distribution but is made to that person through an authorised withholding agent, the authorised withholding agent from whom the relevant distribution, or an amount or other asset representing the relevant distribution, is receivable by the person beneficially entitled to the distribution,
(c)where the relevant distribution is not made by a company directly to the person beneficially entitled to the relevant distribution but is made to that person through one or more qualifying intermediaries, the qualifying intermediary from whom the relevant distribution, or an amount or other asset representing the relevant distribution, is receivable by the person beneficially entitled to the distribution, and
(d)where the relevant distribution is not made by a company directly to the person beneficially entitled to the relevant distribution but is made to that person through one or more other persons who is not, or not all of, or none of whom are, a qualifying intermediary, the person from whom the relevant distribution, or an amount or other asset representing the relevant distribution, is receivable by the person beneficially entitled to the distribution,
shall, in advance of the making of such a relevant distribution and in respect of each person who is beneficially entitled to such a relevant distribution, take all reasonable steps to obtain the tax reference number of that person and shall keep as a record that tax reference number, and section 886 shall apply in relation to that record as it applies in relation to records within the meaning of that section.
(2)The ultimate payer shall ensure that Article 5 of Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) is complied with when the ultimate payer is fulfilling the requirements of subsection (1).
172C.
Exemption from dividend withholding tax for certain persons.
(1)Section 172B shall not apply where a company resident in the State makes a relevant distribution to an excluded person.
(2)For the purposes of this Chapter, a person shall be an excluded person in relation to a relevant distribution if the person is beneficially entitled to the relevant distribution and is –
(a)a company resident in the State which has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 3 of Schedule 2A, but this paragraph is without prejudice to the operation of section 172B(8),
(b)a pension scheme which has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 4 of Schedule 2A,
(ba)a qualifying fund manager or a qualifying savings manager who –
(i)is receiving the relevant distribution as income arising in respect of assets held –
(I)in the case of a qualifying fund manager, in an approved retirement fund or an approved minimum retirement fund, and
(II)in the case of a qualifying savings manager, in a special savings incentive account,
and
(ii)has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 4A of Schedule 2A,
(bb)a PRSA administrator who is receiving the relevant distribution as income arising in respect of PRSA assets, and has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 10 of Schedule 2A,
(bc)a PEPP provider who is receiving the relevant distribution as income arising in respect of PEPP assets, and has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 12 of Schedule 2A,
(bd)subject to subsection (4), a scheme which –
(i)would, if it were established in the State, be an approved scheme within the meaning of Chapter 1 of Part 30 (in this paragraph referred to as an ‘approved scheme’),
(ii)is authorised by a country, other than an EEA state, with which the State has entered arrangements pursuant to section 826(1B) and is subject to supervisory and regulatory arrangements at least equivalent to those applied to an approved scheme in the State, and
(iii)has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 13 of Schedule 2A,
(c)a qualifying employee share ownership trust which has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 5 of Schedule 2A,
(d)a collective investment undertaking which has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 6 of Schedule 2A,
(da)a person who –
(i)is entitled to exemption from income tax under Schedule F in respect of the relevant distribution by virtue of section 189(2), subsection (2) or (3)(b) of section 189A or section 192(2), and
(ii)has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 6A of Schedule 2A,
(db)a unit trust to which section 731(5)(a) applies and which has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 11 of Schedule 2A,
(e)a person who –
(i)is entitled to exemption from income tax under Schedule F in respect of the relevant distribution by virtue of section 207(1)(b), and
(ii)has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 7 of Schedule 2A,
(f)an approved body of persons which –
(i)is entitled to exemption from income tax under Schedule F in respect of the relevant distribution by virtue of section 235(2), and
(ii)has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 7A of Schedule 2A,
or
(g)a designated broker who –
(i)is receiving the relevant distribution as all or part of the relevant income or gains (within the meaning of section 838) of a special portfolio investment account, and
(ii)has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 7B of Schedule 2A.
(3)For the purposes of subsection (2) and Schedule 2A –
(a)a collective investment undertaking which receives a relevant distribution,
(b)a designated broker who receives a relevant distribution as all or part of the relevant income or gains (within the meaning of section 838) of a special portfolio investment account, shall be treated as being beneficially entitled to the relevant distribution,
(c)a qualifying fund manager or a qualifying savings manager who receives a relevant distribution as income arising in respect of assets held –
(i)in the case of a qualifying fund manager, in an approved retirement fund or an approved minimum retirement fund, and
(ii)in the case of a qualifying savings manager, in a special savings incentive account,
(ca)a PRSA administrator who receives a relevant distribution as income arising in respect of PRSA assets,
(cb)a unit trust to which section 731(5)(a) applies which receives a relevant distribution in relation to units in that unit trust,
(d)the trustees of a qualifying trust (within the meaning of section 189A) who receive a relevant distribution as income arising in respect of the trust funds (within the meaning of that section), and
(e)a PEPP provider who receives a relevant distribution as income arising in respect of PEPP assets,
(4)A person shall not be an excluded person under subsection (2)(bd) in relation to a distribution which is a relevant distribution to which section 817X applies.
172D. Exemption from dividend withholding tax for certain non-resident persons.
(1)[deleted]
(2)Subject to section 817X, section 172B shall not apply where, on or after the 6th day of April, 2000, a company resident in the State makes a relevant distribution to a qualifying non-resident person.
(3)For the purposes of this Chapter, a person shall be a qualifying non-resident person in relation to a relevant distribution if the person is beneficially entitled to the relevant distribution and is –
(a)a person, not being a company, who –
(i)is neither resident nor ordinarily resident in the State,
(ii)is, by virtue of the law of a relevant territory, resident for the purposes of tax in the relevant territory, and
(iii)has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 8 of Schedule 2A and in relation to which declaration the certificate referred to in subparagraph (f) of that paragraph is a current certificate (within the meaning of paragraph 2 of that Schedule) at the time of the making of the relevant distribution,
or
(b)a company which is not resident in the State and –
(i)is, by virtue of the law of a relevant territory, resident for the purposes of tax in the relevant territory, but is not under the control, whether directly or indirectly, of a person or persons who is or are resident in the State,
(ii)is under the control, whether directly or indirectly, of a person or persons who, by virtue of the law of a relevant territory, is or are resident for the purposes of tax in the relevant territory and who is or are, as the case may be, not under the control, whether directly or indirectly, of a person who is, or persons who are, not so resident, or
(iii)the principal class of the shares of which, or –
(I)where the company is a 75 per cent subsidiary of another company, of that other company, or
(II)where the company is wholly-owned by 2 or more companies, of each of those companies,
is substantially and regularly traded on a stock exchange in the State, on one or more than one recognised stock exchange in a relevant territory or territories or on such other stock exchange as may be approved of by the Minister for Finance for the purposes of this Chapter,
and which has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 9 of Schedule 2A and where the declaration made is a current declaration (within the meaning of paragraph 2A of that Schedule) at the time of the making of the relevant distribution.
(3A)For the purposes of subsection (3)(b)(i), ‘control’ shall be construed in accordance with subsections (2) to (6) of section 432 as if in subsection (6) of that section for ‘5 or fewer participators’ there were substituted ‘persons resident in the State’.
(3B)Subsections (2) and (3) shall not apply to a property income dividend (within the meaning of section 705A).
(4)For the purposes of subsection (3)(b)(ii), ‘control’ shall be construed in accordance with subsections (2) to (6) of section 432 as if in subsection (6) of that section for ‘5 or fewer participators’ there were substituted –
(a)in so far as the first mention of ‘control’ in subsection (3)(b)(ii) is concerned, ‘persons who, by virtue of the law of a relevant territory (within the meaning assigned by section 172A), are resident for the purposes of tax in such a relevant territory (within that meaning)’, and
(b)in so far as the second mention of ‘control’ in subsection (3)(b)(ii) is concerned, ‘persons who are not resident for the purposes of tax in a relevant territory (within that meaning)’.
(5)For the purposes of subsection (3)(b)(iii)(I), sections 412 to 418 shall apply as those sections would apply for the purposes of Chapter 5 of Part 12 if section 411(1)(c) were deleted.
(6)For the purposes of subsection (3)(b)(iii)(II), a company (in this subsection referred to as an ‘aggregated 100 per cent subsidiary’) shall be treated as being wholly-owned by 2 or more companies (in this subsection referred to as the ‘joint parent companies’) if and so long as 100 per cent of its ordinary share capital is owned directly or indirectly by the joint parent companies, and for the purposes of this subsection –
(a)subsections (2) to (10) of section 9 shall apply as those subsections apply for the purposes of that section, and
(b)sections 412 to 418 shall apply with any necessary modifications as those sections would apply for the purposes of Chapter 5 of Part 12 –
(i)if section 411(1)(c) were deleted, and
(ii)if the following subsection were substituted for subsection (1) of section 412:
‘(1)Notwithstanding that at any time a company is an aggregated 100 per cent subsidiary (within the meaning assigned by section 172D(6)) of the joint parent companies (within the meaning assigned by that section), it shall not be treated at that time as such a subsidiary unless additionally at that time –
(a)the joint parent companies are between them beneficially entitled to not less than 100 per cent of any profits available for distribution to equity holders of the company, and
(b)the joint parent companies would be beneficially entitled between them to not less than 100 per cent of any assets of the company available for distribution to its equity holders on a winding-up.’.
172E.
Qualifying intermediaries.
(1)Subject to sections 172F(6) and 817X, section 172B shall not apply where a company resident in the State makes a relevant distribution through one or more than one qualifying intermediary for the benefit of a person beneficially entitled to the relevant distribution who is a non-liable person in relation to the relevant distribution.
(2)For the purposes of this Chapter, a person shall be a qualifying intermediary in relation to relevant distributions to be made to the person by a company resident in the State, and in relation to amounts or other assets representing such distributions to be paid or given to the person by another qualifying intermediary, if the person is an intermediary who –
(a)is resident in the State or who, by virtue of the law of a relevant territory, is resident for the purposes of tax in the relevant territory,
(b)has entered into a qualifying intermediary agreement with the Revenue Commissioners, and
(c)has been authorised by the Revenue Commissioners, by way of notice in writing, to be a qualifying intermediary in relation to relevant distributions to be made to the person by companies resident in the State, and in relation to amounts or other assets representing such distributions to be paid or given to the person by another qualifying intermediary, for the benefit of other persons who are beneficially entitled to the relevant distributions, which authorisation has not been revoked under subsection (6).
(3)A qualifying intermediary agreement shall be an agreement entered into between the Revenue Commissioners and an intermediary under the terms of which the intermediary undertakes –
(a)to accept, and to retain for the longer of the following periods –
(i)a period of 6 years, or
(ii)a period which, in relation to the relevant distributions in respect of which the declaration or notification is made or, as the case may be, given, ends not earlier than 3 years after the date on which the intermediary has ceased to receive relevant distributions on behalf of the person who made the declaration or, as the case may be, gave the notification to the intermediary,
all declarations (and accompanying certificates) and notifications (not being a notice given to the intermediary by the Revenue Commissioners) which are made or, as the case may be, given to the intermediary in accordance with this Chapter and Schedule 2A,
(b)on being so required by notice in writing given to the intermediary by the Revenue Commissioners, to make available to the Commissioners, within the time specified in the notice –
(i)all declarations, certificates or notifications referred to in paragraph (a) which have been made or, as the case may be, given to the intermediary, or
(ii)such class or classes of such declarations, certificates or notifications as may be specified in the notice,
(c)to inform the Revenue Commissioners if the intermediary has reasonable grounds to believe that any such declaration or notification made or given by any person was not, or may not have been, a true and correct declaration or notification at the time of the making of the declaration or the giving of the notification, as the case may be,
(d)to inform the Revenue Commissioners if the intermediary has at any time reasonable grounds to believe that any such declaration made by any person would not, or might not, be a true and correct declaration if made at that time,
(e)to operate the provisions of section 172F in a correct and efficient manner and provide to the Revenue Commissioners the return referred to in subsection (7) of that section within the time specified in that behalf in subsection (8) of that section,
(f)to provide to the Revenue Commissioners, not later than 3 months after the end of the first year of the operation of the agreement by the intermediary, a report on the intermediary’s compliance with the agreement in that year, which report shall be signed by –
(i)if the intermediary is a company, the auditor of the company, or
(ii)if the intermediary is not a company, a person who, if the intermediary were a company, would be qualified to be appointed auditor of the company,
and thereafter, on being required by notice in writing given to the intermediary by the Revenue Commissioners, to provide to the Commissioners, within the time specified in the notice, a similar report in relation to such other period of the operation of the agreement by the intermediary as may be specified in the notice,
(g)if required by the Revenue Commissioners, to give a bond or guarantee to the Revenue Commissioners which is sufficient to indemnify the Commissioners against any loss arising by virtue of the fraud or negligence of the intermediary in relation to the operation by the intermediary of the agreement and the provisions of this Chapter,
(h)in the case where the intermediary is a depositary bank holding shares in trust for, or on behalf of, the holders of American depositary receipts –
(i)if authorised to do so by the Revenue Commissioners, to operate the provisions of subsection (3)(d) of section 172F, and
(ii)to comply with any conditions in relation to such operation as may be specified in the agreement,
and
(i)to allow for the verification by the Revenue Commissioners of the intermediary’s compliance with the agreement and the provisions of this Chapter in any other manner considered necessary by the Commissioners.
(3A)The Revenue Commissioners may examine or take extracts from or copies of any declarations, certificates or notifications made available to the Commissioners under subsection (3)(b).
(4)The Revenue Commissioners shall not authorise an intermediary to be a qualifying intermediary unless the intermediary –
(a)is a company which holds a licence granted under section 9 or an authorisation granted under section 9A of the Central Bank Act 1971, or a person who holds a licence or other similar authorisation under the law of any relevant territory or of an EEA state which corresponds to the said section 9,
(b)is a person who is wholly owned by a company or person referred to in paragraph (a),
(c)is a member firm of the Irish Stock Exchange plc trading as Euronext Dublin or of a recognised stock exchange in a relevant territory, or
(d)is in the opinion of the Revenue Commissioners a person suitable to be a qualifying intermediary for the purposes of this Chapter.
(5)The Revenue Commissioners shall maintain a list of intermediaries who have been authorised by the Commissioners to be qualifying intermediaries for the purposes of this Chapter and whose authorisations have not been revoked under subsection (6), and, notwithstanding any obligations as to secrecy or other restriction upon disclosure of information imposed by or under any statute or otherwise, the Revenue Commissioners may make available to any person the name and address of any such qualifying intermediary.
(6)Where, at any time after the Revenue Commissioners have authorised an intermediary to be a qualifying intermediary for the purposes of this Chapter, the Commissioners are satisfied that the intermediary –
(a)has failed to comply with the agreement referred to in subsection (3) or the provisions of this Chapter, or
(b)is otherwise unsuitable to be a qualifying intermediary,
they may, by notice in writing served by registered post on the intermediary, revoke the authorisation with effect from such date as may be specified in the notice.
(7)Notice of a revocation under subsection (6) shall be published as soon as may be in Iris Oifigiúil.
(8)Without prejudice to the operation of subsection (6), the authorisation by the Revenue Commissioners of an intermediary as a qualifying intermediary for the purposes of this Chapter shall cease to have effect on the day before the seventh anniversary of the date from which such authorisation applied; but this shall not prevent –
(a)the intermediary and the Revenue Commissioners from agreeing to renew the qualifying intermediary agreement entered into between them in accordance with subsection (3) or to enter into a further such agreement, and
(b)a further authorisation by the Revenue Commissioners of the intermediary as a qualifying intermediary for the purposes of this Chapter.
172F.
Obligations of qualifying intermediary in relation to relevant distributions.
(1)A qualifying intermediary which is to receive on behalf of other persons –
(a)any relevant distributions to be made by any company resident in the State, or
(b)from another qualifying intermediary amounts or other assets (in this section referred to as ‘payments’) representing such distributions.
shall create and maintain, in relation to such distributions and payments, 2 separate and distinct categories to be known, respectively, as the ‘Exempt Fund’ and the ‘Liable Fund’, and the qualifying intermediary shall notify that company or that other qualifying intermediary, as the case may be, by way of notice in writing, whether the relevant distributions to be made to it by that company, or, as the case may be, the payments representing such distributions to be made to it by that other qualifying intermediary, are to be received by it for the benefit of a person included in the Exempt Fund or a person included in the Liable Fund.
(2)Subject to subsections (3) and (5), a qualifying intermediary shall include in its Exempt Fund in relation to such distributions and payments only those persons on whose behalf it is to receive such distributions or payments, being –
(a)persons beneficially entitled to such distributions or payments who are non-liable persons in relation to such distributions, and
(b)any further qualifying intermediary to whom such distributions or payments (or amounts or other assets representing such distributions or payments) are to be given by the qualifying intermediary and are to be received by that further qualifying intermediary for the benefit of persons included in that further qualifying intermediary’s Exempt Fund.
(3)
(a)A qualifying intermediary shall not include a person referred to in subsection (2)(a) in its Exempt Fund unless it has received from that person –
(i)a declaration made by that person in accordance with section 172C(2), or
(ii)a declaration made by that person in accordance with section 172D(3) –
(I)in relation to which the certificate referred to in paragraph 8(f) of Schedule 2A is a current certificate (within the meaning of paragraph 2 of that Schedule), or
(II)which is a current declaration (within the meaning of paragraph 2A of Schedule 2A),
as the case may be, at the time of the making of the relevant distributions.
(b)A qualifying intermediary shall not include a further qualifying intermediary referred to in subsection (2)(b) in its Exempt Fund unless the qualifying intermediary has received from that further qualifying intermediary a notification in writing given to the qualifying intermediary by that further qualifying intermediary in accordance with subsection (1) to the effect that the relevant distributions made by the company resident in the State, or, as the case may be, the payments representing such distributions, which are to be given by the qualifying intermediary to that further qualifying intermediary are to be received by that further qualifying intermediary for the benefit of a person included in that further qualifying intermediary’s Exempt Fund.
(c)Notwithstanding paragraphs (a) and (b), a qualifying intermediary, being a depositary bank holding shares in trust for, or on behalf of, the holders of American depositary receipts, shall, if provided for in the qualifying intermediary agreement and subject to any conditions specified in that agreement, operate the provisions of paragraph (d).
(d)Where this paragraph applies in relation to a qualifying intermediary, the qualifying intermediary shall include in its Exempt Fund –
(i)any person on whose behalf it is to receive any relevant distributions to be made by a company resident in the State, or on whose behalf it is to receive from another qualifying intermediary payments representing such distributions, being a person who is beneficially entitled to such distributions or payments, who is the holder of an American depositary receipt and whose address on the qualifying intermediary’s register of depositary receipts is located in the United States of America, and
(ii)any specified intermediary to which such distributions or payments (or amounts or other assets representing such distributions or payments) are to be given by the qualifying intermediary and are to be received by that specified intermediary for the benefit of –
(I)persons who are beneficially entitled to such distributions or payments, who are the holders of American depositary receipts, whose address on that specified intermediary’s register of depositary receipts is located in the United States of America, and who in accordance with paragraph (e) (iii) (I) are to be included in that specified intermediary’s Exempt Fund, or
(II)any further specified intermediary to which such distributions or payments (or amounts or other assets representing such distributions or payments) are to be given by the first-mentioned specified intermediary and are to be received by that further specified intermediary for the benefit of persons who in accordance with clauses (I) and (II) of paragraph (e)(iii) are to be included in that further specified intermediary’s Exempt Fund.
(e)For the purposes of this section, but subject to paragraphs (g) and (h), an intermediary shall be treated as a specified intermediary if the intermediary –
(i)is not a qualifying intermediary but is a person referred to in paragraph (a), (b), (c) or (d) of section 172E(4) who is operating as an intermediary in an establishment situated in the United States of America,
(ii)creates and maintains, in relation to such distributions or payments (or amounts or other assets representing such distributions or payments) to be received by it on behalf of other persons from a qualifying intermediary or another specified intermediary, an Exempt Fund and a Liable Fund in accordance with subsections (1) and (5), but subject to subparagraphs (iii) and (iv), as if it were a qualifying intermediary,
(iii)includes in its Exempt Fund in relation to such distributions or payments (or amounts or other assets representing such distributions or payments), only –
(I)those persons who are beneficially entitled to such distributions or payments, being persons who are the holders of American depositary receipts and whose address on its register of depositary receipts is located in the United States of America, and
(II)any further specified intermediary to which such distributions or payments (or amounts or other assets representing such distributions or payments) are to be given by the intermediary and are to be received by that further specified intermediary for the benefit of persons who in accordance with this subparagraph are to be included in that further specified intermediary’s Exempt Fund,
(iv)includes in its Liable Fund in relation to such distributions or payments (or amounts or other assets representing such distributions or payments), all other persons (being persons who are the holders of American depositary receipts) on whose behalf such distributions or payments (or amounts or other assets representing such distributions or payments) are to be received by it from a qualifying intermediary or a further specified intermediary, other than those persons included in its Exempt Fund,
(v)notifies, by way of notice in writing or in electronic format, the qualifying intermediary or, as the case may be, the further specified intermediary from whom it is to receive, on behalf of other persons, such distributions or payments (or amounts or other assets representing such distributions or payments), whether such distributions or payments (or amounts or other assets representing such distributions or payments) are to be so received by it for the benefit of persons included in its Exempt Fund or persons included in its Liable Fund, and
(vi)enters into an agreement with the qualifying intermediary or further specified intermediary, as the case may be, under the terms of which it agrees that if and when required to comply with subsection (7A) it will do so.
(f)Where, by virtue of the preceding provisions of this subsection, any person, being a person who, apart from this paragraph, would not be a non-liable person in relation to the distributions or payments (or amounts or other assets representing such distributions or payments) to be received on that person’s behalf by a qualifying intermediary or a specified intermediary, is included in the Exempt Fund of the qualifying intermediary or, as the case may be, of the specified intermediary, that person shall, notwithstanding any other provision of this Chapter, be treated as a non-liable person in relation to such distributions.
(g)Notwithstanding paragraph (e), where the Revenue Commissioners are satisfied that an intermediary, being a specified intermediary or other specified intermediary referred to in subsection (7A), has failed to comply with that subsection –
(i)the Commissioners may, by notice in writing given to the intermediary, notify it that it shall cease to be treated as a specified intermediary for the purposes of this section from such date as may be specified in the notice, and
(ii)notwithstanding any obligations as to secrecy or other restriction upon disclosure of information imposed by or under statute or otherwise, the Commissioners may make available to any qualifying intermediary (being a depositary bank holding shares in trust for, or on behalf of, the holders of American depositary receipts) or specified intermediary a copy of such notice.
(h)Where subsequently the Revenue Commissioners are satisfied that the intermediary has furnished the information required under subsection (7A) and will in future comply with that subsection if and when requested to do so, the Commissioners may, by further notice in writing given to the intermediary, revoke the notice given to the intermediary under paragraph (g) from such date as may be specified in the further notice, and a copy of that further notice shall be given to any person to whom a copy of the notice under paragraph (g) was given.
(4)Subject to subsection (5), a qualifying intermediary shall include in its Liable Fund in relation to relevant distributions to be made to it by a company resident in the State and payments representing such distributions to be made to it by another qualifying intermediary all persons on whose behalf the qualifying intermediary is to receive such distributions or payments, other than those persons included in its Exempt Fund in relation to such distributions and payments.
(5)A qualifying intermediary shall update its Exempt Fund and Liable Fund, in relation to relevant distributions to be made to it by a company resident in the State and payments representing such distributions to be made to it by another qualifying intermediary, as often as may be necessary to ensure that the provisions of section 172E(1) and subsections (2) to (4) of this section are complied with, and shall notify the company or, as the case may be, that other qualifying intermediary, by way of notice in writing, of all such updates.
(6)Where at any time a company resident in the State makes a relevant distribution to a qualifying intermediary and, apart from this subsection, the relevant distribution would be treated as being made to the qualifying intermediary for the benefit of a person beneficially entitled to the relevant distribution who is a non-liable person in relation to that distribution, the distribution shall be treated as if it were not made to the qualifying intermediary for the benefit of such a person unless, at or before that time, the qualifying intermediary has notified the company in accordance with subsection (1) or (5), as the case may be, that the relevant distribution is to be received by the qualifying intermediary for the benefit of a person included in the qualifying intermediary’s Exempt Fund in relation to relevant distributions to be made to the qualifying intermediary by the company, and accordingly, in the absence of such a notification, section 172B shall apply in relation to the relevant distribution.
(7)
(a)A qualifying intermediary shall, on being so required by notice in writing given to the qualifying intermediary by the Revenue Commissioners, make a return to the Commissioners, within the time specified in the notice (which shall not be less than 30 days) and as respects such year of assessment as may be specified in the notice (being the year of assessment 1999-2000 or any subsequent year of assessment), showing –
(i)the name and address of –
(I)each company resident in the State from which the qualifying intermediary received, on behalf of another person, a relevant distribution made by that company in the year of assessment to which the return refers, and
(II)each other person from whom the qualifying intermediary received, on behalf of another person, an amount or other asset representing a relevant distribution made by a company resident in the State in the year of assessment to which the return refers,
(ii)the amount of each such relevant distribution,
(iii)the name and address of each person to whom such a relevant distribution, or an amount or other asset representing such a relevant distribution, has been given by the qualifying intermediary, and
(iv)the name and address of each person referred to in subparagraph (iii) in respect of whom a declaration under section 172C(2) or 172D(3) has been received by the qualifying intermediary.
(b)A return required to be made by a qualifying intermediary under paragraph (a) may be confined to such class or classes of relevant distributions as may be specified in the notice given to the qualifying intermediary by the Revenue Commissioners under that paragraph.
(7A)
(a)This subsection shall apply where a qualifying intermediary has been required to make a return to the Revenue Commissioners under subsection (7) (a) and a relevant distribution (or an amount or other asset representing a relevant distribution), the details of which are required to be included in that return, has been given by the qualifying intermediary to a specified intermediary.
(b)The qualifying intermediary shall, immediately on receipt of the notice referred to in subsection (7)(a), request the specified intermediary, by way of notice in writing or in electronic format, to notify the qualifying intermediary or the Revenue Commissioners of the name and address of each person to whom the specified intermediary gave such a distribution (or an amount or other asset representing such a distribution) and of the amount of each such distribution.
(c)The specified intermediary shall, within 21 days of the receipt of a notice under paragraph (b), furnish to the qualifying intermediary or, at the discretion of the specified intermediary, to the Revenue Commissioners, by way of notice in writing or in electronic format, the information required under that paragraph.
(d)Where the specified intermediary furnishes the information required under paragraph (b) –
(i)to the qualifying intermediary, the qualifying intermediary shall include that information in the return required to be made by it under subsection (7)(a), or
(ii)to the Revenue Commissioners, the specified intermediary shall, by way of notice in writing or in electronic format, immediately advise the qualifying intermediary of that factand the qualifying intermediary shall include in the return required to be made by it under subsection (7)(a) a statement to the effect that it has been so advised by the specified intermediary.
(e)If any person to whom a specified intermediary gave such a distribution (or an amount or other asset representing such a distribution) is another specified intermediary, the specified intermediary shall, immediately on the receipt of a notice under paragraph (b), request the other specified intermediary, by way of notice in writing or in electronic format, to notify the specified intermediary or the Revenue Commissioners of the name and address of each person to whom it gave such a distribution (or an amount or other asset representing such a distribution) and of the amount of each such distribution.
(f)The other specified intermediary shall, within 21 days of the receipt of a notice under paragraph (e), furnish to the specified intermediary or, at the discretion of the other specified intermediary, to the Revenue Commissioners, by way of notice in writing or in electronic format, the information required under that paragraph.
(g)Where the other specified intermediary furnishes the information required under paragraph (e) –
(i)to the specified intermediary, the specified intermediary shall, by way of notice in writing or in electronic format, immediately transmit that information to the person referred to in paragraph (d) (being the qualifying intermediary or the Revenue Commissioners, as the case may be) to whom it furnishes the information required under paragraph (b), and –
(I)if that person is the qualifying intermediary, the qualifying intermediary shall include that information in the return required to be made by it under subsection (7)(a), or
(II)if that person is the Revenue Commissioners, the specified intermediary shall, by way of notice in writing or in electronic format, immediately advise the qualifying intermediary of the fact that the informationrequired to be furnished by the other specified intermediary under paragraph (e) has been furnished to the specified intermediary and transmitted by the specified intermediary to the Revenue Commissioners in accordance with this paragraph and the qualifying intermediary shall include in the return to be made by it under subsection (7) (a) a statement to the effect that it has been so advised by the specified intermediary.
or
(ii)to the Revenue Commissioners, the other specified intermediary shall, by way of notice in writing or in electronic format, immediately advise the specified intermediary of that fact, the specified intermediary shall in turn, by way of similar notice, immediately advise the qualifying intermediary of that fact and the qualifying intermediary shall include in the return required to be made by it under subsection (7)(a) a statement to the effect that it has been so advised by the specified intermediary.
(h)Where, in accordance with this subsection, the specified intermediary or the other specified intermediary furnishes information to the Revenue Commissioners in electronic format, such format shall be agreed in advance with the Revenue Commissioners.
(8)Subject to subsection (9), every return by a qualifying intermediary under subsection (7) shall be made in an electronic format approved by the Revenue Commissioners and shall be accompanied by a declaration made by the qualifying intermediary, on a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that the return is correct and complete.
(9)Where the Revenue Commissioners are satisfied that a qualifying intermediary does not have the facilities to make a return under subsection (7) in the format referred to in subsection (8), the return shall be made in writing in a form prescribed or authorised by the Revenue Commissioners and shall be accompanied by a declaration made by the qualifying intermediary, on a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that the return is correct and complete.
172FA.
Recognised qualifying intermediaries.
(1)For the purposes of this Chapter, a person shall be a recognised qualifying intermediary if the person is –
(a)a qualifying intermediary that is also a recognised clearing system, within the meaning of section 246A(2)(a), or
(b)a qualifying intermediary that is also a person who is wholly owned by a recognised clearing system, within the meaning of section 246A(2)(a).
(2)A recognised qualifying intermediary may receive relevant distributions without the deduction of dividend withholding tax and pay those relevant distributions without the deduction of dividend withholding tax to another recognised qualifying intermediary or to an authorised withholding agent so long as the recognised qualifying intermediary has obtained a notice in writing from the authorised withholding agent or the other recognised qualifying intermediary, that it is an authorised withholding agent or a recognised qualifying intermediary, as the case may be, in relation to those distributions.
172G.
Authorised withholding agent.
(1)Subject to section 172H, section 172B shall not apply where a company resident in the State makes a relevant distribution, either directly or through one or more than one recognised qualifying intermediary, to an authorised withholding agent for the benefit of a person beneficially entitled to the relevant distribution, not being the authorised withholding agent.
(2)For the purposes of this Chapter, a person shall be an authorised withholding agent in relation to relevant distributions to be made to the person by a company resident in the State if the person is an intermediary who –
(a)
(i)is resident in the State, or
(ii)if not resident in the State, is, by virtue of the law of a relevant territory, resident for the purposes of tax in the relevant territory, and carries on through a branch or agency in the State a trade which consists of or includes the receipt of relevant distributions from a company or companies resident in the State on behalf of other persons,
(b)has entered into an authorised withholding agent agreement with the Revenue Commissioners, and
(c)has been authorised by the Revenue Commissioners, by way of notice in writing, to be an authorised withholding agent in relation to relevant distributions to be made to the person by companies resident in the State for the benefit of other persons who are beneficially entitled to the relevant distributions, which authorisation has not been revoked under subsection (6).
(3)An authorised withholding agent agreement shall be an agreement entered into between the Revenue Commissioners and an intermediary under the terms of which the intermediary undertakes –
(a)to accept, and to retain for the longer of the following periods –
(i)a period of 6 years, or
(ii)a period which, in relation to the relevant distributions in respect of which the declaration or notification is made or, as the casemay be, given, ends not earlier than 3 years after the date on which the intermediary has ceased to receive relevant distributions on behalf of the person who made the declaration or, as the case may be, gave the notification to the intermediary,
all declarations (and accompanying certificates) and notifications (not being a notice given to the intermediary by the Revenue Commissioners) which are made or, as the case may be, given to the intermediary in accordance with this Chapter and Schedule 2A,
(b)on being so required by notice in writing given to the intermediary by the Revenue Commissioners, to make available to the Commissioners, within the time specified in the notice –
(i)all declarations, certificates or notifications referred to in paragraph (a) which have been made or, as the case may be, given to the intermediary, or
(ii)such class or classes of such declarations, certificates or notifications as may be specified in the notice,
(c)to inform the Revenue Commissioners if the intermediary has reasonable grounds to believe that any such declaration or notification made or given by any person was not, or may not have been, a true and correct declaration or notification at the time of the making of the declaration or the giving of the notification, as the case may be,
(d)to inform the Revenue Commissioners if the intermediary has at any time reasonable grounds to believe that any such declaration made by any person would not, or might not, be a true and correct declaration if made at that time,
(e)to operate the provisions of section 172H in a correct and efficient manner,
(f)to provide to the Collector-General the return referred to in section 172K(1), and to pay to the Collector-General any dividend withholding tax required to be included in such a return, within the time specified in that behalf in that section,
(g)to provide to the Revenue Commissioners, not later than 3 months after the end of the first year of the operation of the agreement by the intermediary, a report on the intermediary’s compliance with the agreement in that year, which report shall be signed by –
(i)if the intermediary is a company, the auditor of the company, or
(ii)if the intermediary is not a company, a person who, if the intermediary were a company, would be qualified to be appointed auditor of the company,
and thereafter, on being required by notice in writing given to the intermediary by the Revenue Commissioners, to provide to the Commissioners, within the time specified in the notice, a similar report in relation to such other period of the operation of the agreement by the intermediary as may be specified in the notice,
and
(h)to allow for the verification by the Revenue Commissioners of the intermediary’s compliance with the agreement and the provisions of this Chapter in any other manner considered necessary by the Commissioners.
(3A)The Revenue Commissioners may examine or take extracts from or copies of any declarations, certificates or notifications made available to the Commissioners under subsection (3)(b).
(4)The Revenue Commissioners shall not authorise an intermediary to be an authorised withholding agent unless the intermediary –
(a)is a company which holds a licence granted under section 9 or an authorisation granted under section 9A of the Central Bank Act 1971, or a person who holds a licence or other similar authorisation under the law of any relevant territory or of an EEA state which corresponds to the said section 9,
(b)is a person who is wholly owned by a company or person referred to in paragraph (a),
(c)is a member of the Irish Stock Exchange plc trading as Euronext Dublin or of a recognised stock exchange in a relevant territory, or
(d)is in the opinion of the Revenue Commissioners a person suitable to be an authorised withholding agent for the purposes of this Chapter.
(5)The Revenue Commissioners shall maintain a list of intermediaries who have been authorised by the Commissioners to be authorised withholding agents for the purposes of this Chapter and whose authorisations have not been revoked under subsection (6), and, notwithstanding any obligation as to secrecy or other restriction upon disclosure of information imposed by or under any statute or otherwise, the Revenue Commissioners may make available to any person the name and address of any such authorised withholding agent.
(6)Where, at any time after the Revenue Commissioners have authorised an intermediary to be an authorised withholding agent for the purposes of this Chapter, the Commissioners are satisfied that the intermediary –
(a)has failed to comply with the agreement referred to in subsection (3) or the provisions of this Chapter, or
(b)is otherwise unsuitable to be an authorised withholding agent,
they may, by notice in writing served by registered post on the intermediary, revoke the authorisation with effect from such date as may be specified in the notice.
(7)Notice of a revocation under subsection (6) shall be published as soon as may be in Iris Oifigiúil.
(8)Without prejudice to the operation of subsection (6), the authorisation by the Revenue Commissioners of an intermediary as an authorised withholding agent for the purposes of this Chapter shall cease to have effect on the day before the seventh anniversary of the date from which such authorisation applied; but this shall not prevent –
(a)the intermediary and the Revenue Commissioners from agreeing to renew the authorised withholding agent agreement entered into between them in accordance with subsection (3) or to enter into a further such agreement, and
(b)a further authorisation by the Revenue Commissioners of the intermediary as an authorised withholding agent for the purposes of this Chapter.
172H.
Obligations of authorised withholding agent in relation to relevant distributions.
(1)An authorised withholding agent which is to receive, on behalf of other persons, any relevant distributions to be made to it by any company resident in the State, either directly or through one or more than one recognised qualifying intermediary, shall notify that company or that recognised qualifying intermediary, as the case may be, by way of notice in writing, that it is an authorised withholding agent in relation to those distributions.
(2)Where an authorised withholding agent receives, on behalf of another person, a relevant distribution from a company resident in the State, either directly or through one or more than one recognised qualifying intermediary, and gives that distribution, or an amount or other asset representing that distribution, to that other person, this Chapter shall apply, with any necessary modifications, as if –
(a)the authorised withholding agent were the company which made the distribution, and
(b)the giving by the authorised withholding agent of the relevant distribution, or an amount or other asset representing that distribution, to that other person were the making of the relevant distribution by the authorised withholding agent to that other person at the time of the making of the relevant distribution to the authorised withholding agent by the company.
and accordingly, except where otherwise provided by this Chapter, section 172B shall apply in relation to that relevant distribution and the authorised withholding agent shall be obliged to pay and account for the dividend withholding tax (if any) due in relation to the relevant distribution.
(3)Where at any time a company resident in the State makes a relevant distribution to a person and, apart from this subsection, the relevant distribution would be treated as being made to an authorised withholding agent for the benefit of another person, the distribution shall be treated as if it were not made to the authorised withholding agent for the benefit of that other person unless, at or before that time, the authorised withholding agent has notified the company or the recognised qualifying intermediary, as the case may be, in accordance with subsection (1) that it is an authorised withholding agent in relation to the relevant distribution, and accordingly, in the absence of such a notification, section 172B shall apply in relation to the relevant distribution.
172I.
Statement to be given to recipients of relevant distributions.
(1)Every person (in this section referred to as ‘the payer’) who makes, or who (being an authorised withholding agent) is treated as making, a relevant distribution shall, at the time of the making of the relevent distribution or, in the case of an authorised withholding agent, at the time of the giving by the authorised withholding agent of the relevant distribution, or an amount or other asset representing that distribution, to another person, give the recipient of the relevant distribution or, as the case may be, that other person a statement in writing, or by means of electronic communications, showing –
(a)the name and address of the payer and, if the payer is not the company making the relevant distribution, the name and address of that company,
(b)the name and address of the person to whom the relevant distribution is made,
(c)the date the relevant distribution is made,
(d)the amount of the relevant distribution, and
(e)the amount of the dividend withholding tax (if any) deducted in relation to the relevant distribution.
(1A)A statement delivered by means of electronic communications to an intermediary or the recipient of a relevant distribution shall satisfy the requirements of subsection (1) where –
(a)the statement delivered to an intermediary contains –
(i)an ISI Number,
(ii)a recipient ID code,
(iii)the information referred to in paragraphs (c) to (e) of subsection (1), and
(iv)an electronic number,
(b)the intermediary or the recipient of the relevant distribution has consented to the statement being delivered by means of electronic communications and has not withdrawn that consent, and
(c)the Revenue Commissioners have agreed to accept the statement for the purposes of this Chapter.
(2)The requirements of subsection (1) shall be satisfied by the inclusion of the information referred to in that subsection in a statement in writing made in relation to the distribution in accordance with section 152(1).
(3)Where a person fails to comply with any of the provisions of subsection (1), subsection (2) of section 152 shall apply as it applies where a company fails to comply with any of the provisions of subsection (1) of that section.
172J.
Credit for, or repayment of, dividend withholding tax borne.
(1)Where, in relation to any year of assessment, a person is within the charge to income tax and has borne dividend withholding tax in relation to a relevant distribution to which the person is beneficially entitled which tax is referable to that year of assessment, the person may claim to have that dividend withholding tax set against income tax chargeable for that year of assessment and, where that dividend withholding tax exceeds such income tax, to have the excess refunded to the person.
(2)Where, in a year of assessment or in an accounting period of a company (as appropriate), in relation to any year of assessment, a person is not within the charge to income tax and has borne dividend withholding tax in relation to a relevant distribution to which the person is beneficially entitled which tax is referable to that year of assessment, the person may claim to have the amount of that dividend withholding tax refunded to the person.
(3)Where a person has borne dividend withholding tax in relation to a relevant distribution to which the person is beneficially entitled, and the person –
(a)is a non-liable person in relation to the relevant distribution, or
(b)would have been a non-liable person in relation to the relevant distribution if the requirement for the person to make the appropriate declaration referred to in Schedule 2A had not been necessary,
the person may claim to have the amount of that dividend withholding tax refunded to the person.
(4)A person making a claim under this section shall furnish, in respect of each amount of dividend withholding tax to which the claim relates, the statement given to the person in accordance with section 172I(1) by the person who made, or who (being an authorised withholding agent) was treated as making, the relevant distribution in relation to which the dividend withholding tax was deducted.
(5)The Revenue Commissioners shall not authorise the setting-off of dividend withholding tax against income tax chargeable on a person for a year of assessment, or pay a refund of dividend withholding tax to a person, unless the Commissioners receive such evidence as they consider necessary that the person is entitled to that setting-off or refund.
172K.
Returns, payment and collection of dividend withholding tax.
(1)Any person (in this section referred to as ‘the accountable person’), being a company resident in the State which makes, or an authorised withholding agent who is treated under section 172H as making, any relevant distributions to specified persons in any month shall, within 14 days of the end of that month, make a return to the Collector-General which shall contain details of –
(a)the name and tax reference number of the company which actually made the relevant distributions,
(b)if different from the company which actually made the relevant distributions, the name of the accountable person, being an authorised withholding agent, in relation to those distributions,
(c)the name and address of each person to whom a relevant distribution was made or, as the case may be, was treated as being made by the accountable person in the month to which the return refers,
(d)the date on which the relevant distribution was made to that person,
(e)the amount of the relevant distribution made to that person,
(f)the amount of the dividend withholding tax (if any) in relation to the relevant distribution deducted by the accountable person or, as the case may be, the amount (if any) to be paid to the Collector-General by the accountable person in relation to that distribution as if it were a deduction of dividend withholding tax,
(g)the aggregate of the amounts referred to in paragraph (f) in relation to all relevant distributions made or treated under section 172H as being made by the accountable person to specified persons in the month to which the return refers, and
(h)in a case where section 172B has not applied to a relevant distribution by virtue of the operation of subsection (7) of that section, whether the relevant distribution is a distribution within paragraph (a), (b) or (c) of that subsection.
(2)Dividend withholding tax which is required to be included in a return under subsection (1) shall be due at the time by which the return is to be made and shall be paid by the accountable person to the Collector-General, and the dividend withholding tax so due shall be payable by the accountable person without the making of an assessment, but dividend withholding tax which has become so due may be assessed on the accountable person (whether or not it has been paid when the assessment is made) if that tax or any part of it is not paid on or before the due date.
(3)Where it appears to the inspector that there is any amount of dividend withholding tax in relation to a relevant distribution which ought to have been but has not been included in a return under subsection (2), or where the inspector is dissatisfied with any such return, the inspector may make an assessment on the accountable person in relation to the relevant distribution to the best of the inspector’s judgment, and any amount of dividend withholding tax in relation to a relevant distribution due under an assessment made by virtue of this subsection shall be treated for the purposes of interest on unpaid tax as having been payable at the time when it would have been payable if a correct return under subsection (1) had been made.
(4)Where any item has been incorrectly included in a return under subsection (1) as a relevant distribution in relation to which dividend withholding tax is required to be deducted, the inspector may make such assessments, adjustments or set-offs as may in his or her judgment be required for securing that the resulting liabilities to tax, including interest on unpaid tax, whether of the accountable person in relation to the relevant distribution or any other person, are in so far as possible the same as they would have been if the item had not been so included.
(5)Any dividend withholding tax assessed on an accountable person under this Chapter shall be due within one month after the issue of the notice of assessment (unless that tax is due earlier under subsection (2)) subject to any appeal against the assessment, but no such appeal shall affect the date when any amount is due under subsection (2).
(6)
(a)The provisions of the Income Tax Acts relating to –
(i)assessments to income tax, and
(ii)the collection and recovery of income tax,
shall, in so far as they are applicable, apply to the assessment, collection and recovery of dividend withholding tax.
(b)Any amount of dividend withholding tax payable in accordance with this Chapter without the making of an assessment shall carry interest from the date when the amount becomes due and payable until payment –
(i)for any day or part of a day before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and
(ii)for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.
(c)Subsections (3) to (5) of section 1080 shall apply in relation to interest payable under paragraph (b) as they apply in relation to interest payable under section 1080.
(d)In its application to any dividend withholding tax charged by any assessment made in accordance with this Chapter, section 1080 shall apply as if subsection (2) (b) of that section were deleted.
(7)Subject to subsection (8), every return by an accountable person under subsection (1) shall be made in an electronic format approved by the Revenue Commissioners and shall be accompanied by a declaration made by the accountable person, on a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that the return is correct and complete.
(8)Where the Revenue Commissioners are satisfied that an accountable person does not have the facilities to make a return under subsection (1) in the format referred to in subsection (7), the return shall be made in writing in a form prescribed or authorised by the Revenue Commissioners and shall be accompanied by a declaration made by the accountable person, on a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that the return is correct and complete.
(9)
(a)Subject to paragraph (b), an accountable person aggrieved by an assessment made on that person under this section may appeal the assessment to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of the notice of assessment.
(b)Where, in accordance with this section, an accountable person is required to make a return and account for dividend withholding tax to the Collector-General, no appeal lies against an assessment until such time as the accountable person makes the return and pays or has paid the amount of the dividend withholding tax payable on the basis of that return.
172L.
Reporting of distributions made under stapled stock arrangements.
(1)For the purposes of this section, a distribution made to a person by a company which is not resident in the State (in this section referred to as ‘the non-resident company’) shall be treated as made under a stapled stock arrangement where –
(a)the person has, under any agreement, arrangement or understanding, whether made or entered into on, before or after the 6th day of April, 1999, exercised a right, whether directly or through a nominee or other person acting on behalf of the person, to receive distributions from the non-resident company instead of receiving relevant distributions from a company resident in the State (in this section referred to as ‘the resident company’), and
(b)that right has not been revoked.
(2)Where on or after the 6th day of April, 1999, the non-resident company makes distributions to persons under a stapled stock arrangement, the resident company shall, within 14 days of the end of each month in which those distributions were made, make a return to the Revenue Commissioners which shall contain details of –
(a)the name and tax reference number of the resident company,
(b)the name and address of the non-resident company which made those distributions,
(c)the name and address of each person to whom such a distribution was made in the month to which the return refers,
(d)the date on which such distribution was made to that person, and
(e)the amount of such distribution made to that person.
(3)Subject to subsection (4), every return by a company under subsection (2) shall be made in an electronic format approved by the Revenue Commissioners and shall be accompanied by a declaration made by the company, on a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that the return is correct and complete.
(4)Where the Revenue Commissioners are satisfied that a company does not have the facilities to make a return under subsection (2) in the format referred to in subsection (3), the return shall be made in writing in a form prescribed or authorised by the Revenue Commissioners and shall be accompanied by a declaration made by the company, on a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that the return is correct and complete.
172LA.
Deduction of dividend withholding tax on settlement of market claims.
(1)In this section –
‘proper owner’ means the person beneficially entitled to a relevant distribution as a result of the specified event;
‘recorded owner’ means the person beneficially entitled to a relevant distribution before the specified event;
‘stockbroker’ means a member firm of the Irish Stock Exchange plc trading as Euronext Dublin or of a recognised stock exchange in another territory.
(2)For the purposes of this section, a market claim shall be deemed to have arisen in relation to a relevant distribution where –
(a)a company resident in the State has made a relevant distribution, either directly or indirectly through an intermediary, to a recorded owner on the basis of the information on the share register of the company, or on the basis of a securities account in the name of the recorded owner held by an intermediary, at a particular date,
(b)it subsequently transpires, as a result of an event (in this section referred to as the ‘specified event’), being –
(i)the sale or purchase of. or
(ii)the happening, or failure to happen, of another event in relation to,
the shares or other securities in respect of which the relevant distribution was made, that another person (in this section referred to as the another person (in this section referred to as the ‘proper owner’) had actually been entitled to receive the relevant distribution, and
(c)a person (in this section referred to as an ‘accountable person’), being the relevant stockbroker or intermediary who has acted for the recorded owner in the specified event, is obliged to pay the relevant distribution to the proper owner or to an intermediary holding securities on behalf of the proper owner, which action is in this section referred to as the ‘settlement of the market claim’.
(3)Notwithstanding any other provision of this Chapter, where a market claim arises, then, if dividend withholding tax had not already been deducted out of the amount of the relevant distribution made by the company resident in the State to the recorded owner –
(a)the accountable person shall, on the settlement of the market claim, deduct out of the amount of the relevant distribution dividend withholding tax in relation to the relevant distribution,
(b)the proper owner or, as may be appropriate, the relevant stockbroker or intermediary who has acted for the proper owner in the specified event shall allow such deduction on the receipt of the residue of the relevant distribution, and
(c)the accountable person shall be acquitted and discharged of so much money as is represented by the deduction as if that amount of money had actually been paid to the proper owner or, as may be appropriate, to the relevant stockbroker or intermediary who has acted for the proper owner in the specified event.
(4)Where subsection (3) applies, the accountable person shall, on the settlement of the market claim, give the proper owner or, as may be appropriate, the relevant stockbroker or intermediary who has acted for the proper owner in the specified event a statement in writing showing –
(a)the name and address of the accountable person,
(b)the name and address of the company which made the relevant distribution,
(c)the amount of the relevant distribution, and
(d)the amount of the dividend withholding tax deducted in relation to the relevant distribution.
(5)Dividend withholding tax which is required to be deducted by the accountable person under subsection (3) shall be paid by the accountable person to the Collector-General within 14 days of the end of the month in which that tax was required to be so deducted, and the dividend withholding tax so due shall be payable without the making of an assessment, but dividend withholding tax which has become so due may be assessed on the accountable person if that tax or any part of it is not paid on or before the due date.
(6)Dividend withholding tax which is required to be paid in accordance with subsection (5) shall be accompanied by a statement in writing from the accountable person making the payment showing –
(a)the name and address of that accountable person,
(b)the name and address of the company or companies which made the relevant distribution or distributions to which the payment relates, and
(c)the amount of the dividend withholding tax included in the payment.
(7)An accountable person shall, as respects each year of assessment (being the year of assessment 1999-2000 or any subsequent year of assessment) in which subsection (3) applied in relation to the accountable person and not later than 15 February following that year of assessment, make a return to the Revenue Commissioners showing –
(a)the name and address of the accountable person, and
(b)the following details in relation to each market claim to which subsection (3) applied in that year:
(i)the name and address of the company resident in the State which made the relevant distribution to which the market claim relates,
(ii)the amount of the relevant distribution concerned, and
(iii)the amount of the dividend withholding tax in relation to the relevent distribution deducted by the accountable person.
(8)Subject to subsection (9), every return by an accountable person under subsection (7) shall be made in an electronic format approved by the Revenue Commissioners and shall be accompanied by a declaration made by the accountable person, on a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that the return is correct and complete.
(9)Where the Revenue Commissioners are satisfied that an accountable person does not have the facilities to make a return under subsection (7) in the format referred to in subsection (8), the return shall be made in writing in a form prescribed or authorised by the Revenue Commissioners and shall be accompanied by a declaration made by the accountable person, on a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that the return is correct and complete.
(10)
(a)An accountable person shall keep and retain for a period of 6 years the accountable person’s documents and records relating to market claims arising from relevant distributions made by companies resident in the State.
(b)An accountable person shall allow the Revenue Commissioners to inspect such documents and records and to verify theaccountable person’s compliance with this section in any other manner considered necessary by the Commissioners.
172M.
Delegation of powers and functions of Revenue Commissioners.
The Revenue Commissioners may nominate any of their officers to perform any acts and discharge any functions authorised by this Chapter or Schedule 2A to be performed or discharged by the Revenue Commissioners.