Section 172L Reporting of distributions made under stapled stock arrangements

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Amendments

Section 172L inserted by Finance Act 1999 section 27(a).

(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(b) that right has not been revoked.

What are "stapled stock arrangements"?

(1) If you are a non-resident company, you are said to make distributions under a stapled stock arrangement where:...

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(2) Where on or after the 6th 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,

(d) the date on which such distribution was made to that person, and

(e) the amount of such distribution made to that person.

Should I make a return under a stapled stock arrangement?

(2) If you make distributions under a stapled stock arrangement, the resident company must make a stapled stock return to Revenue stating:...

to read the full commentary

(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.

How does a resident company make a stapled stock return?

(3) The resident company must file its stapled stock return electronically in a Revenue-approved format, with a declaration 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.

Can a company make its stapled stock return by paper?

(4) Revenue may allow a resident the company to file a paper return if they are satisfied that the company does not have the facilities to file an electronic return.