Section 172LA Deduction of dividend withholding tax on settlement of market claims
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Amendments
Section 172LA inserted by Finance Act 2000 section 30(1)(i) as on and from 10 February 2000.
(1) In this section, "stockbroker", means a member firm of the Irish Stock Exchange 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 to a person (in this section referred to as the "recorded owner") on the basis of the information on the share register of the company 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 "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-
(i) the relevant stockbroker who has acted for the recorded owner in the specified event, or
(ii) if the recorded owner is a qualifying intermediary or an authorised withholding agent, that intermediary or agent,
is obliged to pay the relevant distribution to the proper owner or, as may be appropriate, to the relevant stockbroker who has acted for the proper owner in the specified event, 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 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 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 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]1 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 relevant distribution deducted by the accountable person.
Amendments
1 Substituted by Finance Act 2001 section 77(2) and Schedule 2 para 11 and 61(c) for 2001 and later tax years.
(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 the accountable person's compliance with this section in any other manner considered necessary by the Commissioners.
