Taxes Consolidation Act 1997 section 172LA

Deduction of dividend withholding tax on settlement of market claims

Section 172LA provides a statutory framework for the deduction and collection of dividend withholding tax (DWT) when market claims are settled by stockbrokers, qualified intermediaries (QIs), and authorised withholding agents (AWAs).

• A market claim arises when a distribution is paid to the registered shareholder, but another person is actually entitled to it due to a share sale or other event — the accountable person (stockbroker, QI, or AWA) must deduct DWT when settling the claim
• DWT deducted on market claims must be paid to the Collector-General within 14 days of the end of the month in which the deduction was made, accompanied by a written statement
• An annual return of all market claims must be filed electronically by 15 February following the year of assessment, with a declaration that the return is correct and complete
• The accountable person must retain all documents and records relating to market claims for six years and allow Revenue to inspect them for compliance purposes