Taxes Consolidation Act 1997 section 739P

Withholding tax arising on IREF taxable event

Section 739P sets out how IREF withholding tax is to be operated when various IREF taxable events occur in respect of specified persons.

• An IREF must deduct withholding tax from payments to specified persons, who must allow the deduction; the IREF is treated as discharged of the amount deducted as if it had been paid to the unit holder.
• Where bonus units are issued instead of cash, the number of additional units must be reduced so that their value does not exceed the after-tax amount the unit holder would have received in cash.
• Where the taxable event involves a non-cash amount, the IREF must pay the equivalent withholding tax to the Collector-General and may recover that sum from the unit holder as a simple contract debt.
• Withholding tax deducted is treated as a payment on account of the unit holder's income tax liability, and no repayment of IREF withholding tax is available except as provided for in section 739Q.