904I Power of inspection: returns and collection of dividend withholding tax.

Summary

This section gives Revenue the power to carry out an on-site audit of Dividend Withholding Tax (DWT) returns. Such returns are required to be made by a company if it deducts tax from dividends or by an authorised withholding agent, if the agent takes responsibility for deducting the tax on behalf of client companies – see Chapter 8A of Part 6. This audit power is very similar in its terms to the DIRT audit power in section 904A.

Details

(1) The definitions of “authorised withholding agent”; “dividend withholding tax” and “relevant distribution” are the same as in section 172A. Definitions are also provided for “accountable person”; “authorised officer” and “records”.

(2) An authorised officer may at all reasonable times enter any premises or place of business of an accountable person for the purposes of auditing the DWT return for a year of assessment.

(3) The audit procedures can include —

• examination of the procedures put in place by the institution to ensure compliance with Dividend Withholding Tax rules.
• checking a sample of records in the possession of the accountable person to determine whether —
  • these procedures have been observed in practice and whether they are adequate;
  • there is information in the accountable person’s possession indicating that the information contained in the records is incorrect.

(4) The accountable person and their employee’s are required to afford reasonable assistance to the authorised officer in carrying out his or her duties.

(5) An authorised officer may make copies of records or extracts of the records.

(6) & (7) Employees of accountable persons and accountable persons are liable to the penalties set out in the sections if they fail to comply with the requirements of the authorised officer.

Relevant Date: Finance Act 2021