172H Obligations of authorised withholding agent in relation to relevant distributions

Summary

This section provides that an authorised withholding agent must give notice in writing to all companies or recognised qualifying intermediaries, as the case may be, from which it is to receive relevant distributions on behalf of other persons of the fact that it is an authorised withholding agent. This allows those companies or recognised qualifying intermediaries to make the distributions to the authorised withholding agent without applying DWT. In the absence of such notification, a company must apply DWT to the distributions.

On receiving the distributions, the authorised withholding agent effectively steps into the shoes of the company which made the distributions. It must operate the DWT scheme as if it were the company which had made the distributions and as if the paying on of the distributions, or amounts representing the distributions, to its clients were the making of the distributions by the authorised withholding agent at the time the distributions were actually made by the company. Thus, the authorised withholding agent must, if appropriate, deduct DWT when it pays on the distributions, or amounts representing the distributions, to its clients and must account for that tax to the Collector-General.

Details

Authorised withholding agent must advise paying companies of its status as authorised withholding agent

(1) An authorised withholding agent must give written notice to every Irish resident company or recognised qualifying intermediary from which it receives relevant distributions on behalf of other persons of the fact that it is an authorised withholding agent. This then allows those companies or recognised qualifying intermediaries to make the distributions to the authorised withholding agent without deducting DWT.

Authorised withholding agent must operate DWT scheme as if it were the company making the distributions

(2) When the authorised withholding agent pays on the relevant distributions, or amounts representing such distributions, to its clients it steps into the shoes of the company in so far as the operation of the DWT scheme is concerned. The authorised withholding agent is treated as if it were the company which made the distributions and as if the paying on by it of the distributions, or amounts representing the distributions, were the making of the distributions by it at the time the distributions were actually made by the company. In essence, this requires the authorised withholding agent to operate the DWT scheme, to deduct DWT, if appropriate, when it is passing on the distributions and to account to the Collector-General for the DWT deducted.

Relevant distributions made to authorised withholding agent liable to DWT unless paying company notified that distribution is to be received by an authorised withholding agent

(3) An Irish resident company which makes a relevant distribution to an authorised withholding agent for the benefit of another person cannot treat the distribution as having been so made unless it has received from the authorised withholding agent the written notice required under subsection (1). This is the notice by the authorised withholding agent of the fact that it is such an agent. In the absence of this notice, the company must deduct DWT from the distribution.

Relevant Date: Finance Act 2021