739Q Repayment of IREF withholding tax

Summary

This section sets out the persons to whom, and in what circumstances, a repayment of IREF withholding tax may be made.

Details

(1) A ‘relevant person’ is defined as a person from whom IREF withholding tax, or withholding tax under section 739T, was withheld.

(2) Withholding tax may be repaid to a person who is entitled to a repayment of withholding tax under a double tax agreement and the charge to Irish tax will be reduced to the treaty rate (which may be 0%).

(3) A pension scheme, investment undertaking or life assurance company, or their EEA equivalents, which can show that they have indirectly invested in the units of an IREF and that they would not be a specified person had they invested directly in that IREF, is entitled to a refund of any withholding tax suffered. The charge to Irish tax will be reduced to 0% so that whether these types of entities invest directly or indirectly in IREFs no Irish withholding tax or charge to tax will arise.

(4) Where withholding tax is withheld in error, then a claim for repayment based on an error or mistake, under section 865(2), may be made.

(5)(a) No amount of withholding tax will be repaid with respect to subsection (3) where the IREF profits which the taxable amount refers to arose prior to the pension scheme, investment undertaking or life assurance company indirectly investing in the units in respect of which the IREF taxable event occurs.

(5)(b) No amount of withholding tax will be repaid where the repayment arises from a scheme or arrangement put in place for tax avoidance, unless the repayment arises from bona fide commercial transactions.

Relevant Date: Finance Act 2021