898C Beneficial owner

(2)&(4) This section sets out the meaning of the term “beneficial owner”. This is an individual who receives an interest payment or for whom an interest payment is secured.

However, not every recipient of an interest payment will be a beneficial owner and exceptions are provided for. An individual will not be a beneficial owner if he/she receives interest as a paying agent or on behalf of:

• A company or other legal person, a person within the charge to corporation tax or a similar tax imposed in another Member State, a UCITS established in a Member State or a UCITS equivalent established in a relevant territory other than a Member State, or a residual entity that has elected to be treated as a UCITS.
• Another individual whose identity (i.e. name and address) have been disclosed to the paying agent.
• A residual entity (see section 898D for details).

(3) In the case of an individual acting on behalf of a residual entity, the individual is required to provide the name and address of the residual entity to the paying agent. Paying agents are then required to return the names and address of residual entities to Revenue within three months of the end of the tax year. This provision is designed to inform the tax authorities of that Member State that a paying agent has relations with a residual entity.

(5) An obligation is placed on paying agent to take reasonable steps to identify beneficial owners if the paying agent has any information which suggests that an individual is not the beneficial owner of an interest payment and he/she is not covered by any of the exceptions.

(6) If a paying agent is unable for any reason to establish the beneficial owner in relation to an interest payment, the paying agent shall treat the individual on whose behalf it receives or secures the interest payment as the beneficial owner.

Relevant Date: Finance Act 2021