Finance Act, 2001

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Dividend withholding tax.

43.—(1) Chapter 8A (inserted by the Finance Act, 1999 ) of Part 6 of the Principal Act is amended—

(a) in section 172A(1)(a)—

(i) by the insertion of the following definitions after the definition of “approved body of persons” (inserted by the Finance Act, 2000 ):

“‘approved minimum retirement fund’ has the same meaning as in section 784C;

‘approved retirement fund’ has the same meaning as in section 784A;”,

(ii) by the insertion of the following definition after the definition of “qualifying employee share ownership trust”:

“‘qualifying fund manager’ has the same meaning as in section 784A;”,

(iii) by the insertion of the following definition after the definition of “qualifying non-resident person”:

“‘qualifying savings manager’ has the same meaning as in section 848B (inserted by the Finance Act, 2001);”,

and

(iv) by the insertion of the following definition after the definition of “special portfolio investment account”:

“‘special savings incentive account’ has the same meaning as in section 848M (inserted by the Finance Act, 2001);”,

(b) in section 172B, by the insertion of the following after subsection (7) (inserted by the Finance Act, 2000 ):

“(8) This section shall not apply where a relevant distribution is made by a company resident in the State to another company so resident and the company making the relevant distribution is a 51 per cent subsidiary of that other company.”,

(c) in section 172C—

(i) in subsection (2)—

(I) in paragraph (a), by the insertion after “Schedule 2A” of “, but this paragraph is without prejudice to the operation of section 172B(8)”,

(II) by the insertion of the following after paragraph (b):

“(ba) a qualifying fund manager or a qualifying savings manager who—

(i) is receiving the relevant distribution as income arising in respect of assets held—

(I) in the case of a qualifying fund manager, in an approved retirement fund or an approved minimum retirement fund, and

(II) in the case of a qualifying savings manager, in a special savings incentive account,

and

(ii) has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 4A of Schedule 2A,”,

and

(III) by the insertion of the following after paragraph (d):

“(da) a person who—

(i) is entitled to exemption from income tax under Schedule F in respect of the relevant distribution by virtue of section 189(2), subsection (2) or (3)(b) of section 189A or section 192(2), and

(ii) has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 6A of Schedule 2A,”,

and

(ii) in subsection (3)—

(I) by the deletion of “and” in paragraph (a), and

(II) by the insertion of the following after paragraph (b):

“(c) a qualifying fund manager or a qualifying savings manager who receives a relevant distribution as income arising in respect of assets held—

(i) in the case of a qualifying fund manager, in an approved retirement fund or an approved minimum retirement fund, and

(ii) in the case of a qualifying savings manager, in a special savings incentive account,

and

(d) the trustees of a qualifying trust (within the meaning of section 189A) who receive a relevant distribution as income arising in respect of the trust funds (within the meaning of that section),”,

(d) in section 172D, by the deletion of subsection (1), and

(e) in section 172F(3)(a)(ii)(II), by the substitution of “paragraph 9(f)” for “subparagraphs (f) and (g) of paragraph 9”.

(2) Schedule 2A (inserted by the Finance Act, 1999 ) to the Principal Act is amended—

(a) by the insertion of the following after paragraph 4:

“Declaration to be made by qualifying fund manager or qualifying savings manager

4A. The declaration referred to in section 172C(2)(ba)(ii) shall be a declaration in writing to the relevant person which—

(a) is made by the person (in this paragraph referred to as the ‘declarer’) beneficially entitled to the relevant distribution in respect of which the declaration is made,

(b) is signed by the declarer,

(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(d) declares that, at the time the declaration is made, the person beneficially entitled to the relevant distribution is a person referred to in section 172C(2)(ba)(i),

(e) contains the name and tax reference number of the person,

(f) contains a statement that, at the time when the declaration is made, the relevant distribution in respect of which the declaration is made will be applied as income of an approved retirement fund, an approved minimum retirement fund or, as the case may be, a special savings incentive account,

(g) contains an undertaking that, if the person mentioned in paragraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distribution accordingly, and

(h) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.”,

and

(b) by the insertion of the following after paragraph 6:

“Declaration to be made by persons entitled to exemption from income tax under Schedule F

6A. The declaration referred to in section 172C(2)(da)(ii) shall be a declaration in writing to the relevant person which—

(a) is made by the person (in this paragraph referred to as ‘the declarer’) beneficially entitled to the relevant distributions in respect of which the declaration is made,

(b) is signed by the declarer,

(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(d) declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distribution is a person referred to in section 172C(2)(da)(i),

(e) contains the name and tax reference number of the person,

(f) contains an undertaking by the declarer that, if the person mentioned in subparagraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distributions accordingly, and

(g) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.”.