Revenue Note for Guidance

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Revenue Note for Guidance

172K Returns, payment and collection of dividend withholding tax

Summary

This section provides that persons charged with deducting DWT must make a return to the Collector-General for any month in which they make or are treated as making any relevant distributions. The return must be made within 14 days of the end of the month, and must show —

  • the name and tax reference number of the company which actually made the distributions,
  • if an authorised withholding agent is making the return, the name of that agent,
  • the name and address of each person to whom a distribution was made in the month concerned,
  • the date on which the distribution was made to each such person,
  • the amount of each such distribution,
  • the amount of the DWT, if any, deducted from each such distribution or, in the case of scrip dividends and other non-cash distributions, the amount, if any, to be paid to the Collector-General as it were a deduction of DWT in relation to each such distribution,
  • the aggregate of all such amounts, and
  • whether the distribution is a distribution out of profits or gains from stallion fees, the occupation of woodlands or stud greyhound fees, a distribution out of income of certain patents, or a distribution out of the profits of certain mines.

The DWT required to be included in the return is due at the same time as the return itself, that is, within 14 days of the end of the month and is payable to the Collector-General without the making of an assessment. However, an inspector may raise an assessment where DWT or any part of it is due and has not been paid.

The return must be made in an electronic format approved by Revenue. Initially, it is envisaged that the returns will be made on computer diskette. If Revenue are satisfied that the company or authorised withholding agent concerned has not got the facilities to make the return electronically, the return may be made in writing in a form prescribed or authorised for that purpose by Revenue.

Details

Return for each month in which relevant distributions are made

(1) Persons charged with deducting DWT, that is, companies and authorised withholding agents, must make a return to the Collector-General for any month in which they make or, in the case of an authorised withholding agent, are treated as making any relevant distributions. The return must be made within 14 days of the end of the month, and must show —

  • the name and tax reference number of the company which actually made the distributions,
  • if an authorised withholding is making the return, the name of that agent,
  • the name and address of each person to whom a distribution was made or treated as made in the month concerned,
  • the date on which the distribution was made to each such person,
  • the amount of each such distribution,
  • the amount of the DWT, if any, deducted from each such distribution or, in the case of scrip dividends and other non-cash distributions, the amount, if any, to be paid to the Collector-General as it were a deduction of DWT in relation to each such distribution,
  • the aggregate of all such amounts, and
  • whether the distribution is a distribution out of profits or gains from stallion fees, the occupation of woodlands or stud greyhound fees, a distribution out of income of certain patents, or a distribution out of the profits of certain mines.

DWT payment date

(2) The DWT required to be included in the return is due at the same time as the return itself, that is, within 14 days of the end of the month, and is payable to the Collector-General without the making of an assessment. However, an assessment may be made on the company where DWT or any part of it is due and has not been paid.

Estimated assessments

(3) An inspector may make an estimated assessment of DWT on a company or authorised withholding agent if it appears to him or her that a distribution has been omitted from the return or if he or she is otherwise dissatisfied with a return. The tax under such an assessment is, for the purpose of interest payable on unpaid tax, treated as having become payable at the time when it would have been payable had a correct return been made.

Incorrect returns

(4) Where a distribution is incorrectly included in a DWT return, an inspector may make all necessary assessments, adjustments or set-offs so as to secure that the resultant liabilities to tax of the company or authorised withholding agent or of the person beneficially entitled to the distribution are the same as they would have been if the distribution had not been incorrectly included in the return.

Due date for assessed DWT

(5) While, normally, DWT is due and payable without the making of an assessment, the due date for the payment of DWT in respect of which an assessment has issued is one month after the date of the assessment. However, that due date cannot displace an earlier due date which would have been applicable under subsection (2). If the assessment is appealed, the appropriate earlier due date continues to apply. Any tax overpaid on determination of an appeal against such an assessment will be repaid.

Supplementary provisions

(6)(a) The provisions of the Income Tax Acts relating to assessments, collection and recovery of income tax and interest thereon apply equally to the assessment of DWT.

(6)(b) Interest, at a rate of 0.0322 per cent per day or part of a day before 1 July 2009 and at a rate of 0.0274 per cent per day or part of a day thereafter, will apply from the due date on any outstanding DWT which is payable without the making of an assessment.

(6)(c) The payment and procedural provisions of section 1080 which apply to interest on assessed taxes will apply to interest payable on DWT which is payable without the making of an assessment. Subsection (4) of that section provides for certification of an interest debt by an officer of the Revenue Commissioners in legal proceedings for the recovery of outstanding interest.

(6)(d) Where an assessment to DWT is made so that the normal interest charge would arise under section 1080, that section will apply with the omission of subsection (1)(b) which deals with the date as from which interest is payable in a case where there is an appeal against an income tax assessment. That provision is not required in the case of an assessment to DWT because the due date for payment of interest in such a case is set out in subsection (5) which applies whether or not there is an appeal against such an assessment.

Electronic returns

(7) In general, the DWT return must be made in an electronic format approved by Revenue. It must also be accompanied by a declaration made by the company or authorised withholding agent concerned, on the prescribed or authorised form, to the effect that the return is correct and complete.

Written return acceptable in certain circumstances

(8) If Revenue is satisfied that the company or authorised withholding agent concerned has not got the facilities to make the return electronically, the return may be made in writing in a form prescribed or authorised for that purpose by Revenue. A written return must also be accompanied by a declaration made by the company or authorised withholding agent concerned, on the prescribed or authorised form, to the effect that the return is correct and complete.

Appealing DWT assessments

(9) Where a person is aggrieved by an assessment to DWT, they may appeal by way of notice in writing to the Appeal Commissioners. The appeal must be made within 30 days after the date of the notice of assessment. In order to appeal an assessment to DWT, a person must submit any outstanding return and pay any amount of DWT payable on the basis of that return. The appeal is heard and determined by the Appeal Commissioners in the manner provided for in Part 40A.

Relevant Date: Finance Act 2019