172L Reporting of distributions made under stapled stock arrangements

Summary

This section provides for the reporting of distributions made under stapled stock arrangements. A small number of Irish resident companies have arrangements with associated non-resident companies whereby shareholders can elect to take distributions either from the resident company or the non-resident company. These arrangements are generally referred to as “stapled stock arrangements”. Where under a stapled stock arrangement a non-resident company makes distributions in any month, the resident company will be required to make a return to Revenue within 14 days of the end of the month showing —

• the name and tax reference number of the resident company,
• the name and address of the non-resident company which made the distributions,
• the name and address of each person to whom a distribution was made in the month concerned,
• the date the distribution was made to that person, and
• the amount of that distribution.

Details

Stapled stock arrangements

(1) The circumstances in which a distribution will be treated as being made under a stapled stock arrangement are set out. The circumstances are where a non-resident company makes a distribution to a person and the person has under any agreement, arrangement or understanding, whether made or entered into on, before or after 6 April, 1999, exercised (whether directly or indirectly) a right to receive distributions from the non-resident company instead of receiving relevant distributions from an Irish resident company and that right has not been revoked.

Returns of distributions made under stapled stock arrangements

(2) Where a non-resident company makes distributions in any month under a stapled stock arrangement, the Irish resident company must make a return to Revenue within 14 days of the end of the month showing its name and tax reference number; the name and address of the non-resident company which made the distributions; the name and address of each person to whom a distribution was made in the month concerned; the date the distribution was made to that person; and the amount of that distribution.

Electronic returns

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

Written return acceptable in certain circumstances

(4) If Revenue are satisfied that the company 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 concerned, on the prescribed or authorised form, to the effect that the return is correct and complete.

Relevant Date: Finance Act 2019