753D Refund of dividend withholding tax

Summary

This section sets out when and how a stock seller may claim a refund of dividend withholding tax paid by a stock buyer under a financial transaction.

Details

(1) A refund of dividend withholding tax may be claimed by a stock seller where all of the following apply to a qualifying financial transaction:

• a dividend is paid to a stock buyer as a result of a stock borrowing or repurchase agreement
• the corresponding stock return for that transaction has taken place
• the dividend received by the stock buyer was subject to Irish dividend withholding tax (DWT)
• the stock seller would either have been entitled to either—
• a repayment of that DWT, or
• receive the dividend without deduction of that DWT
  if they had not entered into the financial transaction and had instead received that distribution directly,
• the stock seller has not been compensated by the stock buyer (or any connected party) for the DWT referred to in paragraph (c), or any part of that DWT, and
• the stock buyer is not entitled to a repayment, credit, deduction or other relief for the DWT referred to in paragraph (c) or any part of that DWT under

1. 1. section 831
   2. an arrangement having the force of law by virtue of section 826(1)
   3. Schedule 24, or
   4. any other provision (including under the law of a territory other than the State)

(2) Where a stock seller is entitled to claim a refund of DWT, the stock seller must provide all of the following information with their claim.

• confirmation that the stock buyer received a dividend under a stock borrowing or repurchase agreement, and that DWT was withheld from that amount,
• a signed declaration from the stock buyer that that stock seller is not entitled to any repayment, credit, deduction or similar in respect of that DWT,
• confirmation that the stock seller—

1. 1. was the legal owner of the qualifying securities or equivalent stock—
   • immediately prior to the financial transaction, and
   • immediately following the financial transaction,
   2. would have received the dividend directly had the stock borrowing or repurchase agreement not been entered into, and
   3. would have either been entitled to—
   • a repayment of that DWT or
   • to receive the dividend without the deduction of that DWT
     
     had the dividend been received directly by that stock seller,

• a dividend voucher (or eVoucher),
• the relevant DWT exemption declaration, and
• any other information or documentation the Revenue Commissioners may deem appropriate.

Relevant Date: Finance Act 2019