739T Deduction from consideration on the disposal of certain units

(1) This section—

(a) applies on the happening of an event specified in paragraph (f) or (g) of the definition of “IREF taxable event”, and

(b) shall not apply where the amount or value of any consideration payable in relation to the happening of such an IREF taxable event does not exceed the sum of €500,000; but where the taxable event involves a disposal, sale or transfer by the unit holder in parts—

(i) to the same person, or

(ii) to persons who are acting in concert or who are connected persons,

whether on the same or different occasions, the several disposals, sales or transfers shall, for the purposes of this paragraph, be treated as a single disposal, sale or transfer.

(2) ^[2]>On payment^<[2][2]>Subject to sections 739QA and 739QB, on payment^<[2] of any consideration in relation to the happening of an IREF taxable event to which this section applies—

(a) the person by or through whom any such payment is made shall deduct from that payment a sum representing an amount of income tax equal to 20 per cent of that payment,

(b) the person to whom the payment is made shall allow such deduction on receipt of the residue of the payment, and

(c) the person making the deduction shall, on proof of payment to the Revenue Commissioners of the amount so deducted, be acquitted and discharged of so much money as is represented by the deduction as if that sum had been actually paid to the person making the disposal.

(3)(a) Notwithstanding any other provision of the Tax Acts, this subsection shall apply for the purposes of regulating the time and manner in which the withholding tax deducted under this section shall be accounted for and paid.

(b) The person who was required to deduct the withholding tax under this section shall, within 30 days of the date of the IREF taxable event, deliver to the Revenue Commissioners an account of the IREF taxable event and of the amount deducted.

(c) The account referred to in paragraph (b) shall contain details of the following:

(i) the name and tax reference number of the IREF in respect of which the IREF taxable event occurred;

(ii) the name, address, TIN and unit holding of the unit holder in respect of whom the IREF taxable event occurred;

(iii) the date on which the IREF taxable event occurred;

(iv) the amount of the consideration paid or payable to the unit holder;

(v) the amount of withholding tax deducted under this section.

(d) Income tax which by virtue of this section is payable by a person shall—

(i) be payable by that person in addition to any income tax which by virtue of any other provision of the Tax Acts is payable by that person,

(ii) be due within 30 days of the IREF taxable event, and

(iii) be payable by that person without the making of an assessment.

(e) Where, in relation to any payment of withholding tax referred to in paragraph (b), any person has made default in delivering an account required by this section, or where the Revenue officer is not satisfied with the account, the officer may estimate the amount of the payment to the best of his or her judgment and, notwithstanding section 18, may assess and charge that person to income tax for the year of assessment in which the payment was made on the amount so estimated at the rate of 20 per cent.

(4) The amount of withholding tax deducted in respect of a unit holder in accordance with this section shall be treated as a payment on account of the income tax chargeable on that unit holder on that IREF taxable event for that year of assessment.

(5) Repayment of withholding tax deducted in respect of a unit holder in accordance with this section in respect of an IREF taxable event shall be made to a relevant person, within the meaning of section 739Q, to the extent provided for in an arrangement made with the government of a territory outside the State having the force of law under the procedures set out in section 826(1) and the rate of tax in section 739O(2)(c) shall be the rate applicable pursuant to the relevant arrangement.

(6) A claim for repayment of any withholding tax deducted under this section which is in excess of the income tax chargeable on the IREF taxable event under section 739O shall be made by the unit holder in a return, made in accordance with Part 41A, and no other repayment of any amount of such withholding tax shall be made.