Commentary on Sections Overview Overview Section 577: Statements about manufactured dividends
1720.This section imposes an obligation on the payer of a manufactured dividend to give the recipient a statement setting out information which may be relevant for tax purposes. It is based on paragraph 2(6) to (8) of Schedule 23A to ICTA and section 139 of, and paragraph 30 of Schedule 17 to, FA 2006.
1721.The application of section 577 will depend on the tax status of the payer of a manufactured dividend, rather than that of the recipient. Under subsection (1), section 577 will apply only if the payer is within the charge to income tax. If the payer is within the charge to corporation tax, corresponding obligations will be imposed by paragraph 2(6) to (8) of Schedule 23A to ICTA or (by virtue of paragraph 2(2) of that Schedule) section 234A of that Act. These provisions are signposted in subsection (8).
1722.Subsection (2) disapplies the provisions of this section so far as the manufactured dividend is an MPID. Subsection (9) gives a signpost to the power to make regulations concerning statements about MPIDs.