IFM04450 - AIFs: Property authorised investment funds (PAIFs): deducting and accounting for tax from distributions: certificates of deduction of tax

Certificates of deduction of tax (regulation 69Z34 SI 2006/964)

Where a PAIF deducts tax from a relevant distribution it must provide all recipients a written statement showing:

• the gross amount of the payment;
• the tax deducted; and
• the actual (i.e. net) amount paid.

The recipient of the payment is responsible for ensuring that such a statement is provided to them if required.

Similarly where a PAIF makes a PAIF distribution (dividends) it must provide a statement as required by regulation 69Z17 of SI 2006/964.

It is good practice to provide all three statements, relating to property income distributions, PAIF distributions (interest) and PAIF distributions (dividends), in a combined statement.