I called Link Registrars, who handle shareholder queries. Initially I was told that Revenue would allow a deduction for the US $ tax against Irish dividend withholding tax. When I objected to the US getting tax on my Irish investments, I was then told that in fact the dollar withholding tax was paid to the Irish Government and was, therefore, Irish withholding tax.
The company argues the move will be good for the company and its shareholders – giving it better access to lucrative contracts there and also to a market where shares have been consistently valued more highly than in Europe. As it is, the group’s North American business has delivered a growing share of the business’s profits – close to 75 per cent on the basis of earnings before interest, tax, depreciation and amortisation last year.
The bigger issue, for some, is how their shares will be held. As it happens, most CRH stock is held in electronic form in nominee accounts and the holders of these shares should notice little difference. In reality, you are only getting a head start on your fellow Irish investors. Under EU rules, all shares in companies listed on European markets, including Dublin, will be held in the same way under what is called “dematerialisation” from the start of 2025. Paper certificates will no longer be valid proof of ownership after that date anyhow.