I agree. Any potential risk here should be carried by the borrower. The fee of borrowing a stock for a day is surely much lower than a typical dividend. If the borrower doesn’t want to cover that risk, they shouldn’t borrow the stock at dividend time. I expect the normal case to be that the borrowed stock is sold, in which case the borrower has to compensate the gross dividend anyway, don’t they?
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For non-US ETFs I actually never had to send any proof. I declare the ETF with all transactions and the dividend amount is automatically calculated from ICTax data. Verrechnungssteuer information is also taken from ICTax. At least ZHprivateTax says there is no need to attach broker statements for these cases and they also haven’t requested any statements after the tax decalration. I.e. in the tax authorities wouldn’t even know about regular dividend payment vs. payment in lieu.
That said, I anyway keep all my Swiss fonds at a Swiss broker and use IBKR only for foreign fonds.
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If you don’t like the answer, it doesn’t mean that the person giving it is not helping. @San_Francisco might be sarcastic sometimes, but no one can say that s/he is not helping. S/he does a lot.
Well, you don’t know that @San_Francisco is not a tax professional. Considering his/her personality, s/he might as well be.
I think you can forget about this withheld tax, but I might suggest you a technical solution for future: create a subaccount, disable securities lending in it and transfer there securities that you don’t want to be lent out.
Although keeping your CH allocation in Viac is also good and tax advantageous.
And I think you also don’t completely understand how withholding tax works. It is not IB or borrower that deducts it. It is send to the tax authority directly by the company paying the dividend, so no one ever gets it.
We don’t have to discuss this, and I’ll be the first one to admit I’m merely an 
with a keyboard, and not a tax professional. With all respect though, considering that you
- Are the top poster in this thread by number of posts by far
- Actively invited other people’s opinions on the matter and your interpretation (“Has anyone here a clue if I am right?”)
- “wanted to provide the information for anyone after” yourself in this thread
- …some of which of was demonstrably quoting the wrong/inapplicable information (no multiple lenders, domestic borger).
I’m quite honestly a bit perplexed by your attitude shown here. Since this thread is, as you said, also for the benefit of others, I also do feel somewhat compelled to at least factually point out the things I’m not following you on.
Why does it have to be? You aren’t receiving a dividend payment (for which WHT was withheld), but merely a substitute payment. For which no WHT was withheld - and IBKR “told you” that it may have adverse tax consequences. Furthermore, IBKR may be prohibited from reporting a tax withheld to you - to prevent exactly that: You going reclaiming a tax refund from your tax administration, when the actual recipient of the dividend does the same.
Yes - but possibly not to you - since you aren’t receiving the actual dividend payment.
…says who?
Your personal sense of fairness and entitlement?
Or IBKR’s terms on securities lending? 
Honestly, I can’t find it there. You’re receiving the same net amount that you’d also receive without lending. And they do tell you that receiving substitute payments may have adverse tax consequences.
That’s a practical of reclaiming of getting that money.
And you’ll most probably get away with it.
I’m still not convinced that you can be sure you’re legally entitled to that refund - especially when and where IBKR doesn’t report withheld WHT to you.
Well, life ain’t always fair. 
The thing is: It happens all the time. Especially with withholding taxes.
Holding German stocks in Yuh? Good luck getting that tax voucher for the Germans!
Reclaiming WHT from your French stocks with IBKR? No problem, they’ll “facilitate” it for you. You only pay 125€ for each attempt at dividend recovery - whether successful or not. Side note: This example and the fact that IBKR holds the securities in their street name further illustrate the subtle difficulties in practically reclaiming WHT.
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What is the behaviour? Are these customers receiving the gross amount as payment in lieu?
Or are they receiving the net amount (dividend less WHT) as payment in lieu and a “withholding tax withheld” line in the withholding tax report?
Do these people then order a German tax voucher for 30 EUR from IBKR, to reclaim WHT from Germany? And will this tax voucher name the the account holder - even though they didn’t even receive the original dividend payment?
It is not a question of cash or margin account, but if you are participating in stock lending program.
Any updates on what yield (in %) you get on your VT investment for participating in the program? Market volatility’s high currently, so I suppose more VT lent out?
Also, no troubles with tax authorities so far explaining this additional, non-dividend yield?
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Forget about it. Borrowing rates for biggest and most liquid securities has a floor at 0.25%, and you get a half of it.
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