‘Automatic Exchange of Information (“AEOI”) is a relatively recent component of international cooperation in tax matters. Ireland fully supports the global move towards AEOI and is actively involved in progressing AEOI within the EU, the OECD, and on a bilateral basis.’ – Revenue.ie
The Foreign Account Tax Compliance Act (FATCA)
In December 2012, Ireland concluded an Intergovernmental Agreement with the United States. This was put in place to improve International Tax Compliance and Implement FATCA. In order for the exchange of information, the Irish financial institutions must report to Revenue the details of accounts held by them.
1, July 2014 is the deadline for the Regulations to be enacted and in force. This will allow Financial Institutions to commence the required due diligence and account information gathering from that date. The Guidance Note is in the final stages of review.
Common Reporting Standard (CRS)
The Common Reporting Standard (“CRS”) for the automatic exchange of financial account information was approved by OECD in February 2014. This is a common model of AEOI which draws on the work of global anti-money laundering standards and the model FATCA Intergovernmental Agreement. Over 40 countries, including Ireland, have committed to the early adoption of the CRS.
Ireland will bring forward legislation to enable Revenue to make regulations to govern the collection of data from Irish financial institutions when the Commentary for the interpretation of CRS is finalised.
EU Directive on Administrative Cooperation (Council Directive 2011/16/EU)
The EU Directive on Administrative Cooperation states that ‘EU Member States shall engage in the automatic exchange of available information concerning residents of other Member States in respect of 5 categories of income and capital:
- Employment income;
- Directors’ fees; Life insurance products not covered by other Directives
- Ownership of and income from immovable property.’
If you need any advice, contact FMB by calling 01 645 2002 or emailing firstname.lastname@example.org.
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