Ireland Provides Guidance On Tax Transparency Work
Ireland’s revenue agency has launched a dedicated Automatic Exchange of Information (AEOI) webpage containing information and links to documents on a range of initiatives. In unveiling the page, Revenue said that Ireland fully supports the global move towards AEOI.
The page provides guidance on the Intergovernmental Agreement reached with the United States in December 2012 to improve international tax compliance and implement the Foreign Account Tax Compliance Act (FATCA). It provides for a bilateral and reciprocal exchange of information in relation to accounts deposited in Irish financial institutions by US persons, and deposits in US financial institutions by Irish residents.
The legislation to implement the deal was included in Finance Act 2013. The necessary Regulations will be in force by July 1, to allow financial institutions to commence the required due diligence and account information gathering from that date. The Government is in its final stages of reviewing its policy on this matter.
The webpage also points out that Ireland is one of more than 40 countries to have committed to the early adoption of the Common Reporting Standard, approved by the Organisation for Economic Cooperation and Development (OECD) for the automatic exchange of financial account information. This model draws on the OECD’s earlier work in this area and on the Model FATCA Intergovernmental Agreement. Once the proposed guidance is finalized, Ireland will bring forward legislation to enable the tax authority, the Revenue, to make regulations to govern the collection of data from Irish financial institutions.
The webpage also contains information on two European Union (EU) Directives. It provides links to the original and amended EU Savings Directive (EUSD). The EUSD has been in force since 2005 and was recently altered to close existing loopholes and better prevent tax evasion. Webpage users can also access the EU Directive on Administrative Cooperation. This stipulates that EU member states shall, in respect of taxable periods commencing on or after January 1, 2014, engage in the automatic exchange of available information concerning residents of other member states in respect of five categories of income and capital.