Ireland has entered into an agreement with the U.S. Tax authorities in relation to applying the rules set out under the U.S. Foreign Account Tax Compliance Act 2010 (“FATCA”). FATCA was designed by the US tax authorities to reduce tax evasion by U.S. persons holding investments in off- shore accounts. The rules under FATCA set out that if a person/company is seeking to open a current, deposit or credit card account on or after the 1st July 2014 then the Financial Institution is required to ask the account holder if they are a U.S. citizen or a resident for tax purposes in the US. If the account holder:
the Financial Institution is required to report details of that account holder to the Irish Revenue. Irish Revenue will subsequently pass this information to the US Tax authorities.
In order to be FATCA compliant, each Financial Institution is also required to carry out a due diligence process on the information available for certain customers with accounts existing prior to 1st July 2014.
For further information please contact your tax adviser or Revenue.