This is a ten-part Worldwide Tax Blog Series on a cross section of amendments in the Irish Tax System and a general overview:
Universal Social Charge – Part 1
The Remittance Basis for Income Tax – Part 2
The Remittance Basis for Capital Gains Tax – Part 3
Taxation of Certain Social Welfare Benefits – Part 4
Mortgage Interest Relief – Part 5
Donations To Approved Bodies – Part 6
Farm Restructuring Relief – Part 7
FATCA – The US Foreign Account Tax Compliance Act – Part 8
Close Company Surcharge – Part 9
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8. FATCA – US FOREIGN ACCOUNT TAX COMPLIANCE ACT
The US Foreign Account Tax Compliance Act 2010 comes into effect in 2014.
The aim of this legislation is to ensure that US citizens pay US tax on income arising from overseas investments.
The Finance Act 2013 introduced legislation which allows for the Irish Revenue Commissioners to make regulations for the purpose of implementing this Ireland US agreement.
The regulations will require that certain financial institutions register and provide a return of information on accounts held, managed or administered by the financial institution. A return of information on payments must also be made.
The financial institutions will be required to obtain a US TIN from account holders.
Finance Act 2013 empowers Revenue officers to enter the premises of the financial institution at all reasonable times to ensure the correctness and completeness of a return and to examine the administrative procedures in place for the purposes of complying with the financial institution’s obligations under the regulations.
Section 891E(10) authorises Revenue to communicate the information obtained to the Secretary of the U.S. Treasury within nine months of the end of the year in which the return is received, notwithstanding Revenue’s obligation to maintain taxpayer confidentiality.
Section 32 of the Finance Act 2013 that introduced the new s.891 is enabling legislation. The regulations will contain their own commencement provisions.
Since founding Accounts Advice Centre in Dublin in 1996, Claire McNamara has established a reputation for successfully advising businesses, corporate and personal tax clients. Her knowledge spans various sectors and her experience includes corporate transactions, inheritance tax planning, International Tax Treaties, personal tax as well as advising on issues affecting non domiciled individuals and offshore clients. She constantly delivers a value added service and efficient tax management solutions to high net worth private clients, property owners, executives, entrepreneurs, entertainers and members of various professions.
As a Chartered Tax Adviser, Claire has considerable experience in professional practice and will personally help you to deal with all your tax affairs competently, professionally and successfully. She has also lectured extensively in taxation on courses for the main professional accountancy qualifications including A.C.C.A., A.C.A. and C.P.A. and is actively involved in preparing students for the Irish Tax Institute’s CTA qualification.
Claire has effectively handled a number of Revenue Audits and Appeals on behalf of her diverse client base and has successfully negotiated solutions resulting in substantial differences to the eventual tax liability, surcharge and penalties.
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