A key part of Automatic Exchange of Information (AEOI) globally is the exchange of financial account information. This includes details about financial accounts and investments held by non-residents in financial institutions, such as banks, building societies and investment companies.
Financial institutions operating in Ireland provide Revenue with information on customers who are reportable due to their tax residence or citizenship. Revenue shares this information with the relevant jurisdictions under the appropriate legal framework.
Revenue in turn receives information from other jurisdictions in which Irish tax residents hold financial accounts and investments.
Ireland has AEOI agreements in place to exchange financial account information under three regimes. These are the Foreign Account Tax Compliance Act (FATCA), the Common Reporting Standard (CRS) and the Directive for Administrative Cooperation (DAC).
The CRS is the global standard for the exchange of financial account information and provides for exchanges with over 100 jurisdictions. The CRS was implemented within the EU as an amendment to the DAC. FATCA is a bilateral agreement between Ireland and the United States.
Next: The Foreign Account Tax Compliance Act (FATCA)