FATCA/DAC2-CRS

What FATCA and the CRS mean for an account holder

Financial institutions are obliged to collect and report certain information to their tax authority. This applies where they are based in any jurisdiction signed up to the Foreign Account Tax Compliance Act (FATCA) or Common Reporting Standard (CRS). This information can then be exchanged with tax authorities in other jurisdictions.

Ireland has signed up to both the CRS and FATCA. Irish financial institutions review their accounts to identify and report account holders who are not tax-resident in Ireland or are USA Citizens. Revenue then exchanges the information with the appropriate jurisdiction if they are signatories to CRS or FATCA.

What do FATCA and CRS mean for an Account Holder who is an individual?

If you have a financial account in a financial institution in Ireland, the financial institution will determine your tax residency  or citizenship status. Financial accounts include bank and credit union accounts.

A new account for:

• CRS is an account opened after 31 December 2015
• and
• FATCA is an account opened after 30 June 2014.

When opening a new account, the financial institution will require you to fill in a self-certification. This self-certification will ask for details of your tax residence or citizenship and Tax Identification Number (TIN), if you are a non-resident or a USA citizen.

A pre-existing account for:

• CRS is an account opened on or before 31 December 2015
• and
• FATCA is an account opened on or before 30 June 2014.

If you have a pre-existing account, the financial institution will check its records for your tax residency or citizenship status. However, in some circumstances the financial institution will require you to fill in a self-certification.

What happens if I am an Irish tax resident and not a USA citizen?

Once the financial institution determines that you are an Irish tax resident and not a USA citizen there is no further action taken. No information will be reported to Revenue.

What happens if I am tax resident in another country or a USA citizen?

Information can be shared if you are tax resident in another jurisdiction or a USA citizen and hold a financial account in a financial institution in Ireland. The financial institution will report the following information about you to Revenue:

• your name, address, foreign TIN and the financial account number
• your date of birth, and place of birth (if on record)
• the name and Identification Number of the financial institution
• the account balance or value at year end
• and
• any payments made with respect to the account during the calendar year for example, interest paid.

Revenue will exchange this information with your jurisdiction of tax residence only if:

• they have signed up to CRS or FATCA
• and
• there is a legal basis in place to exchange the information.

Next: When and how the information is exchanged