Today we'll talk about: The Foreign Account Tax Compliance Act (FATCA) EU Savings Directive EU Directive on Administrative Cooperation And you'll learn why you should be aware of these new regulatory initiatives.

What is FATCA?

FATCA provides for the automatic reporting and exchange of information on an annual basis in relation to accounts held in Irish financial institutions by US persons, and the reciprocal exchange of information regarding US financial institutions held by Irish residents.

What is the EU Savings Directive?

The EU Savings Directive requires all EU Member States to automatically exchange information with each other regarding interest paid to individuals resident in an EU Member State other than the one in which the income is paid.

What is EU Directive on Administrative Cooperation?

All EU States will automatically exchange information concerning residents of other Member States in respect of 5 categories of income and capital: • Employment income; • Directors’ fees; • Life insurance products not covered by other directives; • Pensions; • Ownership of and income from immovable property.

Purpose of the above Legislation and EU Directives

To combat tax evasion by improving the exchange of information between tax authorities.

Conclusion

Big brother is watching. If you have a bank account in Luxemburg or a villa in Spain, the Revenue is likely to hear about it. So best to disclose the matter first to avoid a lot of unwelcome attention from the Revenue in the future. If you need any further advice on these matters do not hesitate to contact Gerry Higgins or John Comerford in Cooney Carey on (01) 677 9000.