As detailed in our Front Page articles of November, and December, the Common Reporting Standard (CRS) impacts Irish funds from 1 January 2016. The CRS framework represents a globally coordinated approach to the disclosure of income earned by individuals and organisations in order to combat tax evasion. To date, more than 90 jurisdictions have publicly committed to implementation, many of which are early adopter countries, including Ireland. Section 891F of the Taxes Consolidation Act 1997 implements CRS on an international basis under Irish law (while Section 891F of the Taxes Consolidation Act 1997 provides for the implementation of CRS in the context of EU member states). CRS regulations, the Returns of Certain Information by Reporting Financial Institutions Regulations 2015, were enacted on 31 December 2015.
From 1 January 2016 there is a new requirement to identify and confirm the tax residence status of all new (and existing) investors in a reporting Irish fund under CRS. This requirement operates alongside the current requirement to identify and confirm the status of investors under FATCA (i.e. broadly, whether such investors are US Specified Persons or not). It will also be necessary to undertake due diligence with respect to pre-existing accounts (i.e. accounts opened prior to 1 January 2016) by 31 December 2017. This will impact fund documentation.
The EU Savings Directive has now been repealed.