The exit tax rate applying to investment funds is being increased and standardised (as flagged in last month's Front Page and since confirmed in the Finance Bill 2014). Provided appropriate procedures are complied with, no exit tax should arise where the relevant investor is an exempt Irish resident or a foreign tax resident. Where exit tax does arise, payments made annually or more frequently (previously taxed at 33%) and payments made less frequently than annually (previously taxed at 36%) will be taxed at 41%. The increased rate will apply to payments, including deemed payments, made on or after 1 January 2014. The higher rates of tax applying to Personal Portfolio Investment Undertakings will also be increased from 1 January 2014 (from 56% to 60% where correctly declared and from 74% to 80% where not correctly declared).