A representative from the Irish Revenue Commissioners recently indicated that Ireland is close to agreeing the Irish – US Intergovernmental Agreement (IGA) with the IRS. It is hoped that the IGA will be in place before the end of the year, and it is expected that the IGA will be referenced in the forthcoming Finance Bill 2013.

It is expected that the form of the IGA will mirror the UK – US Intergovernmental Agreement, whereby UK FFIs will report directly to HM Revenue & Custom, without the requirement to register with the IRS or indeed to implement the withholding requirements.

By entering into the IGA, Ireland should be able to address conflicts that arise between the FATCA requirements and Irish laws on data privacy and withholding, as well as reducing the overall regulatory burden on fund managers and administrators.