Have you any foreign income or assets you have not disclosed to Revenue? You should read on.
As from the 1st May 2017, it will no longer be possible to obtain the benefits of a qualifying disclosure if the disclosure relates directly or indirectly to any of the following:
- an account held in a country or territory other than the State
- income or gains arising from a source, or accruing, in a country or territory other than the State
- property situated in a country or territory other than the State
It will mean that, from the 1st May 2017, persons with liabilities involving "offshore matters" could be liable to higher penalty rates, the settlement could be liable for publication in quarterly Defaulters' List, and the persons concerned could be the subject of criminal prosecution.
How will the Revenue Commissioners get this information?
Under the Foreign Account Tax Compliance Act and The Common Reporting Standard, financial service firms, including life companies, pension firms and investment houses, are obliged to report account information on non residents to their own local tax authorities which then pass it on to the investor/saver's home tax authority.
This information includes name, address, PPS number of the account holder and the amount of income received. Even credit union accounts fall under the scope of this report.
In 2016, 54 countries have already exchanged information including the UK, Spain, the Isle of Man,France, Germany, Luxembourg and the Channel Islands. A further 47 countries will be included next year including Switzerland, Australia, Canada and New Zealand.
Along with accounts, information on property ownership, employment income and directors fee's will also be disclosed.
If you would like any further information on the above then please give us a call.
Please feel free to forward this to any of your colleagues.
McMahon Keyes & Co.