Financial Accounts Reporting (United States of America) Regulations 2014

• Jurisdiction: Ireland
• Citation: IR SI 292/2014
• Year: 2014

INDEX

Regulation

1. Citation and commencement

2. Interpretation

3. Reporting financial institutions

4. Deemed compliant financial institutions

5. Obligation of a reporting financial institution to register

6. Reportable accounts

7. Identification of reportable accounts

8. Obligation to submit returns of reportable accounts

9. Obligation to submit returns where there are no reportable accounts

10. Appointment of third parties

11. Obligations of reporting financial institutions to obtain tax reference numbers

S.I. No. 292 of 2014

FINANCIAL ACCOUNTS REPORTING (UNITED STATES OF AMERICA) REGULATIONS 2014

Notice of the making of this Statutory Instrument was published in

“Iris Oifigiúil” of 27th June, 2014.

The Revenue Commissioners, in exercise of the powers conferred on them by section 891E (inserted by section 32 of the Finance Act 2013 (No. 8 of 2013) ) of the Taxes Consolidation Act 1997 (No. 39 of 1997), with the consent of the Minister for Finance, hereby make the following regulations:

Citation and commencement

1. (1) These Regulations may be cited as the Financial Accounts Reporting (United States of America) Regulations 2014.

(2) These Regulations come into operation on 1 July 2014.

Interpretation

2.(1) In these Regulations—

“Act” means Taxes Consolidation Act 1997 (No. 39 of 1997) ;

“account balance or value” includes—

(a) a nil or negative balance or value, and

(b) in the case of a cash value insurance contract or an annuity contract, the cash value or surrender value of that contract;

“account number” includes, in addition to the account number, any code or codes used generally in the financial services industry to identify a reporting financial institution or a branch of a reporting financial institution, and “bank code”, “branch code”, “sorting code” and any other similar terms used to identify a reporting financial institution or a branch of a reporting financial institution shall be construed accordingly;

“Agreement” means the Agreement Between the Government of Ireland and the Government of the United States of America to Improve International Tax Compliance and to Implement FATCA, done at Dublin on 21 December 2012;

“authorised officer” means an officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by these Regulations;

“deposit” has the same meaning as it has in section 256 of the Act;

“entity” means an entity that is not a natural person;

“FATCA” means the provisions commonly known as the Foreign Accounts Tax Compliance Act in the enactment of the United States of America known as Hiring Incentives to Restore Employment Act 2010;

“financial group”, in relation to a relevant company, means a group of entities consisting of the relevant company and the related entities of that company where one or more of those related entities is a custodial institution, depository institution, investment entity or specified insurance company;

“financing or refinancing facilities” has the same meaning as it has in section 488 of the Act;

“G.I.I.N.” means the Global Intermediary Identification Number allocated to a financial institution by the Internal Revenue Service of the United States of America for the purpose of identifying the institution as one whose FATCA obligations are modified by reason of the Agreement;

“high value pre-existing individual account” means a pre-existing individual account which on, or before, 30 June 2014 has an account balance or value that exceeds $1,000,000;

“investment entity” has the meaning given to it in Article 1(1) (j) of the Agreement;

“investment undertaking” means—

(a) an investment undertaking within the meaning of section 739B(1) of the Act,

(b) a common contractual fund within the meaning of section 739I(1) (a) of the Act, or

(c) an investment limited partnership within the meaning of section 739J(1) (a) of the Act;

“low value pre-existing individual account” means a pre-existing individual account which on, or before, 30 June 2014 has an account balance or value that—

(a) in the case of a cash value insurance contract, or annuity contract, is greater than $250,000 but does not exceed $1,000,000, or

(b) in any other case, is greater than $50,000 but does not exceed $1,000,000;

“new entity account” means a financial account maintained by a reporting financial institution which—

(a) is opened on, or after, 1 July 2014, and

(b) is beneficially owned by an entity;

“new individual account” means a financial account maintained by a reporting financial institution which—

(a) is opened on, or after, 1 July 2014, and

(b) is beneficially owned by a natural person;

“pre-existing account” means a financial account maintained by a reporting financial institution on 30 June 2014;

“pre-existing entity account” means a financial account that is beneficially owned by an entity and is maintained by a reporting financial institution on 30 June 2014;

“pre-existing individual account” means a financial account that is beneficially owned by a natural person and is maintained by a reporting financial institution on 30 June 2014;

“qualifying activities”, in relation to a relevant treasury company, means activities carried on by that company which consist of one, or more, of the following:

(a) the making, or receiving, of deposits and the management of those deposits;

(b) the provision, or management, of financing or refinancing facilities;

(c) the acquisition of, or the holding of shares in, another company that is a custodial institution, depository institution, investment entity or specified insurance company;

(d) investing in securities;

(e) the entering into, or management of, specified agreements;

“registered financial institution”, for the purpose of these Regulations and section 891E of the Act, means a financial institution that registers with the Internal Revenue Service of the United States of America in accordance with Regulation 5(1) ;

“relevant company” means a relevant holding company or a relevant treasury company, as the case may be;

“relevant holding company” means a person whose business consists wholly or mainly of—

(a) holding, directly or indirectly, any shares or securities in a related entity that is a custodial institution, depository institution, investment entity or specified insurance company, or

(b) holding shares or securities where the person has a qualifying relationship with an investment entity;

“relevant treasury company” means a company which exists wholly or mainly for the purpose of carrying on qualifying activities on behalf of—

(a) a financial group, or

(b) an investment entity with which it has a qualifying relationship;

“return date”, in relation to a tax year, means a date that is not later than 30 June of the tax year following the tax year for which a return is required;

“specified agreement” has the same meaning as it has in section 110(1) of the Act;

“tax reference number” means a U.S. TIN;

“tax year” means—

(a) a year of assessment, or

(b) subject to paragraph (3) , where a financial institution has an established practice for the periodic valuation of accounts of a particular description otherwise than at the end of a year of assessment, another appropriate reporting period of 12 months;

“U.S.” means United States of America.

(2) For the purposes of paragraph (1) , a person has a qualifying relationship with an investment entity where—

(a) the investment entity is a related entity, or

(b) the person provides services to, or holds investments on behalf of, that investment entity.

(3) In the definition of “tax year” in paragraph (1) , “another appropriate reporting period” means a period of 12 months ending with the date (or, if more than one, the latest date) in the year of assessment on which the institution has an established practice of valuing accounts of that description.

(4) Subject to paragraph (1) , and unless the context otherwise requires, a word or expression used in these Regulations that is also used in the Agreement shall have the same meaning as it has in the Agreement.

(5) For the purposes of these Regulations—

(a) where an investment undertaking is constituted by a person (other than a trustee) who carries on business in the State, that person is the reporting financial institution in the case of the undertaking and is to be regarded as an investment entity,

(b) where an investment undertaking is constituted as a trust and the trustee of the trust is a person who carries on business in the State, the trustee is the reporting financial institution in the case of the undertaking and is to be regarded as an investment entity, and

(c) where an investment undertaking is constituted otherwise than as described in subparagraph (a) or (b) and the manager of the undertaking is a person who carries on business in the State, that person is the reporting financial institution in the case of the undertaking and is to be regarded as an investment entity.

(6) Where a person is required under these Regulations to—

(a) deliver a return, or

(b) make a declaration or election,

the return, declaration, or election shall be delivered, made or given electronically—

(i) using such technology as may be approved or provided by the Revenue Commissioners, and

(ii) in such form as the Revenue Commissioners may require.

Reporting financial institutions

3. (1) Subject to paragraph (2) , any person that carries on business in the State as—

(a) a custodial institution,

(b) a depository institution,

(c) an investment entity,

(d) a specified insurance company,

(e) a relevant holding company, or

(f) a relevant treasury company,

shall be a reporting financial institution.

(2) Subject to Regulations 4 and 5, paragraph (1) shall not apply to a deemed compliant financial institution.

Deemed compliant financial institutions

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