Finance (No. 2) Act 2008 introduced a new reporting requirement from 1 January 2009 on advisers concerned with trusts. It requires information returns to be made to Revenue by a person, who in the course of carrying on a trade or profession, has been concerned with the making of a settlement and knows or has reason to believe that, at the time of the making of the settlement -
- the settlor was resident or ordinarily resident in the State, and
- the trustees of the settlement were not resident in the State.
The information to be returned to Revenue is the names and addresses of the Irish resident or ordinarily resident settlors, the non-resident trustees and the dates of the settlements.
The Revenue Commissioners’ e-brief on frequently asked questions in relation to this legislation outlines a number of scenarios which in their opinion could be considered to be caught under this new legislation.
Lawyers, accountants, tax advisors, bankers, financial advisors, financial intermediaries, trust administrators and companies could all potentially be required to file a statement with the Revenue Commissioners if concerned with the making of an offshore settlement.
The legislation is retrospective in relation to settlements made since December 2003.
The legislation also allows a Revenue Authorised Officer to issue a notice in writing to any person, where there is reason to believe that person has information in relation to a settlement, requiring the furnishing of such information. The notice can apply to settlements made pre and post 24 December 2003 and is not confined by reference to residency of the trustee i.e. it applies to settlements involving both resident and non resident trustees.
