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We recommend you contact a professional independent tax advisor to discuss your business tax situation, to help you understand the international regulations and ensure you comply with them. We do not offer tax advice and are unable to help you decide your tax status or guide you with filling in forms. We can however provide some general explanatory information which we have included below.
The CRS was approved by the Organisation for Economic Cooperation and Development (OECD) in 2014, and is a single global standard on Automatic Exchange of Information (AEOI). The aim of CRS is to have a globally co-ordinated approach to the disclosure of financial account information in respect of individuals and organisations, in order to combat tax avoidance. The CRS imposes on all financial institutions in participating jurisdictions, duties of identification, classification and reporting of accounts held by reportable customers to its local country tax authorities. There will then be a reciprocal automated exchange of this information between tax authorities in participating jurisdictions. Section 891F of the Taxes Consolidation Act 1997 implements CRS into Irish Law.
The Foreign Account Tax Compliance Act (FATCA) is a piece of U.S. legislation. Its aim is to combat tax evasion by U.S. citizens and residents who hold assets off-shore by improving the exchange of information between the U.S. and foreign tax authorities. In December 2012, the Irish Government signed an agreement with the U.S. in relation to the implementation of FATCA in Ireland. The agreement provides for the automatic reporting and exchange of information on an annual basis in relation to Financial Accounts held in Irish Financial Institutions, either directly or indirectly by U.S. persons, and the reciprocal exchange of information regarding U.S. Financial Accounts held by Irish residents. Section 891E of the Taxes Consolidation Act 1997 implements FATCA into Irish Law.
When opening business accounts, we have a legal requirement to obtain a CRS and FATCA Self-Certification from the customer as part of the account opening documentation. This Self-Certification is required to (a) determine whether the Entity account holder is a Specified U.S. Person, (b) determine whether the Controlling Person(s) (as relevant) of an Entity account holder is a U.S. Citizen, (c) determine the residence(s) for tax purposes of the Entity account holder, and where relevant its Controlling Person(s), and (d) obtain the applicable foreign Tax Identification Number (TIN) if appropriate. We must also confirm the reasonableness of the Self-Certification based on information obtained in connection with the account opening. If customers do not provide all the information requested, we will not be able to proceed with opening the new account until the relevant information is provided.
If a business customer and/or its Controlling Person(s) (as relevant) is a certain U.S. Person, or is a U.S. Citizen, and/or has a tax residence outside of the Republic of Ireland and does not provide us with a foreign TIN*, we cannot open the account. (*except in limited circumstances e.g. where foreign country does not issue TIN)
We are obliged to submit an annual return to the Irish Revenue providing information on reportable customers. The Irish Revenue will then forward this information to the relevant participating jurisdiction.
Under the CRS and FATCA, we are required to undertake certain identification and due diligence on our existing customers. We may contact customers requesting that they complete a CRS and FATCA Self-Certification form. If the customer does not provide us with a completed Self-Certification we may be required under law to provide some of your details to the Irish Revenue as someone who has not replied. Providing a completed Self-Certification form will help us to decide if we need to share your information or take you out of scope of reporting.
Certain U.S. and Non-Republic of Ireland tax resident entities are reportable. In addition, certain entities whose Controlling Person(s) are U.S. citizens and/or tax resident outside of the Republic of Ireland are also reportable.
We are required to report the following details in respect of all accounts that a reportable customer holds with us to the Irish Revenue and in certain cases the account level detail of its Controlling Persons. Details to be reported include (where relevant) name, address, date of birth, place of birth, account number, U.S. status/citizenship and/or jurisdiction(s) of residence, Tax Identification Number (TIN), account balance at year end and interest payments made during the year. Irish Revenue will report this data to the tax authorities of each participating country where the business customer and/or Controlling Person is tax resident, or to the IRS in the case of U.S. Citizens, U.S tax residents and certain U.S. Persons.
In the case of individuals who are Controlling Persons of a business customer, tax residence relates to where you live, and citizenship relates to where you were born or the country of your passport. You can be tax resident in one country and a citizen of another. Each country has its own rules on tax residence.
Further information on U.S. Citizenship and tax residence is available at https://www.irs.gov/individuals/international-taxpayers
Further information on tax residency of jurisdictions is available at
A Taxpayer Identification Number (TIN) is a generic term for the unique reference number held for an individual or entity issued by the relevant Tax Authorities. For example this might be your National Insurance Number or Social Security Number for individuals. For entities, this might be your Employer Identification Number, Unique Business Reference or Corporation Tax Number. Other examples can be found via the Tax Identification Numbers (TINs) webpage.
If you have not completed all the mandatory sections of the form
If the TIN is missing without explanation or in an invalid format
If the form is not signed and dated correctly
If the person signing the form is not listed as an authorised signatory on our records for the account or does not have the capacity to sign on your behalf
Altering the documents would also mean we would have to send them back to you. For example:
If you cross out any information, including the pre-printed text,
If you over-write any information, or use correction fluid to change the content
If you haven’t submitted all the relevant additional documentation you’ve been asked for, e.g. copy of passport/driving licence etc
You can find more information on http://www.revenue.ie/en/business/aeoi/index.html
We recommend you contact a professional independent tax advisor to discuss your tax situation, to help you understand the international regulations and ensure you comply with them.
Please note that the information contained in this document is for information purposes only and is intended for general distribution. Please note that KBC does not offer taxation advice and will not be liable for any errors contained in Self-Certification forms. If you have any questions on CRS/FATCA you should contact your tax advisor or the Irish Revenue