The Automatic Exchange of Information (AEOI) between international tax authorities in an effort to reduce global tax evasion and increase tax transparency. This includes information relating to Financial Accounts, tax rulings, cross-border arrangements, etc.
The Automatic Exchange of Information specifically relating to Financial Accounts held by individuals, corporations, partnerships, trusts, etc. is governed by the FATCA and CRS regimes.
AEOI and Asset Management
When it comes to asset management, the AEOI requires financial institutions, including asset managers, to identify and report information about their clients' accounts to their local tax authorities. Asset managers must comply with the AEOI requirements and ensure that they are collecting and reporting the required information accurately and in a timely manner. Failure to comply with AEOI requirements can result in significant financial penalties and damage to the asset manager's reputation.
Therefore, it is important for asset managers to have robust AEOI compliance programs in place, which may include procedures for identifying reportable accounts, establishing due diligence procedures, and implementing systems for collecting and reporting the required information to the relevant tax authorities.
How we can help
- Evaluate whether the entity is classified as a Financial Institution for FATCA and/or CRS purposes with registration and reporting obligations
- Undertake the necessary due diligence procedures to identify any Reportable Accounts
- Prepare the applicable information to report to the Irish Revenue Commissioners by 30 June annually
- Consider the applicability of local legislation to subsidiaries or branches located outside of Ireland
- Consider the organisational impact of AEOI on an entity’s business, including its interactions with other service providers, the risk of the 30% FATCA withholding tax on US source income and the inclusion of AEOI language in legal agreements.
Get in touch
We welcome the opportunity to discuss your needs. Contact Philip Murphy of our Asset Management team to explore how we can help your with your AEOI queries.