From 1st July 2014 financial brokers and advisors will be legally required to comply with the Foreign Account Tax Compliance Act (FATCA). FATCA applies to all Irish financial institutions including life assurance companies that maintain financial accounts (policies). The aim of FATCA is to make it more difficult for U.S. citizens / taxpayers to conceal assets held in offshore accounts.
FATCA legislation only applies to savings and investment products, namely FutureSave and SmartFunds – it does not apply to pensions or non-unit-linked protection products.
How does this affect you and your savings and investment clients?
- From the 1st July 2014, all new savings and investment customers must be asked at new business stage if they are a U.S. citizen or U.S. resident for tax purposes.
- From the 1st July 2014 all New Ireland savings and investment applications will contain a new FATCA section. It is important from this date forward that you use the FATCA compliant application forms.
From July 1st 2014 onwards all New Ireland savings and investment applications must comply with the new FATCA legislation – either by using the new FATCA compliant applications or inclusion of the FATCA supplementary questionnaire document with an “old” savings and investment application form.
For more information on the FATCA legislation please read our FATCA Q&A.