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Ireland Updates Tax Legislation
Guidance on the Consumer Protection Code 2012 published
The primary clarification in the Guidance for insurers relates to rebates. The CBI considers that the inclusion of a policy condition that rebates will not be refunded to the consumer and additional premiums will not be sought from a consumer (under specified levels), is not prohibited under the Code. The Guidance further clarifies that any insurance intermediary must obtain prior written agreement from the consumer every time it intends to deduct any charges from a premium rebate.
Ireland is one of the first countries to agree a new Inter-Governmental Agreement (IGA) with the US in relation to the US's FATCA. The IGA will provide for automatic reporting and the exchange of information between the Irish and US tax authorities in relation to financial accounts held in Irish financial institutions by US persons. The IGA will significantly lessen the compliance burden that might otherwise apply and is therefore a welcome development for the Irish insurance industry.
The Government of Ireland, like many Governments, is having to look at both home and abroad when taking tax legislation into consideration. Naturally the Government will want to make revenue, however they will also want content nationals and eager foreign investors. Corporations should keep afresh of all relevant tax updates in order to remain compliant.