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Trustee obligations under FATCA


The Foreign Account Tax Compliance Act (FATCA) imposes mandatory reporting obligations on foreign financial institutions and certain non-financial foreign entities. Taxand Ireland takes a look at the wider implications for trustees of private trusts in Ireland.

The main aim of the regulatory regime is to combat tax evasion by US citizens through the use of foreign accounts but it also has wide implications for trustees of private trusts in Ireland. Trustees resident in Ireland may have obligations under FATCA even where there is no US settlor, no US assets, no US trustees and no US beneficiaries. However, Trustees resident in Ireland will have the benefit of coming within the Ireland / US Intergovernmental Agreement which provides for the automatic reporting and exchange of information in relation to accounts held in Irish financial institutions by US persons.

Failure to comply with FATCA will result in a 30% withholding tax penalty being applied on certain sources of investment income beginning on a specified date now extended to 1 January 2015 where foreign financial institutions can demonstrate they are making reasonable efforts to comply. 

Discover more: Trustee obligations under FACTA

Your Taxand contact for further queries is:
Martin Phelan
T. +353 1639 5139

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Taxand's Take

Anyone concerned with possible FATCA obligations arising for trusts should take the necessary measures in a timely manner to ensure that any obligations are met in advance of the deadlines.

Taxand's Take Author

Martin Phelan
Taxand Board member

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