The Minister for Finance has signed tax cooperation agreements between Ireland and Jersey, and Ireland and Guernsey. There are two agreements with each, one dealing with a tax information exchange; and the other providing relief from double taxation and establishing a mutual agreement procedure.
Tax Information Exchange Agreement
- It will allow the Revenue to request information from their Jersey or Guernsey counterparts that is relevant to an Irish tax investigation. It was noted in the announcement that such information would typically relate to bank accounts or the beneficial ownership of companies or trusts.
- Jersey and Guernsey authorities may request the Revenue Commissioners to obtain and provide information of relevance to their tax investigations.
Agreement Affording Relief from Double Taxation with respect to Certain Income of Individuals and Establishing a Mutual Agreement Procedure in connection with the Adjustment of Profits of Associated Enterprises
This should reduce the potential for double taxation of certain income of individuals. There are also provisions in the agreement that allow for consultation in relation to potential double taxation of company profits.
In April 2008 Ireland signed similar agreements with the Isle of Man. In addition, Revenue has been engaged in negotiations for information exchange agreements with the Cayman Islands and the British Virgin Islands, both of which are ongoing.