896 Returns in relation to certain offshore products

Summary

This section ensures that investments in foreign investment funds are subject to the same reporting requirements as investments in foreign deposit accounts.

The reporting requirements under this section mean that persons who invest in offshore products, or who act as intermediaries in such investment, are required to automatically notify Revenue of the investment. As is the case with foreign deposit accounts, the annual return by intermediaries and the notification of such investments by investors with their annual return of income is on the automatic basis. There is an obligation to notify the inspector regardless of whether or not the inspector has requested the information.

Details

(1) “material interest” and “offshore fund” have the meaning set out in section 743.

“offshore product” means a material interest in an offshore fund, or a foreign life policy.

“relevant facilities” means—

• marketing in the State of offshore products,
• acting in the State as an intermediary in connection with the acquisition or disposal, in whole or in part of offshore products by or on behalf of residents of the State, or
• provision in the State of facilities for making payments from offshore products to persons entitled to the product whether on its disposal in whole or in part, or otherwise.

(2) Every intermediary is required to make a return for each chargeable period of services provided for people resident or ordinarily resident in the State in relation to offshore products. The return requires in relation to each person for whom the intermediary provided relevant facilities—

• the name, address and tax reference number,
• a description of the relevant facilities provided, and
• details of all payments made by or to the person in respect of the offshore product.

(3) & (4) An intermediary who fails to make a return or fails to make a full return will be liable to a penalty of €4,000 in respect of each such failure. A similar penalty applies to a person for whom the services are provided by the intermediary, where the person fails to supply to the intermediary the details required to be included in the return, or provides incorrect details.

(5) A person who acquires an offshore product in a chargeable period is deemed to be a chargeable person for the purposes of Chapter 3 of Part 41A and 1084 and is required to include in the return of income for the chargeable period details of that acquisition. The details should include—

• the name and address of the offshore fund or the person who commenced the life policy
• a description, including the cost to the person, of the material interest acquired or, a description of the terms of the life policy, and
• the name and address of the person through whom the product was acquired.

Relevant Date: Finance Act 2021