Revenue Note for Guidance

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Revenue Note for Guidance

891HA Reporting obligations for Reporting Crypto-Asset Service Providers

Summary

Section 891HA provides for the implementation of Part 1 of the OECD (2023) International Standards for Automatic Exchange of Information in Tax Matters: Crypto-Asset Reporting Framework and 2023 Update to the Common Reporting Standard published by the Organisation for Economic Cooperation and Development on 8 June 2023.

Details

(1) The purpose of this section is to provide for the collection and reporting of certain information by reporting crypto-asset service providers in respect of relevant transactions undertaken on behalf of crypto-asset users that are reportable users or have controlling persons that are reportable persons.

Definitions

(2) Subsection (2) sets out the definitions of certain terms used in section 891HA:

‘CARF’ means Part 1 of the OECD (2023) International Standards for Automatic Exchange of Information in Tax Matters: Crypto-Asset Reporting Framework and 2023 Update to the Common Reporting Standard published by the Organisation for Economic Cooperation and Development on 8 June 2023,

‘authorised officer’ is an officer of the Revenue Commissioners authorised under subsection (12),

‘reporting period’ is a calendar year,

‘specified return date’ is the 31 May in the year immediately after the end of the reportable period.

(2)(b) Subsection (2)(b) provides that a word or expression that is used in section 891HA and also used in the CARF has, unless the context otherwise requires, the same meaning in section 891HA as it has in the CARF.

Reporting Crypto-Asset Service Providers [RCASP]

(3) Subsection (3) is the registration section.

(3)(a) An RCASP that carries out relevant transactions and-

  1. (3)(a)(i) is an entity or individual that is resident in the State for tax purposes,
  2. (3)(a)(ii) is an entity incorporated in the State and either
    1. has legal personality, or
    2. is obliged to file tax returns of tax information returns in respect of the income of the entity, or
  3. (3)(a)(iii) is an entity that has a place of management in the State, or
  4. (3)(a)(iv) is an entity or individual that has a regular place of business in the State, or

(3)(b) an RCASP which carries out relevant transactions in the State through a branch,

shall register with the Revenue Commissioners as a reporting crypto-asset service provider, not later than 31 December in the year they become an RCASP for the purposes of section 891HA.

(4) A crypto-asset operator, other than one that is resident in the State, that is required to register with the Revenue Commissioners because it satisfies one or more of the conditions in subsections (3)(a)(ii) – (3)(a)(iv) and also satisfies one or more of those conditions under provisions similar to those subsections in force in another Partner Jurisdiction, may elect to register as an RCASP in that other Partner Jurisdiction.

If that election is notified in writing to the Revenue Commissioners, on or before the specified return date, the crypto-asset operator will not be required to also register with the Revenue Commissioners as an RCASP.

Return

(5)(a) A reporting crypto-asset service provider registered in the State for the purposes of section 891HA shall, by the 31 May (specified return date) of the year immediately after the end of the reportable period, make a return to the Revenue Commissioners.

(5)(b) An RCASP is also obliged to provide the reportable user with a copy of the information in respect of that reportable user which was contained in the return made by the RCASP to the Revenue Commissioners.

Information to be included on the return

Subsection (6) sets out the information that is to be included in the return that is required to be made by the RCASP under subsection (5).

(6)(a) The following information in respect of the RCASP is to be included in the return:

  1. their name,
  2. their address,
  3. their Tax Identification Number or equivalent identifying number and country of issuance,
  4. their electronic addresses, including websites,
  5. their global legal entity identifier, where available.

(6)(b) The following information in respect of crypto-asset users who are reportable users is to be included in the return:

  1. their name,
  2. their address,
  3. all jurisdictions of residence,
  4. their Tax Identification Number (TIN), where available, and
  5. where the reportable user is an individual:
    1. the person’s date of birth, and
    2. if available, the person’s place of birth.

(6)(c) The following information in respect of an entity with one or more controlling persons that are reportable persons is to be included in the return:

  1. in respect of the Entity itself:
    1. their name,
    2. their address,
    3. jurisdiction of residence, and
    4. and where available, it’s TIN,
  2. in respect of each controlling person that is a reportable person
    1. the person’s name,
    2. the person’s address,
    3. their jurisdiction of residence,
    4. their TIN, where available,
    5. their date of birth,
    6. their place of birth where available, and
    7. the role by virtue of which each reportable person is a controlling person.

(6)(d) In addition to the information to be reported under subsection 6(b) and subsection 6(c) the following details are to be included in the return in respect of all reportable users and reportable persons in respect of each type of relevant crypto-asset for which the reporting crypto-asset service provider carried out relevant transactions during the reporting period:

  1. the full name of the relevant crypto-asset,
  2. in respect of acquisitions that have been made using a fiat currency:
    1. the total aggregate gross amount paid in fiat currency,
    2. the total number of units acquired, and
    3. the total number of relevant transactions undertaken.
  3. in respect of disposals for which fiat currency was received:
    1. the total aggregate gross amount of fiat currency received,
    2. the total aggregate number of units disposed of, and
    3. the total number of relevant transactions undertaken,
  4. in respect of acquisitions that have been made using other reportable crypto-assets:
    1. the total aggregate fair market value of the reportable crypto-assets acquired,
    2. total number of units acquired, and
    3. the total number of relevant transactions undertaken where reportable crypto-assets were traded against each other,
  5. in respect of disposals for which other reportable crypto-assets were received:
    1. the total fair market value of the reportable crypto assets received,
    2. total number of units disposed of, and
    3. the total number of relevant transactions undertaken where reportable crypto-assets are traded against each other,
  6. in respect of reportable retail payment transactions:,
    1. the total aggregate fair market value,
    2. total number of units acquired, and
    3. the total number of relevant transactions undertaken that are reportable retail payment transactions,
  7. in respect of transfers by reportable users that are not covered by subsection 6(ii), or subsection 6(iv):
    1. the total aggregate fair market value of the acquisitions undertaken,
    2. the total aggregate number of units acquired, and
    3. the total number of relevant transactions undertaken in respect of other types of transfers to reportable users. This should be sub-divided by transfer type where the transfer type is known by the RCASP.
  8. in respect of transfers by reportable users that are not covered by subsection 6(iii), subsection 6(v) or subsection 6(vi):
    1. the total aggregate fair market value of the disposals undertaken,
    2. the total aggregate number of units disposed of, and
    3. the total number of relevant transactions undertaken in respect of other types of transfers from reportable users. This should be sub-divided by transfer type where the transfer type is known by the RCASP.
  9. In respect of transfers undertaken by an RCASP to distributed ledger addresses not known to be associated with a financial institution or virtual asset service provider:
    1. the total aggregate fair market value of the transfers, and
    2. the total aggregate number of units transferred.

(6)(e)(i) For relevant transactions undertaken in fiat currency the transaction amounts reported should be in the fiat currency in which they were paid or received.

(6)(e)(ii) Where several fiat currencies were used, all relevant transactions should be converted to one of the fiat currencies in which they were paid or received. This should be determined in a consistent manner by the RCASP at the time of each relevant transaction is undertaken.

(6)(e)(iii) The information reported should identify the fiat currency in which each amount is reported.

(6)(f) For relevant transactions, other than against fiat currency, the total market value should be determined and reported in a single fiat currency, valued at the time of each relevant transaction, taking a consistent approach and the information reported should identify the fiat currency in which each amount is reported.

Reportable users

(7)(a) An RCASP registered under section 891HA shall follow the due diligence procedures contained in Section III of the CARF to identify if individual crypto-asset users, entity crypto-asset users and controlling persons are reportable users.

(7)(b) Reportable users shall provide the RCASP with a valid self-certification so that the reporting crypto-asset service provider can comply with the reporting obligations imposed on them under subsection (5).

The RCASP should follow the due diligence procedures contained in Section III of the CARF to determine if the self-certifications provided are valid self-certifications.

(8) Subsection(8) provides that an RCASP, referred to in subsection (3), that is not resident in the State and that satisfies one or more of the registration criteria as set out in subsection (3) in a Partner Jurisdiction is not required to carry out the due diligence set out in subsection(7) or file a return under subsection(5) where the RCASP is required to carry out the due diligence and file a return in a Partner Jurisdiction.

Subsection(8) provides an order of priority and the RCASP should carry out the due diligence and reporting obligations in the jurisdiction that is higher up the list of criteria that is set out in subsection (3).

(9) The provisions of subsection(8) will only apply where the crypto-asset operator appropriately notifies the Revenue Commissioners, on or before the specified return date, that it is satisfying the due diligence and reporting obligations in that other Partner Jurisdiction.

(10)(a) A crypto-asset user, that is not an excluded person, shall provide the RCASP with the information (the ‘relevant information’), that is necessary for the reporting crypto-asset service provider to comply with the reporting obligations imposed on them under subsection(5).

(10)(b) Where a crypto-asset user does not provide the relevant information to the RCASP, then following the expiry of the time periods contained in subsection (10)(c), the RCASP shall prevent the crypto-asset user from carrying out relevant transactions.

(10)(c) An RCASP shall not take any of the actions referred to in subsection (10)(b) before –

  1. the RCASP has issued 2 reminders in writing to the crypto-asset user requesting the necessary information, and
  2. 60 days have passed from the date the second such reminder was issued.

Records

(11)(a) An RCASP shall retain the records and documents that were provided by the crypto-asset user in order for a full and true return to be made by the RCASP.

(11)(b) The records required to be retained under subsection (11)(a) include –

  1. books, accounts and documents relating to the return
  2. a record of the steps undertaken and information relied upon for the performance of due diligence and reporting obligations
  3. any other information relating to the return.

(11)(c) Subsection(11)(c) provides for the manner in which the records are kept.

(11)(d) Subsection(11)(d) provides for the retention period of the records required to be kept by the RCASP.

(11)(e) Where the RCASP is a company that has been wound up or dissolved, then the liquidator or the last Directors shall retain the records for a period of 5 years.

(11)(f) A person who fails to comply with this subsection in relation to retention of any records relating to a return or to steps undertaken and information relied upon for the performance of due diligence and reporting will be liable to a penalty of €3,000.

Authorised officer

(12) The Revenue Commissioners may authorise, in writing, any of their officers to exercise any powers to perform any acts or discharge any functions conferred by section 891HA.

Audit

(13) An authorised officer may make such enquiries that he or she considers are necessary to

  1. (13)(a)(i) determine whether information in respect of a relevant transition
    1. included in a return made under section 891HA was correct and the information provided was complete, or
    2. that was not included in a return under section 891HA was correctly not included in the return,
  2. (13)(a)(ii) to examine the procedures put in place by the RCASP for the purposes of ensuring compliance with that RCASP’s obligations under section 891HA.

(13)(b) An authorised officer may at all reasonable times enter the premises or pace of business of an RCASP for the purposes of carrying out enquiries under subsection (13)(a).

(14) An authorised officer shall not, other than with the express consent of the occupier, enter a private dwelling without a warrant authorising the entry.

District Court warrant

(15) A judge of the District Court, if satisfied on the sworn evidence of an “authorised officer” that

  1. (15)(a) there are reasonable grounds for suspecting that information or records, that the “authorised officer” may require for the purposes of his or her functions under this section, is or are held on any premises or part of any premises, or
  2. (15)(b) the “authorised officer”, in the performance of his or her functions under this section, has been prevented from entering the premises or any part of the premises,

may issue a warrant authorising the “authorised officer”, accompanied by other persons if necessary, to enter, if needs be by reasonable force, at any time or times within 30 days from the date of issue of the warrant and on production of the warrant if so requested, the premises or part of the premises concerned and perform all or any of the functions conferred on the authorised officer under this section.

Penalties

(16)(a) The provisions of Section 898O shall apply to

  1. (16)(a)(i) a failure by an RCASP to make a return required under subsection (5), and
  2. (16)(a)(ii) the making of an incorrect or incomplete return under subsection (5),

as it applies to a failure to deliver a return or to the making of an incorrect or incomplete return referred to in section 898O.

The penalty for the failure to make a return or for making an incomplete or incorrect return under section 898O is €19,045. A further penalty of €2,535 also applies for each day a return remains outstanding.

(16)(b) A penalty of €1,265 will apply to an RCASP who does not comply with the requirements of a Revenue officer in the exercise or performance of the officer’s powers or duties under this section.

(16)(c) A penalty of €4,000 will apply to an RCASP who -

  1. fails to register with the Revenue Commissioners under section 891HA
  2. fails to comply with the due diligence procedures and reporting requirements as set out in section 891HA.

(17) Section 891HA shall not apply to an RCASP that has included the information required under section 891HA in a return made under section 891M.

Anti-avoidance

(18) Subsection (18) is an anti-avoidance provision and provides that where arrangements are entered into by any person and the main purpose or one of the main purposes of the arrangements is the avoidance of any of the obligations imposed by section 891HA, then the section shall apply as if those arrangements had not been entered into.

Commencement period

(19) Section 891HA shall apply to reporting periods commencing on or after 1 January 2026.

Relevant Date: Finance Act 2025