891M Implementation of paragraphs (6) and (19) of Article 1 of Council Directive (EU) 2023/2226 of 17 October 2023 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to Reporting obligations for Reporting Crypto-Asset Service Providers

Summary

Section 891M provides for the implementation of paragraphs (6) and (19) of Article 1 of Council Directive (EU) 2023/2226¹, which amends Directive 2011/16/EU on administrative cooperation between EU Member States in the field of taxation.

This is the eight extension to the Directive and is more commonly referred to as DAC8.

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 reportable transactions undertaken for crypto-asset users that are reportable users or have controlling persons that are reportable persons.

Definitions

(2) The meaning of certain terms used in section 891M are defined as follows:

“authorised officer” means an officer of the Revenue Commissioners authorised under subsection (14).

“Crypto-Asset Operator ID” means the individual identification number assigned to a crypto-asset operator by the Revenue Commissioners pursuant to subsection (3)(b),

“Directive” means Council Directive 2011/16/EU of 15 February 2011² on administrative cooperation in the field of taxation and repealing Directive 77/799/EEC, as amended by-

• Council Directive 2014/107/EU of 9 December 2014³ (commonly known as DAC2),
• Council Directive (EU) 2015/2376 of 8 December 2015⁴ (commonly known as DAC3),
• Council Directive (EU) 2016/881 of 25 May 2016⁵ (commonly known as DAC4),
• Council Directive (EU) 2016/2258 of 6 December 2016⁶ (commonly known as DAC5),
• Council Directive (EU) 2018/822 of 25 May 2018⁷ (commonly known as DAC6),
• Council Directive (EU) 2020/876 of 24 June 2020⁸ (commonly known as the Covid extensions)
• Council Directive (EU) 2021/514 of 22 March 2021⁹ (commonly known as DAC7), and
• Council Directive (EU) 2023/2226 of 17 October 2023¹⁰ (commonly known as DAC8).

“reporting period” means a calendar year.

“specified return date” means 31 May in the year following the year in respect of which a return relates.

(2)(b) A word or expression used in this section and which is also used in the Directive has, unless the context otherwise requires, the same meaning in this section as it has in the Directive.

Reporting Crypto-Asset Service Providers (RCASPs)

(3) Subsection (3) sets out the registration obligations of RCASPs.

(3)(a) An RCASP that -

1. (3)(a)(i) carries out reportable transactions and is allowed to provide crypto-asset services in accordance with Article 60 or Article 63 of Regulation (EU) 2023/1114 of the European Parliament¹¹
2. (3)(a)(ii) carries out reportable transactions and –
1. is an Entity or individual that is resident in the State for tax purposes
2. is an Entity incorporated in the State and either
1. has legal personality or
2. is obliged to file returns or tax information returns in respect of the income of the Entity,
3. is an Entity that has a place of management in the State, or
4. has a regular place of business in the State, or
3. (3)(a)(iii) carries out reportable 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 a reporting crypto-asset service provider for the purposes of section 891M.

(3)(b) A crypto-asset operator that registers with the Revenue Commissioner as an RCASP will have a crypto-asset operator ID assigned to them by Revenue.

(3)(c) A crypto-asset operator that is registering with the Revenue Commissioners under the provisions of section 891M is required to provide the following information:

1. the name of the crypto-asset operator,
2. the postal address of the crypto-asset operator,
3. the electronic address, including website addresses, of the crypto-asset operator,
4. any Tax Identification Numbers (TIN’s) that have been issued to the crypto-asset operator,
5. the Member States in which reportable users of the crypto-asset operator are resident
6. any qualified non-union jurisdictions in which the crypto-asset operator satisfies the conditions in subsection (9).

(3)(d) Where there is a change to any of the information supplied under the provisions of subsection(3)(c), the crypto-asset operator must advise the Revenue Commissioners of the change by the end of the month after the month in which the change occurred.

(4) A crypto-asset operator that is required to register with the Revenue Commissioners under subsection (3)(a)(ii) or subsection (3)(a)(iii), is not required to register as a reporting crypto-asset service provider with the Revenue Commissioners if

• (4)(a) it has registered as a crypto-asset operator with the competent authority in another Member State, under provisions similar to those set out in section 891M,
• (4)(b) it has been assigned the equivalent of a crypto-asset operator ID by that competent authority,
• the crypto-asset operator ID assigned to it has not been revoked.

(5)(a) A crypto-asset operator, that has registered as a RCASP with the Revenue Commissioners under the provisions of section 891M, that does not comply with the obligations placed on it under the provisions of section 891M, shall have the crypto-asset operator ID assigned to it by the Revenue Commissioners revoked.

(5)(b) A crypto-asset operator ID shall not be revoked by the Revenue Commissioners until

1. two reminders, in writing, have been issued by the Revenue Commissioners to the crypto-asset operator advising the reporting crypto-asset service provider of the obligations imposed on them under the provisions of section 891M, and
2. a period of 30 days has elapsed from the date the second reminder was issued.

(5)(c)(i) Where a crypto-asset operator ID has been revoked by the Revenue Commissioners, or

(5)(c)(ii) the equivalent of a crypto-asset operator ID that has been revoked by the competent authority of another Member State,

the crypto-asset operator ID will not be reinstated, or a new crypto-asset operator ID issued to the crypto-asset operator, until the crypto-asset operator demonstrates by way of documentary evidence and provides written assurances to the Revenue Commissioners that it will comply with the obligations imposed on it by this section and under similar provisions that may be in force in any other Member State.

Return

(6) An RCASP registered in the State for the purposes of section 891M shall, by the 31 May (specified return date) of the year immediately after the end of the reportable period,

1. (6)(a) make a return to the Revenue Commissioners.
2. (6)(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

(7) Subsection (7) sets out the information that is to be included in the return that is required to be made by the RCASP under subsection (6).

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

1. (7)(a)(i) their name,
2. (7)(a)(ii) their address,
3. (7)(a)(iii) their TIN and country of issuance,
4. (7)(a)(iv) their crypto-asset operator ID, where one has been assigned by the Revenue Commissioners, and
5. (7)(a)(v) the global legal entity identifier, where available.

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

1. (7)(b)(i) their name,
2. (7)(b)(ii) their address,
3. (7)(b)(iii) their Member State of residence,
4. (7)(b)(iv) their TIN, and
5. (7)(b)(v) where the reportable user is an individual,
1. the person’s date of birth
2. and if available, their place of birth.

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

1. (7)(c)(i) in respect of the Entity itself:
1. their name,
2. their address,
3. Member State of residence, and
4. TIN,
2. (7)(c)(ii) in respect of each controlling person that is a reportable person:
1. the person’s name,
2. person’s address,
3. their Member State of residence,
4. their TIN,
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.

(7)(d) In addition to the information to be reported under subsection 7(b) and subsection 7(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 reportable crypto-asset for which the reporting crypto-asset service provider carried out reportable transactions during the reporting period:

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

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

(7)(e)(ii) Where several fiat currencies are used, all reportable 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 each reportable transaction is undertaken.

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

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

(7)(g) A crypto-asset operator that has registered with the Revenue Commissioners under the provisions of subsection (3)(a)(ii), shall not be required to provide the information required under subsection (6) in respect of reportable users or controlling persons, if that information is included in a return submitted by the crypto-asset operator to a non-Union jurisdiction that is covered by an effective qualifying competent authority agreement with the Member State of residence of that reportable user or controlling person.

Reportable users

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

(8)(b) Reportable users shall provide the reporting crypto-asset service provider with valid self-certification so that the reporting crypto-asset service provider can comply with the reporting obligations imposed on them under subsection (6).

The RCASP should follow the due diligence procedures contained in Section III of Annex VI of the Directive to confirm the validity of the self-certification provided.

(9) Subsection (9) provides that an RCASP that is not resident in the State and that satisfies one or more of the registration criteria as set out in subparagraph (ii) of subsection (3)(a) and is resident in a Member State other than Ireland or a qualified non-union jurisdiction is not required to carry out the due diligence set out in subsection(8) or make a return under subsection(6).

Subsection (9) provides an order of priority and the RCASP should carry out the due diligence and reporting obligations in the Member State or qualified non-Union jurisdiction that is higher up the list of criteria set out in subsection (3)(a)(ii).

(10) The provisions of subsection (9) wall 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 Member State or qualified non-union jurisdiction.

(11) A reporting crypto-asset service provider need not carry out due diligence, as set out in subsection (8) or make a return under subsection (6) in respect of reportable transactions carried out through a branch, where those transactions are reported in the that other Member State or qualified non-union jurisdiction. in which the branch is established.

(12)(a) A crypto-asset user, that is not an excluded person, shall provide the reporting crypto-asset service provider 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 Section II of Annex VI to the Directive and subsection (7).

(12)(b) Where a reportable user does not provide the relevant information to the reporting crypto-asset service provider, then following the expiry of the time periods set out in subsection (12)(c), the reporting crypto-asset service provider shall prevent the reportable user from carrying out reportable transactions.

(12)(c) A reporting crypto-asset service provider shall not take any of the actions referred to in subsection (12)(b) before –

1. the reporting crypto-asset service provider has issued 2 reminders in writing to the crypto-asset user requested the necessary information, and
2. 60 days have passed from the second such reminder.

Records

(13)(a) A reporting crypto-asset service provider shall retain the records and documents that are required to be provided by the crypto-asset user in order for a full and true return to be made by the RCASP.

(13)(b) The records required to be retained under subsection (13)(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, and
3. any other information relating to the return.

(13)(c) Subsection 13(c) provides for the manner in which the records are kept.

(13)(d) Subsection (13)(d) Provides for the retention period of the records required to be kept by the RCASP.

(13)(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.

(13)(f) A person who fails to comply with subsection (13) 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

(14) 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 891M.

Audit

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

1. (15)(a)(i) determine whether information regarding a reportable transaction -
1. included in a return made under section 891M by the RCASP was correct and the information provided was complete, or
2. that was not included in a return under section 891M was correctly not included in the return,
2. (15)(a)(ii) examine the procedures put in place by the RCASP for the purposes of ensuring compliance with that RCASP’s obligations under section 891M.

An authorised officer may at all reasonable times enter any premises or place of business of an RCASP the purposes of ensuring compliance with that RCASP’s obligations under section 891M.

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

District Court warrant

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

1. (17)(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. (17)(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.

Anti-Money Laundering

(18)(a) “AML Directive’ means Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015¹² on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No. 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EU, as amended by Directive (EU) 2018/843¹³ (commonly known as AMLD5),

“authorised DAC officer” means an officer of Revenue authorised under subsection (14),

“beneficial owner” has the same meaning as in the AML Directive,

“designated person’ has the same meaning as in Part 4 of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010.

Access to anti-money laundering (AML) information

(18)(b) Where an enquiry is in respect of a return which an authorised DAC officer believes –

1. should include details of the beneficial ownership of a crypto-asset account, or
2. the reportable user or reportable person is not the beneficial owner of the consideration paid, then the authorised DAC officer may access the mechanisms, procedures, documents and information referred to in –
1. Articles 13, 30, 31, 32a and 40 of the AML Directive, and
2. any provisions of the law of the State transposing the said Articles.

(18)(c) For the purposes of subsection (18)(b), an authorised DAC officer –

1. shall have access to the Central Register of Beneficial Ownership of Companies and Industrial Provident Societies, The Central Register of Beneficial Ownership of Irish Collective Asset-management Vehicles, Credit Unions and Unit Trusts, the Central Register of Beneficial Ownership of Trusts, and the Central Mechanism of Ownership of Bank and Payment and Safe-Deposit Boxes, and
2. may, by notice in writing, require a designated person to deliver information as is relevant to the compliance with any obligation imposed on that person by Chapter 3 of Part 4 of the Criminal Justice (Money laundering and Terrorist Financing) Act 2010 that was retained by the designated person under section 55 of that Act.

(18)(d) The notice period provided for in subsection (18)(c)(ii) should not be less than 14 days.

Where an authorised DAC officer -

1. (18)(e)(i) accesses the registers or information systems referred to in subsection (18)(c)(i) or
2. (18)(e)(ii) serves a notice under subsection (18)(c)(ii),

they shall notify the beneficial owner concerned.

(18)(f) The Data Protection Act 2018 will apply to the access given to an Authorised DAC officer under subsection (18).

(18)(g) The registrars or equivalent of the relevant registers or information systems shall allow an authorised DAC officer access to those registers or information systems.

(18)(h) An authorised DAC officer may require additional information, explanations and particulars from a designated person for the purpose of inspecting the information delivered to the officer under subparagraph (18)(c)(ii).

Penalties

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

1. a failure by a reporting crypto-asset service provider to make a return required under subsection (6), and
2. the making of an incorrect or incomplete return under subsection (6),

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, without reasonable excuse, 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.

(19)(b) A penalty of €1,265 will apply to a reporting crypto-asset service provider 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.

(19)(c) A penalty of €4,000 will apply to a reporting crypto-asset service provider who -

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

Anti-avoidance

(20) Subsection (20) 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 891M, then the section shall apply as if those arrangements had not been entered into.

Commencement period

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

Relevant Date: Finance Act 2025