Irish Banks Review Their Position In Light Of Revenue Announcement

by Jason Gorringe, Tax-News.com, London

26 November 2002

Irish banks are assessing their options following Frank Daly's recent announcement on the spirit of cooperation which is developing between the Revenue Commissioners and their counterparts in the Isle of Man, Jersey, and Guernsey.

Speaking at a business breakfast last week, the head of the Revenue Commissioners announced that discussions have been held with the Manx and Channel Island tax authorities, and that it is anticipated that these talks will lead to the successful negotiation of Tax Information Exchange Agreements between the finance centres.

Since then, according to the Sunday Business Post, banks such as AIB with branches in the affected jurisdictions have begun to review their positions, given that the Irish tax authority may soon be permitted access to bank accounts and trusts held there.

The newspaper suggested on Sunday that Irish banks with operations in Jersey and the Isle of Man are bracing themselves for a potential outflow of some 5.5 billion euros.

'AIB is the largest Irish operator of foreign accounts, with more than 1 billion euros in current and deposit accounts in the Isle of Man and about 2.44 billion euros in Jersey,' the Business Post explained, adding that: 'Banking sources are speculating that AIB could merge its Isle of Man operations with those in Jersey. AIB employs about 100 people in its Isle of Man operation.'

However, although a spokesman for the bank admitted that all business lines are 'continually under review', he denied that sone staff at AIB's Isle of Man branch have been put on protective notice.

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