Irish Revenue Unveils New Interest Reporting Regulations

by Jason Gorringe, Tax-News.com, London

22 May 2008

It was announced earlier this month that the Irish Revenue Commissioners have put in place regulations requiring certain financial institutions to make automatic returns of interest and other similar payments to them.

The regulations, which were approved during Taoiseach Brian Cowen's last days as Finance Minister, apply to banks, buildings societies, credit unions and the Post Office Savings Bank where accounts or investments pay more than EUR635 in a year.

The reporting requirement is being phased in and in the first phase, payments made by banks, buildings societies and the Post Office Savings Bank from which DIRT was deducted for the years 2005 and 2006 must be reported to Revenue by 15th September 2008.

The power to make these regulations was provided in Finance Act 2006, and was prompted by a recommendation of the Revenue Powers Group that there should be automatic reporting to Revenue of payments made by financial institutions, life assurance companies, collective investment funds and Government Departments and agencies.

This change also brings domestic interest reporting into line with foreign interest reporting under the EU Savings Tax Directive.

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