350. Deputy James Geoghegan asked the Minister for Finance the steps his Department has taken to review or renegotiate Ireland's obligations under the Foreign Account Tax Compliance Act, particularly in relation to the requirement for Irish residents to complete US tax forms when opening bank accounts; if he will consider measures to reduce the administrative burden on non-US persons; and if he will make a statement on the matter. [62996/25]

Ireland signed an Intergovernmental Agreement with the United States (US) in December 2012 to implement the US Foreign Account Tax Compliance Act (FATCA). This Agreement provides for a bilateral, and reciprocal, exchange of financial account information with the US.

As this is a reciprocal agreement, US financial institutions report details of accounts held by Irish [tax residents while] Irish financial institutions report details of accounts held by US citizens and US tax residents. In the case of accounts held by Irish tax residents in US financial institutions, FATCA specifically requires that certain information be obtained by the US financial institution, including the name, address and Irish Tax Identification Number (TIN) of the account holder as well as details of income credited to the account. This information is then exchanged by the US with Ireland (Revenue).

In the case of accounts held by US citizens and US residents in Irish financial institutions, Irish financial institutions must obtain comparable information and report that information annually to Revenue by 30 June regarding the previous calendar year. Revenue exchanges this information with the US by 30 September each year. The first exchange of information between the US and Ireland happened in 2015.

The automatic exchange of information is regarded as the best system for ensuring that tax authorities can assess and collect the taxes they are due on income and capital that their residents have abroad. FATCA is one of many automatic exchange of information tools available to tax authorities including Revenue. The data provided through FATCA is used by Revenue to cross-reference with tax returns filed in Ireland, allowing for highly targeted compliance interventions and audits of non-compliant taxpayers.

The existence of the information exchange agreement also acts as a significant deterrent to individuals attempting to hide income, profits, or gains in US financial institutions to evade Irish tax obligations.

FATCA has served as a highly valuable tool in significantly enhancing tax transparency and compliance, and I do not plan to direct my officials in the Department of Finance to review or renegotiate this agreement with the US.