Dáil Éireann debate -
Wednesday, 24 May 1995

Vol. 453 No. 4

Written Answers. - Investments in Offshore Funds.

Rory O'Hanlon

Question:

56 Dr. O'Hanlon asked the Minister for Finance the amount of money invested by Irish residents in offshore funds; the steps, if any, normally taken by the Revenue Commissioners to ensure that the appropriate tax is paid by Irish residents on any income or capital gain received in respect of such investments; and if he will make a statement on the matter. [9406/95]

Minister for Finance (Mr. Quinn)

Information is not available on the amount of money invested by Irish residents in offshore funds. However, under the system of self-assessment, a taxpayer in receipt of income from offshore funds which is chargeable to tax is obliged to declare such income in his or her return of income. Under this system, the taxpayer's return is processed and may be subject to audit by the Revenue Commissioners. A person who fails to declare income from an offshore fund is subject to the same penalties as a person who fails to declare income from any other source.

Additional reporting requirements are being introduced in this year's Finance Bill for investments in offshore funds other than UCITS, which are already subject to such requirements. Section 41 of the Bill, as passed by the Dáil, provides that Irish residents who invest in these offshore funds, and persons who act as intermediaries for Irish residents in the making of such investments, will be obliged to furnish information to the Revenue Commissioners in relation to: the full name and address of the Irish resident investor or intermediary, the tax reference number of the Irish resident investor, the full name and address of the fund with which the investment was opened, the date on which the investment was opened, and the amount of such investment. Similar reporting arrangements already apply in relation to foreign bank accounts, foreign UCITS and life assurance investment policies taken out with overseas life companies.