Revenue to share information on properties and rents with overseas tax authorities
The new Multilateral Competent Authority Agreement on Automatic Exchange of Readily Available Information on Immovable Property (IPI MCAA) is a commitment to share information about properties and tax payers with tax authorities in jurisdictions including France, the UK, Germany, Brazil and South Korea.The scheme was developed by the OECD and follows an earlier agreement in relation to sharing similar information about financial assets.Today's News in 90 - Friday December 5 The 25 countries announced the scheme in a joint statement yesterday. The aim is for it to be operational by 2029 or 2030.If it happens, Revenue here will automatically share what is known as “readily available information” with other tax authorities on property ownership, acquisition and disposal transactions and rental income.Overseas authorities will share their information in turn, including about property owned abroad by Irish people or Irish resident businesses.It is aimed at clamping down on tax evasion, including giving overseas agencies access to information about income and gains from foreign property, and the sources of funds used to purchase properties.Tánaiste and Finance Minister Simon Harris said Ireland will become an early adopter of what he described as an important tax transparency initiative.Asked about the risk that personal information of Irish taxpayers and their properties could being misused or stolen after it is shared outside Ireland and outside the European Union, the Department of Finance said confidentiality safeguards in place between tax authorities and taxpayers remain and are not going to be removed, including in relation to GDPR.“Tax authorities globally must commit to respecting those safeguards if they wish to participate in these exchanges,” the department said.Belgium, Brazil, Chile, Costa Rica, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Korea, Lithuania, Malta, New Zealand, Norway, Peru, Portugal, Romania, Slovenia, South Africa, Spain, Sweden, the United Kingdom and Gibraltar announced their participation in the scheme in a joint statement.“The broad adoption of the IPI MCAA is an important step towards delivering tax transparency on non-financial assets. It will strengthen our ability to monitor and enforce tax compliance, and to combat tax evasion, which undermines public revenues and unfairly shifts the tax burden onto compliant taxpayers,” the joint statement said.
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