Irish Revenue on March 12 released guidance on how it will implement spontaneous exchange of tax ruling information with EU Member States. The directive applies with immediate effect.
As a member of the EU, Ireland is subject to the EU Directive on Administrative Cooperation in the Field of Taxation which took effect January 2013. The Directive obligates Member States to spontaneously exchange information, including tax rulings, with other Member States.
According to the guidance, examples of rulings that are subject to spontaneous exchange include situations where:
- Member State (MS) 1 gives clearance on the absence of a permanent establishment (PE) in MS 1 to a company resident in MS 2,
- MS 1 gives clearance on specific items related to the tax base of a PE in MS 1 to a company resident in MS 2,
- MS 1 gives clearance on the tax status of a hybrid entity resident in MS 1 which is controlled by residents of MS 2, and
- MS 1 gives clearance to a company resident in MS 1 regarding the tax value for depreciation of an asset (i.e. for capital allowances purposes) that is acquired from a group company in MS 2.
The above list is not exhaustive; other types of rulings with cross-border relevance are subject to spontaneous exchange of information, the guidance states.
If cross-border ruling information must be exchanged, Irish Revenue will provide the other jurisdiction with company identifying information, details of the issues, a summary of the opinion, and other information.
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