DUBLIN: Ireland is among 25 OECD countries that have signed a landmark information-sharing agreement aimed at combating cross-border tax evasion and enhancing transparency within international tax systems. Under the new pact, Irish Revenue authorities will gain access to details of foreign assets held by Irish residents, along with income generated from those assets.
The agreement was jointly signed by Belgium, Brazil, Chile, Costa Rica, Finland, France, Germany, Greece, Iceland, Italy, Korea, Lithuania, Malta, New Zealand, Norway, Peru, Portugal, Romania, Slovenia, South Africa, Spain, Sweden, the UK, Gibraltar, and Ireland.
The framework builds on existing mechanisms such as the Foreign Account Tax Compliance Act (FATCA), which facilitates automatic information exchange with the U.S. Internal Revenue Service (IRS). In total, 101 participating countries operate under common reporting standards developed by the OECD.
Under the new system, financial institutions—including life insurers, pension funds and investment firms—must report overseas account information of non-resident clients to their local tax authority, which will then forward the data to the clients’ home tax authorities. The agreement also introduces a dedicated reporting structure for cryptoassets.
Previously, no global system existed for sharing information on non-financial foreign assets, such as movable and immovable property. The OECD has therefore welcomed the newly developed Multilateral Competent Authority Agreement on Automatic Exchange of Information on Income Derived Through Immovable Property (IPI MCAA). Countries are expected to formally join the IPI MCAA between 2029 and 2030, pending domestic approval processes. Ireland’s Finance Minister Simon Harris has endorsed the initiative.
India’s Role in OECD Tax Cooperation
India, though not an OECD member, has been a key partner to the organisation since 2007 alongside Brazil, China, Indonesia and South Africa. While India is not part of the new information-sharing pact, it continues to deepen cooperation with the OECD in areas such as economic policy, corporate governance, anti-corruption, trade and investment. India also engages with a number of OECD committees.
As millions of Indians live and work across OECD countries—including more than 600,000 in 2023 alone—India’s growing participation in international tax frameworks remains significant.
India–Ireland: Existing Tax Information Exchange
India and Ireland already exchange tax-related data under their Double Taxation Avoidance Agreement (DTAA), which allows authorities to request information relevant to investigations and enforcement. Both nations also participate in the global Common Reporting Standard (CRS), which enables automatic annual sharing of foreign bank and financial account information.
Authorities believe these mechanisms help combat tax evasion and ensure accurate reporting of cross-border income. However, in practice, implementation remains limited, offering some reassurance to expatriates concerned about immediate impacts.
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