According to the eBrief No. 38/09, The Frequently Asked Questions sections in the area of Trusts & Offshore Structures – Qualifying Disclosure – Third Party Reporting (s896A TCA 1997), in relation to “Qualifying Disclosure” and “Third Party Reporting” contain further Q&As.

One key area in relation to the reporting requirement which had caused concern is the area of preliminary advice where the advisor is not aware of whether a settlement is made or not. The following FAQ provides clarification on this point:

“Preliminary advice [e.g. tax, trust, legal, financial or accounting] has been given by an adviser on a proposed settlement by a client. What are the reporting requirements?

Where an adviser gives advice in relation to a proposed settlement by a client and the proposed settlement is subsequently made or created the adviser has been “concerned with the making of a settlement”. If the adviser knows that the settlement has been made and also knows or has reason to believe that, at the time of the making of the settlement, the settlor was resident or ordinarily resident in the State and the trustees were not resident in the State the adviser has a reporting obligation under section 896A. Having regard to their professional relationships with clients, including statutory obligations, advisers would normally be expected to know if a settlement had been made. However, if the adviser does not know that a settlement has been made he does not have a reporting obligation.”

In addition, the FAQs deal with the timing of awareness that a settlement was made.

“Where the adviser has given preliminary advice on a proposed settlement but only finds out after the Third Party reporting time limit has elapsed that a settlement has been made, is there a reporting requirement?

In circumstances where the adviser, having regard to their professional relationships with clients, including statutory obligations, only becomes aware after the reporting time limit has elapsed that a settlement was made then there is no reporting requirement under section 896A.”

eBrief No. 38/09, which contains a link to the FAQs, is available http://www.revenue.ie/en/practitioner/ebrief/2009/no-382009.html. The full FAQ list is reproduced at 2.01 below.