Upcoming tax deadlines

* An Irish resident constituent entity of an MNE Group within the remit of Country by Country Reporting (CbCR), i.e. broadly, an MNE group with annual consolidated revenue in excess of €750 million in the immediately preceding accounting period- will be required to make a notification to Irish Revenue in relation to its status within the Group for CbCR purposes before the end of the relevant reporting period. As per OECD guidance issued in relation to the implementation of CbCR, there is no general exemption from CbCR for investment funds. The governing principles to determine whether an investment fund is part of an MNE group (and exceeds the €750m threshold) are the accounting consolidation rules. If accounting rules require an Irish investment fund to consolidate the results of a non-Irish resident subsidiary and the €750m threshold is exceeded, then an MNE Group exists and the relevant CbCR and notification obligations for the Irish entity should be considered.

Additional considerations

Additionally, while unusual in practice, if the results of an Irish investment fund are consolidated into the financial statements of a non-Irish resident entity and the €750m threshold is exceeded, it should be considered whether there may be a requirement to file a CbC report in Ireland. From a practical perspective, the existence of an MNE Group of this type may be difficult to establish, as the decision to consolidate may not rest with the fund or its manager, but rather with an unrelated third party investor.

If you have any queries in relation to any of the above, please do not hesitate to contact one of our team members who would be more than happy to assist you.