Ireland has specific tax legislation that taxes funds classified by Revenue as “offshore funds”. However, the application of these rules and determining the potential tax consequences that follow have always been an uncertain exercise for investors and tax advisers alike. The exercise has become more difficult in recent years as the range and type of foreign fund products available in Ireland has expanded. It has also been compounded by a narrowing of technical guidance issued by the Revenue Commissioners (“Revenue”) and continuing uncertainty in the general Irish tax classification of foreign legal entities as “opaque” or “transparent”.
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