- Tuesday 13 May 2025
In today’s digital age, direct-to-consumer investment platforms like DeGiro, Revolut, and eToro have made it easier than ever to start investing with just a few taps. But while the low fees and sleek user interfaces are enticing, many professionals, particularly those in highly regulated industries like Technology & Life Sciences, are finding themselves exposed to tax compliance risks they didn’t anticipate.
One common blind spot? Failure to properly report dividend income, capital gains, or foreign tax credits associated with these accounts.
The Hidden Tax Risks of DIY Platforms
Many DIY investors are surprised to learn that their platform won’t:
- Automatically file their tax returns
- Track capital gains accurately for Irish tax purposes
- Alert them to upcoming filing deadlines
- Provide proactive support in the event of a Revenue intervention
In fact, if you’re using a non-Irish domiciled platform (as is the case with many of the most popular apps), it’s entirely on you to keep track of:
- Each dividend received (gross and net of withholding tax)
- Annual realised gains and losses
- Any foreign tax paid that might be creditable
- Reporting thresholds that may trigger additional filings (like Form 11)
And if you're holding ETFs or funds that fall under the Irish deemed disposal regime, things can get even trickier.
What Revenue Is Watching For
In an excellent ARTICLE in the Sunday Business Post, it was noted that Revenue’s 2024 Annual Report makes it clear: tax compliance is no longer a “once-a-year” issue. Their systems now leverage real-time data, third-party reporting, and advanced analytics to flag unusual patterns—often before a taxpayer realises they’ve made a mistake.
In 2024 alone:
- Over 272,000 audit and compliance interventions were completed
- These yielded €591 million in taxes, interest, and penalties
- More than 46,000 additional risk appraisals were conducted
The report highlights that Revenue's Compliance Intervention Framework operates on a graduated basis:
- Level 1: Opportunity to self-correct with minimal penalty
- Level 2: Prompted disclosure required—higher penalties apply
- Level 3: Full investigation; no disclosure protections
When it comes to non-disclosure of investment income, Level 2 and 3 interventions are on the rise, especially among high earners using overseas or non-integrated trading platforms.
Why an Advisor-Aligned Platform Offers Peace of Mind
For executives juggling RSUs, share options, investment portfolios, and foreign income, using a DIY platform can be like performing surgery on yourself. You can try—but should you?
Partnering with an advisor who has agency access to an institutional platform (like Davy, Conexim, Standard Life, etc.) offers:
Integrated Reporting
- Advisors can coordinate your investment activity with your personal tax position. Dividend income, gains, and losses can be flagged and addressed well before tax deadlines.
Streamlined Declarations
- Where required, advisors can help prepare statements for your Form 11 or CGT returns, reducing the risk of omission or error.
Regulatory Coordination
- If you're in a regulated role, your advisor can ensure that your portfolio structure doesn’t inadvertently conflict with employment restrictions around personal trading or insider trading rules.
Coordination With Equity Compensation
- Your advisor can build your investment plan around your company stock options or RSUs, ensuring diversification, tax efficiency, and compliance.
Tax-Time Advocacy
- If you're ever flagged for a review, having a professional involved from day one can be invaluable. They can help contextualise trades, validate cost bases, and communicate proactively with Revenue on your behalf.
A Note on Voluntary Disclosure
If you think you may have omitted investment income or gains in prior years, don’t panic—but do act quickly.
Revenue explicitly encourages early engagement:
“Voluntary self-correction of your tax return results in the benefit of the minimum level of penalty, and generally will not risk either prosecution or publication.” – Revenue Annual Report, 2024
Voluntary engagement through a Level 1 compliance pathway can spare you significant costs and reputational risk. However, once you're in Level 2 or 3, your options narrow significantly.
The Bottom Line
If you’re a senior professional in the Tech, Life Sciences, or MedTech sector, you're likely already under significant regulatory and reporting scrutiny. Adding DIY investment complexity into that mix, without professional oversight, can create unwanted tax surprises.
An advisory-led platform might cost slightly more in headline fees, but the peace of mind, integrated strategy, and compliance confidence it delivers can far outweigh the difference.
If you’re unsure whether your current investment setup is tax-compliant, or if you want to explore moving to an advisor-supported structure, let’s talk. We help clients navigate this every day.
