DAC6 and UK MDR
In 2018 the OECD developed Model Mandatory Disclosure Rules for CRS Avoidance Arrangements and Opaque Offshore Structures (“OECD’s Model Rules”). These rules require taxpayers and their advisers to report information to tax authorities on certain types of arrangements and structures that might facilitate tax evasion.
The EU responded to the OECD’s mandatory disclosure rules by introducing the EU Council Directive 2011/16, more commonly known as DAC6. As of January 2021, reporting under DAC6 was mandatory in all EU Member States.
Prior to the UK’s exit from the European Union, the UK government intended to adhere to the DAC6 regulations in line with the other EU member States. But at the spring Budget 2021, the UK government announced that DAC6 would be replaced with model rules in line with the OECD’s Model Rules. The consultation released on 30 November 2021 relates to the draft regulations to implement UK MDR, which means that the rules will apply on a global, rather than an EU, level following Brexit.
VinciWorks has developed a guide to UK MDR that goes through everything you need to know on the subject. The topics covered in the overview include an overview of the UK’s approach, how UK MDR will be different from DAC6, timelines for implementation, and what will happen to the existing DAC6 regulations in the UK. The guide then goes on to cover information about historic reporting periods, intermediaries, taxpayers, hallmarks, reporting obligations, penalties, and reporting format. Finally, the guide introduces VinciWorks’ own DAC6 and MDR reporting solution.
For a free download of the comprehensive guide, click here.
New Guide: UK MDR: What changes are in store? | Free download is written by VinciWorks for vinciworks.com