EU mandatory disclosure regime

Under MDR, cross-border reportable arrangements where the first step of implementation is taken between 25 June 2018 and the date of application of the Directive (1 July 2020), will have to be reported by 31 August 2020 and are to be exchanged between EU Member States by 31 October 2020. From 1 July 2020, the reporting deadline is just 30 days after an arrangement is made available to or implemented by the taxpayer.

The scope of the cross-border arrangements to be reported is relatively broad and may lead to extensive reporting obligations for both intermediaries and – mainly corporate, but also individual – taxpayers. Reporting obligations for cross-border arrangements are triggered where the arrangement has EU nexus and meets certain hallmarks (or characteristics). These hallmarks target a relatively wide range of cross-border arrangements. There will be penalties for intermediaries and taxpayers that do not comply.

Poland is close to finalizing their legislation and plan to widen the scope of MDR to cover VAT, domestic arrangements, other hallmarks and bring the timing forward so that the 30 day filing deadline commences from 1 January 2019. Current indications are that some other countries will also widen the scope to cover domestic arrangements.

The shifting landscape in relation to MDR brings challenges for taxpayers and intermediaries alike, in managing their own reporting obligations, coordinating with their intermediaries and keeping abreast of country developments.

Join our webcast panelists for a discussion of these topics:

• Recap on MDR
• MDR governance framework - what taxpayers should be doing now to implement internal controls and procedures to manage their MDR obligations
• Demonstration of the EY MDR tool, which has been built to log and evaluate arrangements in accordance with country specific legislation and coordinate with other advisors
• Update on country developments and how to cope with some of the complexities arising.

Moderator

• Marlies de Ruiter, Global International Tax Services Policy Leader

Panelists

• Jose Bustos, BEPS desk leader, International Tax Services (Ernst &Young LLP (US)
• Rienk Kamphuis, Partner, Tax Technology & Transformation (Ernst & Young Belastingadviseurs LLP