- The International Tax Enforcement (Disclosable Arrangements) Regulations 2020 come into force on 1 July 2020
- The Regulations implement the amended EU administrative cooperation directive (DAC6), into UK law
- The Regulations impose a reporting requirement on cross-border arrangements which meet certain ‘hallmarks’ which are considered to indicate potentially aggressive tax planning
- Reports for arrangements entered into on or after 25 June 2018 are due by 31 August 2020
- These Regulations will provide HMRC with more transparency over ways in which cross border tax arrangements are used
- The Regulations define “UK intermediaries” and “UK relevant taxpayers” who are those required to report any cross-border tax arrangements
- The Regulations also state what information is reportable, such as (but not limited to) the identification of the intermediaries and relevant taxpayers, summary of the cross-border arrangement and the value of the arrangement
- A person who fails to comply with the provisions of the Regulations may receive a penalty not exceeding £5,000 or HMRC may increase this up to £600 for each day on which the failure continues
- We are awaiting HMRC guidance prior to 1 July 2020
- This is further effort from HMRC to identify and challenge offshore arrangements and to deter aggressive tax avoidance
See the Regulations here.
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