UK and International Tax news
HMRC Confirms Deferral Of Reporting Deadlines For DAC6
Monday 29th June 2020
Last month, the European Commission proposed a delay to the initial reporting deadlines under the EU mandatory disclosure rules. HMRC has now confirmed the deferral of the first reporting deadlines by six months.
The International Tax Enforcement (Disclosable Arrangements) Regulations 2020 [the Regs] make provisions implementing Council Directive 2018/822 which amends Council Directive 2011/16/EU (“the DAC”) on administrative cooperation in the field of taxation and repealing Directive 77/799/EEC and requires persons to report information in relation to certain types of arrangements known as reportable cross-border arrangements, as defined in the DAC, to HMRC.
HMRC has confirmed the deferral of the first reporting deadlines under the Regs by six months, which will provide taxpayers and intermediaries dealing with the impacts of the covid-19 pandemic with additional time to ensure that they can comply with their obligations. This is in line with the approaches announced by a number of other implementing jurisdictions.
The following deadlines for reporting will now apply:
For arrangements where the first step in the implementation took place between 25 June 2018 and 30 June 2020, reports must be made by 28 February 2021, instead of by 31 August as originally required.
For arrangements which were made available for implementation, or which were ready for implementation, or where the first step in the implementation took place between 1 July 2020, and 31 December 2020, reports must be made within the period of 30 days beginning on 1 January 2021. Under the original rules, such arrangements would have had to be reported within 30 days of the reporting trigger point being reached.
For arrangements in respect of which a UK intermediary provided aid, assistance or advice between 1 July 2020 and 31 December 2020, reports must be made within the period of 30 days beginning on 1 January 2021. Under the original rules, such arrangements would have had to be reported within 30 days of the aid, assistance or advice being provided.
Arrangements which become reportable on or after 1 January 2021 must be reported as normal.
Where periodic reports are required in relation to marketable arrangements, the first such report must be made by 30 April 2021.
The Government is to amend the Regs to give effect to this deferral. Whilst the amended Regs may not be in force by 1 July 2020, no action will be taken for non-reporting during the period between 1 July and the date the amended Regs come into force.
If you would like more details on the new reporting regime, please contact Keith Rushen on 0207 486 2378.Contact Us