UK: Mandatory disclosure reporting of tax planning, final regulations

UK: Mandatory disclosure reporting of tax planning

The final UK regulations to implement the EU Directive on administrative cooperation in the field of taxation (DAC 6) were issued in January 2020. Also, HM Revenue & Customs (HMRC) issued its official response to the consultation previously published in July 2019. The final regulations reflect HMRC’s official response to the July 2019 consultation, such as:


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  • Overall reduction in territorial scope
  • Territorial scope of ”tax advantage”
  • Elimination of duplicate reporting
  • Legal professional privilege
  • Penalties and governance

The regulations have an effective date of 1 July 2020. The goal is for HMRC to be notified about cross-border arrangements involving certain features (“hallmarks”) that the EU views as representing potentially aggressive tax planning.

KPMG observation

The final regulations do not directly address what happens when the UK ceases to be an EU Member State. However, in the HMRC response to the consultation, it was confirmed that under the terms of the EU withdrawal agreement (Brexit), the UK would be legally obliged to implement DAC 6 prior when the UK leaves and during the subsequent implementation period.

Read a January 2020 report prepared by the KPMG member firm in the UK

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