Following the adoption of the EU Mandatory Disclosure Rules for intermediaries and taxpayers (DAC6) in May 2018, several EU Member States have published draft legislation or already introduced mandatory disclosure rules, providing greater insight into the direction of local implementation of DAC6. This Directive is a far-reaching piece of legislation which will require organizations that operate across borders to adjust their governance frameworks and monitor implementation across the EU as implementation in certain member states goes beyond the minimum standard set by DAC6.
On Monday 18 March KPMG had two webcasts for tax and business leaders to help understand and prepare for these changes and understand the implications for an organization. The first session considered the changes from a corporates perspective, while the second focused on the impact for organizations in the FS sector.
The Multinational Group session looked at what multinational groups, both based inside and outside the EU, need to be thinking about today. With multinationals already subject to the disclosure rules, many are uncertain of how to comply or what the rules may even look like as they are implemented in each country. This session focused on the obligations a multinational will have relative to its own operations in the EU and how KPMG is helping clients be ready for this new disclosure obligation. The session covered the current status of the rules, guidance and implementation across the EU; practical advice on how to respond to the new reporting requirements to ensure compliance; and the broader implications in this era of transparency and greater focus on anti-avoidance legislation.
Watch the webcast playback:
Download the presentation (PDF 1.09 MB)
The Financial Services session looked in detail at the implications for this sector as financial services companies including banks, insurers, asset managers, brokers, agents, third party administrators and servicers are expected to be within the scope of the Directive in respect of a wide range of transactions and potentially required to report to the tax authorities on a more regular basis than a non-financial services business. KPMG reviewed the technical language within the Directive and some of the local country implementations. KPMG also discussed practical plans and work-streams that banks and other financial institutions are putting into place to manage MDR for their business and their clients. The session explained how KPMG is helping FS clients in this area both on the technical and practical perspective including the use of technology to assist. The session also focused on the implications of DAC6 implementation — some of which may not be immediately obvious - and covered what you should be doing now in order to be MDR-ready.
Watch the webcast playback:
Download the presentation (PDF 1.15 MB)