Designed to combat aggressive tax planning, the Mandatory Disclosure Requirements (MDR) or DAC 6 directive for intermediaries and relevant taxpayers will apply as of 1 July 2020, with retroactive effect. Most Member States have now transposed the new reporting rules into domestic law but are yet to publish detailed implementation guidelines, meaning there continues to be a high degree of uncertainty around the application of MDRs in practice.
With particular relevance for financial services businesses, local implementations of the rules continues to be actively monitored by potentially impacted groups as they seek to understand the practical impacts in the way they operate globally. Based on what is known so far on domestic implementation, it is already apparent that there is divergence across jurisdictions, including on crucial terms such as the main benefit test and intermediary as well as many of the "hallmarks". With no one common approach many financial services organizations with an extensive European footprint are likely to face some challenges navigating the MDR maze.
This webcast explored the evolving impacts of DAC6 across the financial services sector. Our panel shared their insights on the latest developments of this far reaching legislation, highlighted key themes and potential areas of difficulty and also discussed current industry best practices. With a particular focus on how the rules may apply to banks, insurers, asset managers, and other financial services businesses. We also tool a closer look at the differences between a number of key locations and the best in class steps that multinational institutions are taking to address the practical issues arising.
Presenters included: Mark Semple (Financial Services Tax, KPMG in the UK), Raluca Enache (KPMG EU Tax Center, KPMG in the Netherlands) and other relevant KPMG specialists from France, Germany, Ireland, Luxembourg and the UK.