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 EU Member States have now transposed the new reporting rules into domestic law but are yet to publish detailed implementation guidelines. There continues to be a high degree of uncertainty around the application of MDRs in practice, which is amplified by the current volatile environment and the ambiguities it creates around the application timeline. The European Commission has recently published a proposal to defer the reporting timeline by three months, an initiative which needs unanimous backing from EU member states – which is yet to be confirmed.
Local implementation of the rules and reporting deadlines continue to be actively monitored by potentially impacted groups as they seek to understand the practical impacts on 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 organizations with an extensive European footprint are likely to face some challenges navigating the MDR maze.
During this webcast, our panel shared their insights on latest developments, including the proposed deferral and its likely impact in practice, highlighting key themes and potential areas of difficulty and discussed current leading practices.
Rodney Lawrence, Global Head of International Tax, KPMG International and Partner, KPMG in the US, Raluca Enache, KPMG’s EU Tax Center, Carmel Logan, KPMG in Ireland, Claus Jochimsen, KPMG in Germany, Janette Wilkinson, KPMG in the UK, Michał Niżnik, KPMG in Poland, Robert van der Jagt, KPMG’s EU Tax Centre/KPMG in the Netherlands.