On 13 January 2020 the final UK regulations for the implementation of the EU Directive on Administrative Cooperation in the field of taxation (DAC 6) were issued alongside HMRC’s official response to the consultation previously published in July 2019. The regulations come into force on 1 July 2020 and aim to ensure that HMRC is provided with early information about cross-border arrangements which contain certain features or ‘hallmarks’ which the EU view as representing potentially aggressive tax planning.
The final regulations follow the release of draft regulations and the aforementioned consultation process key themes of which were the potential for duplicate reporting how the regulations will apply in instances of legal professional privilege the penalty regime and a general desire for further guidance on when an arrangement might be reportable and by whom. A number of queries around the impact of Brexit were also raised.
The main updates to the...
