UK MDR comes into force

The International Tax Enforcement (Disclosable Arrangements) Regulations, SI 2023/38, implement the OECD’s model mandatory disclosure rules for common reporting standard avoidance arrangements and opaque offshore structures in the UK with effect from 28 March 2023. In essence, the OECD rules require taxpayers, promoters and advisers to disclose details of avoidance arrangements which use opaque offshore structures, or which circumvent the reporting of financial information under the common reporting standard, to the tax authorities. The regulations contain a ‘look back’ provision for reporting pre-existing arrangements entered into on or after 25 June 2018 (reg 8).

HMRC has issued new guidance notes on how to report, and how to register to report, cross-border arrangements under the mandatory disclosure rules (MDR):

Register to report a cross-border arrangement (MDR): this covers hho should register; when to register; what is required; how to register; and after registration; and

Report a cross-border arrangement to HMRC (MDR): who should report an arrangement; what must be done before informing HMRC about a cross-border arrangement; what is required; how to report; how to change information sent to HMRC.