July 2020 will see the commencement of two new tax regimes, which have the purpose of continuing global efforts towards providing visibility to tax authorities of arrangements which could result in the avoidance of tax.
In the Channel Islands, the Mandatory Disclosure Rules (MDR) will come into effect. These rules are based on OECD guidelines, designed to require reporting of (1) arrangements which may be circumventing the Common Reporting Standards, and (2) structures which may disguise the true beneficial owners of offshore structures (Opaque Offshore Structures). Further, EU MDR rules, known as DAC 6, shall also take effect, which will place a further reporting requirement on certain intermediaries and taxpayers.
For a Channel Islands based intermediary and service provider, it is vital that the MDR and DAC 6 reporting requirements are fully understood, as financial penalties will apply for failures to report.
So what do these rules entail and how might they impact intermediaries? How can those impacted by these rules prepare for their implementation and further support their clients? How can Grant Thornton help? These are all questions that we hope to help answer.
Please download our bulletin that focuses on the Mandatory Disclosure Rules and the EU Council Directive 2011/16 – known as DAC6. It will explain what the rules are and what intermediaries (promoter and service provider) and even taxpayers must consider and prepare for in the coming months.