In March 2018, the OECD published Model Mandatory Disclosure Rules (MDR) for CRS Avoidance Arrangements and Opaque Offshore Structures. In June 2018, the EU published a new directive on Mandatory Disclosure Rules for intermediaries (DAC 6).
Both publications concern mandatory disclosure requirements to fight against aggressive tax arrangements and opaque structures. Consequently, financial intermediaries must identify, document and report such arrangements. They will face penalties in case they do not comply.
The DAC6 directive applies from 1 July 2020 with retroactive effect: the Directive entered into force in June 2018 and between its entry into force (June 25, 2018) and the date on which the Directive takes effect (July 1, 2020), reportable arrangements must be disclosed. From August 2020, financial intermediaries shall communicate the data to their competent tax authorities. Some non-EU countries may also implement mandatory disclosure rules, based on OECD’s MDR.
BearingPoint’s FiTAX DAC6/MDR module offers functionalities to help intermediaries such banks, assets managers, financial advisors, among others, to meet Mandatory Disclosure Rules (MDR) to comply with DAC6/MDR obligations.