Following the signing of the EU–UK Trade and Cooperation Agreement on 30 December 2020, the UK Government has announced that it will cease to participate in the EU mandatory disclosure regime known as DAC6, for which reporting was due to commence from January 2021. The UK will implement a lighter reporting regime based on the OECD’s Mandatory Disclosure Rules (“MDR”) set out in BEPS Action 12. As a transitional measure with immediate effect, DAC6 reporting will only be required for certain specific arrangements concerning automatic exchange of information and beneficial ownership.
Following a recent announcement of the European Commission’s proposal for a three-month deferral of reporting deadlines under the new DAC6 mandatory disclosure regime in the EU and UK, the Committee of the Permanent Representatives of the Governments of the Member States to the European Union (COREPER) has now reached an agreement on a revised proposal which could possibly defer the reporting deadline for six months. On the basis that the draft Directive, once approved, may be adopted at the discretion of each member state, it is imperative that businesses do not delay in preparing to meet their existing compliance obligations should reporting dates not be deferred (or not be deferred in all Member States where they operate).