Deferral of initial reporting dates for EU DAC6 mandatory disclosure of reportable cross border arrangements

Mon 06 Jul 2020

Following the EU’s approval of a six month deferral of initial reporting dates for EU DAC6 mandatory reporting of cross border arrangements (the EU directive can be found here), HMRC has announced it will implement that deferral. The new reporting dates are now 30 days from 1 January 2021, 28 February 2021 in respect of the period 25 June 2018 to 30 June 2020, and 30 January 2021 for the period 1 July 2020 to 31 December 2020.

In addition to the UK we understand that Netherlands, Luxembourg, France, Czech Republic, Croatia, Belgium have also extended their own deadlines. Poland is already within the rules so any transactions where Poland is involved should still be considered whether reportable in line with the Polish deadlines.

An article on the Bloomberg news service on the deferral, including a reference to Mazars, can be found here.

While this is a very welcome deferral that does not diminish the need or urgency to review arrangements where a step has taken place between 25 June 2018 and 30 June 2020 in order that to collate all the information ready reporting to be done in respect of this period.

For further advice on managing EU DAC6 reporting obligations, please get in touch with a member of the Mazars International Tax team.

The new UK reporting timeline

The new UK reporting timeline as set out in HMRC’s manual at IEIM800010 is:

For arrangements where the first step in the implementation took place between 25 June 2018 and 30 June 2020, reports must be made by 28 February 2021, instead of by 31 August as originally required (see regulations 3(3)(a) and 4(4)(a)).
For arrangements which were made available for implementation, or which were ready for implementation, or where the first step in the implementation took place between 1 July 2020, and 31 December 2020, reports must be made within the period of 30 days beginning on 1 January 2021. Under the original rules, such arrangements would have had to be reported within 30 days of the reporting trigger point being reached (see regulations 3(3)(c)(i)-(iii) and 4(4)(c)(i)-(iii)).
For arrangements in respect of which a UK intermediary provided aid, assistance or advice between 1 July 2020 and 31 December 2020, reports must be made within the period of 30 days beginning on 1 January 2021. Again, under the original rules, such arrangements would have had to be reported within 30 days of the aid, assistance or advice being provided (see regulation 3(3)(c)(iv)).
Arrangements which become reportable on or after 1 January 2021 must be reported as normal.

Where periodic reports are required in relation to marketable arrangements, the first such report must be made by 30 April 2021.

Chris Lallemand Senior Tax Manager

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