HMRC has provided the Parliamentary Joint Select Committee on Statutory Instruments with examples of evidence it will require from intermediaries or relevant taxpayers to demonstrate they do not need to file a report in the UK under the amended EU administrative cooperation directive (DAC6).
The committee asked for clarification from HMRC in relation to regulation 10(b) of the International Tax Enforcement (Disclosable Arrangements) Regulations, SI 2020/25, which implement DAC6 into UK law with effect from 1 July 2020. The committee published its report on 6 March, together with an appendix containing a memorandum from HMRC in relation to regulation 10(b).
Regulation 10(b) concerns the evidence required for taxpayers or intermediaries to show they do not need to file a report with HMRC because they already have an obligation to report details of cross-border arrangements to the competent authorities of another member state, or another person has reported the same arrangements. This evidence must demonstrate to HMRC’s satisfaction the intermediary or relevant taxpayer ‘does not have knowledge, possession or control of any other reportable information in relation to the reportable cross-border arrangement’.
The memorandum sets out matters that HMRC might consider in assessing whether the intermediary or relevant taxpayer has demonstrated that they do not have such knowledge, possession or control.
Where the intermediary or taxpayer has reporting obligations in more than one jurisdiction, or claims exception from UK reporting because another person has filed or returned the reportable information, such evidence might include:
records relating to the arrangement showing the reportable information within the knowledge, possession and control of the intermediary or relevant taxpayer;
a copy of the report filed or returned in the other jurisdiction; and
information relating to the report made by the other person, which satisfied the intermediary or relevant taxpayer that they did not have any additional information to report.
HMRC indicated to the committee that further examples will be set out in guidance to be published before the regulations come in to force on 1 July 2020.
HMRC has provided the Parliamentary Joint Select Committee on Statutory Instruments with examples of evidence it will require from intermediaries or relevant taxpayers to demonstrate they do not need to file a report in the UK under the amended EU administrative cooperation directive (DAC6).
The committee asked for clarification from HMRC in relation to regulation 10(b) of the International Tax Enforcement (Disclosable Arrangements) Regulations, SI 2020/25, which implement DAC6 into UK law with effect from 1 July 2020. The committee published its report on 6 March, together with an appendix containing a memorandum from HMRC in relation to regulation 10(b).
Regulation 10(b) concerns the evidence required for taxpayers or intermediaries to show they do not need to file a report with HMRC because they already have an obligation to report details of cross-border arrangements to the competent authorities of another member state, or another person has reported the same arrangements. This evidence must demonstrate to HMRC’s satisfaction the intermediary or relevant taxpayer ‘does not have knowledge, possession or control of any other reportable information in relation to the reportable cross-border arrangement’.
The memorandum sets out matters that HMRC might consider in assessing whether the intermediary or relevant taxpayer has demonstrated that they do not have such knowledge, possession or control.
Where the intermediary or taxpayer has reporting obligations in more than one jurisdiction, or claims exception from UK reporting because another person has filed or returned the reportable information, such evidence might include:
records relating to the arrangement showing the reportable information within the knowledge, possession and control of the intermediary or relevant taxpayer;
a copy of the report filed or returned in the other jurisdiction; and
information relating to the report made by the other person, which satisfied the intermediary or relevant taxpayer that they did not have any additional information to report.
HMRC indicated to the committee that further examples will be set out in guidance to be published before the regulations come in to force on 1 July 2020.
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