Disclosure rules relating to offshore structures

Readers of Taxation will be familiar with the UK’s disclosure of tax avoidance schemes (DOTAS) rules introduced in 2004 which require the notification of certain types of tax avoidance arrangements to HMRC. But how much is known about the EU’s new ‘mandatory disclosure rules’ – aka DAC 6 – and how they could affect advisers and their clients?

Although member states have until the end of 2019 to transpose these rules into domestic law they will apply to any reportable arrangements if the first step takes place on or after 25 June 2018. The UK has confirmed that it will begin the process of passing UK legislation even though we officially leave the UK in March next year. Advisers and clients therefore need to start preparations now.

Background

In December 2016 HMRC consulted on a proposal to require offshore structures bearing the ‘hallmarks’ of...