EU Council publishes proposal for draft Directive (DAC6) to prevent potentially aggressive cross-border tax planning
The new Directive aims to amend Directive 2011/16/EU, which concerns administrative cooperation in the field of taxation. The proposed legislation places an obligation on intermediaries to report on potentially aggressive tax planning arrangements.
While the existing tax instruments at EU level do not contain explicit provisions requiring Member States to exchange information in the case of tax avoidance and/or evasion schemes, DAC contains a general obligation for the national tax authorities to spontaneously communicate information to the other tax authorities within the EU.
The new reporting requirements have an effective date of 1 July 2020, with EU Member States obliged to exchange information every three months after that. The first exchange will take place by 31 October 2020.
This article appears in the JHA March 2018 Tax Newsletter, which also features:
- Danish Beneficial Ownership Cases – AG’s Opinions Support the Taxpayers
- C-533/16 – Volkswagen AG wins preliminary ruling on ‘right to deduct VAT’
As announced in July of last year, the 2020 Budget introduces a new deferred payment plan option for Corporation Tax charged on profits or gains arising from certain transactions between UK companies and EEA companies of the same group of companies.
Reversal of Inverclyde
The 2020 Budget announced provisions to reverse last year’s FTT decision in Inverclyde. In that case, HMRC denied the appellant LLPs’ claims for Business Property Renovation Allowance on the basis that the LLPs did not carry on a business with a view to a profit.
HMRC nudge letters
HMRC continues to fight the good fight in its quest to cut down on tax avoidance and have recently been issuing further “nudge” letters to taxpayers who may have an income source or assets producing gains overseas and consequently an undisclosed outstanding UK tax liability.
ExxonMobil: FTT Decision Released
The FTT decision in Esso Exploration and Production UK Limited and others v HMRC, which relates to pre-2006 claims for Cross Border Group Relief, has now been released.