GACO Webinar - SARS and MDR - What are the implications for me?

Countries are implementing mandatory disclosure rules aimed at increasing transparency to detect what is perceived by tax authorities to be potentially aggressive cross-border tax planning.

MDR will lead to extensive reporting obligations for a relatively wide range of transactions being classified as reportable arrangements. No jurisdiction other than Mexico has introduced any de minimis rules. Taxpayers and intermediaries (e.g. advisors, banks etc.) must implement policies, procedures and processes to identify and capture details of transactions that they may need to disclose. Penalties can be significant.

There may be situations where you may have a reporting obligation. Penalties for incomplete or late filing can be significant.

Have you appointed a person as the process owner for MDR compliance and are the responsibilities for MDR reporting defined within your organization? Why is this relevant?

The responsibility for MDR compliance often starts with the Tax function. However, the responsibility for adequate processes, up-to-date MDR knowledge and timely filing may be with different parts of your organization.

The MDR: Who has a Reporting Obligation?

• MDR imposes reporting obligation on:
   
  
  • Range of intermediaries (Promotors & Service Providers) to disclose CRS circumvention schemes to the tax authorities
  • Reporting of structures that hide beneficial owners of offshore assets, companies and trusts

• Service Providers: Opaque Offshore Structures
  
  
  • Definition of Service Provider in respect of an Opaque Offshore Structure covers persons that provide advice or assistance in respect of structures:
  • Design
  • Marketing
  • Implementation
  • Organisation
  • To the extent that person can be reasonably expected to know that it is an Opaque Offshore Structure as defined
    
    
• Service Providers: CRS Circumvention Schemes
  
  
  • This may for instance include advice provided by a legal practitioner, accountant or financial advisor, as well as account management / compliance services
  • May include Financial Institutions IF it can “reasonably be expected to know” that Arrangement falls within definition of CRS Avoidance Arrangement

GACO is happy to have engaged Grahame Jackson from Hassans and Harriet Brown of Old Square Tax Chambers to deliver this very interesting webinar. In this webinar Harriet and Grahame will discuss the boundaries of international taxation reporting regimes and the need to make reports under the relevant anti-money laundering regimes. They focus on the interaction of CRS, MDR and POCA as mentioned above. 

You will find the speakers CV's under the following links: 

https://www.gibraltarlaw.com/our-people/grahame-jackson/
https://www.taxchambers.com/barristers/harriet-brown/ 

Date: 7th December 2023
Time: 09.30 - 11.00hrs including Q&A Session 
Fee: £30 for GACO Members; £50 Non-GACO Members