On 17 October 2019, the Irish Government submitted the draft proposal implementing the European Union (EU) Directive on the mandatory disclosure and exchange of cross-border tax arrangements (referred to as DAC6 or the Directive) to the Oireachtas, Ireland’s legislature. Under DAC6, taxpayers and intermediaries are required to report cross-border reportable arrangements from 1 July 2020. However, reports must also retrospectively cover arrangements where the first step is implemented between 25 June 2018 and 30 June 2020.
The draft proposes to amend the ‘Anti-Avoidance’ rules of Ireland’s Taxes Consolidation Act (TCA) by transposing DAC6 as an addendum to the Domestic Mandatory Disclosure Rules (MDR) that were enacted in 2011.
As part of the larger Finance Bill, the proposal will now go through the legislative process, and may be amended before final enactment on or before 31 December 2019. If implemented as currently proposed, the Irish cross-border MDR legislation will be broadly aligned to the requirements of the Directive. The draft includes some explanatory notes that clarify the concepts and terms used in the Directive, but the interpretation of the Hallmarks of the Directive and their application is expected to be published subsequently by the Office of the Revenue Commissioners.
Click below to read EY’s detailed analysis with reference to the publication on DAC6.