October 21, 2019
Ireland publishes draft legislation on Mandatory Disclosure Rules
On 17 October 2019, the Irish Government published draft legislation in Finance Bill 2019 implementing the European Union (EU) Directive on the mandatory disclosure and exchange of cross-border tax arrangements (referred to as DAC6 or the Directive). Under DAC6, taxpayers and intermediaries are required to report cross-border reportable arrangements from 1 July 2020. However, reports will retrospectively cover arrangements where the first step is implemented between 25 June 2018 and 1 July 2020.1
The Irish draft legislation is subject to the formal legislative process and may be amended before final enactment which is expected in late December 2019.
If implemented as currently proposed, the Irish Mandatory Disclosure Rules (MDR) legislation will be broadly aligned with the requirements of the Directive.
The key highlights of the Irish draft legislation are summarized below.
Determining if there is a reportable cross-border arrangement raises complex technical and procedural issues for taxpayers and intermediaries. Taxpayers and intermediaries who have operations in Ireland should review their policies and strategies for logging and reporting tax arrangements so that they are fully prepared for meeting these obligations.
A detailed Global Tax Alert will be issued shortly.
1. See EY Global Tax Alert, EU publishes Directive on new mandatory transparency rules for intermediaries and taxpayers, dated 5 June 2018.
2. Ireland has had a domestic mandatory disclosure regime since 2011 which will continue to operate separate and alongside this new cross-border regime.
For additional information with respect to this Alert, please contact the following:
Ernst & Young (Ireland), Dublin
Ernst & Young (Ireland), Cork