December 12, 2019
Sweden publishes new draft legislation on Mandatory Disclosure regime
On 6 December 2019, the Swedish Government published new draft legislation 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 new draft legislation is subject to scrutiny by The Council on Legislation (Swe: Lagrådet). The new draft legislation is also subject to the formal legislative process but is unlikely to be amended materially before final enactment. The final bill to Parliament is expected within the next few weeks.
If implemented as currently proposed, the Swedish Mandatory Disclosure Rules (MDR) legislation will be broadly aligned to the requirements of the Directive. However, the proposal states that it deals only with the implementation of DAC6 and that the Government is considering whether domestic arrangements should also be covered.
The Swedish legislation will enter into force on 1 July 2020 and sanctions will be effective from that date.
The key highlights of the current Swedish 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 Sweden 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 is forthcoming.
1. See EY Global Tax Alert, EU publishes Directive on new mandatory transparency rules for intermediaries and taxpayers, date 5 June 2018.
For additional information with respect to this Alert, please contact the following:
Ernst & Young AB, Stockholm
Ernst & Young AB, Gothenburg
Ernst & Young LLP (United States), Nordic Tax Desk, New York