July 16, 2020
Greece publishes draft proposal to implement Mandatory Disclosure Rules
On 7 July 2020, the Greek Government circulated 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 draft Greek legislation also provides for a six-month deferral to the reporting deadlines under DAC6 following the adoption on 24 June 2020 by the Council of the EU of amendments to the Directive.2 This amendment permits Member States an option to defer for up to six months the time limits for the filing and exchange of information on cross-border arrangements under DAC6.
The draft legislation was subject to public consultation and comments on the proposals were requested by 14 July 2020. The Greek draft legislation will now be subject to the formal legislative process and is likely be amended before final enactment.
If implemented as currently proposed, the Greek Mandatory Disclosure Rules (MDR) legislation will be broadly aligned to the requirements of the Directive.
The key highlights of the Greek 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 Greece 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.
2. See EY Global Tax Alert, Council of the EU adopts amendments for deferral of MDR filing deadlines, dated 24 June 2020.
For additional information with respect to this Alert, please contact the following:
Ernst & Young Business Advisory Solutions S.A., Athens