The challenge
When it comes to tackling tax avoidance, efforts to improve transparency are high on the agenda for governments around the world. A new EU Directive, "DAC6" (also known as EU MDR) is one of the measures the European Commission has put in place towards achieving this. Although introduced in June 2018, the full reporting requirements do not take effect until summer 2020 (with some EU countries to delay until the start of 2021). However, at this point an entirely new reporting regime will apply for tax payers (and their advisors). These new rules mean that more time and resource will need to be dedicated to providing information to relevant tax authorities about any relevant cross-border arrangements they’ve entered into (or advised on).
What makes all of this more challenging is that once a relevant cross-border arrangement has been triggered, tax payers and their advisors have only 30 days in which to report this to the appropriate tax authorities across the EU member states. With time of the essence, and with potentially multiple arrangements to report, it will be critical for businesses to quickly determine whether the arrangement is reportable under DAC6 and then track the process of reporting in real time.
We’ve designed MDR Reporter to make this process simple, transparent and efficient, providing you with one place to go to address all of your compliance needs to meet the DAC6 regulations. MDR Reporter will act as a repository to track all potentially relevant arrangements, allow users to apply local rules to determine whether reporting will be required and provide a simple process for seamless and efficient reporting. With all of your decision making process being documented in real time, MDR Reporter will also provide you with the audit trail you need for any subsequent investigation.
Features
Data visualisations and analytics
Updated by our Deloitte tax experts throughout the EU
Customisable and tiered user access
Bulk import and export functionality
Integrated country specific reporting
Proprietary decision tree guidance
Built in workflow and email notifications
Built in comprehensive audit trail to track and review changes
How it works
Capture the data in line with local rules
The forms in MDR Reporter have been designed to be clear and concise, so that the data you enter accurately captures the relevant details of the cross-border arrangement.
Analyse whether the arrangement should be reported or not
Decision trees help to guide you through the process, allowing you to quickly determine whether the arrangement has any characteristics, or “hallmarks”, which trigger reporting under local regulations.
Track transactions to enable timely review and sign off
The workflow capability systematically enables each relevant individual to complete their review at the appropriate stage in the process, with a built in review escalation process to help you ensure arrangements are signed off within the 30 day window.
Report arrangements to local tax authorities
Once an arrangement has been signed off, the reporting process is made simple. You can generate XML file formats in line with local schema, and even report directly to the relevant tax authority portal where local APIs are available.
Deliver insight to your stakeholders
Through MDR Reporter you can quickly and easily generate the management information you need. Using data visualisations and filters, you can manipulate and probe data to conduct more holistic reviews on DAC6 exposure.
