Organisations from the mid-tier to large multinationals have to be confident that they are effectively managing tax in a way that delivers the overall business strategy. It is also a legal requirement in a number of territories (e.g. UK Senior Accounting Officer requirements) to have a formalised control framework and a testing programme for the operating effectiveness of tax controls.
Tax authorities and other stakeholders, including internal teams other than Tax and Finance, expect tax and finance functions to be able to demonstrate with evidence that they have operated in an effective and efficient way. They must be able to show that tax risk is mitigated to an acceptable level and tax opportunities have been taken in line with the organisation’s overall attitude to reputational and compliance risk. This includes for many, utilising the latest advances in tax technology to drive efficiency.
Increasingly managing tax is not a purely technical challenge and the skills required also include technology awareness, project management, leadership, and communication with the wider business in a way that they understand to make tax as an issue more accessible. If you would like to find out more about how we can help meet some of these challenges today, please contact one of our TRS specialists.
The new EU Mandatory Disclosure regime rules came in effect on 25 June 2018 and broadly require businesses or their advisors to report to the tax authorities cross border arrangements which fall within certain broadly defined hallmarks.
Is your organisation clear on how to meet their reporting requirements and what steps should be taken to respond?
It’s critical to understand exactly which areas of your business & transactions are impacted, while taking a strategic approach to ensure you drive consistency across territories.
Organisations need to ensure that they are capturing and reporting the right information at the right time, with a clear understanding of governance and processes. Having the right tools and technology in place to tackle this is key.
We’re using our expertise and innovative technology to help taxpayers understand the new rules and implement effective controls and processes to meet their reporting obligations.
We have developed a five step approach to help organisations understand the operational implementation of EU MDR and have set this out below.
You should identify which parts of your business may enter into transactions or arrangements that may be reportable; the applicability of the Hallmarks to your main product sets or transactions; and where you are likely to have to report those transactions and if an intermediary may be required to report.
You should review your existing tax governance arrangements and identify the extent to which they already address the governance requirements of DAC 6 or if they require additional focus.
Learning Lab is a personalised online learning solution, which helps people to learn smarter and faster, so they retain more of the training information, in less time. Our EU MDR course provides your people with the latest updates on the regime as it is released, whilst giving our expertise on how the hallmarks relate to your transactions and work.
DAC 6 Smart Reporting allows you to assess, record and report arrangements to the local tax authorities. The tool uses a series of relevant and structured questions, which can be tailored to reflect the local country requirements.
Once the regime is active you will need to demonstrate good ongoing controls and procedures for compliance purposes.