ARTICLE · 21 JUNE 2019

Economic Substance Update

Collas Crill

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Collas Crill

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Companies will be required to confirm the above details to their Registered Agent within 6 months of the end of the first applicable financial period, as above.

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Christian Hidalgo

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The draft Economic Substance Code (Code) has now been published by the International Tax Authority (ITA) and contains rules and guidance from the ITA with regard to the application of the Economic Substance (Companies and Limited Partnerships) Act 2018 (ESA). The final form of the Code is expected in early May. While the Code does not have the force of law, the ITA intends the guidance given in the Code to be relied upon. The key areas of the ESA and the Code have been set out as follows:

Relevant Activity

The ESA specifies the following relevant activities, which if carried on by an entity during a financial period will mean that such entity will be subject to the economic substance requirements set out in the ESA:

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