Mandatory Disclosure Rules (MDR) came into force across
the EU in 2020. Now that most of the initial round of reporting has
been completed, how will tax authorities make use of this
information and what are your ongoing reporting
obligations?
The 2020 Mandatory Disclosure Rules (MDR) were intended
to increase transparency around tax aggressive border arrangements.
While a small number of EU Member States accepted information last
year, most reporting deadlines were pushed back to early 2021,
owing to the impact of the Covid-19 pandemic.
Sifting through the huge amount of information submitted as part
of the initial round of reporting will be no easy task for European
tax authorities. Reports made in January and February this year, or
in 2020 where required in Germany, Poland and Finland, were to
cover an extended 'look back' period, dating back to 25
June 2018.
