Product details
- Categories: Droit Luxembourgeois, November 2020
- Publisher: LEGITECH EDITIONS
- ISBN: 9782919782666
- Publication Date: 10/11/2020
- Binding: Paperback
- Number of pages: 288
- Language: English
Summary
The mandatory disclosure regime ("MDR") requires intermediaries (that
are tax advisers and other service providers) to report certain
cross-border arrangements to the Luxembourg tax authorities. The MDR is
the transposition of DAC 6 that required the implementation of the MDR
in all European Member States.
The MDR operates through a system of
hallmarks that may trigger reporting obligations and the main benefit
test ("MBT") that functions as a threshold requirement for many of these
hallmarks. As such, the MBT should filter out irrelevant reporting and
enhance the usefulness of the information collected because the focus
will be on arrangements that have a higher probability of truly
presenting a risk of tax avoidance. When applicable, the MBT sets a
fairly high threshold for reporting under the MDR.
It can be
anticipated that potential reporting obligations under the MDR will
become an integral part of each and every tax analysis and should be
considered at an early stage so as to ensure that taxpayers can consider
potential reporting obligations in their decision as to whether or not
to implement a certain cross-border arrangement. This on its own will
achieve the desired deterrence effect as both intermediaries and
taxpayers will need to carefully consider potential reporting
obligations.
The MDR introduces some vague definitions and concepts
that can, at times, make it difficult for practitioners to determine
whether or not a specific cross-border arrangement is reportable.
However, for taxpayers it is important that the reporting in Luxembourg
and across Europe is as consistent as possible. Therefore,
intermediaries and taxpayers have to allocate appropriate resources to
ensure compliance with the MDR.
This book is a practical guide that analyses the scope and limits of the MDR in Luxembourg.