On February 18, 2021, Croatia and Malaysia deposited their instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI).
For Croatia and Malaysia, the MLI will enter into force on June 1, 2021.
With 95 jurisdictions currently covered by the MLI, the ratifications today by Croatia and Malaysia now bring to 63 the number of jurisdictions which have ratified, accepted or approved it. The MLI became effective on January 1, 2021, for approximately 650 treaties concluded among the 63 jurisdictions, with an additional 1,200 treaties to become effectively modified once the MLI will have been ratified by all Signatories.
On February 18, 2021, the OECD Forum on Tax Administration released a new handbook for the International Compliance Assurance Programme (ICAP), which for the first time is being run as a full program open to all FTA member tax administrations.
The handbook builds on feedback from tax administrations and MNE groups, including those with direct experience from the two pilots. Additional information on ICAP, including more frequently asked questions and a list of participating tax administrations, will be made available on the dedicated ICAP webpage during March 2021.
The Forum on Tax Administration is a global forum on tax administration for Commissioners. It has 53 members, including all G20 and OECD member countries as well as a number of advanced and emerging non-OECD economies.
On February 5, 2021, Irish Revenue published an eBrief No. 020/2021 on corporate residence.
Section 23A of the Taxes Consolidation Act, 1997 sets out rules for determining company residence in the State. Section 23A was amended by Finance Act, 2014, but the application of the amended section 23A was subject to a transition period for companies incorporated before January 1, 2015.
According to the eBrief, the transition period ceased on December 31, 2020, and the Tax and Duty Manual Part 02-02-03 has been updated to reflect this.
See eBrief No. 020/2021
On January 28, 2020, Hungary’s Finance Ministry published key DAC6 guidance.
The guidance includes details on who should provide the reporting information, and how and in what manner the information must be provided to the tax authority. The guidance also clarifies the meaning of concepts such as an arrangement and a cross-border arrangement and provides interpretation of the different applicable hallmarks.
Information is also provided on penalties that may apply in cases of non-compliance.
On February 3, 2021, the Cypriot tax authority announced an extension of DAC6 deadlines.
The deadline for the submission of DAC6 information is extended until 31 March 2021, in the following cases:
The tax authority said that the DAC6 Directive is expected to be incorporated into the Cypriot legislation this month.
On January 27, 2021, Irish Revenue published e-Brief No. 014/21, on EU Mandatory Disclosure of Reportable Cross-Border Arrangements (DAC6).
Tax and Duty Manual Part 33-03-33 has been updated to set out filing instructions where certain specified information in a disclosure is subject to Legal Professional Privilege (LPP).
In such cases, a Form DAC6 (LPP) should be filed using MyEnquiries, setting out the identity of the relevant taxpayer and other intermediaries involved in the reportable cross-border arrangement.
See e-Brief No. 014/21