The UK’s general election has been set for July 4, with Labour predicted to win by a landslide. Labour have promised to crack down on tax evasion. 

The tax gap in Britain, i.e., the gap between tax owed and tax paid, stands today at £36bn. Labour believes that the current government has no plan to bring it down and that the deterrent effect of prosecutions and pilates is too weak, with falling numbers of criminal investigations for tax evasion. Also, Labour says that the current government’s plans to digitise the tax system for the modern age are floundering.

The current government only has plans to recover £1bn a year in outstanding tax debt, even though the head of the National Audit Office says that there is £6bn annually that could be recovered if there were a concerted effort on tax compliance.

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From Uber to Etsy, Bolt to Walt, DAC7 requires platform operators in the EU to collect information from their reportable sellers. Whether renting out a house on Airbnb, to selling used clothes on eBay, DAC7 means this information has to be captured, understood and reported on.

Importantly, DAC7’s scope extends beyond EU-based platform operators. It also encompasses platform operators that are not tax residents within the EU, are not incorporated or managed in the EU, and lack a permanent establishment in the EU. These non-EU-based platform operators, referred to as “foreign platform operators” under DAC7, engage in commercial activities across one or more EU member states through cross-border electronic commerce. For example, a U.S. company offering a ride-sharing app in France, without having a permanent establishment or being registered in France, would fall under this category.

Download our free guide to DAC7. Understand the reporting obligations, the exceptions, what is reportable and how your organisation should manage its DAC7 compliance with Omnitrack.

Lawyers are exempt from Canada’s MDR until at least October 20, 2023.

In the 2021 Canadian Budget, it was announced that Canada would be amending the Income Tax Act to require certain transactions to be reported to the Canadian Revenue Agency (CRA). These new Mandatory Disclosure Rules are set to be implemented in 2023, but compliance will now be delayed until at least October 20, 2023.

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HMRC has just unveiled its most recent guidance concerning the UK Mandatory Disclosure Rules (MDR). These rules introduce a fresh set of responsibilities for taxpayers and their advisors, compelling them to report Common Reporting Standard (CRS) Avoidance Arrangements and Opaque Offshore Structures. It’s crucial to note that the information gathered through these reports will be shared with other tax authorities that are also enforcing equivalent regulations.

CRS avoidance arrangements and Opaque Offshore Structures are defined in the Overseas for Economic Cooperation and Development (OECD) Model Mandatory Rules for CRS Avoidance and Opaque Offshore Structures (Model Rules). The legislation implements these Model Rules.

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Canada’s updated mandatory disclosure legislation under Bill C-47 has just received Royal Assent and therefore has now become law. One of the key areas addressed by Bill C-47 revolves around the extensive revisions made to the Canadian mandatory disclosure rules.

What is the background?

In the 2021 Canadian Budget, it was announced that Canada would be amending the Income Tax Act to require certain transactions to be reported to the Canadian Revenue Agency (CRA). These new Mandatory Disclosure Rules are set to be implemented in 2023. 

In February 2022 the Canadian Department of Finance released draft legislation which included a description of mandatory disclosure measures which will ultimately help the  CRA to become aware of tax evasion ­and aggressive tax avoidance much earlier on in a transaction.

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Broadcast Wednesday 15 February

In November 2022 HMRC released the summary of responses from their consultation on the UK’s Mandatory Disclosure Rules (MDR).

The consultation clarified that:

  1. The historic lookback period will go back to 25th June 2018 (and not 29th October 2014 as originally stated).
  2. Reporting will be via XML only.

With UK MDR expected to come into force in the first half of 2023, Vinciworks was joined by John Sandeman, HMRC’s policy official for Mandatory Disclosure Rules, who helped our listeners get to grips with the UK MDR and how it may impact your organisation.

The webinar covered:

  • What are the key differences between UK DAC6 and UK MDR?
  • Who does UK MDR apply to?
  • Who is required to report under UK MDR?
  • How will VinciWorks be supporting UK MDR?

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Download our detailed guide: “Failure to Prevent: A Guide to Compliance” and find out more about the family of failure to prevent offences, including the new failure to prevent fraud offence currently going through the UK parliament.

Failure to prevent fraud will apply to all businesses, and require them to have certain procedures in place, or face criminal liability.

This free guide includes:

  • What is failure to prevent?
  • What’s new in failure to prevent?
  • Why is failure to prevent fraud being considered and who will it cover?
  • Failure to prevent fraud in detail
  • Failure to prevent tax evasion
  • Failure to prevent bribery
  • The future of failure to prevent

Download your guide to failure to prevent now and stay on top of this game-changing new regulation that’s set to shake up corporate compliance.

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The UK has published the final version of the updated regulations for UK Mandatory Disclosure Rules (MDR). These regulations will come into force on 28 March 2023, and any arrangements entered into on or after this date will need to be reported to HMRC under these rules. The new MDR rules will replace the existing DAC6 regulations, though HMRC have confirmed that the DAC6 reporting portal will remain open for another month to allow arrangements entered before 28 March to be reported under DAC6.

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The International Tax Enforcement (Disclosable Arrangements) Regulations 2023 (UK MDR) regulations, were laid before the House of Commons on 17 January 2023. UK MDR will come into force on 28 March 2023. Any UK arrangements entered on or after 28 March 2028 must be reported to HMRC under UK MDR (and not UK DAC6).

HMRC will open a new portal to support UK MDR, however, the DAC6 reporting portal will remain open until the end of April 2023 to allow arrangements entered into before 28 March 2023 to be reported under DAC6. The current DAC6 guidance (which is relevant to MDR for hallmarks D1 and D2) will be updated where necessary to reflect these new regulations.

VinciWorks will support all their UK-based clients in making the transition from DAC6 to UK MDR. HMRC will be joining VinciWorks for a webinar about UK MDR on 15 February 2023.

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From new ESG regulations to a crackdown on bribery, rapid fluctuations in crypto currency, changes to the regulated sector and the ongoing conflict in Europe demanding a laser-like focus on the supply chain, 2023 looks set to demand even more from compliance professionals.

We have created an in-depth guide to everything compliance in 2023. The guide covers the top ten items you can expect to see in your regulatory inbox, with tips on next steps.

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