Main purpose test and the EU Mandatory Disclosure Regime “DAC6”

Feb 10, 2020

Revenue’s guidance on the “main purpose” test (Part 33-01-01) has been updated to include a reference to the EU mandatory disclosure regime, which comes into operation on 1 July 2020. The manual is updated to include guidance from Revenue on how to approach a “main purpose” test and case law in this area.    

DAC6 comes into operation on 1 July 2020. It includes a “lookback” reporting requirement, which will apply to reportable cross-border arrangements, the first step of which was implemented between 25 June 2018 and 30 June 2020.  

We are engaging with Revenue at the TALC BEPS subcommittee on the development of a Revenue Tax and Duty Manual setting out guidance on the practical operation of the regime. A subgroup is to be formed to focus on this guidance. We will keep you informed of developments.   

In the February issue of tax.point Cormac Kelleher and Stephen Flanagan write on DAC6 and examine implications of the Directive in preparation for the first reporting deadline of 31 August 2020.