Tax scheme (MDR)

Mandatory Disclosure Rules (MDR). The OECD’s BEPS Action 12 is a set of principles around Mandatory Disclosure Rules. The promoter, user, advisor provides information on the tax scheme to the Head of the National Tax Administration within 30 days beginning on the next day after the tax scheme is made available, on the next day after the tax scheme is ready for implementation or on the day when the first step in the implementation of the tax scheme has been made – whichever occurs first.

Tax scheme

It means an arrangement which:

1. satisfies the main benefit test and has a generic hallmark,
2. has a specific hallmark, or
3. has another specific hallmark.

Arrangement

It means a transaction or a set of interrelated transactions, including a planned transaction or planned set of interrelated transactions, in which at least one of the parties is a taxable person or which have or may have an impact on a tax liability arising or not arising

Implementation

It means the performance of factual or legal activities enabling the performance or intended to perform the arrangement.

Promoter

It means a natural person, legal person or organisational unit without legal personality, in particular a tax advisor, an attorney, legal counsel, an employee of a bank or other financial institution advising clients, including when that entity does not have a place of residence, registered office or management in the territory of the country, who offers, makes available or implements the arrangement or manages its implementation.

User

It means a natural person, legal person or organisational unit without legal personality to whom the arrangement is made available or for whom the arrangement is implemented, or who is prepared to implement the arrangement or performed an action related to the implementation of that arrangement.

Advisor

It means a natural person, a legal person or an organisational unit without legal personality, in particular a statutory auditor, a notary public, a person who provides bookkeeping services, an accountant or chief financial officer, a bank or another financial institution, and an employee thereof who, while exercising due diligence generally required in transactions made and having regard to the professional nature of activity, the area of its specialisation and the object of its transactions, undertook to provide, directly or by means of other persons, aid, assistance or advice on the development, marketing or organisation of a tax scheme or on making the arrangement available for implementation or supervising its implementation.

Tax advantage – means:

1. non-occurrence of a tax liability, its postponement in time or a reduction of its value,
2. occurrence or overvaluation of a tax loss,
3. occurrence of a tax overpayment or the right to a tax refund or an increase in the tax overpayment or refund amount,
4. the absence of obligation to collect tax by the tax remitter, if this results from the circumstances indicated in point a);

Our services

As an experienced team of tax advisors, tax experts and lawyers who deal with tax schemes, we can help you in the following matters:

• General advice on tax schemes.
• Development of internal procedures to prevent failure to comply with the MDR reporting obligation.
• Development of guidelines for internal supervision to identify tax schemes.
• Support in implementing internal procedures.
• Identification and reporting of tax schemes.
• Representation in proceedings before public administration bodies and administrative courts.