MANDATORY REPORTING RULES NOW IN EFFECT
The June 2023 Tax Letter discussed proposed rules regarding mandatory reporting of certain transactions. These rules have now passed through Parliament and received Royal Assent, and came into effect, on June 22, 2023.
The rules aim to discourage and catch “aggressive” tax planning. Although there has been a requirement to report certain types of transactions for some time, the new rules drastically increase the situations and transactions that trigger reporting requirements. These requirements come with significant penalties for non-compliance and apply not only to professional advisors but also to affected taxpayers entering into the transaction, or who expect to receive a benefit from the transaction.
Please consult the June 2023 Tax Letter for more on these rules.