The Ministry of Finance explains MDR | Tax Alert
On 31 January 2019, the Ministry of Finance published an official explanation of reporting tax schemes (MDR), consisting of over 100 pages. The publication date is significant because it was also the deadline for delivering the first MDR reports to the tax authorities. It seems that the extensive changes introduced by the new legal provisions represent a challenge not only for taxpayers.
The deadline for submitting the first MDR reports expired at the end of January 2019. Until then, the Ministry had been working on explaining the rules on how to apply the new regulations. The MDR regulations oblige a number of entities, including entrepreneurs and their advisors, to submit information about tax optimisation schemes to the Head of the National Revenue Administration.
One of the most important pieces of information contained in the explanation is that any delays in notifying the tax authorities about MDR schemes will not have negative consequences for the obliged entities. This is, however, subject to one condition laid down by the tax authorities, namely that the obligation must be complied with by 28 February 2019. If the entities obliged to notify the Head of the National Revenue Administration are delayed and submit such information between 1 March and 30 April 2019, such delays will be treated as minor infringements.
The Minister of Finance’s standpoint, as presented in the official explanation, provides taxpayers with the same protection as if the general interpretation was applied. The tax authorities’ generously understanding approach to taxpayers’ delays demonstrates the sheer scale of challenges facing both entrepreneurs and tax offices as a result of the new MDR rules.
The Ministry states that its document, comprising over 100 pages, takes account of many comments it received during social consultations. We will soon inform you of the extent to which the Ministry’s official explanation clarifies the current uncertainty regarding the application of the MDR rules.
