The International Tax Compliance (Amendment) (No. 2) (EU Exit) Regulations, SI 2020/1300, amend the International Tax Compliance Regulations, SI 2015/878 which give effect to agreements and arrangements reached between the UK and other jurisdictions to improve international tax compliance.
The regulations remove from SI 2015/878 references to the EU Directive on Administrative Cooperation (2011/16/EU) (‘the DAC’) which will no longer apply to the UK after the end of the Brexit transition period and make technical amendments to ensure that the principal Regulations continue to operate after that period. In essence, references to the DAC are replaced by references to the Common Reporting Standard for Automatic Exchange of Financial Account Information (CRS), and references to arrangements entered into by the EU are removed. The due diligence and reporting obligations on UK financial institutions are the same under DAC and CRS, so will not change. The UK will continue to exchange financial account information under the CRS with EU member states and with other territories previously covered by EU arrangements.
The International Tax Compliance (Amendment) (No. 2) (EU Exit) Regulations, SI 2020/1300, amend the International Tax Compliance Regulations, SI 2015/878 which give effect to agreements and arrangements reached between the UK and other jurisdictions to improve international tax compliance.
The regulations remove from SI 2015/878 references to the EU Directive on Administrative Cooperation (2011/16/EU) (‘the DAC’) which will no longer apply to the UK after the end of the Brexit transition period and make technical amendments to ensure that the principal Regulations continue to operate after that period. In essence, references to the DAC are replaced by references to the Common Reporting Standard for Automatic Exchange of Financial Account Information (CRS), and references to arrangements entered into by the EU are removed. The due diligence and reporting obligations on UK financial institutions are the same under DAC and CRS, so will not change. The UK will continue to exchange financial account information under the CRS with EU member states and with other territories previously covered by EU arrangements.
