Last moment to review tax schemes (MDR) for the pandemic period

Therefore, it is worthwhile now to perform a short effective review (so-called screening) of any relevant activities undertaken in the company during the pandemic period from the perspective of identifying potential tax schemes to report.

The above is important because our observations and experience show that, although some taxpayers, despite the suspension of the reporting deadlines for domestic schemes, analysed on an ongoing basis the activities undertaken and transactions carried out from the perspective of being considered as a potential tax scheme, there were entities that postponed this analysis until the pandemic alert was lifted. Moreover, even when taxpayers performed such an analysis from the perspective of considering the actions taken or transactions made as a tax scheme, very often – due to the suspension of the deadlines for reporting tax schemes – taxpayers postponed the topic of preparing the reporting itself, which may now result in the need to report potentially numerous schemes. This is also due to the fact that the deadline for suspending the reporting of “domestic” tax schemes was much longer than everyone anticipated, and that domestic schemes themselves are in practice far more numerous than cross-border schemes, whose deadlines had already been suspended.

For practical reasons, it is therefore advisable to carry out such a screening (limited review) of the MDR now, even before the end of the epidemic emergency, i.e. before 1 July 2023. The deadline for the end of the epidemic emergency and the commencement or continuation of the reporting deadlines for domestic schemes falls during the holiday period, so it is worth taking care before the holidays to complete the outstanding reporting. Hence, it is better not to wait with the analysis and reporting until the epidemic emergency is lifted.