HMRC: Covid-19 update

From: HM Revenue & Customs Published: 25 April 2016 Updated: 13 May 2020

CbC Reporting

The Country by Country report filing deadline will depend on the financial year end of the filing entity. HMRC recognises that the impact of Covid 19 may mean that businesses will not be able to meet their filing deadline. HMRC accepts that any business that is unable to file a CbC report by the deadline because of these difficulties, will have a reasonable excuse and therefore not be liable to a penalty for late filing. This will remain the case provided the CbC report is filed without unreasonable delay following the resolution of the difficulties.

DAC 6 Implementation and Reporting and Covid 19

HMRC recognises the challenges taxpayers and intermediaries face in implementing DAC6 because of Covid 19 and the unprecedented measures introduced to tackle it. In particular, we understand the various challenges in developing and introducing the necessary IT systems, processes and procedures, training staff and identifying reportable arrangements for periods back to June 2018.

 

Under the DAC 6 regulations the first reports are due to be sent to HMRC from 1 July 2020, and by 31 August for pre-existing arrangements. Where reports are made late, no penalties are due where there is a reasonable excuse for the delay and reports are made without unreasonable delay once that excuse has ceased.

 

Because of the Covid 19 situation HMRC accepts that any taxpayer or intermediary who makes a report late because of these difficulties will have a reasonable excuse (and so will not be liable to any penalties for that delay) provided the report is made without unreasonable delay after those difficulties are resolved. 

CRS and FATCA reporting and Covid 19

For Common Reporting Standard and Foreign Account Tax Compliance Act, reports for the calendar year 2019 are due to be filed by 31 May 2020. HMRC recognises that because of Covid 19, financial institutions may not be able to meet this deadline. In these unprecedented circumstances, HMRC accepts that any financial institution that files a return late because of Covid 19 difficulties will have a reasonable excuse (and so will not be liable to any penalties for that delay) provided the report is made without unreasonable delay after they are resolved.

 

The Commission has now proposed amendments to the EU directive to change the time limits in 2011/16/EU. As and when the amendment is final, HMRC will confirm how this will apply to UK’s rules.

https://www.gov.uk/hmrc-internal-manuals/international-exchange-of-information/ieim800000

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