A round up of other news this week.
The OECD’s multilateral instrument (MLI) enters into force on the first day of the month following the expiration of a period of three calendar months beginning on the date of deposit of the fifth instrument of ratification, acceptance or approval. It is understood that Slovenia has recently published a law to ratify the MLI under its domestic legislation and, if this is the case, it should be the fifth country to do so. Where the formal deposit of the instrument of ratification, acceptance, or approval is thus deposited with the OECD before 31 March 2018, this would mean the MLI enters into force at the beginning of July 2018 and therefore potentially enters into effect for the first five ratified signatories for withholding tax purposes from 1 January 2019 and for all other purposes for taxable periods starting on or after 1 January 2019 (subject to the various options available for countries to agree or elect for other dates). We will confirm the position in next week’s Tax Matters Digest.
Finance Bill 2018 completed its journey through the House of Lords on 8 March 2018. The Bill now awaits Royal Assent, after which it will be enacted. The date of Royal Assent has yet to be confirmed.
Anguilla has joined the Inclusive Framework on BEPS.
HMRC have confirmed that as this is the first year in which trustees have had to meet the Trust Registration Service (TRS) registration obligations, they will not automatically charge penalties for late TRS returns. Instead they will take a pragmatic and risk based approach to charging penalties, particularly where it is clear that trustees or their agents have made every reasonable effort to meet their obligations. HMRC had previously already announced that while the 31 January 2018 deadline for making a TRS return would remain in place, they would not charge a penalty if the TRS return is completed no later than 5 March 2018. This does not mean that penalties will not be charged for late registration.
The Tax Matters Digest consultation tracker for March can be found here.
James Stewart, Head of Brexit at KPMG in the UK, comments on the Prime Minister’s recent speech on a customs partnership with the EU after Brexit.
Ahead of the publication of the new National Planning Policy Framework, KPMG in the UK’s Head of Housing Jan Crosby comments on the proposals.