IEIM770000 - Partner Jurisdictions

MDR is an automatic exchange of information measure like the Common Reporting Standard (CRS). Exchanges are made between two jurisdictions that have implemented MDR.

A jurisdiction that has received a report from an intermediary or taxpayer, will exchange information bilaterally with each jurisdiction of tax residence of the reportable taxpayer(s). However, this exchange will only take place where the jurisdiction of residence is a partner jurisdiction who has signed up to MDR for this automatic exchange of information.

A partner jurisdiction in addition to signing up to MDR, would also have to give notice to the OECD that it has the necessary rules in place and indicate that it intends to automatically exchange the report with a list of specific jurisdictions that have signed up to MDR. The UK will share information with all jurisdictions who sign up to MDR once the jurisdiction has given notice to the OECD that they have the necessary laws in place to implement MDR.

The OECD maintains a list of all jurisdictions that have signed up to MDR. HMRC will publish a list of jurisdictions it will exchange information with automatically. The jurisdictions included on HMRC’s list are the UK’s “partner jurisdictions”. These “partner jurisdictions will be published in a schedule to the regulations which will be updated after new jurisdictions join this list.

In certain circumstances where information has already been provided to a partner jurisdiction then a report is not required to be made to HMRC. This would be where.

i) the information has been reported to a partner jurisdiction where there is a branch maintained by an intermediary in that partner jurisdiction, or

ii) the intermediary is a company incorporated in the UK and that information has been reported to the tax authority of a partner jurisdiction where that intermediary is resident or has its place of management. (See IEIM721120)