Abstract:
Increased opportunities for aggressive tax planning (ATP) schemes by multinationals has heightened pressure on governments
and policy-makers to curtail these activities. However, the design of most anti-avoidance rules is reactive rather than proactive.
One exception is the use of mandatory disclosure rules (MDRs), which require the upfront disclosure of tax information.
Part 1 of this two-part study in the previous issue of this journal explored the case for introducing IMDRs by presenting a case
study of Australia's experience in considering whether to adopt such a regime. This article (part 2) explores the key design
features of an effective MDR regime with reference to the OECD's recommendations and a comparative legal analysis of how
these rules apply in the UK and South African contexts. This provides the framework for a review of the effectiveness of MDRs
and presents useful 'lessons learnt' which are informative in framing a regime suitable for adoption in other Commonwealth
law jurisdictions such as Australia.
