On 11 December, the OECD issued a consultation on the model rules for mandatory disclosure by intermediaries (promoters and certain service providers) or, in limited circumstances, taxpayers, of certain arrangements to avoid reporting obligations under the Common Reporting Standard (CRS). The proposed rules are based in part on the recommendations made pursuant to Action 12 (Mandatory Disclosure Rules) of the BEPS project which sets out the key features of mandatory disclosure rules for high risk structures.

The model rules are similar in nature to the UK's disclosure of tax avoidance schemes (DOTAS) rules in that they include a number of "hallmarks" identifying CRS schemes. Under the model rules an intermediary (or, in certain circumstances, the taxpayer) must disclose to its tax administration certain information regarding the prescribed CRS avoidance arrangements and offshore structures including the details of taxpayers using the arrangement to avoid being reported about under CRS. There will be penalties for non-disclosure.

The deadline for responses to the consultation is 15 January 2018.