Tax scheme reporting (MDR) is an obligation that has raised many practical questions for years. The main benefit test (MBT) plays a key role here. It is this test that allows you to determine whether a given arrangement can be considered a tax scheme at all \u2013 but only if there is also a general distinguishing feature.<\/p>\n\n\n\n
In practice, taxpayers often treat the MBT as a simple formality. However, it is a tool that requires extremely precise analysis, combining knowledge from many areas of tax law.<\/p>\n\n\n\n
According to Article 86a \u00a7 2 of the Tax Ordinance, an MBT is considered to have been fulfilled if a reasonable taxpayer, guided by lawful objectives other than obtaining a tax advantage, could choose a different course of action that would not lead to that advantage, and the tax advantage itself constitutes the main or one of the main expected benefits of the arrangement.<\/p>\n\n\n\n
It is therefore clear that the assessment is not limited to the simple question: \u201cDid the taxpayer achieve a tax benefit?\u201d. Alternatives and motives for action must also be taken into account.<\/p>\n\n\n\n
The MBT combines two approaches:<\/p>\n\n\n\n
Only the combination of these two aspects creates a complete picture.<\/p>\n\n\n\n
The taxpayer or advisor performs an ex ante MBT assessment, i.e. before reporting the scheme. However, the final assessment may take place during a customs and tax audit.<\/p>\n\n\n\n
The head of the National Revenue Administration has the right to decide that the MBT was met, even if the taxpayer thinks otherwise.<\/p>\n\n\n\n
In practice, this means the risk of severe criminal tax sanctions if the scheme is not reported and the authority decides that it should have been.<\/p>\n\n\n\n
The reporting obligations arise from Articles 86b\u201386d of the Tax Ordinance, while Article 86f specifies what elements must be included in the information about the tax scheme.<\/p>\n\n\n\n
The correctness of MDR-1 information is therefore not limited to filling in a form. The key elements are:<\/p>\n\n\n\n
An error in any of these elements constitutes faulty reporting.<\/p>\n\n\n\n
MBT cannot be properly assessed in isolation from tax law as a whole. Interdisciplinary knowledge is required, covering:<\/p>\n\n\n\n
Only an MDR expert who can link all these elements is able to correctly assess whether a given arrangement complies with MBT and requires reporting.<\/p>\n\n\n\n
The main benefit test does not work in isolation \u2013 it must be linked to a distinguishing feature. The MBT assessment is mixed, combining objective and subjective elements, which increases the risk of divergent assessments between the taxpayer and the National Revenue Administration.<\/p>\n\n\n\n
Therefore, correct MDR reporting is not a simple formality. It is a process that requires knowledge, experience and reliable interdisciplinary analysis. Only such an approach ensures security for the taxpayer and protects against legal consequences.<\/p>\n\n\n\n