TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

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European Commission published FAQs on Brexit talks

The European Commission has released a set of FAQs for the public on the practical aspects of the future EU-UK partnership’s negotiating directives. The Commission’s aim is to maintain full transparency, and some frequently asked questions, are paraphrased below.

Have you agreed with the United Kingdom yet about practical arrangements for the negotiations?

Practical issues will be agreed jointly between the EU and UK negotiators.

Can you really negotiate everything by the end of the year?

The Commission intends to achieve as much as possible during the transition period. We are ready to work 24/7 to make the best out of the negotiations. It is possible to extend the transition period by 1 to 2 years. This decision must be taken jointly by the EU and the UK before 1 July.

Extending the transition period: if no decision is taken by July 2020, surely there is an alternative mechanism, if needs be?

If no decision has been taken by the Joint Committee before July 2020, there is no other legal basis for extending the transition beyond 2020.

Is there still a risk of a “no-deal” scenario at the end of the year?

As in every negotiation, the risk of not reaching an agreement is there. Regardless of whether a future partnership will be in place, all businesses need to prepare now for the end of the transition period, as the UK will no longer be in the Single Market or the Customs Union.

Will there be one agreement or several agreements?

The aim is to negotiate an ambitious and comprehensive partnership with the United Kingdom that can enter into force by the end of the transition period. The Commission’s intention is to negotiate that partnership as a package that comprises three main components:

  • general arrangements (including provisions on basic values, essential principles and on governance);
  • economic arrangements (including provisions on trade, level playing field guarantees and fisheries); and
  • security arrangements (including provisions on law enforcement and judicial cooperation in criminal matters, as well as on foreign policy, security and defence).

More of the FAQs can be found on the European Commission’s dedicated webpage.