The EU mandatory disclosure regime known as DAC 6 has been introduced in most EU Member States and reporting obligations in most cases are set to begin in August 2020.
Under the wide-ranging DAC 6 regime, intermediaries (such as tax advisors and in some cases extending to other non-tax personnel) and, in certain circumstances, taxpayers, will have to report cross-border transactions going back to 25 June 2018 to EU tax authorities. Transactions are in scope if they involve at least one EU Member State and the transaction contains certain “hallmarks” that suggest potentially aggressive tax planning. Some of these hallmarks apply even where obtaining a tax advantage is not the main benefit, or one of the main benefits, of the transaction. This means that many commercially-driven transactions involving at least one EU Member State could fall within the regime and need to be reported. Failure to report could result in high penalties, which vary considerably among Member States and which, in limited cases, include criminal liability.
On 27 February 2020, our DAC 6 experts conducted a webinar that discussed the key topics with respect to the implementation of the regulation. The presentation covered:
- an explanation of the reporting requirements;
- updates on the status of the legislation in the EU Member States;
- key challenges faced by intermediaries and taxpayers in their preparations to meet compliance obligations; and
- insights from practical experience of the reporting regime in Poland.
You may view the webinar recording below.