buren-logoburen-chinalegalangle-rightangle-left
13-05-2020

EC proposes to defer filing deadlines of mandatory disclosure regarding reportable cross-border arrangements (DAC6)

On 8 May 2020, the European Commission (EC) published a proposal to defer the start date of the reporting deadlines under the rules implementing the EU Directive regarding Mandatory Disclosure  (commonly known as the DAC6) by three months. The reason for the deferral is Covid-19 pandemic that is affecting businesses and EU Member States. 

Background – DAC6
DAC6 refers to an EU Directive adopted on 25 May 2018 regarding mandatory exchange of information for tax payers and intermediaries in the field of taxation in relation to reportable cross-border arrangements. For more information on the reporting obligations of DAC6 reference is made to our DAC6 information memorandum.

Reporting deadlines
Reporting obligations pursuant to the DAC6 apply retrospectively to transactions implemented as from 25 June 2018. Reportable arrangements which first implementation step is put in place during a transitional period starting on 25 June 2018 and running up to and including 30 June 2020 should currently be reported between 1 July 2020 and 31 August 2020.

According to the proposal of the EC, the reporting deadlines will be deferred by three months. If the proposal will be accepted by the EU member states, reportable arrangements which first implementation step is put in place during a transitional period starting on 25 June 2018 and running up to and including 30 June 2020 should therefore be reported between 1 October 2020 and 30 November 2020. In this respect, reference is made to the below timeline.

Time line reporting obligations DAC6

Subject to the further evolution of the Covid-19 pandemic, the EC proposes the possibility to extend the deferral period for a second time with three further months.

It is noted that the proposed deferral still has to be officially approved by the EU Member States and be implemented in their national legislation. EU Member States have the possibility not to implement the deferred reporting deadlines.

Take away
Although the proposal of the EC may provide for additional time to comply with DAC6 reporting obli-gations, taxpayers and intermediaries should still act to meet the obligations. 

In order to mitigate the risk of fines derived from non-compliance with DAC6 reporting obligations, we recommend taking the following actions:    

  1. Verifying whether any transaction which may qualify as a reportable cross-border transaction under DAC6 has been implemented as from 25 June 2018; 
  2. Documenting the reasons for which transactions are considered to qualify (or not) as reportable transitions under DAC6;
  3. Discussing the outcome with intermediaries involved in order to develop a common DAC6 approach.

We would be pleased to further assist you to comply with your DAC6 compliance.

Key contacts

Peter van Dijk

Partner | Lawyer and Tax Lawyer
Send me an e-mail
+31 70 318 4834

David Córdova

Partner | Tax lawyer
Send me an e-mail
+352 2644 0919 22

IJsbrand Uljée

Senior Associate | Tax Lawyer
Send me an e-mail
+ 31 70 318 4200

Follow us!
Subscribe newsletter  LinkedIn

Related news & updates