DAC6 Directive
Directive 2018/822 / EU, also known as DAC6, is a directive by which the European Union wants to introduce the obligation to report on cross-border tax optimisation schemes that have certain specific characteristics, in order to build a new fiscal transparency framework.
According to the text of the Directive,[1] the obligation to report on cross-border tax optimisation schemes for tax consultants, accountants, auditors, lawyers or any other persons directly or indirectly involved in the realisation or management of tax optimisation schemes is implemented, as well as for taxpayers, in case the former do not report.
The DAC6 Directive must be implemented in the national legislation of all the Member States of the European Union by 31 December 2019. However, the fiscal optimisation schemes that have been implemented since 25 June 2018, regardless of the date when the provisions of the directive have been transposed into local law, must be reported. The reporting obligation of the schemes will come into force from 1 July 2020.
The context of the DAC6 implementation
Although there is already a tool by which the tax authorities can prevent the movement of profits (Directive 2011/16 / EU).[2]
Action plan for the erosion of the tax base and the transfer of profits (BEPS) approved in 2013 by the Organization for Economic Cooperation and Development and by the group of twenty ministers of finance and the governors of central banks (G20), brought to the fore the need to improve existing tools or to create new tools to combat the shifting of profits.
Any taxpayer can decide whether or not he wants to submit the report on the tax optimisation schemes, but if he refuses he will have to take the sanctions that will be established by each member state.
Reporting obligations
Although DAC6 is not concisely specific about information that needs to be reported, information on tax authorities' care needs to be minimised to change in the automated exchange of information regarding cross-border tax optimisation schemes.
Therefore, reporting of cross-border tax optimisation schemes should include information on:[3]
- identification data of the parties concerned directly / indirectly participate in the fiscal optimisation scheme;
- taxpayer identification data;
- details on the characteristics that justify the reportability;
- data on which a tax optimisation system was implemented;
- may need cross-border ways to care for the face of the reporting object;
- any other useful information related to the tax optimisation scheme.
Conclusions
It is necessary that all information on cross-border tax optimisation schemes that are communicated to the tax authorities in a member state is automatically exchanged between all the tax authorities in the European Union.
Therefore, the parties directly or indirectly involved in the realisation of cross-border tax optimisation schemes as well as the taxpayers, must act actively in anticipating the transposition of the provisions of the DAC6 Directive in the legislation. In order to address the potential risks arising from the provisions of this report on the reporting obligation, it is necessary to design internal processes that assess the scope of reporting obligations.
References
- ↑ "COUNCIL DIRECTIVE (EU) 2018/822 of 25 May 2018 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements". 25 May 2018.
- ↑ "COUNCIL DIRECTIVE 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation and repealing Directive 77/799/EEC". 15 February 2011.
- ↑ "DAC 6 – New EU tax mandatory disclosure rules with regard to cross – border transactions". 13 May 2019.
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