HMRC has just released its draft regulations on implementing the 6th Directive on Administrative Cooperation, known as DAC6, into UK law. From 1 July 2020, taxpayers and their advisers are required to report details of certain cross-border arrangements that could be used to avoid or evade paying tax to HMRC. The UK has been lagging behind their European counterparts in producing draft DAC6 legislation.
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Tax evasion continues to be a concern for many European firms. To ensure that your employees remained trained and up to date, VinciWorks has just released a five-minute knowledge check on tax evasion prevention. Knowledge Checks consist of different scenarios to help employees understand which course of action to take in different situations. This knowledge check is part of VinciWorks’ tax evasion training suite which includes the latest course, Tax Evasion: Failure to Prevent and can also be purchased alone.
The five-minute knowledge check covers:
VinciWorks’ knowledge checks allow businesses to verify and assess your staff’s knowledge of key compliance areas. We are always adding new knowledge checks and we even have an option for businesses to create their own.
Last May, the European Union created the 6th Directive on Administrative Cooperation (the “DAC6”). Under this new law tax intermediaries are required to report certain cross-border arrangements that contain at least one of the hallmarks as defined in DAC6.
DAC6 contains five different hallmark categories that represent an indication that a transaction may have a potential risk of tax avoidance.
This blog will focus on the category E hallmarks which are classified as generic hallmarks, and may include one of the following:
1. Unilateral Harbour Rules – Arrangements involving unilateral safe harbour rules.
Continue reading13 months ago, the Economic and Financial Affairs Council of the European Union (ECOFIN) adopted the 6th Directive on Administrative Cooperation (the “DAC6”). This new directive requires tax intermediaries to report specific cross-border arrangements that contain at least one of the hallmarks that are defined in DAC6.
Within DAC6, there are five different hallmark categories that represent an indication that a transaction may have a potential risk of tax avoidance.
This blog focuses on the category D hallmarks which are classified as generic hallmarks and may include one of the following:
1. Arrangements undermining reporting obligations – This could include those arrangements undermining European Union legislation, other equivalent agreements which take advantage of the lack of legislation or agreements in place.
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The Economic and Financial Affairs Council of the European Union (ECONFIN) has adopted the 6th Directive on Administrative Cooperation (“DAC6”), requiring tax intermediaries to report certain cross border arrangements. Under DAC6, intermediaries may be required to submit all cross-border transactions and backdate them when member states publicise their requirements.
In this webinar, Legal and Research Executive Ruth Cohen and Director of Best Practice Gary Yantin helped dissect the new regulation and gave guidance on reporting and training requirements under DAC6.
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VinciWorks hosted a roundtable meeting with representatives from over 20 firms to discuss DAC6 and its implementation. Here are the key takeaways from the conversation.
In the pre-meeting survey, the responses showed that the main people who would potentially submit initial data would be partners, associates, or nominated jurisdiction representatives. A staggering 50% of the respondents noted that they were unsure who would submit the initial information at this stage. During the discussion it was mentioned by some firms that fee earners would be the ones who would decide if this transaction was reportable, then there would be a second level of quality check to confirm if it was a reportable transaction.
Continue readingOn 25 May 2018, the Economic and Financial Affairs Council of the European Union (ECOFIN) adopted the 6th Directive on Administrative Cooperation (the “DAC6”), requiring so-called tax intermediaries to report certain cross-border arrangements that contain at least one of the hallmarks as defined in DAC6.
Within DAC6, there are five different hallmark categories that represent an indication that a transaction may have a potential risk of tax avoidance.
This blog will focus on the category C hallmarks which are classified as generic hallmarks, and may include one of the following:
1. Cross Border Payments – Deductible cross border payments in certain cases where one of the following occurs:
a. The recipient is not a tax resident in any jurisdiction.
b. The recipient is a tax resident in a jurisdiction with zero or near zero corporate tax rate.
c. The recipient is included in a list of third-country states considered non-cooperative by EU Member states or the OECD.
d. The payment has a full tax exemption in the jurisdiction of the resident.
e. The payment benefits from a preferential tax regime where the recipient is resident.
Continue readingOn 25 May 2018, the Economic and Financial Affairs Council of the European Union (ECOFIN) adopted the 6th Directive on Administrative Cooperation (the “DAC6”), requiring so-called tax intermediaries to report certain cross-border arrangements that contain at least one of the hallmarks as defined in DAC6.
Within DAC6, there are five different hallmark categories that represent an indication that a transaction may have a potential risk of tax avoidance.
This blog will focus on the category B hallmarks which are classified as generic hallmarks, and may include one of the following:
The Economic and Financial Affairs Council of the European Union (ECONFIN) adopted the 6th Directive on Administrative Cooperation (“DAC6”) requiring tax intermediaries to report certain cross border arrangements.
The new EU rules which aim to clamp down on aggressive tax planning are set to impose a huge compliance burden on taxpayers and their advisers, potentially even in circumstances where there is no tax benefit at all.
VinciWorks’ DAC6 course, DAC6: Fundamentals, will help all entities who may be considered tax intermediaries develop an understanding of DAC6. The course follows a flow-chart navigation and includes example scenarios to help users understand DAC6. VinciWorks also offers a DAC6 reporting tool to help intermediaries easily keep track of and report cross-border transactions.
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On 25 May 2018, the Economic and Financial Affairs Council of the European Union (ECOFIN) adopted the 6th Directive on Administrative Cooperation (the “DAC6”), requiring so-called tax intermediaries to report certain cross-border arrangements.
The deadline for each EU Member State to transpose the Directive into national law and legislation is 31 December 2019.
On 31 January 2019, Poland’s Finance Ministry (MOF) published a 102-page guidance document on the country’s new tax reporting requirements which apply retroactively from 1 January 2019, and these included the implementation of DAC6. This is earlier than the 1 July 2020 obligation as stipulated in DAC6, therefore anyone dealing with Polish transactions should ensure they have DAC6 reporting measures in place already.
Free download: DAC6 guide to compliance
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