Category Archives: DAC6

DAC6 is a new regulation that requires intermediaries to comply with mandatory transparency rules and hallmarks. Read the latest guidance on the Directive and get updates on our DAC6 training.

DAC6: Will you need to report?

The EU has introduced a new law that imposes mandatory disclosure requirements for certain cross-border transactions. Known as DAC6, the law requires intermediaries to report cross-border tax planning arrangements which involve at least one EU Member State, where the transaction falls into a number of hallmarks. This means businesses will be required to:

  • Monitor cross-border arrangements
  • Assess reportability of arrangements
  • Identify correct tax authority
  • Report arrangements to local tax authority

As the August 2020 reporting deadline approaches, we’re seeing varying degrees of awareness and compliance among firms and intermediaries.

Since most cross-border arrangements have potential tax implications, how are you assessing which ones will require reporting? Are you proactively documenting every single cross-border deal just to be safe? Some firms are requiring lawyers to indicate DAC6 relevant transactions when they open a case file. Others are wondering which deals are relevant, while some are just learning about the reporting requirements.

VinciWorks has designed a DAC6 risk assessment to help intermediaries understand the risk exposure of their cross-border transactions.

Take the DAC6 risk assessment

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Your guide to DAC6

DAC6 guide cover

On 25 May 2018, the Economic and Financial Affairs Council of the European Union (ECOFIN) adopted the 6th Directive on Administrative Cooperation (the “Directive”), requiring so-called tax intermediaries to report certain cross-border arrangements that contain at least one of the hallmarks as defined in the Directive. 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 has published a guide to help businesses better understand DAC6.

The guide covers:

  • The purpose and scope to the Directive
  • Who the Directive applies to and which transactions must be reported
  • The hallmarks that must be met in order to require reporting and an explanation of relevant terms relating to each hallmark
  • Guidance on preparation for DAC6
  • Advice and tools for reporting cross-border arrangements
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