DAC6 Country Profile: Ireland

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DAC6 Reporting in Ireland

DAC6, which stands for Directive on Administrative Cooperation in the field of taxation (DAC6), is a European Union directive aimed at increasing transparency and combating tax avoidance and evasion. It requires certain intermediaries, such as tax advisors, lawyers, and accountants, to report cross-border arrangements that meet specific hallmarks to their national tax authorities. These authorities then exchange the information with other EU member states.

Ireland, as an EU member state, implemented DAC6 into its national legislation in January 2021.

How has Ireland implemented DAC6?

Legislation Details

Ireland’s tax authority, the Irish Tax and Customs, published the Irish DAC6 legislation on 3 January 2020. The legislation is called Chapter 3A, Part 33 of the Taxes Consolidation Act, 1997 (“TCA”).

Taxes covered

Irish legislation covers cross-border arrangements. The legislation is in line with the EU Directive and does not include domestic arrangements or any additional hallmarks, however, the DAC6 legislation operates in addition to the domestic mandatory disclosure regime introduced in Ireland in 2011.

Legal Professional Privilege

Ireland exempts from reporting intermediaries who are protected by legal professional privilege (such as lawyers, in certain cases) and intermediaries for whom the relevant information to be disclosed is not in their knowledge, possession or control. When LPP applies the obligation will shift to the intermediary or other relevant taxpayer.

Reporting

Reporting should be submitted online via Revenue’s online system, in accordance with current electronic return filing requirements. Reports must be made in English.

Penalties

The level of penalties depends on the type of breach involved and they apply to both taxpayers and intermediaries. They range from EUR 500 to EUR 5,000.

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Modern Slavery – What’s happening around the world?

Everyone, everywhere, has the has the right to live a life free of slavery. We’d like to think slavery has been consigned to history, but unfortunately, that’s far from true. While it may look different than the traditional slavery-associated images of shackles and transatlantic ships, and while it may be kept just out of site, it is actually taking place everywhere, in every single country around the world. 

When people are severely exploited by others for personal or commercial gain, this is modern slavery. This exploitation can take many forms, from human trafficking, to forced labour and bonded labour, descent-based slavery, forced child labour, and forced and early marriage. Some of these, such as descent-based slavery, are more prevalent in places such as Africa, but many others are prevalent everywhere, including all throughout Western society.

Though millions of men, women and children are being held in slavery and deprived of their basic human freedom, and there is much work to be done, there are slivers of progress being made to tackle modern-day slavery. What are governments around the world doing to help tackle this dreadful phenomenon? 

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DAC6 Country Profile: Belgium

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In light of the COVID-19 pandemic, Belgium has decided to defer DAC6 reporting by six months

VinciWorks is publishing a series of guides on how each EU member state has implemented DAC6. This blog was originally published in July 2020 and was updated in January 2021.

How has Belgium implemented DAC6?

As of 1st January 2021 all EU Member States and the UK have begun their DAC6 reporting.

Legislation Details

The Federal Public Service FINANCE (Ministry of Finance) published the Belgian DAC6 legislation on 30 December 2019. The legislation is called Loi transposant la Directive (UE) 2018/822 du Conseil du 25 mai 2018 modifiant la Directive 2011/16/UE en ce qui concerne l’échange automatique et obligatoire d’informations dans le domaine fiscal en rapport avec les dispositifs transfrontières devant faire l’objet d’une déclaration.

Belgium announced on 30 June 2020 that it would postpone reporting deadlines by six months.

Taxes covered

Belgium legislation covers cross-border arrangements. The legislation is in line with the EU Directive and does not include domestic arrangements or any additional hallmarks.

Legal Professional Privilege

Belgium exempts from reporting intermediaries who are protected by legal professional privilege (e.g. registered lawyers, certified accountants, tax advisors, notaries and company auditors). In these situations, the intermediary must notify other intermediaries or relevant taxpayers and in certain cases the obligation will shift to the taxpayer.

Reporting

Belgium requires reporting to be made by intermediaries and relevant taxpayers using an XML file or electronic upload. Information on reportable cross-border arrangements should be submitted in one of the official Belgian languages and English.


Penalties

Penalties for non-compliance with the reporting obligations range from EUR 5,000 to EUR 100,000, depending on intent and whether it is a first or subsequent offence. 

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MyStory China: VinciWorks to release new Chinese Harassment and Bullying Course

Everyone has the right to work free of unlawful discrimination or harassment, but unfortunately this does not always happen. Sexual harassment is one of the most pervasive forms of unlawful discrimination and it can impact every business and every person. Following the PRC’s release of new obligations aimed at preventing sexual harassment, VinciWorks will soon be releasing a new course aimed at raising awareness of the prevalence and impact of sexual harassment, harassment, and bullying in the workplace. The course complies with the sexual harassment obligations in force as of 1 January 2020 contained in Article 1010 of the Civil Code of the People’s Republic of China (中华人民共和国民法典).

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DAC6 Country Profile: Germany

VinciWorks is publishing a series of guides on how each EU member state has implemented DAC6. This blog was originally published on June 23, 2020 and was updated in January 2021.

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How has Germany implemented DAC6?

As of 1st January 2021 all EU Member States and the UK have begun their DAC6 reporting.

Legislation Details

The German Ministry of Finance (Bundesministerium der Finanzen) published the German DAC6 legislation on 21 December 2019. The legislation is called Gesetz zur Einführung einer Pflicht zur Mitteilung grenzüberschreitender Steuergestaltungen (Law for the introduction of an obligation to report cross-border tax arrangements).

Germany did not postpone DAC6 implementation and it is now in force.

Taxes covered

German legislation covers cross-border arrangements. The legislation is in line with the EU Directive and does not include domestic arrangements or any additional hallmarks.

Legal Professional Privilege

Germany exempts from reporting the intermediaries who are protected by legal professional privilege (e.g. auditors, attorneys and tax advisors). In these situations, the reporting obligation of certain data shall partly shift to the user of the cross-border arrangement (the taxpayer).

Reporting

Germany requires reporting to be made by intermediaries and relevant taxpayers using an electronic/XML file and a web-based form. Information on reportable cross-border arrangements should be submitted in German, though some information may be reported in English.


Penalties

Penalties for non-compliance with the reporting obligations are up to EUR 25,000 per breach. 

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DAC6: Ireland introduces partial reporting

In December 2020 the Irish Revenue amended its DAC6 guidance to include partial reporting when legal professional privilege applies. The Revenue clarified that when only part of the specified information is privileged, then an exemption from reporting will only apply in respect of that information. New guidance is expected to be released in the coming days. 

What is considered to be privileged information in Ireland?

Following discussion with Irish law firms, the Revenue have confirmed that identifying a hallmark would be considered a breach of legal professional privilege. The consensus between the firms is that they would want reassurance from the Revenue that anything reported through DAC6 would only be used for DAC6 compliance purposes. 

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On-demand webinar: DAC6 is here — What now?

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As of 1 January 2020, all “intermediaries” involved in cross-border arrangements in an EU member state that meet certain hallmark categories are required to begin reporting those arrangements. Some businesses are fully compliant with DAC6 while others have only recently started preparing. VinciWorks has implemented DAC6 reporting systems for over 40 firms, including seven of the top ten UK firms.

During this webinar, our experts explored best practice for reporting, regardless of where you are in this challenging compliance process. We also answered attendee questions.

The webinar will cover:

  • What to do if you just found out about DAC6
  • How different countries are implementing DAC6
  • The UK’s mandatory disclosure regime
  • Best practice for reporting in multiple jurisdictions
  • Answering attendee questions

Watch now

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The Bribery Act 2010: Ten years on

What Is the UK Bribery Act 2010?

The UK Bribery Act 2010 is a robust piece of legislation in the UK designed to combat bribery and corruption. It establishes offences for active and passive bribery, bribery of foreign officials, and the failure of commercial organisations to prevent bribery. The act has extraterritorial reach, holding UK individuals and organisations accountable for bribery committed abroad. Penalties for individuals include imprisonment and fines, while commercial organisations face unlimited fines. The act emphasises the need for organisations to have “adequate procedures” in place to prevent bribery and sets clear principles for establishing such measures.

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VinciWorks to release new online PECR video course

Screenshot of PECR video course

We’ve come a long way from the times when the best way to market was to print an ad in the newspaper. Most marketing now is done digitally, using email, texts, or sometimes still phone and fax, but when using these methods, users’ privacy must be considered. If your marketing staff uses phone, email, text or fax, if your organisation uses cookies or similar technology on its website, or compiles any sort of telephone directory of contact numbers, PECR applies to you. 

PECR refers to the EU’s Privacy and Electronic Communications Regulations 2003, a law that governs how businesses are allowed to market to customers using electronic technology. The law is wide-reaching as it covers all industries and is applicable across the board. Breaches of PECR can leave company directors personally liable for fines of up to £500,000 per breach. PECR is applicable across the EU and the UK, and the law in the UK as it applies now will not be affected by Brexit.

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How do the UK’s DAC6 amendments impact foreign lawyers working in the UK?

The UK has amended its DAC6 regulations as a result of the Brexit Free Trade Agreement. Only arrangements meeting the Hallmark D category will require reporting in the UK. This means that EU registered lawyers working in the UK might need to file DAC6 reports in the European Union. 

The EU Directive states that in order to be considered an intermediary, a person shall meet at least one of the following conditions:

(a) be resident for tax purposes in a member state;

(b) have a permanent establishment in a member state through which the services with respect to the arrangement are provided;

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