DAC 6 cross-border reporting obligations

Key points

• The DAC 6 regime will apply to arrangements dating back to 25 June 2018.
• Reportable cross-border schemes will include at least one identifying hallmark.
• The reporting obligations affect intermediaries such as professional advisers as well as taxpayers.
• Penalties will apply for failure to report arrangements.
• Poland implemented the directive on 1 January 2019.

Council Directive (EU) 2018/822 (DAC 6) was published on 25 May 2018 and is the sixth directive to amend Directive 2011/16/EU (tinyurl.com/yb6ac47y). This latest amendment is directed at the mandatory exchange of information in tax in relation to reportable cross-border arrangements and looks set to introduce wholesale changes across Europe in the area of intermediary and taxpayer disclosure. In essence DAC 6 requires intermediaries or taxpayers to disclose cross-border arrangements when certain ‘hallmarks’ that point toward potential tax-avoidance are present.

This article gives an overview of DAC 6 the status of its implementation in the UK and some...