Commentary

A6.1204A Reporting rules for disclosable cross-border arrangements—DAC 6

Administration and compliance

A6.1204A Reporting rules for disclosable cross-border arrangements—DAC 6

A6.1204A Reporting rules for disclosable cross-border arrangements—DAC 6

For the latest New Development, see ND.1911.

Overview of the EU DAC reporting regime

EU Directive 2018/822 was published on 25 May 2018 and is the fifth amendment to Directive 2011/16/EU, the Directive for Administrative Cooperation. This amendment requires member states to enact rules obliging 'intermediaries' (defined below), and in some cases taxpayers, to report information to tax authorities about 'cross-border arrangements' that contain certain 'hallmarks' (see below). Cross-border means concerning more than one member state, or a member state and a third (non-EU) country1. The hallmarks are designed to catch tax-planning arrangements, but some of the hallmarks are widely drafted such that arrangements without a tax avoidance motive may also be caught.

DAC 6 came into force on 25 June 2018. EU member states had to enact implementing legislation by 31 December 2019, for the provisions to apply from 1 July 2020. The UK ceased to be an EU member state on 31 January 2020. However, the implementation period (IP), during which the UK continued to be treated as a member state for many purposes under the terms of the Withdrawal Agreement between the UK and the EU2, ended on 31 December 2020 (IP completion day). The UK was therefore obliged to implement DAC 6 into domestic legislation during this time, and did so in the form of the 'disclosable arrangements' rules, which came in to force on 1 July 2020.

Following delays caused by the coronavirus (COVID-19) pandemic, the earliest date on

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