New EU Tax Disclosure Rule

A new EU directive, commonly referred to as DAC6, aims to tackle ‘aggressive tax planning arrangements’ by intermediaries by way of implementing a mandatory disclosure of information relating to cross-border arrangements. Any cross-border arrangement that contains one of the designated ‘hallmarks’ of aggressive tax planning will need to be disclosed.

 

The term ‘intermediary’ is very broadly defined in relation to this new directive, being someone who ‘designs, markets, organises, manages or makes available for implementation a cross-border arrangement’. Due to the generality of the terminology used in DAC6, a large number of cross-border arrangements will be liable to disclose information regarding its practices under this legislation.

 

DAC6 will be entered into EU law by 31 December 2019 however there is a potential retrospective element that may require transactions occurring after 25 June 2018 to be reported on. As such, clarification as to whether it will affect your business should be sought at the earliest opportunity. If you have any queries regarding DAC6, please call our free VAT helpline to discuss with one of our expert consultants.

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