DAC6 mandatory disclosure regime for certain cross-border transactions
The Taxation Committee has published a detailed practice note for solicitors regarding reporting obligations under European law.
Background
Council Directive 2011/16/EU (‘the DAC’) provides for the sharing of taxpayer information between the tax administrations of EU Member States. The DAC was amended by Council Directive (EU) 2018/822 (the ‘DAC6’) to introduce a mandatory disclosure regime for certain cross-border transactions that could potentially be used for aggressive tax planning.
The EU mandatory disclosure regime requires “intermediaries” and, in certain circumstances, “relevant taxpayers”, to provide information regarding ‘reportable cross-border arrangements’ to the tax authorities of Member States.
Guidance for practitioners
The Practice Note prepared by the Taxation Committee includes information on:
- the Irish application of the directive,
- immediate reporting requirements in relation to 'reportable cross-border arrangements', and
- practical steps for solicitors.
It does not purport to be a full examination of the issues and obligations under DAC6.
Queries
If you have a query regarding the work of the Taxation Committee, contact Committee Secretary Rachael Hession.
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This article originally appeared in the 9 February Member eZine. For more information, and to subscribe, visit eNewsletters.