Our bespoke online tool helps intermediaries and taxpayers to quickly assess whether a transaction is a ‘reportable cross-border arrangement’ under the EU’s DAC6 rules.
Combining our DAC6 legal expertise with our innovative mindset, we developed this DAC6 EU Tax Disclosure Assessment Tool to assist intermediaries and taxpayers, with businesses in the EU, to understand their obligation to disclose reportable cross-border arrangements to the relevant EU tax authorities.
DAC6 is embodied in pan-EU legislation and our toolkit is relevant to intermediaries and taxpayers across the whole of the EU.
Key features
Our EU Tax Disclosure Assessment Tool assists intermediaries and taxpayers in determining whether relevant cross-border arrangements are reportable under the EU’s DAC6 legislation. The assessment focuses on whether a cross border arrangement is reportable and by when.
Simple user
interface
Our bespoke user interface allows for easy upload of transaction details.
Informal guidance and helpful tips
Benefit from informal guidance and helpful tips from our experienced team of regulatory lawyers as you complete the assessment.
Seamless access to DAC6 legal advice
Seamlessly access our regulatory experts from within the tool for specialist DAC6 advice.
FAQs
What is DAC6?
“DAC6” stands for the Directive on Administrative Cooperation in (direct) taxation in the EU, volume 6. It operates as the sixth amendment to the long-running series of directives designed to encourage cross-border information exchange in the EU.
Since 2018, the EU has been calling on its member states to implement mandatory disclosure regimes (MDR) within their jurisdictions. DAC6 is the cornerstone of the bloc’s MDR program.
As of 2022, DAC6 is in full force in Cyprus, Luxembourg, and the EU.
DAC6 and mandatory disclosure regimes
Since 2018, the EU has been calling on its member states to implement mandatory disclosure regimes (MDR) within their jurisdictions. DAC6 is the cornerstone of the bloc's MDR program. As of 2022, DAC6 is in full force in Cyprus, Luxembourg, and the EU.
It is critical for intermediaries and taxpayers with businesses in the EU to understand and comply with their obligations to disclose reportable cross-border arrangements to EU tax authorities.
When is an arrangement reportable?
Under DAC6, an arrangement is reportable where it meets one or more of the hallmarks set out in the legislation, contains cross-border elements and has the potential to affect taxes in at least one EU member state.
The objective of the regime is to identify arrangements that point towards aggressive tax planning. Failure to make the necessary disclosures can lead to significant penalties.
Who is obligated to disclose a reportable arrangement?
Intermediaries (typically tax planners, fiduciary services providers, or professional service providers) involved with Reportable Cross-Border Arrangements (RCBA) must report information on the RCBA to their tax authorities. The obligation is ultimately with the taxpayer, where the intermediaries do not need to report.
How does the tool work?
Combining our DAC6 legal expertise with our innovative mindset, we developed the DAC6 Assessment and Reporting Tool to assist intermediaries and taxpayers, with businesses in the EU, to understand and comply with their obligation to disclose reportable cross-border arrangements to EU tax authorities.
Our tool allows users to determine whether a transaction or arrangement contains one of the so-called ‘hallmarks’ or meets the ‘main benefit test’ to be considered a cross-border arrangement. Suppose the outcome of the assessment is that the arrangement is reportable. In that case, the tool provides a structured report designed to provide jurisdiction-specific data, to local tax authorities, in the format they require.
Is the tool relevant to users across the EU?
Although developed with Luxembourg and Cyprus' mandatory disclosure regimes in mind, DAC6 is embodied in pan-EU legislation; our toolkit is relevant to intermediaries and taxpayers across the whole of the EU.
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Legal Disclaimer
This tool provides an initial analysis only based on the answers you provide. If the answers aren’t accurate, the analysis won’t be either. This tool is free and the results will be available to view by Harneys staff. By using it you are not engaging, nor obliged to engage, Harneys as your legal counsel. This means you are not our client, we don’t accept any liability to you, and you can’t rely on the analysis generated. In order to confirm if the arrangement is a reportable cross-border arrangement or not, you should engage us for a thorough analysis.