DAC6: EU Mandatory Disclosure Regime

The sixth version of the EU Directive on administrative cooperation (DAC6) adopted by the Council of the European Union on 25 May 2018, aims to provide tax authorities of the Member States with additional information in order to assist them to more rapidly close perceived loopholes in tax legislation and harmful tax practices. DAC6 was transposed into Maltese legislation, on 17 December 2019, by virtue of Legal Notice 342 of 2019 which brought about changes to the Cooperation with Other Jurisdictions on Tax Matters Regulations, Subsidiary Legislation 123.127 (the Regulations).

How can we help?

There are certain steps that businesses should be planning for now with respect to the implementation of DAC6:

• Strategy: Mobilising your business’ response to the requirements, discussing policy and raising awareness at board level and establishing a plan for efficient compliance.
• Impact assessment: Identifying transactions or structures potentially affected by the hallmarks and considering where reporting responsibility will reside.
• Technology: Selecting a solution for capturing arrangements that aligns with local requirements, and integrates with reporting.
• Training: Raising awareness within the business though eLearning modules as well as bespoke training programmes.
• Monitoring: Tracking regulatory changes and to make the relevant source information accessible to affected intermediaries and taxpayers.

To discuss the implications of DAC6 on your business in more detail please contact us.