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Information on EU tax transparency and disclosure rules

  • Directive 2018/822/EU (“DAC 6”) amending Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation (“DAC 1”) required implementation of local laws requiring disclosure to tax authorities in respect of certain cross-border tax advice. Although this is stated as being aimed at “aggressive tax practices”, the directive is broadly drafted and requires disclosure of common tax structures. The directive was enacted into law in all EU countries and countries may adopt and interpret the directive differently.
  • The rules on mandatory disclosure of cross-border arrangements entered into force on 1 July 2020 and apply to cross-border arrangements (meeting the disclosure conditions) retrospectively from June 2018 (for which the first step took place after 25 June 2018). The start of the first reporting obligation was postponed until the beginning of 2021 following the approved amendment to the DAC 6 Directive.
  • Therefore, it is necessary for advisers to track potentially disclosable transactions to determine what needs to be disclosed. If there is a reporting requirement, the information that must be reported may include: the name of all relevant taxpayers and intermediaries, an outline of the transaction, the value of the cross-border arrangement, and an identification of Member States likely to be concerned by the reportable transaction.
  • Please note that there is a possibility that the transactions and arrangements stated in this report may need to be disclosed to the tax authorities starting 2021.
  • Should you need more information, please contact Martin Chlebec, Senior Manager, Tax function: