Mandatory disclosure under Directive on Administrative Cooperation (DAC6)
The fifth addition to the Directive on Administrative Cooperation on Tax Matters (DAC6) obliges intermediaries and taxpayers to report information on certain cross-border arrangements. As the reporting obligation is implemented differently in the EU Member States and non-compliance may result in severe penalties, it is vital for intermediaries and taxpayers to manage their reporting obligation carefully.
The changes to the DAC6 entered into force on 25 June 2018. Therefore, qualifying cross-border arrangements whose first phase of execution took place on or after this date have to be reported to the tax authorities of the respective EU Member States. Arrangements that were put into place before 25 June 2018 do not have to be reported.
BDO employs some of the most knowledgeable DAC6 experts in the field, who are always on top of new developments regarding DAC6 legislation with a dedicated DAC6 team in the various BDO Member Firms. BDO can offer you a full scope of services in order to become, and stay, DAC6 compliant.
Transposition into Spanish law
Spain transposed the Directive through Law 10/2020, of 29 December by adding to Additional Provisions to the General Tax Act. Additional Provision 23 rules the obligation to disclose crossborder arrangements and foucusses on which arrangements and under which circumstances shall be reported, whilst Additional Provision 24 rules the obligation of intermediaries to inform other participating intermediaries and the relevant taxpayer about their obligation to report or whether they will be exempt due to professional privilege or whether they are exempt from such communication.
Each Additional Provision rules the applicable penalty regime.
Becoming DAC6 compliant with BDO
BDO offers a wide range of services throughout the network, which can help you with becoming DAC6 compliant. Some examples of solutions being offered are:
- Setting up a project plan for identifying possibly reportable arrangements during the lookback period (25 June 2018 to 1 July 2020);
- Aiding in identifying arrangements;
- Formulating a DAC6 compliance policy;
- Providing DAC6 training;
- BDO’s DAC6 tool;
- BDO’s DAC6 eLearning;
As the BDO network is co-operating closely on their approach to tackle DAC6, we can assure you that we can assist you every step of the way towards becoming DAC6 compliant in all EU Member States.
Filing deadlines in Spain
BDO’s DAC6 tool
BDO has developed a DAC6 tool, which assists intermediaries and relevant taxpayers in identifying the DAC6 reportability of their arrangements through an intuitive questionnaire, based on Member State specific information; to keep an overview of their reporting obligations; and to help compile the information regarding the arrangement into a report. BDO’s DAC6 tool is fully suitable for facilitating reporting by both intermediaries and taxpayers. It has a clear interface and a comprehensive layout.
The DAC6 tool is under continuous development in light of changes in EU legislation and case-law and in the reporting requirements in all Member States. New versions of the tool will be provided through updates. BDO has a dedicated DAC6 helpdesk; our substance-matter experts are available for any questions regarding the DAC6 tool that may arise.
All reports are systematically stored, after which they can be searched, exported and shared through determined communication channels with tax authorities. Reports can be prepared in various formats (Excel, XML, etc.). Furthermore, the tool guarantees security of data with a user-rights mechanism.
For more information, use the contact form below and a member of our BDO team will reach out to you.
Training for your organisation: BDO’s DAC6 eLearning
In order to facilitate the training of your organization, BDO has developed a training program based on two pillars. On the one hand, we offer you the possibility of “live” training sessions in which our experts explain the main DAC6 aspects in an easy way, in line with your needs. On the other hand, we have prepared an eLearning tool on DAC6, which is based on the rules contained in the EU Directive as these essentially operate as a minimum standard that EU countries must follow.
The training works on almost all Learning Management Systems (LMS). The training can be customised further for each EU Member State and your particular business. A standard training contains:
- Background to the Mandatory Disclosure Regime including historic timeline and context;
- Key definitions of ‘cross-border’, ‘arrangement’, ‘participant’, ‘reportable’ etc.;
- Overview of Main Benefit Test and definition of Tax Advantage;
- Discussion and examples of all hallmarks (A-E);
- Reporting under DAC6 – obligations of intermediaries and taxpayers;
- When and how an arrangement becomes reportable;
- Penalties and Sanctions;
- Assessment at the end of the training;
For more information on training solutions for your organisation, please contact us via the contact form below.