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Mandatory automatic exchange of information in the field of taxation for reportable cross-border arrangements (DAC 6)
On 25 May 2018, the Economic and Financial Affairs Council formally adopted the Council Directive amending the existing Directive 2011/16/EU on administrative cooperation in the field of taxation, as regards mandatory automatic exchange of information in relation to reportable cross-border arrangements to disclose potential aggressive tax plannings. The Directive is in force since 25 June 2018.
The main objective of the Directive 2018/822 ("DAC 6") is to strengthen tax transparency by way of automatic exchange of information between the EU Member States on potentially “aggressive tax planning” arrangements.
Any transaction involving two countries where at least one is in an EU country will need to be reported where it meets certain criteria (referred to as "HALLMARKS") that could indicate aggressive tax planning.
The obligation to disclose is on all EU-based intermediaries involved in the arrangement. Under certain conditions the taxpayer may be obliged to disclose as well.
How we can help
Our team combines experts in tax, people, processes, data and technology. By bringing together these different skill sets, we can help taxpayers understand the new rules and implement effective controls and processes to ensure disclosable events are proactively identified and managed.
- Risk assessment (per business unit) underpinned by a tried and tested methodology to help you assess:
- key risk areas and processes,
- applicable hallmarks,
- your impacted businesses, and
- readiness to comply.
- Review of a (sample) of transactions
- Comprehensive documented framework to identify and manage risks and potentially impacted transactions.
- Define roles and responsibilities.
- Draft and review procedures
- PwC DAC 6 Smart Reporting to monitor in-scope transactions
- On-site training with our specialists.
- EU Mandatory Disclosure Regime e-learn module
- Ad hoc advisory
- Regulatory intelligence
- DAC 6 reporting
- Integrated approach using technology to address multiple reporting requirements using the same data set and reporting mechanism in the required format.
DAC6 Smart Reporting
- Fully web-based solution, ready to go and easy to learn/handle by users.
- Systematic, structured and auditable way to collect cross-border tax arrangements.
- Up-to-date local country-specific content always, as well as general guidance and interpretations on DAC 6 provisions.
- Proven technology. SmartSurvey is used by several multinational clients for different data gathering, analysis and monitoring exercises.
- Quick-glance overview of countries where your entities have reporting potential and KPI charts (configurable).
- Collaboration with third-party intermediaries advising on a cross-border arrangement by sharing single questions or entire questionnaire for the assessment.
- Local-reporting functionality based on local specifications of different Tax Administrations in the EU.
- Executive reports displayed differently, including PDF or XLS download.
- Continuous updates based on client/user feedback.
DAC6 in national motion: Are you up for the challenge?
DAC6 is an EU directive that introduces reporting obligations for a wide range of cross-border tax arrangements. Many EU countries have already aligned their national laws quite closely to the directive. Some countries went beyond it, adding extra requirements to their local laws. These differences may add complexity whenever international businesses set out to comply. Are you up for the challenge?
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Contact us
Alina Cristina Muntean-Jurma
Tax Partner, Alternatives, PwC Luxembourg
Tel: +352 49 48 48 3167
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