Context
The main objective of the Directive 2018/822 (“DAC6”) is to strengthen tax transparency by way of automatic exchange of information between the EU Member States on potentially “aggressive tax planning arrangements”.
Therefore, any transaction involving two countries, where at least one is 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.
Your challenges
A risk assessment (per business unit) should be performed in order to ensure your readiness to comply. In this respect, you should identify the key risk areas and processes, the applicable hallmarks and the impacted business.
You should define governance framework to manage the risks, define roles and responsibilities and draft review and procedures.
Implementation of a DAC6 solution to monitor in-scope transactions, perform the reporting in the required format and to keep an audit trail of the reportability test performed on the transactions.
Benefits
Save time
DAC6 Smart Reporting is ready to use and easy to implement. Although it is a standardized solution, it is easily and quickly customizable to your specific needs.
Save money
By starting today and systematically capturing, identifying and monitoring potentially reportable cross-border arrangements in a structured and auditable way, you will be able avoid future costly and time consuming projects to gather all required information in time to meet your DAC6 obligations.
Ensure compliance and transparency
Not only will DAC6 Smart Reporting ensure you do not miss any upcoming reporting obligations, it will also provide you with a complete and transparent overview of what other intermediaries plan to report about you.
Other benefits
- In-house fully web-based solution, ready to go and easy to learn/handle by users.
- Systematic, structured and auditable way to collect and document 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.
- 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 questionnaires 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.
Value
Our price offer is considered on a case-by-case basis, depending on the scope of assistance for our clients.
Sponsor
- Murielle Filipucci
Partner, PwC Luxembourg - Pierre Kirsch
Partner, PwC Luxembourg
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