The EU’s DAC6 and how to comply
May 7, 2020 | 1PM EDT / 6PM GMT
In 2018 the European Union Council adopted a directive widely known as DAC6. The directive, formally Council Directive 2018/822/EU, was developed mainly to give EU member states a new “early warning mechanism” that reveals cross-border arrangements promoting tax avoidance. DAC6 requires taxpayers or intermediaries to report certain cross-border tax arrangements involving an EU country.
Intermediaries (which can be companies or individuals such as accountants or lawyers) and taxpayers must begin reporting by 31 August 2020 at the latest for certain transactions beginning 25 June 2018. Failure to comply could result in significant reputational damage and sanctions under applicable member state laws.
DAC6 is an EU directive, not a regulation, so each EU country has had to transpose it into national law. There are some variations by member state, then, but important general principles apply across jurisdictions. This webinar summarizes those principles and provides examples of country-specific laws to highlight distinctions.
Here are some areas our experts will address:
- DAC 6 background and the reasons for the directive
- Who must report, including what constitutes an intermediary
- What transactions must be reported, including the five DAC6 hallmarks
- How to comply with DAC6 legislation to protect your organisation