DAC6

What is reportable under the EU Mandatory Disclosure Regime

What is a reportable cross-border arrangement?

A reportable cross-border arrangement under Council Directive (EU) 2018/82 (DAC6) is an arrangement concerning an EU Member State and another jurisdiction. Reportable cross-border arrangements bear a specific characteristic called a hallmark.

What is a hallmark?

A hallmark is a characteristic that is commonly seen in tax avoidance arrangements. There are five categories of hallmarks for the purpose of the EU mandatory disclosure regime:

• arrangements involving confidentiality, standardised documents, or fees contingent on a tax advantage
• arrangements involving acquiring losses, conversion of income or round tripping of funds
• arrangements involving cross-border payments, double deduction, double relief and consideration mismatch.
• arrangements concerning automatic exchange of information and beneficial ownership
• and
• arrangements concerning transfer pricing.

Who is an intermediary?

An intermediary is any person that designs, markets, organises or manages the implementation of a reportable cross-border arrangement.

Who is a relevant taxpayer?

A relevant taxpayer is any person:

• to whom a reportable cross-border arrangement is made available for implementation
• who is ready to implement a reportable cross-border arrangement
• or
• who has implemented the first step of such an arrangement.

Who is obligated to make a DAC6 return?

Intermediaries, and in some cases relevant taxpayers, must file a return with Revenue in respect of reportable cross border arrangements.

It is the obligation of the intermediary to file the return except where:

• there is no intermediary involved
• or
• the taxpayer has not waived their right to legal privilege.

Where either of these situations applies the obligation falls to the taxpayer to file the DAC6 return with Revenue.

When to file a DAC6 return

DAC6 returns must be filed within 30 days of whichever of these scenarios occurs first:

• the day after the arrangement is made available for implementation to the relevant taxpayer
• the day after the arrangement is made ready for implementation by the relevant taxpayer
• or
• when the first step in its implementation was taken in relation to the relevant taxpayer.

For more information, please see Tax and Duty Manual Part 33-03-03.

Next: Information contained in a DAC6 return