Commission Proposes Deferral of Certain DAC6-Related Time Limits

Due to the COVID-19 crisis, the European Commission has put forward a proposal for a directive that will defer certain time limits of DAC6, the EU directive regarding mandatory reporting in relation to arrangements with cross-border implications.

The proposed directive presented on 8 May 2020 would defer the time limits for the filing and the automatic exchange of information under DAC6 by three months. The time limit for filing of “historical” cross-border arrangements (i.e. arrangements that became reportable from 25 June 2018 to 30 June 2020) by intermediaries and taxpayers would be extended until 30 November 2020 while the automatic exchange of information between competent authorities would be required to take place by 31 January 2021. The proposed directive includes an option to extend the deferral periods by three additional months provided that the COVID-19 pandemic persists.

The beginning of application of DAC6 will remain 1 July 2020 and the reportable arrangements made during the deferral period will have to be reported once the deferral has terminated.

Next Steps: We are now awaiting a response from the European Parliament and the Council who have been urged by the Commission to adopt the directive.

See the Commission’s newsletter and the proposed directive here.

Tags:  ComplianceDAC6