| 14 October 2020 |
| Hello all, I have received below information a few days ago. Does anybody knows what does this mean for people who own a BVI for the past years ? so according to the directive, the accountant is responsible to report to the local tax authorities aggressive tax planning i.e tax heavens. Now, what the local authorities will do, we do not know....is that correct? ---------------------------------------------------------------------------------------------------- In anticipation of the adoption of the relevant bill with regards to DAC6, we would like to raise your awareness of the compliance requirements and the impact of the aforementioned EU directive to your business. Introduction The Directive on Administrative Cooperation (known as DAC6) is an EU directive that relates to mandatory automatic exchange of information in the field of taxation, with regards to reportable cross-border arrangements. Who are obliged to Report The directive requires any person (“intermediary” or “taxpayer” in certain cases), who designs, markets, organizes, makes available for implementation or manages the implementation of potentially aggressive tax planning arrangements (i.e. tax advisors, accountants, banks , lawyers that are tax resident in the EU). Reporting Deadlines • 01 January 2021: Start of 30-day period for reporting cross-border arrangements • 01 January 2021: Start of 30-day period for reporting historic cross-border arrangements held between 01 July 2020 and 31 December 2020 • 28 February 2021: Reporting of historic cross-border arrangements held between 25 June 2018 and 30 June 2020 • 30 April 2021: First periodic report on marketable arrangements • 30 April 2021: First Exchange of Information on reportable cross-border arrangements between EU Tax Authorities. Non Compliance Penalties will be imposed depending on the type of non-compliance: • complete omission • incomplete / inaccurate reporting • delayed reporting. Penalties will be capped to €20.000 per reportable arrangement depending on the type and extend of violation. For your reference and convenience, you can find more details in relation to the provisions of the Directive (EU) 2018/822 (DAC6) here. |
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