How does one circumvent Reporting of “Tax Aggressive” Cross-Border Arrangements – DAC6

[DavidS]

So apparently all EU consultants, tax offices, advisors, big4, banks, corp service providers, ANYONE basically needs to report any "tax aggressive" border arrangements.

https://www.vistra.com/insights/eu-mandatory-reporting-tax-aggressive-cross-border-arrangements-dac6
That means if a person simply advises you on a scheme or structure, that's it, they have to report it.

Has anyone encountered this problem already and how to go around it?

Can't you just say you are writing a dissertation and need theoretical scenario modelling?

 

[JohnLocke]

That means if a person simply advises you on a scheme or structure, that's it, they have to report it.

I don't believe it is all black and white like you line it up here.

As long as everything is legit and you don't break any tax laws or other laws I can't see why they would report you.

 

[Gediminas]

As long as everything is legit and you don't break any tax laws or other laws I can't see why they would report you.

They have. I know who had a case with the EU notary and the notary demanded to report it.

It's a new thing so they can go easy for now, but it will become harder and harder for EU consultants/notaries/lawyers, etc.

It's better to have a relationship with the advisors (and related parties) out of the EU, I don't see any other way to keep yourself discrete.

 

[CaptK]

They have. I know who had a case with the EU notary and the notary demanded to report it.

It's a new thing so they can go easy for now, but it will become harder and harder for EU consultants/notaries/lawyers, etc.

It's better to have a relationship with the advisors (and related parties) out of the EU, I don't see any other way to keep yourself discrete.

Yes, what consultants are doing is referring you to an advisor in other countries so that they can not be held responsible in the event the authorities ask questions. They can tell you about the structure but will always tell you that the tax is between you and your local authority.

 

[Gediminas]

You can read about DAC6 there:

https://offshorebankaccounts.com/blog/dac6-explained

 

[JohnLocke]

They have. I know who had a case with the EU notary and the notary demanded to report it.

You may have experienced this but it is not what the reporting is about.

We asked a reputable Law firm about the reporting and when they will be forced to report you, below is the answer:

No. I do not have to report anywhere that you or your companies are clients with me and I have a duty of confidentiality in relation to everything that pertains to my clients.

But lawyers, like banks, accountants and other financial institutions, intermediaries of services on the same, etc. are obliged to verify clients' identities and ownership to avoid money laundering, terrorist financing and tax evasion or under a so-called KYC (know your client ). The information has been decided to be kept for 5 years.

The following 2 exceptions to this

1. A judge removes my duty of confidentiality. To my knowledge, this has not happened to a lawyer, but in theory there is a legal basis for this.

2. I get a suspicion of money laundering, terrorist financing, etc. in which cases I have a duty to report the suspicion to the Bar Association or Police. Your bank and accountant have the same obligation. These are the same obligations throughout the EU. UK, which is no longer a member of the EU, tightened up its set of rules in February in an attempt to become the nice boy in the class.

This may clarify the question, there may still be lawyers, notary service, banks and accounting firms that misinterpreter the reporting standard, I don't know but for sure it is worth to ask any of such before you do business with them.

 

[DavidS]

As long as everything is legit and you don't break any tax laws or other laws I can't see why they would report you.

Mostly because the law literally obliges them to report any "tax optimisation" structure they recommend to clients.

They have. I know who had a case with the EU notary and the notary demanded to report it.

It's a new thing so they can go easy for now, but it will become harder and harder for EU consultants/notaries/lawyers, etc.

It's better to have a relationship with the advisors (and related parties) out of the EU, I don't see any other way to keep yourself discrete.

Either have relationships with consultants outside EU OR have personal relationships with consultants INSIDE EU, so their recommendations are just "friend talk" and not official "consulting" at the company.

BIG4 are not to be used for any such consultations I assume?

This may clarify the question, there may still be lawyers, notary service, banks and accounting firms that misinterpreter the reporting standard, I don't know but for sure it is worth to ask any of such before you do business with them.

Only EU institutions have to report apparently. Outside EU - no need.