The exchange of information has been introduced to allow each national tax administration to respond adequately to tax planning. However, such exchange is only possible if the information is available to the authorities. It is here that your adviser and your company will be subject to additional obligations.
What is DAC6?
DAC6 refers to Council Directive (EU) 2018/822 of 25/05/2018 ('DAC6 Directive'), which imposes on the tax authorities of the Member States of the European Union an automatic exchange of information concerning potentially aggressive cross-border tax planning schemes. The directive amends the basic Directive 2011/16 - for the sixth time - as regards mandatory automatic exchange of information in the field of taxation in relation to notifiable cross-border tax arrangements.
This directive was transposed into Belgian law by the Act of 20/12/2019 (Belgian Official Gazette of 30/12/2019) transposing Council Directive 2018/822 (EU) of 25/05/2018 amending Directive 2011/16 as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements. The regions are also adopting further implementing legislation in this area.
This FAQ explains basic principles of this new obligation and how you, as a company, can prepare for this new obligation in order to be compliant in time.
Are there penalties attached to this reporting obligation?
Both an incomplete report and no report or a late report is punishable with a fine of EUR 1,250.00 to EUR 100,000.00.
For more details about this legislation, you may always contact the person responsible for DAC 6 reporting: An Lettens, Partner Tax & Legal Services | Business & International Tax, at firstname.lastname@example.org or T | +32 (0)3 210 85 68.