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The EU Mandatory Disclosure Rules (DAC 6) – How to prepare & comply

Monique Pisters Monique Pisters

To increase fiscal transparency across the EU, the Mandatory Disclosure Directive entered into force on 25 June 2018.

The Directive (also known as DAC 6) requires intermediaries — such as EU-based tax consultants, banks and lawyers — to report cross-border transactions and tax arrangements that the EU considers potentially aggressive. In principle the reporting starts as per July 1, 2020, after which intermediaries should report within 30 days after a reportable cross-border transaction (with an extension for cross-border arrangements between June 25 2018 and July 1 2020). Albeit this reporting period might be extended due to Corona it is very important to prepare your company for this new reporting requirement, as non-compliance with these new reporting requirements could lead to significant fines.

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