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CFE calls for EU Action Concerning the Mandatory Reporting of Cross Border Arrangements under DAC6

On 22 April 2020 CFE Tax Advisors Europe submitted an Opinion Statement to the European Institutions seeking leniency in the enforcement of penalties concerning the EU Directive on mandatory disclosure rules (“DAC6”).

CFE Tax Advisers Europe is a Brussels-based association representing European tax advisers. The Members of the CFE are professional organisations established in European Member States. It brings together 30 national organisations from 24 European countries. As a member of CFE Tax Advisors Europe, the Malta Institute of Taxation contributes to CFE Opinion Statements.


CFE Opinion Statement on DAC6

Council Directive EU/2018/822 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements, commonly referred to as “DAC6”, entered into force on 25 June 2018. The Directive establishes a reporting obligation for Tax Intermediaries with a reporting deadline (for reportable cross-border arrangements) of 31 August 2020, which also applies to reportable cross-border arrangements entered into between 25 June 2018 and 30 June 2020.

Due to the extraordinary consequences of the Covid-19 outbreak CFE Tax Advisors consider that many intermediaries and taxpayers will face exceptional challenges and business pressures in seeking to fulfil the obligations arising out of the Directive. Equally, Member states’ tax administrations will be similarly hampered to issue guidance specifying the practical application of the rules.

As a result, CFE Tax Advisors Europe is urging a positive intervention by the Council of the EU and the European Commission to mitigate the challenges faced by intermediaries in such circumstances. Such an EU-wide action would be appropriate in times of crisis and would allow leniency by Member states in delaying the enforcement of penalties related to compliance with national DAC6 implementing legislation. CFE’s aim is to support high quality reporting in a commercial framework, which will contribute to the policy objective of the Directive.

Read the full Opinion Statement here.