DAC 6 Directive — Tax reporting obligation

We were happy to participate in the panel discussion organized last week by the Hungarian-French Chamber of Commerce on DAC 6. The reporting of potentially agressive tax planning arrangements is an obligation that taxpayers and service providers as intermediaries should be preparing for.

10-10-2019

Events

Hungary

DAC 6 Directive, Disclosure requirements for taxpayers and intermediaries, Tax reporting, Agressive tax planning, Tax reporting obligation

The implementation of internal procedures is already keeping our accountants busy over the PS network offices because as potential intermediaries we may need to fulfil the reporting obligations. What type of transactions should be reported, who qualifies as intermediary, what information should be disclosed and what about the retroactive effect? These are all important questions to clarify as advisors progress with the interpretation.

 

Retroactive effect may be a challenge in Hungary whereas Poland apparently has taken a more strict approach by accelerating the entry into force date to January 2020 and by including domestic arrangements into the scope of the reporting obligations. In Italy the draft legislative decree does not include the possibility for the intermediaries to provide the proof that they were not aware of their involvement in a cross-border arrangement. The draft decree also excludes the reference that the reporting obligation would not be enforceable upon an intermediary due to a legal professional privilege.

 

The implementation of the Directive may require different measures in each country depending on local legislation differences and no doubt, it will require a closer cooperation between taxpayers and their service providers.

 

Photo: Nóra Szatmári (Jalsovszky Law Firm)