The European Directive (EU) 2018/822 of May 25th 2018, better known as « DAC6 » enforces tax authorities to exchange information regarding cross-borders tax-planning arrangements qualified as (potentially) aggressive. To enable this, the Directive and the law of December 20th, 2019 (Belgian Gazette dd. December 30th, 2019) implementing it, have foreseen the obligation for intermediaries as tax advisers, bankers, lawyers … to report such arrangements to their national authorities. Should there be no reporting by an intermediary, the obligation and the related penalties are transferred to the taxpayers.
The reporting obligations must be complied with within the 30 days beginning as of the triggering moment occurring first:
- the day after the reportable cross-border arrangement is made available for implementation;
- the day after which the reportable cross-border arrangement is ready for implementation;
- the day when the first step of implementation of the reportable cross-border arrangement has been taken.
The reporting obligations has been postponed to the following due date :
- No later than on February 28th, 2021 for the first reportable period, being the arrangements for which the first step was implemented between June 25th, 2018 and June 30th, 2020 ;
- No later than on January 31st, 2021 for the cross-borders arrangements that, between July 1st, 2020 and December 31st, 2020, (i) either were made available for implementation, or (ii) were ready for implementation, or (iii) for which the first step of implementation has been taken. This due date is also applicable for the actors/intermediaries who provided, during this period, help, assistance or advices in designing, marketing, organizing or managing the targeted cross-border arrangements.
- As of January 1st, 2021, the reporting obligations must be complied with within the 30 days delay as of the triggering moments described above.
However, on January 28th, 2021, the FPS Finance informed through its website of an administrative tolerance up until February 28th, 2021 for the cross-borders arrangements which should have been declared during January and February 2021.
In the event of non-declaration or late filing by the tax payer or the intermediary which were subject to the disclosure obligation, a fine amounting between 5.000 and 50.000 EUR will be applied. In case of fraudulent intent or harm, a fine between 12.500 and 100.000 EUR will be applied.
Tax Consult remains at your disposal to analyse your cross-borders arrangements as of June 25th, 2018 in order to determine whether, within the conditions set up by the Belgian Tax Authorities, reporting obligations must be reported through a DAC6 declaration.
Do not hesitate to contact directly your file manager or our team using the address firstname.lastname@example.org in order to receive a tailor-made advice adapted to your situation.
Tax Consult A&A