Draft bill on implementation of EU Directive on cross-border tax arrangements (DAC6) adopted by Federal Parliament

On 12 December 2019, the federal parliament adopted the draft bill on the implementation of Directive 2018/822 of 25 May 2018 (DAC6) amending Directive 2011/16/EU with respect to mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements.

The draft bill closely follow the definitions, requirements and hallmarks A-E of the Directive. The obligation to report applies to all taxes, except value-added tax, customs duties and compulsory security contributions. As opposed to some other countries, domestic arrangements are not covered.

The draft bill exempts intermediaries from the obligation to report where the reporting obligation would breach the legal professional privilege. However, this exemption only applies when the intermediary has to determine the legal position of the relevant taxpayer (e.g., where an intermediary advises the taxpayer on the possible outcome and risks of starting legal proceedings), or where the relevant taxpayer is represented or defended in court.

The reporting deadlines do not differ from the DAC6 reporting deadlines.

Failure to report or late reporting is expected to result in monetary penalties ranging between €5,000 and €50,000 or €12.500 and €100.000 in case of fraudulent intent, and insufficient or incomplete reporting is expected to result in monetary penalties ranging between €1,250 and €12,500 or €2.500 and €25.000 in case of fraudulent intent.

The bill will apply from 1 July 2020, requiring intermediaries to report all relevant arrangement as of 25 June 2018.

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