DAC6 updated guidance

Mar 08, 2021

Updates to Tax and Duty Manual – Part 33-03-03 – EU Mandatory Disclosures of Reportable Cross-Border Arrangements – include changes to the guidance on specified information reporting requirements and additional guidance on the meaning of “may reasonably expect” in the application of the Main Benefit test and “knows or could be reasonably expected to know” on whether a secondary intermediary has a reporting obligation.

In paragraph 3.1 the guidance on the specified information reporting requirements has been updated as follows:

  • The practice of allowing an intermediary not to disclose information about a person to whom they made a reportable cross-border arrangement available, where the person indicated that they would not be proceeding with it, has been removed.
  • Further detail has been issued on the required disclosure standard in respect of the following specified information:
    • the summary of the content of the cross-border arrangement,
    • the national provisions forming the basis of the cross-border arrangement, and
    • Member State(s) likely to be concerned by an arrangement.

Further guidance has also been included on the following topics:

In paragraph 2.5.3: Guidance on the meaning of "may reasonably expect" in the application of the Main Benefit Test has been inserted.

  • In paragraph 2.6: Guidance on Hallmark A3 updated for introduction of section 817RI in Finance Act 2020.
  • In paragraph 4.6: Additional examples included to demonstrate the application of the exemption.
  • In paragraph 4.10: Clarifying footnote included to note that waivers of LPP are accepted as for the purpose of DAC6 filings only.
  • In paragraph 5.5: Additional guidance included to cover situations where the relevant taxpayers have reporting obligations in different Member States.
  • In paragraph 5.6: Additional guidance provided to deal with situations where an intermediary was responsible for reporting, but neither filed a return nor provided the taxpayer with an Arrangement ID.

See eBrief No. 040/21 for further details.

Following on from requests for a pdf export facility for DAC6 returns at a recent meeting of the TALC DAC6 Implementation subgroup, Revenue confirmed it will not be in a position to provide this. Revenue detailed at the meeting that a full XML file is delivered to the ROS inbox, which includes the Arrangement ID.