New mandatory disclosure rules come into force

Jun 26, 2018

The EU Council Directive, known as “DAC 6” requires the disclosure of cross border tax planning arrangements.  The first reportable transactions are those where the first implementation step occurs between 25 June 2018 (the date of entry into force of the Directive) and 1 July 2020 (the application date). 

As we reported in Chartered Tax News earlier this month, DAC 6 applies from 1 July 2020 and the reports are due in August 2020.  However, transition measures provide that transactions implemented from 25 June 2018 will be reportable in August 2020.   Irish legislation to transpose the EU Directive into national law is not expected until 2019 (Finance Act 2019). 

Clarification from the EU is needed on many features of the Directive, we understand from discussions with Revenue at the TALC forum that any such guidance is unlikely before 2019. 

Revenue have published their own guidance by way of a new Tax & Duty Manual Part 33-03-02.  Revenue advised us at the TALC Direct/Capital Taxes Technical subcommittee recently that further guidance, sometime during 2019, is possible if the relevant clarifications are delivered from the EU.