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DAC6 reporting deadline extended

11 May 2020

The EU has agreed an extension to the deadlines for DAC6 reporting to take into account the upheaval caused by the COVID-19 pandemic.

DAC6 is the new directive requiring EU intermediaries, including UK tax advisers, lawyers and bankers to report on cross-border arrangements which fall within a number of hallmarks.

DAC6 requires the reporting of arrangements going back to 25 June 2018 and so it is important that intermediaries undertake the necessary work to be able to identify and make the appropriate reports to HMRC by the deadlines. Any advice given after 1 October 2020 will also need to be notified within 30 days.

The EU extension has allowed some additional time, and so the revised deadlines are as follows:

  • Advice given after 1 October 2020: 30 days
  • Advice given after 25 June 2018 but before 1 October: 30 November 2020

Gary Ashford, Tax partner at Harbottle & Lewis, said: “The additional time provided by the extension is very welcome. There are sizeable penalties for failure to comply with the new rules and intermediaries should not underestimate the work required to identify those historic transactions that may need to be reported.

“It is also important that the DAC6 rules are not just regarded to be the same as the UK DOTAS rules mark 2.0. Some of the hallmarks in DAC6 have no link to any tax advantage and are reportable whatever the reasons. Even with the extension the timeline will be tight, particularly when many advisers are working with their clients to keep them afloat due to the COVID-19 disruption.”

Gary added: “The EU has also extended the deadline for the Common Reporting Standard data period, this is also to be welcomed.”

You can read further information about DAC6 in our factsheet here.

For our media coverage on this topic, please see below:

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