EU Directive DAC6

From 1 July 2020 the new EU regulation DAC6 (Directive of Administration Cooperation 6) applies. DAC6 obliges (auxiliary) intermediaries, such as ABN AMRO, to report cross-border tax arrangements (RCBAs) to the local tax authorities, with the aim of preventing tax avoidance.

Frequently asked questions about DAC6

What is DAC6?

On 25 June 2018, the European Union introduced a mandatory information exchange regime for cross-border arrangements, the so-called European Mandatory Disclosure Rules (“EU MDR”). These rules are included in a directive: the Directive on Administrative Cooperation 6, or “DAC6”. 

DAC6 requires involved intermediaries such as ABN AMRO to report potentially tax-aggressive cross-border arrangements to the local tax authorities so that this information can be shared between the tax authorities of the EU Member States. The rules are very broadly defined. This sometimes also requires commercial transactions to be reported that do not result in a tax benefit.

Who should report under DAC6?

The obligation to report lies primarily with the (auxiliary) intermediary. As a taxpayer, you may have to report potentially aggressive cross-border tax arrangements aswell. This is the case when (a) an (auxiliary) intermediary from outside the European Union is involved in the tax construction, (b) an (auxiliary) intermediary involved in the tax construction has a right of non-disclosure and therefore does not need to report the construction or ( c) no (auxiliary) intermediary is involved at all.

What kind of constructions are within the scope of DAC6?

You will find a list of hallmarks in the DAC6 guideline. If a tax construction has one or more of these characteristics and a cross-border element, the constructions must be reported. For some hallmarks attributes, the construction must only be reported when the main purpose (or one of the main purposes) of the construction is to achieve a tax benefit. The hallmarks are established at European level and can therefore sometimes be explained in different ways in local legislation.

What role does my intermediary play in DAC6?

The (auxiliary) intermediary is obliged to report constructions that meet the Hallmarks of DAC6. The obligation therefore lies primarily with the intermediary. Sometimes you have to report yourself (see above)..

What if my other advisor (s) already have made a DAC6 report?

The basic principle is that a construction needs to be reported only once. If an (other) intermediary or client has made a report then the bank does no longer need to report. ABN AMRO must however store the reference number of that notification for documentation and evidence. If you are aware of the fact that another (auxiliary) intermediary makes a DAC6 report about a construction in which AAB is also involved, we would like to receive the reference number, to avoid reporting twice about the same construction.

What are the consequences of a DAC6 report for me? Do I run the risk of additional tax assessment/ book investigation after a DAC6 report?

The information reported to the Dutch Tax Authority (de Belastingdienst) is shared with the tax authorities of the EU Member States. Tax authorities of all EU Member States have access to the information stored in the central database. Tax authorities can use the information for an audit, for example, or they can ask questions about the reports.

What will be in the DAC6 report / which information is shared?

  • Information on the taxpayer and the associated persons.
  • A summary of the content of the tax construction and the relevant Hallmarks.
  • The relevant national legal provisions. 
  • The value of the tax construction. 
  • The implementation date. 
  • The relevant EU Member States.

How is my personal information protected?

In our privacy statement you can read how we handle your personal data. For example, you can find more information there about the security of your personal data.

How will I be informed about a DAC6 report?

When AAB has reported a construction that applies to you, we will inform you about this. You will then receive a description of the arrangement, the relevant Hallmarks and the so-called reference number that accompanies this notification. For specific questions about DAC6, please contact your relation manager.

Where can I find more information about DAC6?

More information about DAC6 can be found on the website of the Dutch Tax Authority (de Belastingdienst).

Frequently asked questions about DAC6

On 25 June 2018, the European Union introduced a mandatory information exchange regime for cross-border arrangements, the so-called European Mandatory Disclosure Rules (“EU MDR”). These rules are included in a directive: the Directive on Administrative Cooperation 6, or “DAC6”. 

DAC6 requires involved intermediaries such as ABN AMRO to report potentially tax-aggressive cross-border arrangements to the local tax authorities so that this information can be shared between the tax authorities of the EU Member States. The rules are very broadly defined. This sometimes also requires commercial transactions to be reported that do not result in a tax benefit.

The obligation to report lies primarily with the (auxiliary) intermediary. As a taxpayer, you may have to report potentially aggressive cross-border tax arrangements aswell. This is the case when (a) an (auxiliary) intermediary from outside the European Union is involved in the tax construction, (b) an (auxiliary) intermediary involved in the tax construction has a right of non-disclosure and therefore does not need to report the construction or ( c) no (auxiliary) intermediary is involved at all.

You will find a list of hallmarks in the DAC6 guideline. If a tax construction has one or more of these characteristics and a cross-border element, the constructions must be reported. For some hallmarks attributes, the construction must only be reported when the main purpose (or one of the main purposes) of the construction is to achieve a tax benefit. The hallmarks are established at European level and can therefore sometimes be explained in different ways in local legislation.

The (auxiliary) intermediary is obliged to report constructions that meet the Hallmarks of DAC6. The obligation therefore lies primarily with the intermediary. Sometimes you have to report yourself (see above)..

The basic principle is that a construction needs to be reported only once. If an (other) intermediary or client has made a report then the bank does no longer need to report. ABN AMRO must however store the reference number of that notification for documentation and evidence. If you are aware of the fact that another (auxiliary) intermediary makes a DAC6 report about a construction in which AAB is also involved, we would like to receive the reference number, to avoid reporting twice about the same construction.

The information reported to the Dutch Tax Authority (de Belastingdienst) is shared with the tax authorities of the EU Member States. Tax authorities of all EU Member States have access to the information stored in the central database. Tax authorities can use the information for an audit, for example, or they can ask questions about the reports.

  • Information on the taxpayer and the associated persons.
  • A summary of the content of the tax construction and the relevant Hallmarks.
  • The relevant national legal provisions. 
  • The value of the tax construction. 
  • The implementation date. 
  • The relevant EU Member States.

In our privacy statement you can read how we handle your personal data. For example, you can find more information there about the security of your personal data.

When AAB has reported a construction that applies to you, we will inform you about this. You will then receive a description of the arrangement, the relevant Hallmarks and the so-called reference number that accompanies this notification. For specific questions about DAC6, please contact your relation manager.

More information about DAC6 can be found on the website of the Dutch Tax Authority (de Belastingdienst).