European Commission proposes to delay DAC6 reporting deadlines (update)
Last Friday – May 8, 2020 – the EC proposed to delay the reporting deadlines of DAC6 by three months in light of the consequences of the COVID-19 outbreak.
No official announcement has been made, but our understanding is that this proposal is under discussion between representatives of the EU member states, and they have not been able to come to an agreement yet.
Although quick adoption is necessary given the very limited time member states get to incorporate the proposed changes into their national law by May 31, 2020, it is still possible that an agreement may not be reached by the end of May 2020.
The current discussion indicates that the proposal – being a draft text – could be amended before it will be finalized. This could mean three things: the current proposal will be accepted, the further extension will be granted, or the current standing deadlines would still need to be met.
At this point, the assumption is that the EU’s Economic and Financial Affairs Council (ECOFIN) meeting on May 19, 2020, will be the next opportunity to discuss the proposal again. At the same time, the discussion of the proposal is not on the highlights of that agenda.
Whether the reporting deadlines are changed or not, please realize that either way, the obligations under the Directive will not change. The exchange of information on reportable cross-border arrangements is crucial in the fight against tax avoidance and tax evasion in the EU. This is especially so given the EU’s emergency response to the COVID-19 pandemic.
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