DAC 6

EU Directive 2018/822/EU of May 25, 2018 on the EU Administrative Assistance Directive 2011/16/EU (DAC-6 Directive) requires EU member states to introduce a statutory reporting obligation for cross-border tax structures with effect from January 1, 2020. Germany has complied with this requirement through the “Act on the Introduction of an Obligation to Report Cross-Border Tax Structures” of December 21, 2019 (Federal Law Gazette I 2019, 2875).

This legislation represents a tidal shift for everyone and yet is part of a general trend – the tax departments of both industry and consulting firms are seeing an ever-increasing impact and therefore a need to develop process-based strategies for (in-house) consulting and documentation. More than ever before, the quality of a tax department’s work is defined by how the results of their advice will be discussed in 10 years’ time. In other words, the goal is to be able to document exactly why a decision was made the way it was in 10 years’ time!
The challenge of meeting the specific requirements of DAC 6 lies in an appropriately structured and integrated logic for identifying and implementing the (potential) reporting obligation.

Our consulting services include the following in particular, similar to the procedure for tax compliance management systems:

• Initial assessment (“Health Check”) with workshop and target/actual analysis
• Support in designing and implementing a holistic TCMS
• Cooperation in the TCMS documentation
• Ongoing support with further development (“sparring partner”)
• Testing / certification of an existing TCMS
• International roll-out or integration

The subsequent implementation of the notifications to the Federal Central Tax Office requires a standardized and process-supported application. Ideally, this application allows...:

• ... a general documentation of the facts
• ... workflow-controlled documentation of the decision-making process as to whether the matter is a reportable structure
• ... the technical implementation of the notification

To this end, we have teamed up with Universal Units (hereinafter referred to as “U2”), a professional and strategic cooperation partner with proven and sustainable expertise in this area and which specializes exclusively in the technical development of corresponding solutions.
Work with us to tackle your projects with recognizable added value for your company. We support and advise you throughout the entire project process, contribute our experience from ongoing and completed projects and guide you with regard to the project plan and the use of the tool. We support you both in the area of taxes and in the areas of processes and IT.