Reportable cross-border arrangements

Council Directive (EU) 2018/822 (hereinafter: DAC6 Directive) amends the Council Directive 2011/16/EU, regarding mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements. The DAC6 Directive was adopted on 25 May 2018 and entered into force on 25 May 2018. The DAC6 Directive was transposed into Slovenian legislation by the adoption of amendments to the Tax Procedure Act (ZDavP-2L) in June 2019.

The adoption of the DAC6 Directive is one of a number of measures introduced in the EU in recent years in the field of tax transparency with the purpose to prevent tax avoidance and tax evasion. These measures pursue the same objective to protect national tax revenues from potential aggressive tax-planning schemes or arrangements the main purpose of which is to shift profits to more favourable tax jurisdictions. The main aim of the DAC6 Directive is to provide tax authorities with an early warning mechanism on new risks of tax avoidance.

The DAC6 Directive requires mandatory reporting of potentially aggressive tax planning cross-border arrangements involving either more than one EU Member State or an EU Member State and a third country, when at least one identified characteristic (called: hallmark)  is fulfilled. These are categories that define specific hallmarks that potentially indicate aggressive tax planning. The information is exchanged between tax authorities automatically.

The reporting obligation is placed upon persons designing, marketing, organising, making and managing such arrangements (so-called: intermediaries), and in certain cases the reporting obligation is shifted to the users of the arrangement (so-called: relevant taxpayers).

The information that has to be reported is: information on identification of intermediaries and relevant taxpayers, details of the hallmarks, a summary of the content of the reportable cross-border arrangement, date and value of the reportable cross-border arrangement, details of national provisions, identification of any other relevant persons and jurisdictions affected by the cross-border arrangement.

The information should be reported within 30 days beginning (1) on the day after a reportable cross-border arrangement is made available for implementation or (2) on the day after a bespoke cross-border arrangement is ready for implementation or (3) when any activity indicating the intention to implement an arrangement has been made. Information should also be reported within 30 days beginning on the day after an intermediary provided, directly or by means of other persons, aid, assistance or advice.

The information on reportable cross-border arrangement has to be entered into the reporting form and submitted to the tax authority using the State Tax Portal eTaxes (slo. eDavki). Import of XML data from web applications, files, web services, is not enabled.