DAC6: Will a DAC6 report in the UK provide sufficient evidence for EU member states?

In light of the amended UK DAC6 regulations as a result of the Brexit Free Trade Agreement, the Netherlands Tax and Customs Administration has confirmed to VinciWorks that a UK DAC6 report will not be accepted as sufficient evidence of a DAC6 report in the Netherlands.

The Netherlands have confirmed that in line with the DAC6 Directive, they will send all DAC6 reports to the European database. However, the Dutch Mandatory Disclosure Team has made it clear that they have no obligation to share reports in any other way and the Netherlands will not actively do so. We will have to wait and see if and what the EU will decide on the exchange of information between EU countries and the UK.

Because the DAC6 rules and the OECD rules are two different reporting obligations, the Netherlands cannot accept a reference number that belongs to an OECD-disclosure for DAC6. The fact that a report is filed in the UK under hallmark D of the OECD MDR does not exempt a Dutch intermediary to file a report under DAC6 in The Netherlands.

Ireland has confirmed the same and it is likely that other EU member states will adopt a similar approach.

What do these changes mean for our reporting solution?

We have already started updating our DAC6 reporting solution to reflect the Brexit changes and we will continue to work with HMRC to understand the full extent of these changes and we will send email updates on DAC6 and the new UK MDR.

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