UK Announces 6 month delay to initial DAC 6 reporting deadlines

DAC 6 is a new regime under which intermediaries and/or taxpayers must report to an EU tax authority information about cross-border arrangements with a view to the information being exchanged with other EU tax authorities.

The new regime will go fully live on 1 July 2020, but it will be back-dated to include cross-border arrangements in which the first step was taken on or after 25 June 2018 (“the two year look back period”).

Today the UK has announced that it will delay the initial reporting deadlines for DAC 6 by 6 months in line with approaches announced by a number of other implementing jurisdictions.  This follows an initiative of the EU Commission to defer these dates to take account of challenges faced as a result of COVID-19. 

The new dates will be:

• For arrangements where the first step in the implementation took place between 25 June 2018 and 30 June 2020 - reporting is due 28 February 2021.
• For arrangements where the trigger for reporting falls between 1 July 2020 and 31 December 2020 – reporting is due within the period of 30 days beginning on 1 January 2021. Reporting could be triggered by any of: arrangements made available (or ready) for implementation, or where the first step in the implementation takes place, or a UK intermediary provides aid, assistance or advice.  (Essentially this transitional period creates a second type of “catch-up” reporting in addition to reporting for the two year look back).
• For arrangements where the trigger for reporting arises on or after 1 January 2021 – reporting is due within 30 days as before.

The new reporting deadlines do not change the matters that will be reported.  The same two year look back period applies and the regime still goes live on 1 July 2020; it just gives more time for reporting for the initial reports.

HMRC says that the law change to introduce the new reporting deadlines may not  be in place by the date the regime goes live on 1 July 2020.  It adds that no action will be taken for non-reporting during the period between 1 July and the date the amended Regulations come into force.

To read more about the DAC 6 regime, please click here to read our brochure.