How does one circumvent Reporting of “Tax Aggressive” Cross-Border Arrangements – DAC6

[DavidS]

So apparently all EU consultants, tax offices, advisors, big4, banks, corp service providers, ANYONE basically‌ needs to report any "tax aggressive" border arrangements.

https://www.vistra.com/insights/eu-mandatory-reporting-tax-aggressive-cross-border-arrangements-dac6
That means if a person simply‍ advises you on a scheme or structure, that's it, they have to report it.

Has anyone encountered this problem already and how to go around it?

Can't you just say⁠ you are writing a dissertation and need theoretical scenario modelling?

 

[JohnLocke]

I don't believe it is‍ all black and white like you line it up here.

As long as everything is⁠ legit and you don't break any tax laws or other laws I can't see why⁤ they would report you.

 

[Gediminas]

They have. I know who had a case with the EU notary and the notary demanded‍ to report it.

It's a new thing so they can go easy for now, but⁠ it will become harder and harder for EU consultants/notaries/lawyers, etc.

It's better to have a⁤ relationship with the advisors (and related parties) out of the EU, I don't see any⁣ other way to keep yourself discrete.

 

[CaptK]

Yes, what consultants⁣ are doing is referring you to an advisor in other countries so that they can⁢ not be held responsible in the event the authorities ask questions. They can tell you︀ about the structure but will always tell you that the tax is between you and︁ your local authority.

 

[Gediminas]

You can read about DAC6 there:

https://offshorebankaccounts.com/blog/dac6-explained

 

[JohnLocke]

You may have experienced this but‍ it is not what the reporting is about.

We asked a reputable Law firm about⁠ the reporting and when they will be forced to report you, below is the answer:⁤

This may clarify the question, there may still be lawyers, notary service, banks and︋ accounting firms that misinterpreter the reporting standard, I don't know but for sure it is︌ worth to ask any of such before you do business with them.

 

[DavidS]

Mostly because the law literally obliges them to report any "tax optimisation" structure they recommend to‍ clients.

Either have⁢ relationships with consultants outside EU OR have personal relationships with consultants INSIDE EU, so their︀ recommendations are just "friend talk" and not official "consulting" at the company.

BIG4 are not︁ to be used for any such consultations I assume?

Only EU institutions have to︅ report apparently. Outside EU - no need.