The DAC6 Reporting Identification Tool facilitates compliance with mandatory reporting obligations of cross-border transactions for taxpayers and intermediaries as introduced by the tax disclosure rules of EU Council Directive 2011/16 (DAC6).
The interactive tool ensures a consistent approach in assessing whether cross-border tax arrangements meet any of the specified characteristics (hallmarks) outlined in DAC6 and therefore fall within the mandatory reporting obligation.
As the user inserts information about the type and time of the transaction, the location of the parties and the material details, the tool assesses the applicability of the DAC6 regulation and further guides the user through an assessment of main compliance requirements depending on the EU member state or states involved. The tool automates the reporting, tracks reporting deadlines and ongoing transactions and reviews and flags for highest risk transactions. Submission forms are auto-populated to streamline an otherwise burdensome submission process, saving time and resource for the submitting party.

Background

As newly introduced EU regulations in recent years have shown, transparency is high on the global agenda for governments to counter tax avoidance. DAC6, which came into effect 25 June 2018, applies to cross-border tax arrangements that meet one or more specified characteristics (hallmarks) and that have an EU dimension. 

For taxpayers and their advisors this means an increasing time and resource spent on compliance and the provision of information to tax authorities. Especially, navigating through the intricacies of the implementation of DAC6 of each EU member state is a time intensive and complex task.  

With BRYTER, lawyers and tax experts can build a DAC6 Reporting Identification Tool that provides intermediaries and multinational businesses with access to tax knowledge and automated reporting. The tool makes the assessment and reporting processes increasingly transparent as users are guided through an interactive questionnaire. The tool adapts to the user‚Äôs inputs and automatically assesses the compliance and reporting requirements for the cross-border transaction at hand. It streamlines the process further by integrating with client management software, HR databases and HRMC API to simultaneously process checks. It leverages risk scoring to identify high risk transactions faster. 

BRYTER‚Äôs rule-based logic allows for implementation of expert knowledge to ensure compliance with the EU Directive in every jurisdiction to account for every EU member state‚Äôs varied implementation of DAC6.

Benefits

Automated & consistent

A DAC6 Reporting Identification Tool assesses the reporting requirements of a cross-border transaction and determines all required information and supporting documentation. It ensures consistency, in accordance with the implementation of DAC6 of all member states, in the way a transaction is assessed, processed and reported.

Faster execution

Tax experts and multinational businesses save up to 60% of resources when assessing reporting criteria, preparing documentation and issuing reports.

Risk profiles

A DAC6 Reporting Identification Tool generates a transaction risk score for each assessed cross-border transaction against pre-determined criteria and helps trouble-shoot any identified risks.

How it works

1

Insert transaction information

The user is guided through an interactive questionnaire which automatically determines the required information and documentation for the assessment.

Assess reporting obligations

The rule-based logic of the tool auto-assesses DAC6 applicability using different workflows for each European country and generates a full summary of the assessment to streamline the final issuance of the reports.

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3

Identify risks

A DAC6 Reporting Identification Tool integrates with internal and external databases to confirm input data as the user provides such information. A dashboard tracks all transaction assessments, risk scores and reporting deadlines to process identified red flags faster.