# DAC6 Reporting Identification Tool

> Source: https://bryter.com/de/use-cases/dac6-reporting-identification-tool/

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).

#### 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. Even if you are in a jurisdiction with delayed DAC6 implementation, now is the time to prepare. 

For taxpayers and their advisors, this means increasing time and resources spent on compliance and the provision of information to tax authorities.  

However, navigating through the intricacies of the DAC6 implementation in each EU member state and ensuring consistency of reportable information is a time consuming and complex task. Still, non-compliance with DAC6 reporting is [subject to hefty fines](https://www.inrev.org/system/files/2020-04/DAC6%20country-specific%20penalties%20and%20penalty%20mitigation%20survey%20%28Deloitte%29.pdf), going as high as 6 million EUR in some jurisdictions.

#### Automating DAC6 reporting

With BRYTER, lawyers and tax experts can customize our DAC6 Reporting Identification Tool that provides intermediaries and multinational businesses with access to tax knowledge and automated reporting.  

Our [**business reporting software**](https://bryter.com/applications/business-reporting/) makes the assessment and reporting processes increasingly transparent as users are guided through an interactive questionnaire. The tool adapts to the user’s inputs and automatically assesses the compliance and reporting requirements for the cross-border transaction at hand.  

It streamlines the process further by integrating with any other software solutions in your tech stack or databases you may be using to practically eliminate any manual effort. 

Our DAC6 reporting tool 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’s varied implementation of DAC6. 

#### **DAC6 reporting assessment: step-by-step with BRYTER**

As the user inserts information about the role, 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 collects data, tracks reporting deadlines and automates reporting to ensure a seamless process without distracting from the actual transaction.  

All data is collected in a secure database, which can be used to generate standardized XML reports for tax authorities on demand and create traceable documentation to prove compliance with all reporting requirements.