DAC6 Reporting Identification Tool

Automate compliance with mandatory reporting obligations of cross-border transactions

Fiscal Residence Checker

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 enables a consistent approach to determine if you need to carry out the reporting (as an intermediary or taxpayer) while assessing whether cross-border tax arrangements meet any of the specified characteristics (hallmarks) outlined in DAC6 – thereby falling within the mandatory reporting obligation. Once the assessment is made, the tool generates a report in the prescribed XML format, fully in line with stringent regulations.

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, 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 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.

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 by all parties.

Faster execution

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

Customizable

Organizations manage DAC6 reporting differently, depending on what transactions they undertake, in which jurisdictions. Our DAC6 Reporting Identification Tool is designed to address these differences by helping you build a solution that works for you and your clients across jurisdictions.

How it works

1

Insert transaction information

The user is guided through an interactive questionnaire which automatically determines whether you need to report and required information / data for effective reporting to tax authorities. This information / data may be ‘pulled’ from internal databases or software. 

2

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 for tax authorities. 

3

Integrate with your tech stack

A DAC6 Reporting Tool integrates with any software solutions or databases you may be using to enable automation information flow. A dashboard can track all transaction assessments, reporting deadlines and much more to process data faster, more consistently across the board. 

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