Mandatory disclosure requirements on certain types of tax transactions undertaken by taxpayers will apply in the EU from 1 July 2020. Any reportable tax arrangements enacted since 25 June 2018 must be reported retroactively by the taxable entities or their intermediaries. Taxpayers with operations in any of the EU states will need to understand the impact of these rules, assess their activities and determine what to report, and to whom. KPMG has developed an approach to assisting clients with their processes and controls and a technology solution to help accumulate and assess potentially reportable transactions.
The reporting obligation presents a number of challenges:
The KPMG DAC6 Processor can be deployed as a technology solution to support the assessment of reporting obligations. If you are considering optimizing your tax compliance management processes by using technology and would first like an overview of the functionality and suitability of KPMG’s DAC6 Processor, contact either your local KPMG tax advisor or the DAC6 Processor trial version implementation team here to book a free 60-day trial version.
Whilst most organisations are having to deal with many tax and non-tax issues in the wake of the COVID-19 pandemic, DAC6 is still set to apply from 1st of July 2020. With virtually all employees working from home and in-person meetings forbidden for an unknown amount of time, companies need to adopt a new approach to become DAC6 compliant and ready to report relevant arrangements in just a couple of months.
In response, we have adapted our implementation project model, going for a leaner, scaled-down approach, focused on the essentials for delivering a compliant DAC6 process, without relying on in-person workshops.