How to manage DAC6 Directive Obligations. DAC6 Regulation, Analysis & Documentation Use DAC6CYBORG artificial intelligence. legalcyborg.com/dac6cyborg

1. {DAC6Cyborg;
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2. Regulation Overview;

3. Regulation Overview
• Member States find it increasingly difficult to protect
their national tax bases from erosion.
• Sophisticated tax-planning structures and take advantage
of the increased mobility of both capital and persons.
• Arrangements across jurisdictions move taxable profits
towards more beneficial tax regimes reducing taxpayer's
overall tax bill.
• It is therefore critical that Member States' obtain
comprehensive and relevant information about potentially
aggressive tax arrangements.
• Such information would enable authorities to react
promptly against harmful tax practices.
• The DAC6 Directive, impose an obligation to inform tax
authorities of certain Cross Border Arrangements that
could be potentially used for aggressive tax planning
purposes.
MANDATORY
DISCLOSURE
RULES
(MDR)
OECD - BEPS
European
Union
Directive on Administrative Cooperation

4. DAC 1 (2011)
(Exchange of information under request & automatic Exchange of information specific non-financial information,
simultaneous controls, use of standard forms.)
DAC 6 (2018)
Council Directive (EU) 2018/822 of 25 May 2018 amending Directive 2011/16/EU as regards mandatory automatic
exchange of information in the field of taxation in relation to reportable cross-border arrangements
DAC 6 – OPTIONAL COVID DEFERRAL
Council Directive (EU) 2020/876 of 24 June 2020 amending Directive 2011/16/EU to address the urgent need to
defer certain time limits for the filing and exchange of information in the field of taxation because of the COVID-19
pandemic
DAC 2- DAC 5 (2014, 2015,2016)
(of information, financial accounts information, advance cross border rulings and APAs, CbCR, access to beneficial
ownership.)
Regulation Overview

5. DAC 6 – COVID DEFERRAL
Council Directive (EU) 2020/876 of 24 June 2020 amending Directive
2011/16/EU to address the urgent need to defer certain time limits for the
filing and exchange of information in the field of taxation because of the
COVID-19 pandemic.
DAC 6
Council Directive (EU) 2018/822 of 25 May 2018 amending Directive
2011/16/EU as regards mandatory automatic exchange of information in
the field of taxation in relation to reportable cross-border
arrangements.
• Transposition Deadline – December 31sth 2019.
• Transitory Period – June 25th 2018 – June 30th 2020.
• Ordinary Period – July 1st, 2020 – onwards.
• Reporting Deadline Transitory period –August 31st 2020.
• 1st Reporting Deadline Ordinary Period - Within 30 days.
• 1st Transitory Period – June 25th 2018 – June 30th 2020.
• 2ND Transitory Period – July 1st 2020 – December 31st 2020
• Ordinary Period – January 1st, 2021 – onwards.
• Reporting Deadline - 1st Transitory Period –February 28st 2021.
• Reporting Deadline - 2nd Transitory Period – January 1st 2021.
• Ordinary Period 1st Reporting Deadline – April 30th 2021.
Regulation Overview

6. DAC 6 – COVID OPTIONAL
DEFERRAL MEMBER STATES
 Belgium.
 Croatia.
 Czech Republic.
 Denmark.
 Estonia.
 France.
 Greece.
 Hungary.
 Ireland.
 Latvia.
 Lithuania.
 Luxemburg.
 Malta.
 Netherlands.
 Poland.
 Romania.
 Slovenia.
 Spain.
 Sweden.
 United Kingdom.
DAC 6 STANDARD PERIOD
MEMBER STATES
 Austria.
 Finland.
 Germany.
Regulation Overview
DAC 6 –
DEVISION PENDING
 Bulgaria.
 Cyprus.
 Italy.
 Portugal.
 Slovakia.

7. Reportable Arrangements;

8. RELEVANT TAXPAYERS
 Users of the Arrangements.
INTERMEDIARIES
 Inhouse advisors.
 Legal firms.
 Consultancy firms.
Reportable Arrangements
• Reporting priority: Intermediaries should report the Arrangement once
service have been provided.
• If there is more than one intermediary all them are subjected to the
obligation. Coordination may be possible to avoid multiple reporting.
• Waivers could release intermediaries of the obligation of reporting.
• Relevant taxpayers should Report the Arrangement if there is no
intermediary or if the intermediary is not subject to reporting.
• Relevant taxpayers should report the Arrangement every year the
Arrangement is in place.

9. EUROPEAN UNION CROSS BORDER CONNECTION DESCTRIPTION
Cross-Border Arrangement More than one Tax Jurisdiction
European Union Connection At least one European Unon Member State.
ANNEX IV – HALLMARKS COMPLIANCE SUMMARY DESCRIPTION
Part I: Main Benefit Test # MBTSUMMARY
Part II.A. Generic Hallmarks Linked to the Main Benefit Test #HALLMARKIIA
Part II.B. Specific Hallmarks Linked to Main Benefit Test #HALLMARKIIB
Part II.C. Specific Hallmarks Related to Cross-Border Transactions #HALLMARKIIC
Part II.D. Specific Hallmarks Concerning Automatic Exchange of
Information and Beneficial Ownership
#HALLMARKIID
Part II.E. Specific Hallmarks Concerning Transfer Pricing #HALLMARKIIE
Reportable Arrangements

10. How 2 Manage DAC6;
{Radi approach;

11. COMPLEX REGULATION – ANALYSIS AND COORDINATION
EU Connected Cross Border Arrangements with different
participants:
 Inhouse Advisors.
 Law firms.
 Consultancy firms.
 Banks.
 Associated Companies.
 Non-Associated Companies.
How 2 Manage DAC6
All them subjected to reporting:
- Inconsistency risk – Reporting/non reporting - Conclusion regarding reportability may be different between participants.
- Asymmetries in the information to be reported (different hallmarks reported, different description, bespoken vs marketable).
- Timing – Reporting deadline could be different cross participants.
- Multiple reporting obligations.
- 28 Tax Administrations and Regulation in Europe.

12. DAC6 obligations will be scrutinized by domestic Tax Inspectors!!!
How 2 Manage DAC6
 Minimize the risk of suffer penalties and of damaging
your compliance reputation by analysing and
documenting your cross border Arrangements under the
DAC6 regulation.
 Coordinate with other participants about their position
about the reportability of the Arrangement by sharing
your conclusion.
 Avoid misunderstanding in the reporting, agreeing with
other participants the content of the reporting
obligation.

13. How 2 Manage DAC6
R
A
D
I
Recognition of Arrangements.
Technical DAC6 Analysis.
Documentation of the conclusion of the Analysis
Interaction with other participants.
Identification of EU Connected - Cross Border
Arrangement to analyse.
Execution of a technical analysis regarding the
potential reportability of the Arrangement.
Document in a report the conclusion of the
analysis.
Communicate and share with other participants
in the arrangement the report in order to
proceed in a consistent approach regarding its
reportability.

14. How DAC6Cyborg helps;

15. R
A
D
I
How DAC6Cyborg helps
REFERENCE ALERT REPORTABILITY PROJECTNAME DESCRIPTION REPORTINGDEADLINE EUCOUNTRIES ACTIVE PARTY ACTIVE PARTYCOUNTRY
4696607287324880000
�
NOTREPORTABLE PROJECTSECUOLLA Royaltyfeeschemetotheaffiliatesinallmarkets. N/A ALFA1 SPAIN
46966072873248800
�
NOTREPORTABLE ALFA1 SaleofacompanyfromSpaintofrance,andlocatedinCayman
Island.
N/A ALFA1 SPAIN
4697471997327230000
�
REPORTABLE PROJECTARMITZA LicenseofbrandfromCaymanIslandtoFrance. January,1st 2021 *France BRANDCO CAYMANISLANDS
Facts gathering
Analysis & Documentation
Management Tool
Communication &
Coordination tool
(work in progress)

16. DAC6Cyborg guides you in the analysis process
through an accurate questionnaire.
How DAC6Cyborg helps

17.  The information is
processed by our
technology, developed by
international tax senior
practitioners, providing a
complete Report concluding
regarding the Reportability
of the Arrangement
analysed.
 Test it free, you will be
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 Our professional team will
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How DAC6Cyborg helps
legalcyborg.com/dac6cyborg

18.  DAC6Cyborg, includes an
accumulative
Arrangement
Management Tool, that
facilitates tracking all
arrangements analysed –
the DAC6VAULT
REFERENCE ALERT REPORTABILITY PROJECTNAME DESCRIPTION REPORTINGDEADLINE EUCOUNTRIES ACTIVE PARTY ACTIVE PARTY COUNTRY
4696607287324880000
�
NOT REPORTABLE PROJECT SECUOLLA Royalty fee scheme to the affiliates in all markets. N/A ALFA 1 SPAIN
46966072873248800
�
NOT REPORTABLE ALFA 1 Sale of a company from Spain to france, and located in Cayman
Island.
N/A ALFA 1 SPAIN
4697471997327230000
�
REPORTABLE PROJECT ARMITZA License of brand from Cayman Island to France. January, 1st 2021 *France BRANDCO CAYMAN ISLANDS
 DAC6VAULT accumulates the
Arrangements requested by the
Users of the platform and it is
sent to you by email.
 The tool could be edited online
by the User, to facilitate
modifying any conclusion of the
analysis.
 You will easily track your
reporting obligations, and
check the Arrangements
tested at a glance.
How DAC6Cyborg helps

19. Dedicated services;

20. Dedicated services
Let us customize the tool for your organization.
We can include your logo and organizational texts.
Easy access to the service by embedding the application into your intranet.
Receive editable formats of the Reports.
Fast access to DAC6VAULT and adjust it online.
Set alerts to remember you or your collaborators reporting deadline.

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