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David Walder works with public and private companies across a wide range of transactional and advisory matters, including mergers and acquisitions, real estate taxation, employee benefits, employment taxation, SEIS and EIS investments, stamp taxes, and VAT. He also advises clients on UK Research & Development tax reliefs and the UK Patent Box. Mr. Walder has acted for a range of clients, including pharmaceutical companies and biotechs, technology companies, retailers, and charities.

At the end of June, the European Union (“EU”) amended EU Council Directive 2011/16/EU and its cumulative amendments (referred to in the aggregate, as the Directive on Administrative Cooperation “DAC 6” or the “Directive”) to give EU Member States the option to defer imminent DAC 6 reporting deadlines by up to six months due to disruptions caused by COVID-19.  (Various sources, including the European Union, refer to the Directive as “DAC6” without a space between DAC and 6.  We use the alternative format in this post.)  The amendment to the Directive also includes language potentially allowing for an additional three-month extension depending upon how the pandemic unfolds, but cautions that further delays are unlikely.  Many EU Member States promptly announced a full six-month deferral, including Belgium, Croatia, Cyprus, the Czech Republic, Hungary, Ireland, Luxembourg, the Netherlands, Sweden, and the UK.  To date, Finland and Germany have announced that DAC 6 reporting will commence without any delay on August 31, 2020.

If U.S. multinationals with affiliates in the UK or EU countries have not taken steps to identify reportable tax planning and other arrangements caught up in the DAC 6 dragnet, they should do so immediately because the reporting requirements are onerous.

For readers unfamiliar with DAC 6, an overview of this new reporting regime follows.
Continue Reading DAC 6 Implementation Imminent in Finland and Germany Despite Delays in Other EU Countries and the UK Due to COVID-19