Netherlands: Consultation on directive for disclosure of cross-border tax arrangements

20 December 2018

The Dutch government on 19 December 2018 launched an internet consultation concerning a bill to transpose into Dutch law the EU Directive on Mandatory Disclosure (Directive (EU) 2018/822, DAC6)—the directive that provides for the mandatory automatic exchange of information on reportable cross-border arrangements.

DAC6, in principle, requires intermediaries (including so-called “auxiliary intermediaries”) to report potentially aggressive cross-border tax planning arrangements. The disclosure would allow for the information to be exchanged between the tax authorities of the EU Member States. The broad definition of intermediary means that the directive would apply to tax advisors and potentially also to lawyers, accountants, notaries, financial advisors, banks, and trust offices. In certain circumstances the reporting obligation can shift to the taxpayer.

The Annex to DAC6 includes a number of hallmarks that are indicators of an aggressive cross-border tax planning arrangement. If a tax planning arrangement has one of these hallmarks, the arrangement must, in principle, be reported to the tax authorities of the relevant EU Member State. However, a number of these hallmarks will only trigger a reporting obligation if a “main benefit test” is also met. The main benefit test is met if it can be convincingly demonstrated that the most important benefit or one of the most important benefits that, given all the relevant facts and circumstances, can reasonably be expected from an arrangement is obtaining a tax benefit.

The Netherlands must implement DAC6 into national law. During the parliamentary debates that will follow on the actual implementing legislation, more clarity will be expected about how the Netherlands interprets the obligations and terms in the directive.

The information contained in TaxNewsFlash is not intended to be "written advice concerning one or more Federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230, as the content of this document is issued for general informational purposes only, is intended to enhance the reader’s knowledge on the matters addressed therein, and is not intended to be applied to any specific reader’s particular set of facts. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Applicability of the information to specific situations should be determined through consultation with your tax adviser.
KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.
Direct comments, including requests for subscriptions, to Washington National Tax. For more information, contact KPMG’s Federal Tax Legislative and Regulatory Services Group at + 1 202.533.4366, 1801 K Street NW, Washington, DC 20006-1301.
To unsubscribe from TaxNewsFlash-United States, reply to Washington National Tax.
Privacy | Legal