Germany Rolls Out its Own Heavy-Duty EU DAC6 Tax Legislation

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The Finance Ministry in Germany has sent some draft legislation for approval regarding taxation. If the documents will be signed by German Parliament, going forward, German tax advisors and their clients will be required to inform the local tax authorities about any transactions or strategies that show any of the classic signs associated with tax evasion.

Commentators are calling it a ‘heavy-duty’ Council Directive 2011/16 (DAC 6), the EU Administrative Cooperation Directive, as it includes both cross-border and national tax arrangements. The EU DAC 6 also requires all relevant cross-border structures that were implemented on or after June 25th 2018 to be reported post factum by next year (August 31st 2020).