The GDF added new information on the reporting obligation under DAC 6, including examples

The GDF has published a new list of questions and answers on the reporting obligation for cross-border tax arrangements (DAC 6). The information clarifies that only a tax-transparent entity has a reporting obligation under DAC 6. According to the GFD, tax-transparent entities, such as a public company or a mutual fund, should be treated in such a way that their shareholder (partner), who is not involved in the arrangement as an investor, will not be considered a user of the arrangement.

The information also addresses the position of a tax advisor on the reporting obligations under DAC 6 when preparing a tax return. The work of a tax advisor, auditor or lawyer who provides services after the implementation of the arrangement does not qualify for notification as an intermediary. The provision of tax advice in connection with an arrangement already implemented in which the tax advisor has not participated also does not qualify for notification either as an intermediary or as an ancillary intermediary. Even the tax advisor's assessment of an already implemented arrangement does not trigger the obligation to notify as an intermediary.

The GFD also clarifies that if the intermediary has its domicile, permanent residence, registered office or place of management in the Czech Republic, it is always subject to the reporting obligation exclusively in the Czech Republic, even if the tax saving occurs outside the Czech Republic.

In order to assess the main benefit test, the GFD provides more information on the causal link between the characteristic and the expected tax advantage. The main benefit test is not met if the tax advantage does not represent a tax saving but only a simplification of tax administration. According to the Financial Administration's statistics, a total of 157 notifications under DAC 6 were made by the first half of 2022.