DAC6: New rules for reporting of cross-border products and transactions

DAC6 (also called MDR – Mandatory Disclosure Regime) is a new set of EU tax rules. The rules are intended to create transparency in legitimate cross-border tax advice and financial services, for instance cross-border banking products and transactions.

According to the DAC6 rules, all financial providers and advisers must, in certain cases, report information about these products and transactions to the local tax authorities. This also applies to us as a bank.

 

Why has the EU introduced the DAC6 rules?

The purpose of the new rules is to create transparency and provide tax authorities across the EU with insight into how products and transactions are legitimately used and made across borders.

In that way, the EU tax authorities can cooperate on optimising tax legislation, enabling them to obtain a more fair legislation across the EU and counter unwanted tax planning.

 

When does Danske Bank need to report information to the tax authorities?

We need to report information about cross-border products and transactions to the tax authorities if they meet one or more criteria indicating that their purpose is to obtain a tax advantage. For instance, this can be the case for cross-border transactions relating to dividend payments, restructurings or transfers of assets made to obtain a tax advantage.

The reporting will take place from 31 October 2020. We need to provide the tax authorities with information about the products and transactions in question as well as information about the persons and businesses using them, for instance CPR or CVR number.

What do the DAC6 rules mean for you as a customer?

  • You do not have to do anything as a result of the new rules in relation to your business relationship with us.
  • This information is merely to inform you about the new rules applying to cross-border products and transactions.
  • If we report information about your products or transactions to the tax authorities, it will not impact you as a customer of Danske Bank – the purpose of the rules is to provide the tax authorities with insight into the general, legitimate use of cross-border financial services.

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