The European Union has added further impetus to its objective of
enhancing transparency against harmful tax practices with the
amendment to Directive 2011/16/EU, commonly referred to as DAC6.
This builds on the Common Reporting Standard (CRS), which allows
for the automatic exchange of information on financial accounts
held by non-tax residents at an international level, and the
OECD's Base Erosion and Profit Shifting (BEPS) project. In
brief, DAC6 requires the mandatory reporting of cross-border
arrangements that are indicative of a potential aggressive tax
planning. The disclosure requirements will have to be followed by
"intermediaries" and, in some instances, the
taxpayers.
One of the key points of DAC6 is that it does not define aggressive
tax planning. Instead, those involved must adhere to the list of
"hallmarks" found in Annex IV of the Directive, which is
constituted by both general and specific features that are deemed
possible indicators of tax avoidance or
