The EU Mandatory Disclosure Regime And What It Means For EU Citizens

The EU Mandatory Disclosure Regime is a mandate set in place to require citizens to report their cross-border transactions for taxpayers and intermediaries. This was put in place to help limit those who may attempt to avoid paying taxes and increase the transparency of tax measures across the EU. This first began with the CRS, known as the Common Reporting Standard, which brought the introduction of an automatic exchange between tax and financial information. This elevated transparency for governments in the EU when it came to tax information.

Why DAC6?

This new regime was introduced as a means to enforce stricter disclosure of taxes cross-border in the EU. It will affect all financial institutions in the EU that provide tax and legal advice to citizens. Non-compliance to the DAC6 comes with heavy penalties. All tax information that will be contributed from reporting will be accessible in a central directory. While this may look like an aggressive tax plan, the