The government intends to exempt only those entities that provide legal advice.
On May 12, 2020, Spain’s Council of Ministers approved draft Law to incorporate the EU Directive on cross-border tax arrangements (DAC6) into Spanish tax law.
DAC6 requires intermediaries and relevant taxpayers to report information on certain cross-border tax arrangements to the tax authority. In general, the information has to be reported within a period of 30 days from the date on which one of the triggers specified under the law take place.
The government’s intention is to exempt only those entities from the DAC6 reporting obligation (under the legal professional privilege) that provide strictly legal advice.
The Spanish draft Law on DAC6 also provides penalties for incomplete or inaccurate disclosure of reportable arrangements.
Finance Minister María Jesús Montero stressed that in a health emergency like the one caused by the COVID-19 pandemic, it is necessary to move forward with measures that make the tax system fairer and allow it fulfil its redistributive and guarantor role for the welfare state.