The guidance covers topics such as the purpose of reporting, the kinds of arrangements that must be reported, who should report the information, the list of information that must be submitted, and the reporting timelines.
On June 18, 2020, the Swedish tax authority published detailed guidance on the country’s recently introduced legislation on reporting of cross-border arrangements.
The legislation – introduced on June 4 – seeks to implement the provisions of the EU Directive on reportable cross-border tax arrangements (also known as DAC 6). The EU DAC 6 reporting requirement comes into effect on July 1, 2020, although EU member countries have informally agreed an optional postponement of the reporting requirement in view of COVID-19.
The guidance covers topics such as the purpose of reporting, the kinds of arrangements that must be reported, who should report the information, the list of information that must be submitted, and the reporting timelines.
The guidance notes that the purpose of providing the requisite information is to be used as a basis for exchange of information with other EU member states.
According to the guidance, the reportable arrangement must be cross-border in nature and must have at least one of the characteristics (or hallmarks) stipulated in the law. In some cases, a tax benefit is required to be the main benefit or one of the main benefits of the arrangement.
Advisers and, in some cases taxpayers themselves, are required to submit the information to the tax authority. The information must be submitted electronically using a form. While the list of information is stipulated in the law, entities are required to submit only that information which is in their knowledge, possession, or control.
The information required under the DAC6 law must be submitted within 30 days from the date on which one of the trigger events stipulated in the law takes place. In some cases, information must be submitted on a quarterly basis.
The Swedish government intended to bring the new reporting requirement into effect from July 1, 2020. However, the government is mulling over a possible postponement of certain DAC 6 deadlines in view of COVID-19.
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable at editor@transferpricingnews.com
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