Based on the EU MPfG, which came into force on July 1st, 2020, tax arrangements that relate to more than one EU member state or to one member state and a third country are sometimes subject to national reporting. Tax and legal advisors, banks and financial service providers are particularly affected by the reporting obligation.

 

The wording of the law is also very broad, meaning that numerous designs can be covered. In addition, this reporting obligation also applies retroactively to arrangements since June 25, 2018.

 

The first reporting deadlines now expire on October 31, 2020 at the latest. For this reason, but also due to the significant financial penalties for violations of the reporting obligation, you should deal with these new compliance requirements as soon as possible.

Due to the freedoms within the European Union, capital and people can move relatively freely, which means that cross-border arrangements have been and are increasingly being chosen, some of which also serve the purpose of maximum tax avoidance.

 

Since this is not in the interest of the member states, an EU directive on the reporting obligation and the mandatory exchange of information for such arrangements was issued some time ago [Directive RL (EU) 2018/822 amending RL (EU) 2011/16 (Administrative Assistance Directive) regarding the mandatory automatic exchange of information in the area of ​​taxation on reportable cross-border arrangements (“DAC 6”)].

 

The EU member states were obliged to implement this directive into national law by December 31, 2019 at the latest. In Austria this obligation was met with the
complies with the EU Mandatory Reporting Act (“EU-MPfG“), which was passed by the National Council on September 19, 2019 and came into force on July 1, 2020.
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