The ambassadors of the EU Member States reportedly agreed to an optional six-month delay to the DAC 6 reporting deadlines on 3 June 2020 in recognition of the disruptive effects of the coronavirus (COVID-19).
The amended proposal also provides for the possibility of the EU Council unanimously agreeing to one further extension for a maximum additional three months.
An opinion of the European Parliament and the formal agreement needed from the European Council are expected by the end of June.
The new proposal replaces the previous European Commission proposal of 8 May 2020 (that we previously communicated) which provided for a delay to the requirement to make first reports under DAC 6 by three months.
The UK and individual Members States need to decide whether to take up the option and to implement any changes into their domestic laws.
Our expressed view is that there’s a strong case for deferral of DAC 6 in current circumstances, given the burden it’ll place on both private and public sectors (including law firms) so we welcome this development.
However, the tight timescales and the optional nature of the new proposal could still lead to mismatches and complexity, so that law firms may be well-advised to continue their work preparing for DAC 6 compliance.