News in the area of application of the DAC 6 directive

We have informed you previously that directive no. 2018/822/EU - the so-called "DAC 6" - imposes a new duty on intermediaries and taxpayers to notify the local authorities about their cross-border arrangements. Given the fact that the notification duty may be satisfied in various ways in the various EU countries, and in view of the fact that not meeting this duty may lead to strict sanctions, we recommend that you thoroughly examine and understand your notification duty in this respect.

In January this year the Chamber of Tax Advisors and the Czech Chamber of Lawyers sent their opinion to the Ministry of Finance regarding certain controversial issues arising from this directive. The opinion mainly addresses advisors' duty of confidentiality towards their clients, which may contradict some of the obligations imposed on advisors by the directive.

The Ministry of Finance notes in its statement dated 19.3.2021 regarding the opinion submitted by the two chambers that the application of the confidentiality duty should not prevent anyone from acquiring requested information. Advisors are obliged to provide persons responsible for filing the requested information at least with the minimum information necessary for them to be able to identify the concrete cross-border scheme in relation to which the intermediary claims his/her duty of confidentiality. He/she is not requested to inform other liable persons of the details of the arrangement in question; it is sufficient if they are able to identify the arrangement subject to the notification on the basis of the information provided by him/her. A client may release his/her advisor from the duty of confidentiality; if the advisor feels that the removal of the duty of confidentiality goes against the interests of his/her client, it is up to the advisor to discuss and agree on the matter in question with the client.