Despite the fact that companies in general don't have a lot of DAC6 reportings, you need to have a solid process to demonstrate you are in control of your DAC6 affairs. It is also vital to ensure that you can demonstrate to your stakeholders that you have looked at the different arrangements which took place in a specific period.

In Loctax we have the DAC6 app which empowers you to roll out an entire, end-to-end DAC6 process.

Creating a new DAC6 ticket and working through the process is very simple. See below.

Step 1: create a new DAC6 ticket by clicking the ‘create new ticket’ button.

Step 2: complete the details in section 1 of the ticket. Here you can enter the information relating to the arrangement, link it to entities in your group plus add any relevant documents and/or users to be informed that a new ticket has been created.

Step 3: Once section 1 of the ticket is complete, you move on to section 2 where you can conduct the required analysis - including adding Hallmarks. Here, because of the entities selected in step 1 (in this example Netherlands) we see the relevant legislations and arrangement examples appearing via our IBFD integration.

Using the legislative information, you will then understand how DAC6 has been implemented as a directive into the relevant domestic legislation. We can also view the whitelist/blacklist overview of arrangements giving a flavour of whether you are likely in the scope of reporting or not.

Step 4: Once the analysis phase is complete, you can select whether the arrangement is to be reported or not.

Step 5: if the arrangement is to be reported you will move to section 3 titled ‘Reporting status’.

Step 6: once you have completed the ‘Reporting status’ section, you can hit the ‘Complete’ button. Your DAC6 ticket is now complete.

The power of centralising this information in Loctax means that a) you have a very strong and solid process in place and b) if your statutory auditor in the Netherlands asks next year 'please show me all the arrangements which took place for Netherlands for which you needed to do analysis' you can very easily provided this information - demonstrating your governance in a few, simple clicks.