In general, the disclosure obligation applies to persons who create, offer, implement or participate in a reportable cross-border arrangement and where one of the outcomes of such an arrangement is:
Further, it can be assumed that in order for someone to propose or offer a cross-border arrangement, there must be, in principle, a combination of the following:
For a ‘cross-border arrangement’ to exist, there must be a combination of ‘the existence of a particular arrangement proposed by someone’ and ‘some tax advantage, or concealment of income, assets or circumvention of the OECD Common Reporting Standard (CRS) or concealment of the beneficial owner described in the Category D hallmarks, arising from such an arrangement’.
Further information on this issue can be found in the DAC6 FAQ documents on the website of the Financial Administration of the Czech Republic.
Intermediaries of cross-border arrangements and, in certain cases specified by law, relevant taxpayers of cross-border arrangements, are required to file a disclosure of a reportable cross-border arrangement.
You are an intermediary of the cross-border arrangement and, in certain cases specified by law, a relevant taxpayer of the cross-border arrangement.
Disclosure of the reportable cross-border arrangement must be made within 30 days of the date on which:
Where the disclosure of a reportable cross-border arrangement is made by an intermediary in relation to that arrangement, the disclosure shall be made within 30 days of the date on which that intermediary has provided itself or through another person or unincorporated entity aid, assistance or advice in relation to that arrangement.
Disclosure of changes to the information on the marketable cross-border arrangement to be disclosed must be made within 30 days of the last day of the calendar quarter in which the changes occurred.
The ‘Disclosure of a reportable cross-border arrangement’ form that can be found on the Financial Administration website.
If the disclosure is to be made by an agent, the power of attorney relating to the filing of the disclosure must be exercised directly with the Specialised Tax Office no later than with the filing of the disclosure.
The tax administrator accepts disclosures completed in both Czech and English. However, it is possible that situations may arise where the tax administrator may additionally require the translation of the free text fields of the disclosure into Czech.
The disclosure of the reportable cross-border arrangement can be only submitted electronically to Specialized Tax Office via
In addition to the information required to complete the disclosure, it is also important how the submission of the disclosure is authenticated.
If the disclosing person has its own IT solution for creating the XML file, it uploads and submits the relevant file on the MOJE daně portal.
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Identifying potential loopholes that are used for tax optimisation, disguising the beneficial owner or circumventing the Common Reporting Standard. In general terms, the service contributes to tax transparency and the prevention of harmful tax practices.
You cannot appeal against this service.
If you are an obliged entity and you breach the obligation to retain documents the tax administrator may impose a penalty for not complying with non-monetary obligations up to 500 000 CZK.
If you are an intermediary and you breach the information obligation the tax administrator may impose a penalty for not complying with non-monetary obligations up to 500 000 CZK..
If you are an obliged entity and you breach an obligation in reporting the tax administrator may impose a civil fine up to 500 000 CZK.
The European Union Directive on Administrative Cooperation, which imposes a reporting obligation on intermediaries (in statutory cases, users) of cross-border arrangements. These intermediaries, from 2020 onwards, are obliged to collect the information required by law and subsequently transmit it to the Specialised Tax Office. Frequently asked questions and answers about DAC6 can be found on the website of Financial Administration of the Czech Republic. It is a global standard for the exchange of information provided by financial institutions to tax administrations developed by the OECD. Organisation for Economic Co-operation and Development. The OECD brings together 30 countries, including the Czech Republic.
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