The German tax authority has confirmed to VinciWorks in line with their latest edition of the DAC6 Communication Manual that they will no longer be accepting partial reports in certain cases where legal professional privilege applies. Instead, the taxpayer will be expected to make a complete report.
Reports for non-marketable arrangements will (contra legem) no longer be accepted by the German tax authority. For such arrangements, where there is only one relevant taxpayer and where the intermediary has not been released from their confidentiality obligations, the intermediary cannot report only “arrangement-related” information. In this case, the relevant taxpayer will have to report a complete disclosure.
The following options are currently available for reporting non-marketable tax arrangements:
- A complete disclosure is made by the relevant taxpayer.
- The relevant taxpayer releases the intermediary from Legal professional privilege and the intermediary makes the report.
The legal obligation to file a partial report in cases of marketable arrangements still exists.
