On 31 October 2019, the Finnish Government has submitted a legislative proposal implementing the EU directive on the mandatory disclosure and exchange of cross-border tax arrangements, also known as DAC 6, to the Parliament. Under DAC6, taxpayers and intermediaries are required to report cross-border reportable arrangements from 1 July 2020.
The Finnish Ministry of Finance on 19 June 2019 published a draft government bill for consultation. Under the Directive, reporting starts from 1 July 2020 and exchanges between jurisdictions from 31 October 2020. However, reports will retroactively cover arrangements where the first step is implemented between 25 June 2018 and 1 July 2020.
If an intermediary or relevant taxpayer fails to meet the reporting obligations a penalty can be imposed depending the characteristics of the violation and from up to EUR 2,000 to up to EUR 15,000.
