Cross-border structuring

The first step is being taken of a European directory aimed at improving international taxation reconciliation and deterring tax avoidance, by rendering it obligatory for financial advisers such as tax consultants and accountants with effect from the first of July 2020 to notify the Tax and Customs Administration domestically of any instances of cross-border structuring aimed at tax avoidance they may come across in the line of duty. The regulations are to provide for the reporting duty applying to incidents of cross-border structuring from the 25th of June 2018 onwards. The deadline for relaying the information relating to the period from the 25th of June 2018 to the first of July 2020 to the Tax and Customs Administration has been fixed – quite generously – for the 31st of August 2020.

The initial information exchange between the Member States has been scheduled for October 2020. In addition to enhanced reconciliation being seen as an initial step in preventing abuse, it is expected that the measure will act as a deterrent.

Work is currently under way aimed at preparing the regulatory framework, in compliance – it goes without saying – with EU directives. A consultation round is scheduled for the autumn. As always, we will keep you posted on future developments.

Dutch version: Grensoverschrijdende constructies