- On 13 September 2023, the French tax authorities (FTA) updated their DAC 6 administrative guidelines to clarify hallmark D.1.b., which is one of the specific hallmarks regarding the automatic exchange of information and beneficial ownership.
- The EU DAC 6 directive was implemented into French law at the end of 2019, and the FTA published guidelines on the scope and rules of application of France’s DAC 6 rules and hallmarks in 2020.
- Hallmark D.1.b. refers to the transfer of financial accounts or assets to, or the use of, financial institutions in jurisdictions not bound by the automatic exchange of financial account information with the state of residence of the relevant taxpayer.
- The FTA amended an example illustrating the absence of a reportable arrangement within this hallmark, stating that it is not reportable if it does not involve the transfer of an account, a financial asset, or a payment that is part of a reportable cross-border arrangement known by the financial institution.
- The FTA also noted that such an arrangement may involve an intermediary unbeknownst to the financial institution, in which case the reporting obligations fall on the intermediary or the relevant taxpayer if the intermediary is exempt from reporting.
- However, disclosure under DAC 6 does not exempt the account holder or financial institution from their obligations under DAC 2, CRS, or anti-money laundering measures.
Source Deloitte
