Estonia has published the Law of 18 December 2019 on amendments to the Tax Information Exchange Act in the Official Gazette, which provides for the implementation of Council Directive (EU) 2018/822 of 25 May 2018 (DAC6) on reportable cross-border tax planning arrangements. This includes measures to require the reporting of cross-border tax planning arrangements and the automatic and mandatory exchange of information reported with other EU Member States. The reporting requirement primarily applies to intermediaries that design, market, organize, or manage the implementation of a reportable arrangement that includes prescribed hallmarks. The requirement may also be shifted to a taxpayer in some cases, including where reporting by an intermediary would constitute a violation of the obligation of professional secrecy.
The law entered into force on 1 January 2020 and the requirements will apply from 1 July 2020, with information on reportable arrangements to be submitted to the tax authority within 30 days from the date the arrangement is made available for implementation, the arrangement is ready for implementation, or the first step of the arrangement is implemented. Information on reportable arrangements implemented between 25 June 2018 and 30 June 2020 must also be submitted to the tax authority by 31 August 2020. Penalties for failing to comply with the requirements may be imposed, although specific penalty amounts are not specified in the Law.
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