Reporting cross-border constructions

Are you a financial service provider? And have you noticed that a company is using tax rules from different countries to pay less tax? And are people from different countries involved? This is a cross-border construction.

You have to report cross-border constructions which may be used to avoid taxes to the Netherlands Tax Administration (Belastingdienst). These rules are set out in the European Mandatory Disclosure Rules (MDR)/DAC6.

Which cross-border constructions to report?

You must report tax constructions in which for instance:

• residents of different EU countries, or of an EU country and a third country are involved
• the tax construction might be used to evade taxes

You can find the hallmarks for constructions you should notify in Annex IV of the EU regulation or on the website of the Tax Administration (in Dutch).

Constructions you have to report deal, among others, with:

• corporate income tax
• income tax
• wage tax (payroll tax)
• dividend tax
• inheritance tax and taxes on gifts
• most other taxes

Who should report?

The duty to report applies to all taxpayers (entrepreneurs) for whom a notifiable construction is set up. The duty to report also applies to all intermediaries such as:

• tax consultants
• lawyers
• accountants
• notaries
• financial advisers
• banks
• trust offices (that manage companies)

Where and when to report?

You have to report notifiable cross border constructions within 30 days to the Tax Administration. You should use the Report Cross Border Arrangements (CBA) form in the Portal Mandatory Disclosure / DAC6.