Following the transposition of DAC6 into domestic legislation and the issuance of the related Guideline in the form of a Decree, on 19 November 2021 the Tax Department (TD) issued a Circular which sets out certain clarifications on the administrative fines imposed for non-compliance with the DAC6 reporting obligations.

Based on the law, administrative fines are imposed for the below infringements:

• Up to €20.000 for failure/delay to submit information for a Reportable Cross-border Arrangement (RCBA)
• Up to €20.000 for failure/delay to notify for the application of a waiver
• Up to €10.000 for submission of incomplete/misleading information
• Up to €10.000 for failure to submit information within the prescribed deadlines
• Increase up to €20.000 for failure to pay the administrative fine and continuation of the infringement.

The Circular provides for the below clarifications in relation to the aforementioned fines, subject to conditions:

• Annual cap of €120.000 per intermediary or taxpayer
• 50% reduction of administrative fines in certain cases
• Cases of incorrect law interpretation due to insufficient or late issuance of guidelines
• Minimum period for books and record keeping and imposition of administrative fines.

Furthermore, the Circular outlines the method of imposition of the administrative fines as well as the hierarchical appeal process.