The situation
A planned restructuring, step by step
A Polish software group in Gdańsk is restructuring before a sale. It will move its IP from the Polish parent to a new subsidiary in Ireland and buy a loss-making Czech company to absorb one business line. The advisors say part of the plan is reportable. Group tax wants its own hallmark review, step by step, before the first reporting deadline runs.
DAC6 asks which hallmarks each step meets, whether the main benefit test applies, who must report and when. The Polish rules add their own layer. The hours go on mapping four steps against both sets of hallmarks and writing a record that stands up if the authority asks later.
What the research has to settle
The rules behind the answer
- Some hallmarks need the main benefit test
- DAC6 sets out hallmarks in five categories. Those in categories A and B, and some in C, count only if a tax advantage is the main benefit or one of the main benefits. Others, such as the transfer-pricing hallmarks in category E, apply without it.
- Two hallmarks to test here
- Acquiring a loss-making company, discontinuing its main activity and using its losses is a category B hallmark, so whether the Czech business continues matters. Transferring hard-to-value intangibles between associated enterprises is a category E hallmark.
- Who reports, and when
- Intermediaries report first; the relevant taxpayer reports where no intermediary does or the intermediary is exempt. The Directive sets a 30-day period. In Orde van Vlaamse Balies (C-694/20) the Court of Justice held that lawyers bound by privilege cannot be required to notify other intermediaries.
- Poland goes further
- Polish law implementing DAC6 also covers certain domestic arrangements and adds national hallmarks. The review should test each step against the Polish rules as well as the Directive.
How it runs in azta
From the question to the document
The question, as you would type it
Polish parent transfers software IP to a new Irish subsidiary and acquires a loss-making Czech company whose business line will continue under new ownership. Which DAC6 hallmarks and Polish MDR hallmarks does each step meet, does the main benefit test apply, and who reports?
You start with
A planned restructuring, step by step
- 01
Upload the step plan
Add the advisors’ step plan and the valuation summary. azta reads them and refers back to the step it relied on.
File upload· Pro - 02
Test each step
Ask which hallmarks each step meets under the Directive and under Polish law, and where the main benefit test applies. azta cites each hallmark.
Cited research· Free - 03
Write the review
Ask for a matrix of steps against hallmarks, with the reasoning, the reporting party and the deadline. Edit it in Canvas.
Canvas · Ask azta· Pro You send
A hallmark review recording which steps are reportable, by whom and when
What you get
A hallmark review recording which steps are reportable, by whom and when
Hallmark review · draft
Restructuring before sale: DAC6 and Polish reporting review
Step 1, IP transfer to Ireland. The software IP is likely to be a hard-to-value intangible. The transfer between associated enterprises therefore meets a category E hallmark, which applies without the main benefit test. The step is reportable.
Step 2, acquisition of the Czech company. The company is loss-making, but its business line continues. The category B hallmark on loss-making companies requires the main activity to be discontinued, so it is not met on the current plan. We will review this if the plan changes.
Reporting. The advisors are bound by legal privilege and have informed the group in writing. The reporting duty for Step 1 therefore passes to the Polish parent. Polish rules on timing and content are set out in Section 4.
Outcomes on your numbers
What azta is worth on this task
Pro pays for itself after
13 minutes a month
At €130 an hour, that is all the time Pro (€27 a month) has to take off your desk to cover its price.
Example figures. Replace them with your own.
- Hours back a year
- 25
- Capacity at your rate
- €3,276
- More hallmark reviews a quarter
- 0.7
- Return on Pro
- 10.1×
- Research
- Drafting
- Your review
A scenario you set, not a promise. The hours that come back go to another client, or deeper into this one.
Want these numbers on your team’s real workload?
Book a demoWhat stays with you
- The facts of each step and any change to the plan.
- The conclusion on each hallmark and the decision to report.
- The report itself and its filing.
Frequently asked questions
- Does azta file the DAC6 report?
- No. It researches the hallmarks and drafts the review. Filing stays with you or the intermediary.
- Does it hold Polish guidance on MDR?
- It holds Polish legislation and court decisions. It does not hold every authority’s guidance, so check any explanatory material you rely on yourself.
- Can the advisors and group tax work on the same file?
- On Enterprise, shared workspaces keep the step plan, the research and the review together, with access by membership.
