SAN FRANCISCO, June 3, 2020 /PRNewswire/ -- LCN Legal has just released a new, free legal product built on no-code automation platform Documate, which helps ease the tax compliance burden for multinational groups and their advisers under the new 'DAC6' legislation, which is due to take effect from July 1, 2020.
The International Tax Enforcement (Disclosable Arrangements) Regulations 2020 No 25 – DAC6 as the rules are commonly known – are designed to enable European Union tax authorities to share information about cross-border tax arrangements. The rules as to which arrangements are reportable are complex and require consideration of multiple inter-relating conditions, for which the Documate platform was essential, given the complex logic and conditionality it allows lawyers to configure without using any code. Ongoing reporting must take place within 30 days of the relevant arrangements being made, or of 'aid, assistance or advice' being provided. Substantial fines and penalties apply for non-compliance.
"Although tax authorities worldwide are showing lenience during the coronavirus outbreak, they are quite rightly still insisting on full compliance. And clearly they will be seeking to maximize tax revenues on an ongoing basis, in order to recoup the huge investment made in supporting the local economies," explained Paul Sutton, LCN Legal co-founder. "The new DAC6 reporting regime is designed to give tax administrations advance warning of cross-border 'arrangements' made by multinational groups. Although the aims of achieving tax transparency are laudable, the reality is that these regulations present a significant compliance burden for businesses and their advisers at a time when many are trying to recover from the impact of the virus containment measures."
The LCN Legal self-assessment tool built on Documate is an online questionnaire that collects the relevant information regarding the 'main benefit' test and the applicable 'hallmarks' and applies the logic regarding the inter-relationship of the hallmarks and the main benefit test as prescribed by DAC6. The output is a Word document that contains a log of the responses made as well as an executive summary of preliminary conclusions on reportability in the form of a 'traffic light' report. The new tool is available on the LCN Legal website.
Paul Sutton, LCN Legal co-founder, commented further: "The aim is for this to remain a free resource which makes a significant contribution to reducing the compliance burden for international business. By engaging with the tax and legal community and refining the tool further with their feedback, we can continue to harness the know-how of leading experts and reduce the costs and risks of cross-border trade which is essential for the recovery of the global economy."
Documate's founder, Dorna Moini, is pleased that LCN Legal was able to create such a valuable resource. Another client, Colorado Name Change, which was created using Documate's software, is helping people change their names in Colorado. Clients can use the Colorado Name Change website to follow a guided online interview form that automatically fills out all the needed forms for a name change. The company will then generate the completed legal documents. The site also walks clients through the process of filing with the court and completing the case. This tool is also free during the beta testing phase.
Documate fills the need for more streamlined workflow processes in law firms and other businesses. Its modern and intuitive platform increases productivity by saving approximately 70-80 percent of the time it typically takes to generate and revise documents manually.
For more information about the company and the services it provides to the legal field and other businesses, visit Documate.org or view their videos at help.Documate.org.
Documate turns template documents and forms into powerful workflows that can be used for internal document generation or to create collaborative legal applications for clients and the public with no code. For more information, visit Documate.org.
About LCN Legal
LCN Legal was founded by Paul and Xiaofang Sutton. With offices in the UK and China, the firm specializes in helping multinational groups and their tax advisers. Together with their team, they are passionate about using their real-world experience of commercial structures that work, and their awareness of the transfer pricing environment, to help clients create solid legal foundations for their businesses and their projects. For more information, visit LCNLegal.com.