The primary objective of this Directive is to ensure that Member States obtain information on “potentially aggressive” cross-border tax arrangements, i.e. arrangements that are in place in different jurisdictions that allow the transfer of taxable profits to more favourable tax regimes or that have the effect of reducing the taxpayer's overall tax bill.

Consequently, from 1 January 2021, any intermediary[1] will be obliged to notify, by means of reporting, within 30 days from the initial stages of the implementation of the structure, any potentially aggressive cross-border arrangements, depending on the identified hallmark[2].

The Directive applies to any arrangement implemented after 25 June 2018, the date of entry into force of the Directive.

The life insurance contract, as such, is not seen as a potentially aggressive cross-border arrangement.

Therefore, it will not be automatically subject to a reporting, but it may be if it fits into a particular scheme that meets any hallmark of the Directive.

Any intermediary is required to carry out its own assessment according to the legislation of its country of establishment,  to proceed with the reporting of the cross-border arrangement considered as potentially aggressive and to inform all others parties about the operation (including the Insurance Company).

[1] Any person who designs, markets or organises, makes available for implementation or manages the implementation of a reportable cross-border arrangement (Article 3(21)).

[2] Characteristic or feature of a cross-border arrangement that presents an indication a potential risk of tax evasion, [...] (Article 3(20)).