SAFE – Securing the Activity Framework of Enablers

SAFE (Securing the Activity Framework of Enablers) is a directive framework proposed by the European Commission in December 2023, aimed at holding enablers – intermediaries such as tax advisors, lawyers, accountants, banks and other service providers – liable for assisting in aggressive tax planning or tax evasion by EU taxpayers.

• Target group: Third-country-based enablers (non-EU intermediaries) assisting EU taxpayers in tax avoidance
• Measures: Sanctions, due diligence obligations, registration requirements for third-country enablers
• Distinction from DAC6: DAC6 covers EU intermediaries; SAFE targets third-country enablers without EU presence
• Status: Proposal; parliamentary and Council deliberations ongoing

SAFE emerged in response to the recognition that existing EU measures against aggressive tax planning – in particular the DAC6 reporting obligations for intermediaries and the ATAD rules – have a gap: they only cover intermediaries with an EU nexus. Non-EU intermediaries assisting EU taxpayers in minimising their tax burden fall outside the scope.

The announcement was made as part of the EU Tax Transparency Package 2023. The formal directive proposal (COM(2023) 886) was published on 12 December 2023. SAFE complements DAC6 and DAC7 within the broader EU fight against tax avoidance and is part of the work programme of the new Commission under President von der Leyen II.

Unlike DAC6, SAFE targets primarily:

• Third-country-based enablers (intermediaries without EU seat or establishment) designing or implementing arrangements for EU taxpayers
• Arrangements leading to aggressive tax planning or tax evasion by EU taxpayers

Measures against EU-resident enablers operating through third-country structures are also under discussion. The precise delimitation is subject to ongoing Council deliberations.

• Due diligence obligations for third-country enablers in respect of EU taxpayer clients
• Registration obligation or appointment of an EU representative for third-country enablers exceeding activity thresholds
• Sanctions: civil liability, financial penalties, possible market exclusions (e.g. ban from EU public procurement)
• Cooperation with EU tax authorities (automatic exchange of information)
• Prohibited list of certain arrangement types (analogous to DAC6 hallmarks)

2 corrections:
- Scope mentions trilogue negotiations but SAFE follows the special legislative procedure
- Official URL returns 404 error
1 update:
- Legislative procedure status and progress potentially outdated
3 clarifications.
1 note.