Hallmarks

Hallmark A1 – An arrangement where the relevant taxpayer or a participant in the arrangement
undertakes to comply with a condition of confidentiality which may require them not to
disclose how the arrangement could secure a tax advantage vis-à-vis other intermediaries or
the tax authorities;

Hallmark A2a – An arrangement where the intermediary is entitled to receive a fee (or interest,
remuneration for finance costs and other charges) for the arrangement and that fee is fixed by
reference to the amount of the tax advantage derived from the arrangement;

Hallmark A2b – An arrangement where the intermediary is entitled to receive a fee (or interest,
remuneration for finance costs and other charges) for the arrangement and that fee is fixed by
reference to whether or not a tax advantage is actually derived from the arrangement. This
would include an obligation on the intermediary to partially or fully refund the fees where the
intended tax advantage derived from the arrangement was not partially or fully achieved;

Hallmark A3 – An arrangement that has substantially standardised documentation and/or structure
and is available to more than one relevant taxpayer without a need to be substantially
customised for implementation;

Hallmark B1 – An arrangement whereby a participant in the arrangement takes contrived steps
which consist in acquiring a loss-making company, discontinuing the main activity of such
company and using its losses in order to reduce its tax liability, including through a transfer of
those losses to another jurisdiction or by the acceleration of the use of those losses;

Hallmark B2 – An arrangement that has the effect of converting income into capital, gifts or other
categories of revenue which are taxed at a lower level or exempt from tax;

Hallmark B3 – An arrangement which includes circular transactions resulting in the round-tripping
of funds, namely through involving interposed entities without other primary commercial
function or transactions that offset or cancel each other or that have other similar features;

Hallmark C1a – An arrangement that involves deductible cross-border payments made between
two or more associated enterprises where the recipient is not resident for tax purposes in any
tax jurisdiction;

Hallmark C1bi – An arrangement that involves deductible cross-border payments made between
two or more associated enterprises where although the recipient is resident for tax purposes in
a jurisdiction, that jurisdiction does not impose any corporate tax or imposes corporate tax at
the rate of zero or almost zero;

Hallmark C1bii – An arrangement that involves deductible cross-border payments made between
two or more associated enterprises where although the recipient is resident for tax purposes in
a jurisdiction, that jurisdiction is included in a list of third-country jurisdictions which have
been assessed by Member States collectively or within the framework of the OECD as being
non-cooperative;

Hallmark C1c – An arrangement that involves deductible cross-border payments made between
two or more associated enterprises where the payment benefits from a full exemption from tax
in the jurisdiction where the recipient is resident for tax purposes;

Hallmark C1d – An arrangement that involves deductible cross-border payments made between
two or more associated enterprises where the payment benefits from a preferential tax regime
in the jurisdiction where the recipient is resident for tax purposes;

Hallmark C2 – Deductions for the same depreciation on the asset are claimed in more than one
jurisdiction;

Hallmark C3 – Relief from double taxation in respect of the same item of income or capital is
claimed in more than one jurisdiction;

Hallmark C4 – There is an arrangement that includes transfers of assets and where there is a
material difference in the amount being treated as payable in consideration for the assets in
those jurisdictions involved;

Hallmark D1a – An arrangement which may have the effect of undermining the reporting
obligation under the laws implementing Union legislation or any equivalent agreements on the
automatic exchange of Financial Account information, including agreements with third
countries, or which takes advantage of the absence of such legislation or agreements. Such
arrangements include the use of an account, product or investment that is not, or purports not
to be, a Financial Account, but has features that are substantially similar to those of a Financial
Account;

Hallmark D1b – An arrangement which may have the effect of undermining the reporting
obligation under the laws implementing Union legislation or any equivalent agreements on the
automatic exchange of Financial Account information, including agreements with third
countries, or which takes advantage of the absence of such legislation or agreements. Such
arrangements include the transfer of Financial Accounts or assets to, or the use of jurisdictions
that are not bound by the automatic exchange of Financial Account information with the State
of residence of the relevant taxpayer;

Hallmark D1c – An arrangement which may have the effect of undermining the reporting
obligation under the laws implementing Union legislation or any equivalent agreements on the
automatic exchange of Financial Account information, including agreements with third countries,
or which takes advantage of the absence of such legislation or agreements. Such arrangements
include the reclassification of income and capital into products or payments that are not subject
to the automatic exchange of Financial Account information;

Hallmark D1d – An arrangement which may have the effect of undermining the reporting
obligation under the laws implementing Union legislation or any equivalent agreements on the
automatic exchange of Financial Account information, including agreements with third
countries, or which takes advantage of the absence of such legislation or agreements. Such
arrangements include the transfer or conversion of a Financial Institution or a Financial
Account or the assets therein into a Financial Institution or a Financial Account or assets not
subject to reporting under the automatic exchange of Financial Account information;

Hallmark D1e – An arrangement which may have the effect of undermining the reporting
obligation under the laws implementing Union legislation or any equivalent agreements on the
automatic exchange of Financial Account information, including agreements with third
countries, or which takes advantage of the absence of such legislation or agreements. Such
arrangements include the use of legal entities, arrangements or structures that eliminate or
purport to eliminate reporting of one or more Account Holders or Controlling Persons under
the automatic exchange of Financial Account information;

Hallmark D1f – An arrangement which may have the effect of undermining the reporting obligation
under the laws implementing Union legislation or any equivalent agreements on the automatic
exchange of Financial Account information, including agreements with third countries, or
which takes advantage of the absence of such legislation or agreements. Such arrangements
include arrangements that undermine, or exploit weaknesses in, the due diligence procedures
used by Financial Institutions to comply with their obligations to report Financial Account
information, including the use of jurisdictions with inadequate or weak regimes of enforcement
of anti-money-laundering legislation or with weak transparency requirements for legal persons
or legal arrangements;

Hallmark D1Other – Specific hallmarks concerning automatic exchange of information and
beneficial ownership not being explicitly listed in the list of hallmarks D. The list of hallmarks
under D1 is not exhaustive. Therefore, it might be possible to select this item if none of the
specific choices under D1 applies;

Hallmark D2: Covers Hallmarks D2a, D2b and D2c.
Hallmark D2a – An arrangement involving a non-transparent legal or beneficial ownership chain
with the use of persons, legal arrangements or structures that do not carry on a
substantive economic activity supported by adequate staff, equipment, assets and
premises;
Hallmark D2b – An arrangement involving a non-transparent legal or beneficial ownership chain
with the use of persons, legal arrangements or structures that are incorporated,
managed, resident, controlled or established in any jurisdiction other than the
jurisdiction of residence of one or more of the beneficial owners of the assets held by
such persons, legal arrangements or structures;
Hallmark D2c– An arrangement involving a non-transparent legal or beneficial ownership chain
with the use of persons, legal arrangements or structures where the beneficial owners
of such persons, legal arrangements or structures, as defined in Directive (EU)
2015/849, are made unidentifiable.

Hallmark E1 – An arrangement which involves the use of unilateral safe harbour rules;

Hallmark E2: Covers Hallmarks E2a and E2b.
Hallmark E2a – An arrangement involving the transfer of hard-to-value intangibles. The term
“hard-to-value intangibles” covers intangibles or rights in intangibles for which, at the
time of their transfer between associated enterprises no reliable comparable exist;
Hallmark E2b – An arrangement involving the transfer of hard-to-value intangibles. The term
“hard-to-value intangibles” covers intangibles or rights in intangibles for which, at the
time of their transfer between associated enterprises at the time the transaction was
entered into, the projections of future cash flows or income expected to be derived from
the transferred intangible, or the assumptions used in valuing the intangible are highly
uncertain, making it difficult to predict the level of ultimate success of the intangible
at the time of the transfer.

Hallmark E3 – An arrangement involving an intragroup cross-border transfer of functions and/or
risks and/or assets, if the projected annual earnings before interest and taxes (EBIT), during the
three-year period after the transfer, of the transferor or transferors, are less than 50 % of the
projected annual EBIT of such transferor or transferors if the transfer had not been made.