Late Filing Under DAC8: Consequences and Remediation

Missing a DAC8 filing deadline creates immediate compliance exposure. This article examines the consequences of late filing and the steps CASPs should take to remediate.

Consequences of Late Filing

Late filing can trigger automatic penalties calculated per day of delay, increased scrutiny of the CASP's overall compliance posture, potential suspension of the CASP's MiCA authorization in severe cases, reputational damage if the tax authority publishes non-compliance information, and additional penalties if the late filing also contains errors or omissions.

Causes of Late Filing

Common causes include insufficient preparation time for the first reporting period, technical failures in XML generation or submission systems, data quality issues that prevent report generation, resource constraints during the reporting season, and underestimation of the look-back process complexity for existing users.

Remediation Steps

If a CASP misses a filing deadline, it should submit the report as soon as possible to minimize per-day penalties, notify the tax authority proactively to demonstrate good faith, document the reasons for the delay and the steps taken to prevent recurrence, conduct a root cause analysis to identify systemic issues, and implement corrective measures to ensure timely filing in subsequent periods.

Prevention Strategies

CASPs should build a compliance calendar with internal deadlines well ahead of the official filing date, conduct dry runs of the report generation process months before the actual deadline, maintain backup systems and processes for report submission, and allocate dedicated resources for the annual reporting cycle.

Conclusion

Late filing is avoidable with proper planning and preparation. CASPs that invest in robust processes and early testing will avoid the financial and reputational consequences of missing DAC8 deadlines.