Directive for administrative cooperation in the field of taxation (DAC)—FAQs
Produced in partnership with Ali Kazimi and Chris Orchard of Hansuke Consulting Limited
Directive for administrative cooperation in the field of taxation (DAC)—FAQs

The following Tax guidance note Produced in partnership with Ali Kazimi and Chris Orchard of Hansuke Consulting Limited provides comprehensive and up to date legal information covering:

  • Directive for administrative cooperation in the field of taxation (DAC)—FAQs
  • What is the directive for administrative cooperation(DAC)?
  • Does DAC cover any additional countries beyond those in the EU?
  • How does DAC impact on CRS?
  • Does the DAC have any practical impact on FIs in the UK?
  • Does the DAC differ from CRS?
  • Is there any difference to the due diligence and reporting deadlines in the UK between the CRS and DAC?
  • What is the impact of DAC on the EU Savings Directive (EUSD) return?

Brexit: As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this Practice Note. For further guidance, see Practice Note: Brexit—UK tax consequences.

What is the directive for administrative cooperation(DAC)?

In 2011, the European Council, comprising of the heads of state or government of all EU countries, the European Council President, and the European Commission President, adopted Directive 2011/16/EU on administrative cooperation (DAC). The DAC provides for spontaneous, automatic and ‘on request’ exchange of information. It establishes mechanisms for the participation of Member States’ authorities in administrative enquiries, and simultaneous controls and mutual notifications of tax decisions. It also provides for the necessary practical tools, such as a secure electronic system for information exchange.

The DAC has been amended several times incorporating further obligations on Member States through the broadening of the scope of information to be reported. Each of the amending directives is colloquially referred to by a number, ie the first directive to amend the DAC is called DAC 2, and so on. The amendments are as follows:

  1. DAC 2: Directive 2014/107/EU on automatic exchange of financial accounts information

  2. DAC 3: Directive 2015/2376/EU