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 practice 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)?
  • DAC 2—Financial account information
  • DAC 3—Advance cross-border tax rulings (ATRs) and advance pricing agreements (APAs)
  • DAC 4—Country-by-country reporting
  • DAC 5—Anti-money laundering information
  • DAC 6—Cross-border tax arrangements
  • 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?
  • More...

Coronavirus (COVID-19): The Council of the EU has adopted a Directive amending the DAC to allow Member States to defer by up to 6 months automatic exchange of financial account information under DAC 2 and reportable cross-border tax planning arrangements under DAC 6. The amending directive also gives the Council the power to extend the deferral period by a further 3 months.

HMRC has stated in its International Manual that if a person cannot make a report in relation to financial account information under DAC 2 due to difficulties arising from the coronavirus pandemic, HMRC will accept that the person has reasonable excuse and will not levy a penalty for the late reports, provided it is made without unreasonable delay after the difficulties are resolved. For details on how HMRC is approaching the deferral of implementation of DAC 6 see Practice Note: Disclosable cross-border tax arrangements—DAC 6.

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

Related documents:

Popular documents