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

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 2 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...

Directive for administrative cooperation in the field of taxation (DAC)—FAQs

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 on automatic exchange of advance cross-border tax rulings (ATR) and advance pricing agreements (APA)

  3. DAC 4: Directive 2016/881/EU on automatic exchange of Country-by-Country reports (CbCR)

  4. DAC 5: Directive 2016/2258/EU as regards access to AML information by tax authorities, and

  5. DAC 6: Directive 2018/822/EU on automatic exchange of information in relation to reportable cross-border arrangements

DAC

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