Tag: DAC

The Directive 2011/16/EU (DAC) has been amended five times through the following amending Directives, most of which have broadened the scope of AEOI originally circumscribed to 5 categories of income and capital (income from employment, directors fees, life insurance products, pensions, ownership of and income from immovable property)
• 2014/107/EU (hereinafter “DAC2”) on automatic exchange of financial accounts information;
• 2015/2376/EU (hereinafter “DAC3”) on automatic exchange of advance cross-border tax rulings (ATR) and advance pricing agreements (APA);
• 2016/881/EU (hereinafter “DAC4”) on automatic exchange of CbC reports;
• 2016/2258/EU (hereinafter “DAC5”) as regards access to AML information by tax authorities;
• 2018/822/EU (hereinafter “DAC6”) on automatic exchange of information in relation to reportable cross-border arrangements.

EU Transparency on Income Allocation and Tax Arrangements - DAC 1 to 6

EU Transparency on Income Allocation and Tax Arrangements – DAC 1 to 6

Tax authorities in the EU have agreed to cooperate more closely and exchange information so as to be able to apply their taxes correctly and combat tax fraud and tax evasion. Exchange of Information within the EU is based on Council Directive 2011/16/EU. The Directive and the later amendments in DAC 2 – 6 provides for exchange of information in three forms: spontaneous, automatic and on request. Spontaneous exchange of information takes place if a country discovers information on possible tax evasion relevant to another country, which is either the country of the income source or the country of residence. Exchange of information on request is used when additional information for tax purposes is needed from another country. Automatic exchange of information (AEOI) is activated in a cross-border situation, where a taxpayer is active in another country than the country of residence. In such cases tax administrations provide automatically tax information to the residence country of the taxpayer, in electronic form on a periodic basis ... Read more