EU Mandatory Disclosure Regime

Overview

The Council Directive 2011/16/EU (DAC) provides for the exchange of taxpayer information between the tax administrations of EU Member States. The DAC was amended by Council Directive (EU) 2018/822 (DAC6) to introduce a mandatory disclosure regime for certain cross-border transactions.

The information obtained will enable Member States to react promptly against harmful tax practices by:

  • closing loopholes in legislation
  • undertaking risk assessments
  • carrying out compliance interventions.

The regime comprises two steps:

  1. Intermediaries and, in certain circumstances, taxpayers, provide information regarding reportable cross-border arrangements to the tax authorities of Member States. The EU Mandatory Disclosure Regime came into operation on 1 July 2020.
  2. Tax authorities exchange the information they receive with all other Member States.  

Next: Irish legislation and guidance on DAC6