Council Formally Adopts the Mandatory Disclosure Rules Directive (DAC6)

At the ECOFIN meeting on 25 May 2018, the Council of the EU formally adopted the Council Directive amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation the reportable cross-border arrangements. Political agreement was reached at the 13 March ECOFIN Council meeting on the directive, and since then a legal-linguistic revision took place before the document was ready for sign-off.

Member States will have until 31 December 2019 to implement the directive into national legislation, and disclosure requirements will apply from 1 July 2020. Intermediaries who design and/or promote reportable tax planning schemes will be required to disclose them to their national tax administrations, who will then automatically exchange the information with other Member States through a centralised database. Penalties will be imposed on intermediaries who do not comply with the new reporting measures. The initial automatic exchange of information between member states should take place on 31 October 2020.

The Directive shall enter into force 20 days following publication in the Official Journal of the European Union, which is expected in early June.

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