DAC6

Overview

Council Directive 2011/16/EU (DAC) is often referred to as the DAC. The DAC provides for the exchange of taxpayer information between the tax administrations of EU Member States. In 2018 the DAC was amended by Council Directive (EU) 2018/822 (DAC6).

DAC6 introduced a mandatory disclosure regime for certain cross-border tax arrangements. The EU Mandatory Disclosure Regime came into operation on 1 July 2020.

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

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

The regime comprises two steps whereby:

• intermediaries and, taxpayers, provide information regarding reportable cross-border arrangements to the tax authorities of Member States
• and
• tax authorities exchange the information they receive with other Member States.

Irish legislation and guidance on DAC6

DAC6 was transposed into Irish law by:

• Chapter 3A, Part 33, Taxes Consolidation Act 1997, which was introduced by section 67 of Finance Act 2019
• and
• S.I. No. 629/2019, the European Union (Administrative Cooperation in the Field of Taxation) (Amendment) Regulations 2019.

For more information on DAC6, please see Tax and Duty Manual Part 33-03-03.

Next: What is reportable under the EU Mandatory Disclosure Regime