DAC7 And The Apple Effect: EU Is About To Launch/upgrade (Yet) Another Time The DAC Framework

During mid-July 2020 and upon the near 10-year anniversary since the adoption of Directive 2011/16/EU on administrative cooperation in the field of taxation ("DAC"), the European Commission unveiled a directive proposal amending DAC (for the sixth time) with the upcoming 'upgraded' model, (hence the DAC7 moniker).

For anyone who is not familiar with the evolution of the DAC initiative, in the early 1980s there was an impetus for moving towards automatic exchange of information between tax authorities to compact fraud in the field of direct taxation—an area within the competence of Member States. As such, during 1977, Directive 77/799/EEC on Administrative Cooperation in Tax Matters came into force, providing for exchange of information on request/spontaneously, and for automatic exchange.