On 25 May 2018, the Economic and Financial Affairs Council
(ECOFIN) formally adopted the Council Directive amending Directive
2011/16/EU on administrative cooperation in the field of taxation
as regards mandatory automatic exchange of information in the field
of taxation in relation to reportable cross-border arrangements in
order to disclose potentially aggressive tax planning arrangements
(also commonly referred to as DAC6).
The main purpose of DAC6 is to strengthen tax transparency and
fight against aggressive tax planning. The term aggressive tax
planning is undefined, however, and instead, reference is made to a
number of pre-determined hallmarks, which are features that could
render a cross-border arrangement reportable under this Directive.
DAC6 provides for mandatory disclosure of cross-border arrangements
by intermediaries, or individual or corporate taxpayers, to the tax
authorities and mandates automatic exchange of this information
among Member States.
