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The Directives on Administrative Cooperation (DACs)
The Directives on Administrative Cooperation (DACs) are a set of European Union (EU) legislative measures which have been designed to facilitate the cooperation between EU member states with regards to the field of taxation. CSB Group, one of Malta’s leading corporate service providers, can assist businesses to ensure compliance whilst navigating the challenges of cross-border taxation within the global tax environment.
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The DACs were first introduced in 2011 with Directive 2011/16/EU, known as DAC 1. The aim of this directive was to improve the process regarding the exchange of information among different EU member states to combat potential tax evasion and avoidance. Since DAC 1, multiple additional directives have been introduced to address the tax challenges which the EU with their primary goal aimed at enhancing transparency and cooperation between member jurisdictions.
Key Directives​
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DAC 1: Established the framework for administrative cooperation and the exchange of information upon request and is the fundamental core for the DAC’s transposed further to its inception.
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DAC 2: Extended the scope of DAC 1 by implementing the OECD's concept regarding “Common Reporting Standard”.
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DAC 3: Introduced the mandatory exchange of information on tax rulings and, for clients in scope of transfer pricing, advance pricing arrangements.
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DAC 4: Introduced Country-by-Country Reporting for multinational enterprises which requires MNE’s to provide a breakdown of their revenue, profits, taxes paid, and other financial information for each country in which they operate
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DAC 5: Granted tax authorities access to anti-money laundering information assisting and strengthening the efforts of the EU to combat tax evasion and financial crimes.
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DAC 6: Introduced mandatory disclosure rules for cross-border arrangements that meet certain hallmarks, as stipulated by the Directive, which may be indicative of aggressive tax planning. Authorised tax advisors, intermediaries, and respective taxpayers may have the obligation to report certain arrangements which fall within the scope of this Directive.
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DAC 7: represents a crucial step in the EU's efforts to adapt its tax framework to the realities of the digital economy whereby the scope of DAC was extended to include digital platform operators, requiring them to report income earned by sellers on their platforms.
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DAC 8: DAC 8 is expected to further extend the scope of reporting, possibly including cryptocurrency transactions and other emerging financial technologies.
Navigating the complexities of DAC compliance can be challenging for businesses. Contact us today to meet our expert team who offers tailored solutions and comprehensive support to ensure full compliance with these Directives.
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With over 37 years of experience in commercial services, CSB Group has evolved from its 1987 beginnings in Recruitment and Debt Collection, founded by Chairman Tony Zammit, into a leading Corporate Service Provider.
Now led by Group CEO Michael J. Zammit, CSB Group boasts a global network of international partners and a diverse client portfolio, including entrepreneurs, multinationals, and high-net-worth individuals. With a team of over 100 professionals, the Group’s success is rooted in trust, professionalism, and passion.
