Summary:
- The European Commission has proposed a recast of the Directive on Administrative Cooperation (DAC), aiming to consolidate and simplify the existing framework of EU tax transparency and reporting rules into a single legal instrument. This reform is part of a broader EU tax simplification package designed to reduce administrative burdens while maintaining strong anti-fraud safeguards.
- The proposal streamlines multiple existing DAC amendments (DAC1–DAC9) and seeks to improve the efficiency of information exchange between EU tax authorities. It also reduces or removes certain reporting obligations—particularly where data is considered duplicative or of limited value—such as specific cross-border arrangements and corporate reporting requirements already covered under other regimes like Pillar Two.
- Overall, the reform signals a shift toward a more proportionate and business-friendly compliance environment within the EU. While it is still in the proposal stage and requires agreement from Member States, it indicates a continued trend toward tax digitalisation, simplification, and data-driven enforcement across the EU.
Source: Innovate Tax
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