Due to the COVID-19 pandemic, on 8 May 2020, the European Commission published a proposal for a Council Directive amending Directive 2011/16/EU on administrative cooperation in the field of taxation (DAC). The proposed Directive sets out deferrals of the reporting and exchanging of information deadlines for financial account information under DAC2 (EU Common Reporting Standard, CRS) and for mandatory disclosure rules under DAC6 (EU MDR).
The proposed deferrals merely extend the deadline for complying with DAC2 and DAC6 obligations while ensuring that no reportable information remains without eventually being exchanged. Taxpayers and intermediaries operating in the EU need to understand the importance and impact of DAC6. Impact assessment, analysis and timely action are needed to ensure compliance on and after 1 July 2020.