Directive (EU) 2020/876 amending Directive 2011/16/EU to address the urgent need to defer certain time limits for the filing and exchange of information in the field of taxation because of the COVID-19 pandemic

Summary:

Directive (EU) 2020/876 - adopted by the Council of the European Union on 24 June 2020 - amending Directive 2011/16/EU to address challenges relating to the exchange of information in the field of taxation as a result of the COVID-19 (coronavirus) pandemic.

Further information:

Directive 2011/16/EU - also known as Directive on Administrative Cooperation (DAC) - lays down rules and procedures to be applied by EU national authorities when exchanging information on tax matters. Its latest amendment was introduced by Directive (EU) 2018/822 (DAC6).

In light of the impact of the pandemic, a number of EU Member States and persons liable to report information under that Directive requested the deferral of certain deadlines for the filing and exchanging of information. While the deferral became justified as a result of the disruption caused by the coronavirus outbreak, its length should not disrupt the established structure and functioning of the Directive.

The European Commission tabled the proposal amending the Directive to include the provisions for deferral on 8 May 2020. The European Parliament adopted its consultative position on 19 June. The Council of the European Union signed off the draft law on 24 June, which was published in the Official Journal on 26 June.

Official

EUR-Lex: COM(2020)197: Proposal for a Council Directive amending Directive 2011/16/EU to address the urgent need for deferring certain time limits for the filing and exchange of information in the field of taxation due to the COVID-19 pandemic https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2020:197:FIN

European Parliament: Legislative Observatory: Procedure File for Proposal on Taxation - administrative cooperation: deferral of certain deadlines for the filing and exchanging of information in the field of taxation due to the COVID-19 pandemic https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2020/0081(CNS)

European Commission: DG Taxation and Customs Union: Administrative cooperation in (direct) taxation in the EU https://ec.europa.eu/taxation_customs/business/tax-cooperation-control/administrative-cooperation/enhanced-administrative-cooperation-field-direct-taxation_en

European Commission: DG Taxation and Customs Unions: News, 08/05/2020: Taxation: Commission proposes postponement of taxation rules due to Coronavirus crisis https://ec.europa.eu/taxation_customs/news/taxation-commission-proposes-postponement-taxation-rules-due-coronavirus-crisis_en

Council of the European Union: Press Release, 24/06/2020: Taxation: Council agrees on the postponement of certain tax rules https://www.consilium.europa.eu/en/press/press-releases/2020/06/24/taxation-council-agrees-on-the-postponement-of-certain-tax-rules/

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Commentary and Analysis

PWC: Insight, 15/05/2020: European Commission proposes to defer DAC2/DAC6 deadlines https://www.pwc.com/us/en/tax-services/publications/insights/assets/pwc-european-commission-proposes-to-defer-dac2dac6-deadlines.pdf

White&Case: Alert, 22/05/2020: DAC6 reporting delay proposed by EU Commission due to COVID-19 https://www.whitecase.com/publications/alert/dac6-reporting-delay-proposed-eu-commission-due-covid-19

KPMG: Insight, 19/06/2020: DAC6 deferral and new tax committee https://home.kpmg/xx/en/home/insights/2020/06/etf-431-dac6-deferral-and-new-tax-committee.html

Eversheds Sutherland: Articles, 26/06/2020: Coronavirus – Confirmed postponement of DAC 6 reporting requirements – UK https://www.eversheds-sutherland.com/global/en/what/articles/index.page?ArticleID=en/coronavirus/Coronavirus-Confirmed-postponement-DAC6-UK_260620

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