The European Commission's Regulatory Scrutiny Board (RSB) has issued a 'positive with reservations' opinion on the draft impact assessment for the recast of the Directive on administrative cooperation in taxation (DAC), according to a document published on 24 June 2026. The Board acknowledges the proposal's objectives—improving business competitiveness, ensuring fair taxation, and fighting tax fraud and evasion—but requires the lead service, DG TAXUD, to address several shortcomings before proceeding with interservice consultation.
The RSB opinion, referenced as SEC(2026)186, identifies four main areas needing rectification. First, the impact assessment must provide greater specificity on measures concerning Tax Identification Numbers (TINs) and the automatic exchange of information. Second, the assumptions and evidence base underpinning the proposal need clearer justification. Third, a comprehensive analysis of the impact on data privacy and fundamental rights is required. Fourth, the Board stresses the need for coherence with other legislative measures and a robust monitoring and evaluation framework.
The DAC recast is part of the Commission's broader effort to modernise tax transparency and combat tax avoidance. The RSB's 'positive with reservations' opinion is a standard procedural step that allows the proposal to advance once the identified issues are resolved. DG TAXUD must now revise the impact assessment accordingly before the Commission can adopt the legislative proposal and launch the interservice consultation, which involves other Commission departments. The European Parliament and the Council will then examine the proposal under the ordinary legislative procedure.
The opinion highlights trade-offs between enhancing tax cooperation and protecting fundamental rights, particularly data privacy. Businesses may benefit from streamlined reporting and reduced compliance costs, but could face new obligations related to TINs and information exchange. National tax authorities stand to gain improved access to data for combating evasion, while taxpayers may see increased transparency but also heightened scrutiny. The RSB's insistence on a robust monitoring framework suggests that the Commission will need to demonstrate measurable outcomes from the recast, potentially delaying the legislative timeline.