On 24 June 2026, the European Commission's Directorate-General for Taxation and Customs Union (TAXUD) published an impact assessment report supporting a proposal for a Council Directive to recast the rules on administrative cooperation in taxation (DAC). The report, SWD(2026)165, examines the political and legal context, identifies problems with the current framework, and evaluates policy options to improve tax reporting and information exchange across member states.
The impact assessment accompanies a legislative proposal that aims to streamline tax reporting obligations, enhance data completeness and verification, and maintain effective compliance mechanisms. The preferred policy package seeks to balance simplification for taxpayers and tax administrations with robust oversight. The report details monitoring and evaluation plans for the implemented measures.
The document notes that without EU intervention, problems such as fragmented reporting requirements, data gaps, and inefficient information exchange would persist, undermining the fight against tax evasion and avoidance. The Commission assessed several policy options, ranging from minimal changes to a comprehensive overhaul, ultimately favouring a package that reduces administrative burden while improving data quality.
For EU tax administrations, the recast is expected to improve the timeliness and accuracy of tax data, enabling better risk assessment and cross-border enforcement. Businesses, particularly multinational groups, may face initial compliance costs to adapt to new reporting formats but could benefit from streamlined obligations and reduced duplication. Taxpayers generally stand to gain from a more level playing field and reduced tax evasion, though some may face increased scrutiny. EU institutions will need to monitor implementation and ensure consistent application across member states.
The proposal now passes to the Council of the European Union, which must adopt the directive unanimously. The European Parliament will be consulted. The impact assessment provides the analytical basis for negotiations, with member states expected to scrutinise the costs and benefits for their national administrations and businesses.