European Council extends cooperation initiatives on crypto-assets and wealthy individuals in taxation, relevant to MiCA and DAC8
On 16 May 2023, the Council of the European Union issued a press release announcing that it has reached a general approach on the amendments to the directive on administrative cooperation in taxation (DAC), focussing on the reporting and automatic exchange of information related to crypto-asset transactions and advance tax rulings for high-net-worth individuals.
The objective is to strengthen the legislative framework by expanding registration and reporting obligations and enhancing administrative cooperation among tax authorities. The inclusion of crypto-assets under DAC, under the so-called DAC8 regime, which aims to prevent tax avoidance and fraud, with mandatory information exchange between tax administrations and increased member state cooperation.
The final decision rests with the European Council, while the European Parliament provides its views in the consultation process without legislative power.
The press release can be found here.