The Council Directive (EU) 2018/822 amends Directive 2011/16/EU to implement mandatory automatic exchange of information regarding reportable cross-border arrangements in taxation. This amendment addresses the complexities of aggressive tax planning and aims to enhance transparency among Member States. By requiring intermediaries to report certain cross-border arrangements and subsequently exchange this information automatically, the directive aims to mitigate tax avoidance and ensure fair taxation within the internal market.

Member States are tasked with implementing these provisions by 31 December 2019, with reporting obligations commencing from 1 July 2020. The directive defines key terms such as 'cross-border arrangement' and 'reportable cross-border arrangement', establishing the framework for information sharing among tax authorities while emphasising the need for attention to legal professional privilege in specific circumstances. Furthermore, it sets out hallmarks indicative of potential tax avoidance, guiding compliance and reporting obligations under the directive.