Legal framework for exchange: Types of international agreement: The EU Directive on Administrative Cooperation in Tax: Other principles of exchange under the Directive
The EU Directive on Administrative Cooperation follows broadly the same principles as other tax exchange agreements: relying on Competent Authorities, foreseeable relevance, and the same confidentiality considerations.
One important difference is in permission for onward sharing. Most agreements require that:
The sending jurisdiction has an equivalent domestic gateway to the one the receiving jurisdiction wishes to use; and
Permission is sought of the sending jurisdiction.
Under the DAC, it is not necessary for the sending jurisdiction to have a parallel gateway. It is still necessary to ask permission, but if there is a parallel gateway in the sending jurisdiction, they are obliged to grant the permission.
The DAC, since its original form, has mandated the exchange of certain tax information when held. IEIM210410 has details of this.