What is a ruling: Types of ruling to be exchanged
IEIM520300: What is a ruling: Types of rulings to be exchanged
The types of rulings and APAs to be exchanged are different for Action 5 and the DAC, although there will be some overlap.
- Action 5 lists specific types of rulings that give rise to base erosion and profit shifting concerns (IEIM540100)
- The DAC requires the exchange of all cross-border rulings and APAs that meet the definition (IEIM550100)
Action 5 limits the rulings to be exchanged to five situations, all of which have the potential to give rise to base erosion and profit shifting concerns (IEIM541010).
If a ruling falls outside the Action 5 definition, but is foreseeably relevant to a treaty partner, you should look to spontaneously exchange it (IEIM530000).
The DAC requirement is far wider than Action 5. It requires the exchange of all advance cross-border rulings and APAs made by any EU Member State. Unlike Action 5 there is no consideration of the type of ruling, nor whether it gives rise to base erosion and profit shifting concerns.