DAC6 and Legal Professional Privilege – ECJ Ruling on Belgian Lawyers’ Case

Dated 29 July 2024

In Belgian Association of Lawyers v Prime Minister, the European Court of Justice (ECJ) addressed concerns surrounding the validity of DAC6 (Council Directive 2011/16, as amended by Directive 2018/822) following a request for a preliminary ruling by the Belgian Constitutional Court. The case centered on whether DAC6 infringed fundamental principles such as equality, legal certainty, and the right to privacy, particularly in the context of cross-border tax arrangement reporting and the obligations of intermediaries.

The ECJ upheld the Directive, confirming it aligns with EU law and does not breach principles of equal treatment, non-discrimination, or privacy. However, it emphasized prior rulings, particularly from 2022, which restricted the reporting obligations under Article 8ab(5) for intermediaries protected by legal professional privilege.

This decision reinforces the balance between tax transparency objectives and the protection of professional rights under EU law.

Full Link to English Translation: Belgian Association of Tax Lawyers and Others (europa.eu)