2022-12-09T10:27:00
European Union
Obligation for lawyers subject to legal professional privilege to notify other intermediaries is illegal
CJEU partially annuls DAC 6
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December 9, 2022

The Court of Justice of the European Union has issued its Judgment of December 8, 2022 (case C-694/20), in which the obligation to communicate to other intermediaries imposed by article 8ab(5) of Directive "DAC 6" to lawyers exempted from the disclosure of cross-border tax planning arrangements due to the legal professional secrecy has been declared contrary to EU Law.

In the opinion of the Court, this communication obligation is an interference in the right to respect for communications between lawyers and their clients guaranteed in article 7 of the Charter of Fundamental Rights of the European Union. Although the fight against aggressive tax planning and the prevention of the risk of tax avoidance are reasons of general interest that can support such interference, the Court considers that the obligation to communicate to other intermediaries cannot be considered necessary to attain those objectives. 

Spanish legislation implementing article 8ab(5) of DAC 6 on the obligation of communication between intermediaries exempted from disclosure due to the legal professional privilege should not be required of lawyers.

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December 9, 2022