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In essence, dac7 focuses on the automatic exchange of information between tax authorities of different EU member states regarding cross-border arrangements that could potentially be used for aggressive tax planning. It requires intermediaries, such as tax advisors and lawyers, to report such arrangements to the relevant tax authorities. Additionally, it imposes obligations on taxpayers to disclose certain cross-border transactions directly if no intermediary is involved. DAC7 aims to improve tax transparency and cooperation among EU member states to ensure fair and effective taxation, especially in the context of an increasingly globalized economy.

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