DAC8 Whistleblower Protections and Reporting

The EU's whistleblower protection framework applies to individuals who report DAC8 violations by CASPs. This article examines how whistleblower protections interact with DAC8 enforcement.

EU Whistleblower Directive

Directive (EU) 2019/1937 on the protection of persons who report breaches of Union law provides comprehensive protections for whistleblowers across the EU. DAC8 violations fall within the scope of this directive, meaning that individuals who report non-compliance by a CASP are entitled to legal protection.

Who Can Report

Potential whistleblowers include employees of CASPs who identify reporting failures or deliberate non-compliance, compliance officers who are overruled by management on DAC8 matters, external consultants or auditors who discover violations during their work, and individuals who become aware of systematic non-compliance through other means.

Reporting Channels

Whistleblowers can report DAC8 violations through internal reporting channels established by the CASP (required under the Whistleblower Directive), external reporting to the competent tax authority or financial supervisor, and public disclosure as a last resort when internal and external channels have failed.

Protections Offered

Whistleblowers are protected against retaliation, including dismissal, demotion, or harassment. They are entitled to legal remedies if retaliation occurs, and their identity is protected throughout the reporting process.

Implications for CASPs

CASPs must establish internal reporting channels that allow employees to report potential DAC8 violations confidentially. They must take reported concerns seriously and investigate them promptly. And they must ensure that whistleblowers are not subjected to any form of retaliation.

Conclusion

Whistleblower protections add an additional enforcement dimension to DAC8. CASPs should build compliance cultures that encourage internal reporting and take all compliance concerns seriously, rather than relying on the hope that violations will not be detected.