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•Ù 6 COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 24.11.1997 
COM(97) 621 final 
97/0128 (COD) 
Amended proposal for a 
EUROPEAN PARLIAMENT AND COUNCIL DECISION 
establishing a programme of Community action to reinforce the functioning 
of the indirect taxation systems of the internal market 
(Fiscalis programme) 
(presented by the Commission pursuant to Article 189 a (2) 
of the EC-Treaty) 

EXPLANATORY MEMORANDUM 
Following the opinion of the European Parliament1 of 20 November 1997 on the proposal 
for a European Parliament and Council decision establishing a programme of Community 
action to reinforce the functioning of the indirect taxation systems of the internal market 
(Fiscalis programme)2 and in accordance with Article 189 A, paragraph 2 of the EC 
Treaty, the Commission has decided to amend the aforementioned proposal. 
The Commission has accepted, in substance, the amendments concerning: 
- a reference to the experience of the Customs 2000 programme (Amendment 4); 
- the objective on a common standard of understanding of Community law 
(Amendment 7); 
- the existing communication and information exchange systems to be covered by the 
programme (Amendments 1 and Amendment 8); 
- the definition of exchanges (Amendment 5); and the arrangements for exchanges of 
officials (Amendment 9); 
- invitations to outside experts in the field to seminars for tax officials (Amendments 2 
and 10); 
- the definition of multilateral controls (Amendment 6);and the arrangements for 
organising multilateral controls (Amendment 11); 
- The arrangements for implementing the common training initiative, including the 
establishment of a cooperation network, the tasks of the network and responsibilities 
of the Member States (Amendments 3 and 12), with the exception of the reference to 
the Committee foreseen in Article 11 which is inappropriate to the establishment of 
the cooperation network; 
- the cost of any impact studies of the programme (Amendment 13) and the 
arrangements for reports on the impact (Amendment 15); 
- the arrangements for the implementation of the programme (Amendment 14); 
- the financial arrangements for implementation of the programme (Amendments 16, 17 
and 18). 
Doc. PE 223.491 
2 OJNoC 177 of 11 June 1997, p. 8 
Amended Proposal for a 
European Parliament and Council decision 
establishing a programme of Community action to reinforce the functioning 
of the indirect taxation systems of the internal market 
(Fiscalis programme) 
Original Text Amended Text 
Recital 7 
Whereas the experience of the operation of the 
VAT Information Exchange System (VIES) 
established by Council Regulation (EEC) 
No218/92 has shown the value of information 
technology in protecting revenue whilst 
minimizing administrative burdens; whereas it 
has proved itself to be an essential tool of 
cooperation that has also stimulated wider 
cooperation among Member States; Whereas the experience of the operation of 
information exchange systems in the European 
Community has shown the value of 
information technology in protecting revenue 
whilst minimizing administrative burdens; 
whereas it has proved itself to be an essential 
tool of cooperation that has also stimulated 
wider cooperation among Member States; 
Recital 9a (new) 
Whereas seminars form an ideal forum for the 
exchange of ideas between indirect taxation 
officials and, where appropriate, other experts 
in the field, such as academics, taxable persons 
(both large companies and SMEs) or their 
representatives and advisers; whereas in such 
seminars suggestions may emerge which could 
improve the legal instruments in force, 
encourage the convergent evolution of national 
indirect tax systems and facilitate the 
cooperation between the administrations 
concerned. 
Recital 10 
Whereas the experience gained from the 
Matthaeus-Tax programme has indicated that 
the coordinated development and 
implementation of a common training 
programme established by Commission 
Decision 95/279/EC3 can achieve the 
objectives of this programme, in particular in 
achieving a higher common standard of 
understanding of Community law; whereas 
such programmes should be developed further; 
whereas the Member States should therefore 
ensure that all of their officials receive the 
initial training and regular continuous training 
envisaged by the common training 
programmes; Whereas administrative cooperation depends 
on the professional skills and knowledge, 
including in languages, of indirect taxation 
officials; whereas a cooperation network of the 
national organisations, academies or schools, 
and officials responsible for training should be 
established to identify the common skills and 
knowledge that these officials should possess 
and develop the necessary common training 
programmes to enable them to gain the 
necessary common skills and knowledge; 
whereas, in the final report to be submitted, the 
Commission may consider the need for a 
Community academy for indirect taxation 
officials; 
OJ No L 172, 22.7.1995, p. 24. 
Recital 11 
Whereas a sufficient standard of linguistic 
competence on the part of indirect taxation 
officials has proved to be essential to facilitate 
cooperation; whereas the Member States 
should therefore provide the necessary 
language training for their officials; Whereas the experience gained from the 
Customs 2000 programme4 has shown that 
actions to promote administrative cooperation 
between national Customs administrations can 
also strengthen the effectiveness of the 
instruments for combating fraud; 
Article 2(d) 
"exchange" shall mean a work-based visit in 
the Community interest of an official from one 
administration to another, organized under the 
programme; "exchange" shall mean a work-based visit in 
the Community interest of an official to the 
administration or training institution of another 
Member State, organized under the 
programme; 
Article 2(e) 
"bilateral and multilateral control exercises" 
shall mean joint collaboration of two or more 
administrations to integrate their controls of 
taxable persons having indirect tax obligations 
in each of the Member States concerned, 
within the Community legal framework for 
cooperation; "multilateral controls" shall mean joint 
collaboration of at least three administrations 
to integrate or coordinate their controls of 
taxable persons having indirect tax obligations 
in the Member States concerned, within the 
Community legal framework for cooperation; 
Article 3(a) 
to achieve a high common standard of 
understanding of Community law and of its 
implementation in the Member States among 
officials; to achieve a high common standard of 
understanding of Community law, in 
particular, in the field of indirect taxation, and 
of its implementation in the Member States 
among officials; 
Article 4.1 
The Commission and the Member States shall 
establish and ensure the functioning of 
necessary communication and information 
exchange systems, manuals and guides. The Commission and the Member States shall 
establish and ensure the functioning of such 
new communication and information exchange 
systems, manuals and guides as they consider 
necessary; they shall also ensure the 
functioning of such existing systems, manuals 
and guides as they consider necessary; 
OJ No L 33,4.2.1997, p. 24 
Article 4.2 
The Community elements of the 
communication and information exchange 
system shall be the equipment, software and 
network links between Member States, 
required to be common to all Member States in 
order to ensure the overall interconnection and 
interoperability of the systems, whether they 
be installed in the premises of the Commission 
(or a designated sub-contractor) or in the 
premises of the Member States (or a 
designated sub-contractor). The Community elements of the 
communication and information exchange 
system shall be the equipment, software and 
network links between Member States, 
required to be common to all Member States in 
order to ensure the overall interconnection and 
interoperability of the systems, whether they 
be installed in the premises of the Commission 
(or a designated sub-contractor) or in the 
premises of the Member States (or a 
designated sub-contractor). 
If subcontractors are used, they shall be 
selected on the basis of invitations to tender 
organized in accordance with the relevant 
financial provisions. 
Article 5.1, first subparagraph 
The Commission and the Member States shall 
organize exchanges. The exchanges shall vary 
in length, as appropriate, but shall not be 
longer than one year. Each exchange shall be 
targeted on a particular work activity and shall 
be sufficiently prepared beforehand, and 
evaluated afterwards, by the officials 
concerned. The Commission and the Member States shall 
organize exchanges. The exchanges shall vary 
in length, as appropriate, but shall not be 
longer than six months per official Each 
exchange shall be targeted on a particular work 
activity and shall be sufficiently prepared 
beforehand, and evaluated afterwards, by the 
officials and administrations concerned. 
Article 5.2 
Seminars shall be organized by the 
Commission and the Member States. Seminars shall be organised by the 
Commission and the Member States to bring 
together officials from different Member 
States and from the Commission and, where 
appropriate, other experts in the field, such as 
academics, taxable persons or their 
representatives and advisers. 
Article 53 
The Commission and the Member States shall 
organize, on a pilot basis, bilateral and 
multilateral control exercises within the 
Community legal framework for cooperation. The Commission and the Member States shall 
select specific and multilateral controls to be 
supported by the Community within the 
Community legal framework for cooperation. 
The participating Member States shall send 
reports and evaluations of the controls to the 
Commission and the other Member States; 
Article 6 
1. The Commission and the Member 
States shall develop existing and new common 
training programmes to provide a common 
core of training for officials. Member States 
shall ensure that their officials receive initial 
training as set out in the common training 
programmes; that all these officials shall 
receive regular continuous training as set out 
in the common training programmes. 
2. Member States shall provide the 
necessary language training for their officials 
to ensure that they attain a sufficient standard 
of linguistic competence. 1. The Member States, in co-operation 
with the Commission, shall establish a co­
operation network of the national 
organisations, academies or schools, and 
officials responsible for training in indirect 
taxation with the tasks of: 
a) identifying the common professional 
skills and knowledge, including in languages, 
that officials should possess; 
b) developing existing common training 
programmes and, if necessary, devising new 
programmes, to provide a common core of 
training for officials to enable them to attain 
the necessary common professional skills and 
knowledge; 
c) opening the training courses provided 
by each Member State for their own officials 
to officials from all other Member States, 
where appropriate; 
d) developing the necessary common 
tools for indirect taxation training, including 
language training tools; 
e) analysing the information provided 
annually by the Member States under Article 
6.2 on the training provided to their officials. 
2. The Member States shall ensure that 
their officials shall receive the initial and 
regular continuous training necessary to 
possess the common professional skills and 
knowledge, in accordance with the common 
training programmes. They shall inform the 
Commission annually of the content and 
amount of training they provide to their 
officials. 
3. The Commission and the Member Delete 
States shall develop the Community tools for 
indirect taxation training, including linguistic 
training tools. 
Article 7 
The programme shall be open to the 
participation of the associated countries of 
central and eastern Europe in accordance with 
the conditions laid down in Europe 
Agreements or their Additional Protocols 
relating to their participation in Community 
programmes and in so far as Community law 
on indirect taxation so permits. Hie 
programme shall also be open to the 
participation of Cyprus in accordance with the 
Common Resolution on the establishment of a 
structured did ogue between the EU and 
Cyprus and in so far as Community law on 
indirect taxation so permits. The programme shall be open to the 
participation of the associated countries of 
central and eastern Europe in accordance with 
the conditions laid down in Europe 
Agreements or their Additional Protocols 
relating to their participation in Community 
programmes and in so far as Community law 
on indirect taxation so permits. The 
programme shall also be open to the 
participation of Cyprus in accordance with the 
Common Resolution on the establishment of a 
structured dialogue between the EU and 
Cyprus and in so far as Community law on 
indirect taxation so permits. The expenditure 
generated by this participation shall be 
additional to the fin 
programme. meial framework of this 
Article 8.2(d) (new) 
The cost of any independent studies of the 
impact of this programme, if deemed 
necessary; 
Article 9 
The financial framework for the 
implementation of the present programme for 
the period 1 January 1998 to 31 December 
2002 is hereby set at ECU 45 million, Hie 
annual appropriations shall be authorized by 
the budgetary authority within the limits of the 
financial perspective. The financial framework for the 
implementation of the present programme for 
the period 1 January 1998 to 31 December 
2002 is hereby set at ECU 45 million. This 
financial framework is in part covered by the 
financial perspective 1993-99. The annual 
appropriations shall be authorized by the 
budgetary authority within the limits of the 
financial perspective. 
Article 10 
The rules necessary for the implementation of The measures necessary for the 
this Decision shall be determined by the implementation of the present programme 
Commission in accordance with the procedure shall be determined by the Commission in 
laid down in Article 11. accordance with the procedure laid down in 
Article 11. 
Article 12.3(b) 
by 30 June 2003 at the latest, a final report on by 30 June 2003 at the latest, a final report on 
the implementation of this programme. the implementation and the impact of this 
programme. 

ISSN 0254-1475 
COM(97) 621 final 
DOCUMENTS 
EN 09 10 01 06 
Catalogue number : CB-CO-97-637-EN-C 
ISBN 92-78-27783-5 
Office for Official Publications of the Fiuropean Communities 
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