EN

(...PICT...)|EUROPEAN COMMISSION|

Brussels, 14.7.2010

SEC(2010) 897 final

COMMISSION STAFF WORKING DOCUMENT

Implementation of the article 325 by the Member States in 2009 Accompanying document to the REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND TO THE COUNCIL – Protection of the financial interests-fight against fraud-Annual report 2009

{SEC(2010) 898} {COM(2010) 382}

COMMISSION STAFF WORKING DOCUMENT

Implementation of the article 325 by the Member States in 2009 Accompanying document to the REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND TO THE COUNCIL – Protection of the financial interests-fight against fraud-Annual report 2009

INTRODUCTION

Article 325(5) of the TFEU (ex article 280 of the EC Treaty) requires the Commission, in cooperation with the Member States, to submit a report each year to the European Parliament and the Council on the measures taken to implement that Article. The Commission bases the part of the report relating to the Member States on the replies to the “Article 325” questionnaire, as agreed upon with them within COCOLAF and adapted each year in the light of past experience so as to facilitate the monitoring of anti-fraud measures.

Consequently, each year, the Commission draws up a report in cooperation with the Member States on the measures taken to implement this obligation, according to article 325 of the Treaty on the Functioning of the European Union (TFEU). This report is addressed to the European Parliament and the Council and it is published.

The Commission report is drafted on the basis of the Member States' replies to the "Article 325" questionnaire. The present questionnaire covers the period from 1 January to 31 December 2009.

This document lists all the answers of Member States to the 2009 questionnaire.

Over the time the report had become more and more voluminous. Both the Council and the European Parliament were concerned that its size was increasing and that its being annual, horizontal and multisectoral hampered a detailed assessment of all the aspects of the protection of the EU’s financial interests by the Member States. Since 2003, the Commission has therefore applied a new approach. After the traditional question asking Members States to report on new measures taken in 2009, the questionnaire focuses on a two major themes . The aim is to gather information on topics which go beyond the measures taken in the course of a calendar year, thereby allowing a more detailed analysis of these topics. The topics change from year to year.

As in the previous years, the first part of the questionnaire asks the Member States to present the main measures that give effect to Article 325 , i.e. measures to combat fraud and all illegal activities affecting the financial interests of the EU. This part is structured the same as for the 2009 questionnaire. Member States are invited to describe two or three "key" measures taken in the year 2009 in order to implement Article 325 of the Treaty.

The second set of questions concerns the implementation of Regulation 2185/1996 (Regulation 2185/1996 concerning on the spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities, OJ L 292, 15.11.2006) . The successful implementation of this regulation depends on the cooperation with the Member States. Namely, on-the-spot checks and inspections are one of the most powerful tools available to the Commission (OLAF) to conduct administrative investigations outside the EU institutions and bodies with a view to achieving the objective of combating fraud and other illegal activity undermining the EU's financial interests. Therefore, it is important to the Commission to learn more about national practices and administrative procedures in conducting these checks.

The third part of the questionnaire also concerns a specific subject, namely the measures taken to secure the recovery of irregular amounts . In its Resolution of 24 April 2009 on the protection of the Communities' financial interests and the fight against fraud - Annual report 2007 (2008/2242(INI)) the European Parliament noted that recovery rates are still low, especially in sectors where Member States manage recoveries. The European Parliament considered that more appropriate and faster recovery procedures were needed and binding and precautionary elements should be included in future legislation concerning shared management so that irregular amounts can be recovered at the end of the recovery procedure. This way, the tax payers' money recovery could be more efficiently secured.

1. KEY DEVELOPMENTS CONCERNING THE IMPLEMENTATION OF ARTICLE 325 OF THE TREATY ON THE FUNCTIONING OF THE EUROPEAN UNION (TFEU)

Maximum three most important legislative or administrative measures taken in the course of 2009 for the protection of the EU’s financial interests and the fight against fraud. These should be measures adopted at Member State’s own initiative and not measures which simply transpose EU legislation.In particular, Member States are asked to indicate: Type of measure (law, regulation, etc.) and references (number, date of adoption and/or publication, name of programme, etc.)Its scope (horizontal, specific field)Why it was neededImprovements made to the existing system.|

BE|1. Ministerial Committee on Combating Tax and Welfare Fraud established operationally by Royal Decree of the 31 January 2009 (O.J. of 6 February 2009).Handles coordination of the fight against fraud in the fields of Finance, Social Affairs, Home Affairs, Justice, Employment, SMEs and the Self-employed, and Economic Affairs. The aim of the measure is to formulate a general policy for combating tax and welfare fraud and to set the priorities of the ministries involved in the fight against fraud. The Committee ensures that legislation is applied uniformly throughout the country. Previously, collaboration was at a lower level. The creation of a Committee clearly indicates the existence of a carefully considered policy on combating fraud (SPF FINANCES).2. Exchange of data within the SPF Finances.Articles 153 to 159 of the programme-law of 23 December 2009, published in the M.B. of 30 December 2009 adapt the existing provisions of the Income Tax Code, the Value-Added Tax Code, and the General Act on Customs and Excise of 18 July 1977 as regards exchanging information between the Belgian tax authorities in order to eliminate all obstacles to close collaboration between the departments of the Federal Public Service for Finances (Service Public Fédéral des Finances – SPF Finances). Any official of the SPF Finances responsible for assessing and collecting taxes or regularly responsible for conducting inspections or investigations can now obtain, search for, and collect the relevant information and consult all the data available in the SPF Finances that may be of use for assessing and recovering any tax.|

BG|1. Law Amending and Supplementing the Public Procurement Law. The Law entered into force on 1 January 2009 and was amended in O.J. No 24 of 31 March 2009 and O.J No 82 of 16 October 2009. This Law lays down the principles, conditions and rules for awarding public contracts in order to ensure the effective expenditure of budgetary and extra budgetary resources, as well as of resources used to implement activities of public interest specified in the Law. It reinforces the capacity of the Public Procurement Agency, step up ex ante control throughout the performance of the procedures and to introduce additional penalties in order to significantly decrease violations. 2. The Prevention and Detection of Conflicts of Interest Law. The Law entered into force on 1 January 2009 and was amended in O.J. No 10 of 6 February 2009, O.J. No 26 of 7 April 2009 and O.J. No 101 of 18 December 2009. The law prohibits persons in public office from participating in procedures for public procurement or in procedures for the granting of resources from EU funds. 3. Amendments to Council of Ministers Decree No 18/2003 creating the Council of the Anti-Fraud Coordination Service (AFCOS), O.J. No 39 of 26 May 2009, amended in O.J. No 71 of 4 September 2009. The adopted amendments stipulate that the Deputy Prime Minister and Minister of the Interior is to chair the AFCOS Council, which is to be assisted in carrying out its activities by the AFCOS Directorate in the Ministry of the Interior. |

CZ|Adoption of the new Criminal Code, Act No 40/2009, as amended by Act No 306/2009, effective from 1 January 2010, which is a re-codification of the Criminal Code Act and in Section 260 governs in a completely new way the principles of criminal liability and the facts of individual criminal offences, including specific coverage of the crime of damaging the financial interests of the European Union in §260. The Criminal Code also now divides criminal acts into misdemeanours and crimes.|

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EE|Amendment of Section 22(11) of the Structural Funds Act - the scope of the Act has been extended to include entities that are required to comply with the rules on public procurement, and in order to ensure the protection of the EU's financial interests in the use of aid on 26.12.2009 an amendment came into force to the Regulation of the Minister for Finance on the deadlines and procedure for submitting reports and the form of reports on the use and disbursement of structural aid in the period 2007–2013, according to Section 2(7) of which implementing bodies are to submit to the paying authority quarterly reports on amounts recovered. This measure requires implementing bodies to review the details available in the information system on recoveries and regularly keep track of incoming amounts, which in turn makes it possible to deal more effectively with problem cases.|

IE|The Department of Agriculture, Fisheries and Food (D/AFF), introduced Regulations in 2009 - (SI No. 424 of 2009) European Communities (Agriculture, Fisheries and Food) (Compliance). The Regulations provide for streamlining of the appointment of authorised officers and for enforcement powers in respect of certain EC measures to which the Regulations are applied in the agricultural sector. This prevents multiple authorisations being necessary. The Department of Enterprise, Trade and Employment (D/ETE) introduced a publicity brochure for the ESF and updated their IT System to more accurately implement Article 77 of Regulation 1083/2006. This update was based on user feedback. |

EL|For the EAGGF Guarantee section, a memorandum of cooperation is being promoted between the Directorate for Expenditure Control at the Ministry of Rural Development, the Payment and Control Agency for Guidance and Guarantee Community Aid (O.P.E.K.E.P.E.) and the Directorate-General for Customs and Excise Duties. Cooperation involves asking for data for checks after the risk analysis. 2) as part of the management and control of the Leader programme, the Special LEADER Management Service for the RDP has drawn up a special form for checking compliance with long-term commitments by final beneficiaries (Form F) further to Ministerial Decision 430/18-2-03, particularly Article 9(14), (15), (16) and (20) and Article 16(2) and (3) thereof and pursuant to the agreement between the Local Action Group (LAG) and the final beneficiary. The check form was communicated to the competent services of the Ministry of Economic Affairs and Finance and to the LAGs by means of letters Ref. 1099/2-4-09 and 1265/9-4-09.|

ES|1. CENTRAL STATE ADMINISTRATION. Decision of 21 January 2009 by the Directorate-General of the State Tax Authority approving the guidelines in the 2009 General Tax Control Plan. The 2009 plan attempts to adapt the Tax Authority's methods and operational strategies to cope with changes in the classification of the most serious fraud offences. In particular, the Inspection Plan implements in 2009 the guidelines laid down in the updated version of the Fraud Prevention Plan presented on 20 November 2008. In 2009 this section included checks on applications by authorised economic operators, submitted by economic agents located in Spain or in another European Union country whose activity is linked to the movement of goods on the customs territory of the Community and non-EU countries.Decision of 15 December 2009 by the Department of Customs and Excise of the State Tax Authority which contains the instructions for drawing up the Single Administrative Document. This Decision approved centralised national clearance for Authorised Economic Operators, which means that all the declarations by these operators are examined by the same centralised customs office, regardless of where the goods are located. 2. AUTONOMOUS COMMUNITY ADMINISTRATIONEXTREMADURA - Law 8/2009 of 28 December 2009 on the General Budget for the Extremadura Autonomous Community for 2010 reinforcing the arrangements for recovering grants and giving the relevant inspectors the status of an authority. CATALONIA - Internal procedure and operational rules of the Catalonia Anti-Fraud Office of 25 November 2009 regulating the Office's inspection procedure, and giving its officials powers and prerogatives to investigate, prevent and prosecute irregular conduct. GALICIA - Implementing Regulation for Law on Grants (Decree 11/2009 of 8 January 2009) approving measures aimed at defining the material conditions for the recovery of grants and regulating the procedure for the effective recovery of amounts unduly received.|

FR|Adoption of the right to a hearing for any person who has received an unfavourable decision from the customs administration and, in particular, who has been notified of an additional customs debt. As of the end of December 2009, Articles 67A to 67D will be inserted in the Customs Code. Scope: in the area of Community financial interests, the notification of customs debt. Need for the measure: need to adhere to a general principle of Community law (ECJ Judgment of 18 December 2009, Sopropé, case C-349/07). Improvements introduced: greater respect for the right of defence.|

IT|In managing EU resources, reference is generally made to EU and national regulations.Administrative provisions implemented at local level:- within the framework of the programme’s management and supervision systems, the managing authorities of the Tuscany Region have adopted specific measures (approved by Decision No 17 of 22 June 2009) that are aimed at protecting the EU's financial interests and combating fraud; the measures cover the actions funded through the resources of the ERDF and ESF regional operational programmes 2007 to 2013;- Liguria Region has adopted an implementing measure and a circular, detailing both the procedures for recovering and cancelling the amounts involved following breaches, and the roles of the competent regional authorities in the field of irregularities vis-à-vis the European Social Fund; - the Basilicata managing authority, drawing on previous programme experience and in the light of the new regulatory requirements, has prepared a manual updating the guidelines on methods for ascertaining irregularities and fraud, and on systems for implementing the procedures for recovering the sums involved;- a number of regions have signed and approved special memoranda of understanding with the Guardia di Finanza (Revenue Police) in order to encourage the exchange of information, guarantee cooperation and prevent the kind of overlap in which checks already carried out on the basis of national legislation are repeated on the basis of Community regulations.Agricultural policy sector: Article 8 ter of Act No 33 of 9 April 2009 taking urgent measures in support of industrial sectors in crisis (which converted into statute, with amendments, Decree-law No 5 of 10 February 2009) has made provision for setting up, at the Agricultural Payments Agency (AGEA) the National Debt Register (RND); via the National Agricultural Information System (SIAN), this includes all the amounts ascertained to be owed by farmers:- appearing in the debtors' ledgers of the accredited paying agencies, set up under Regulation (EC) No 885/2006;- reported by the Regions and autonomous provinces and relating to agricultural support and aid payments provided by the latter.The aforesaid register implements Article 5b of Regulation (EC) No 885/2006, which requires the Member States to offset the amounts owed by farmers, by way of the reimbursement of Community benefits and aid, against any future payments to be made by the accredited paying agency to the same beneficiary. |

CY|With regard to the Structural Funds, the Cohesion Fund and the European Fisheries Fund, the Circular on Irregularities has been issued by the Certification Authority (Treasury) in relation to information and the handling of irregularities arising in the implementation of cofinanced projects. Apart from the Certification Authority, no significant legislative or administrative measures (laws, regulations) were taken in 2009 by the members of the Cypriot AFCOS other than those laid down in Community legislation.|

LV|1) In the area of prevention and combating corruption :- The Guidelines for Corruption Prevention and Combating for 2009–2013’ determine the objective of and lines of action under the Latvian anti-corruption policy for five years in order to achieve efficient and lawful activities of public officials in the public interest.- The ‘Corruption Prevention and Combating Programme 2009–2013’ was worked out for the implementation of the Guidelines on Corruption Prevention and Combating for five years. Implementing the task of improving internal control mechanisms in State and local government institutions under the Programme, in 2009 more than 500 public officials, including officials directly working with EU funds, received training about issues of conflict of interest. Central anti-corruption agency of Latvia- Corruption Prevention and Combating Bureau also conducted survey about internal anti-corruption measures in state and local government institutions.2) The following documents were updated during the EU Funds 2007-2013 programming period :- Cabinet Regulation No 1238 ‘Procedures for monitoring and evaluating the implementation of European Union funds’ of 27 October 2009, which provides for improvement of reporting on the implementation of horizontal priorities, ensuring consolidated and analytical information on the horizontal priorities included in the EU Funds planning documents, and improving monitoring procedures regarding the content of monitoring reports and reporting frequency.- Cabinet Regulation No 952 ‘ Procedures by which information on the application of Value Added Tax under projects financed from the European Union Funds is provided and verified and decisions are made on including Value Added Tax in eligible expenditure under the projects’ of 25 August 2009, which determines the obligations and responsibility for the provision of the required information.3) Two Cabinet Regulations have been adopted to promote timely recovery of irregular expenditure :- Cabinet Regulation No 414 ‘Amendments to Cabinet Regulation No 874 ‘ Procedures by which the PHARE Programme and the Transition Programme are prepared , approved, implemented, monitored and evaluated’ of 24 October 2006’ of 12 May 2009 sets out procedures by which irregular expenditure under the PHARE Programme and the Transition Programme is recovered and how repayments are made to the European Commission . - Cabinet Regulation No 706 ‘ Procedures by which irregularities identified during the implementation of projects financed out of the Structural Funds are reported and the decision is made on use of allocated funding’ of 30 June 2009 (valid from 10 July 2009) was issued, which provided for updates regarding the procedure for making decisions on the recovery of irregular expenditure. In accordance with the amendments, decision-making takes less time. |

LT|1. Methodological recommendations for the investigation and detection of infringements, as approved by Order No 1K-173 of the Minister for Finance of the Republic of Lithuania of 29 May 2009, laying down the procedure to be followed by the institutions administering EU structural assistance when investigating, detecting and correcting infringements and adopting infringement decisions. 2. Order No I-133/5-V-683/2-242/V-82/1R-130/4-620 of the Prosecutor-General, the Commissioner-General of the Lithuanian Police, the Director of the Special Investigation Service, the Director of the Financial Crime Investigation Service under the Ministry of the Interior, the Director of the Customs Criminal Investigation Service and the acting Commander of the State Border Guard Service under the Ministry of the Interior of 28 September 2009 approving the plan for strengthening the prosecution of fraud in Lithuania and its implementing measures.|

LU|New law of 25 June 2009 on public procurement and its Grand-Ducal implementing Regulation modifying the threshold laid down in Article 106(10) of the amended municipal law of 13 December 1988. The aim of the new law is to coordinate and simplify procedures in accordance with Directives 2004/17/EC and 2004/18/EC.Law of 19 December 2008 on inter-agency and judicial cooperation and strengthening the resources of the Direct Taxation Authority, the Land Registration and Estates Department, and the Customs and Excise Authority;Grand-Ducal Regulation of 3 December 2009 on inter-agency cooperation between the Land Registration and Estates Department, and the Customs and Excise AuthorityFollowing the blocking of payments from the European Social Fund for the 2000-2006 programmes, the managing authority ordered an audit of all projects not yet checked.|

HU|(1) Act CLIX of 2009, published on 30 December 2009, granted approval to Hungary's accession to the Convention on the protection of the European Communities' financial interests drawn up on the basis of Article K.3 of the Treaty on European Union and to the additional protocols thereof, and published the declaration pursuant to which the Republic of Hungary accepts the jurisdiction of the European Court of Justice in accordance with Article 35(3) (b) of the Treaty on European Union. (2) Centralised control pursuant to Act XCII of 2003 on taxation is carried out to detect tax infringements of particular threat to the revenue interests of the central budget and to restore the lawful situation, if the data, facts and circumstances suggest that tax liability (a) has been fulfilled by cross-border, unlawful trade relationships with third countries or by feigning legal trade relationships, (b) has been breached in the course of trade relationships with taxable person/s established in another Member State of the European Community, (c) has been fulfilled by domestic taxable persons under the jurisdiction of one or more regional bodies breaching the rules laid down for connected undertakings (standard costs), through false contracts or by conduct contrary to proper legal practice, (d) has been breached in the course of performing public procurement contracts through conduct which is unlawful, false, tax-evasive or contrary to proper legal practice, (e) has been breached in fiscal matters of priority importance under the tax authority's competence. Following the Act's amendment in 2009, customs authorities as well as the public tax authorities are now authorised to carry out centralised controls, and the deadline for completing them has been extended to 120 days. (3) Act LXXXIII of 2009 inserted Article 71/B with effect from 13 August 2009 into Act XIX of 1998 on criminal procedure, which reads as follows: "upon request from any authority established by an international agreement promulgated in a legislative act or by an EC legal instrument – to the extent and for the period necessary for the authority to fulfil its tasks laid down by international agreement or a binding legislative act of the European Communities – the court, the prosecutor or the investigating authority shall provide information, allow access to criminal files and make official copies of such files, in justified cases disclosing the personal data of the persons concerned. Experience shows that, in order to provide OLAF with the more extensive information it needs to fulfil its tasks, it is necessary to have specific provisions that create a clear legal basis for disclosing information to OLAF, since previous provisions did not clearly allow Hungarian authorities to disclose information relating to ongoing criminal proceedings.|

MT|The VAT Department set up an analysis and control unit consisting of two qualified accountants in order to monitor claims for refunds (input VAT) that are submitted by registered persons in their returns and to analyse data in order to determine areas that require further investigation.|

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AT|Combating tax and customs fraud: Since 2007 the Anti-Fraud Unit in the Federal Finance Ministry has conducted customs and tax investigations concerning a wide variety of goods imported from China. It has detected extreme cases of under-invoicing, counterfeit goods and imports with forged invoices. Measures taken: National: • Training measures in all customs offices to raise customs officials' awareness of the fraud scheme. • Goods controls stepped up. • At the suggestion of the Anti-Fraud Unit, the competent department of the Federal Finance Ministry established the securities to be set for the importation of certain goods from China. International: • Increased cooperation with customs and tax authorities in the other Member States in respect of 42xx customs procedures. • Increased cooperation with OLAF and DG TAXUD. • Austria held a Fiscalis seminar on the "42xx Customs Procedure", which was attended by Commission representatives and tax and customs experts from all the Member States.|

PL|1. Guidelines were drawn up for treasury control offices and tax offices on how to proceed in the matter of income not covered by declared sources or income from undeclared sources. The guidelines concern the procedure for taxing such income. The aim is to harmonise the rules for handling cases involving undeclared sources of income and raise awareness of areas in which there is a risk of this phenomenon.2. Guidelines were drawn up for tax offices on VAT, including rules on handling VAT refunds. One of the aims is to avoid abuse by dishonest traders (obtaining VAT refunds by fraud). |

PT|Two (internal) administrative and procedural measures adopted by the IFAP (one of them in conjunction with the PRODER Management Authority (MA)) in order to develop the concepts contained in Community rules (intentional non-compliance and reliability of the beneficiary) and to set out the respective procedures. INTENTIONAL NON-COMPLIANCE1. On 28/05/2009 the IFAP approved the Standard for internal procedures JC-121/01, which defines the procedures to be adopted where there are indications that the irregularity detected in connection with an application for aid or support is the result of an intentional non-compliance on the part of the beneficiary.2. There is considered to be a suspicion of “intentional non-compliance” where evidence is gathered whose seriousness and consequences indicate that the irregularity detected in connection with an application for aid/support is the result of the applicant's intentional conduct. 3. The standard in question clarifies and lays down the procedures relating to the notification of the competent legal authorities by the IFAP of all acts committed by the beneficiary of which it has become aware in the course of performing its duties, which may indicate that crimes have been committed (irregularities which seem to be the result of intentional conduct - or of serious negligence - on the part of the beneficiary). It also aims to achieve compliance with the EU legislation in this area, which provides for more stringent penalties and sanctions for crimes committed intentionally or as a result of serious negligence. RELIABILITY OF THE BENEFICIARYBased on the provisions of Article 26(2)(e) of Commission Regulation (EC) No 1975/2006 of 7 December 2006, the IFAP and the PRODER MA set out substantive criteria for determining the reliability of the beneficiary, while stating their sources of information and means of communicating this information. |

RO|OWN RESOUCES: Government Emergency Order No 34/2009 amending the 2009 budget and regulating certain financial-fiscal measures entered into force on 1 May 2009. With a view to combating tax evasion, is the change in the tax period for taxable persons with an annual turnover lower than EUR 100 000 and who purchase intra-EU goods. Under the new legal instrument, they have the obligation of using the calendar month as the tax period. The Anti-Fraud Department (DLAF) and the National Office for Preventing and Combating Money Laundering (ONPCSB) signed a protocol on cooperation in the field of professional information sharing for preventing and combating acts falling within the remit of the two parties. DLAF provided technical assistance for Transparency International Romania in the context of the project "Control and Prevention of Mismanagement of EU money - Training of public servants implementing structural aid programmes in Romania":100 public servants attended the training provided in the framework of the project.|

SI|1. The Slovenian Government Office for Local Self-Government and Regional Policy, in its role of managing authority, issued on 10 November 2009 the Rules of procedure for financial management of European cohesion policy funds for the 2007-2013 programming period, which lay down the following procedures: - ensuring the use of a single methodology for the development of national projects, the classification of new projects and the modification of existing projects in the Plan of Development Programmes; - transfer of available commitments under the operational programme; - transfer of available commitments under State budget lines; - reimbursement of cohesion policy funds where irregularities are detected for which the beneficiary or recipient of funds is responsible. The Rules of procedure apply to all participants involved in the implementation of the following operational programmes in the 2007-2013 programming period: - the Operational Programme for Strengthening Regional Development Potential for the period 2007-2013; - the Operational Programme for Human Resources Development for the period 2007-2013- the Operational Programme of Environmental and Transport Infrastructure Development for the period 2007-2013. The Rules of procedure apply to the managing authority, the intermediate bodies and other direct budget users involved in the implementation of European cohesion policy programmes. The document is published on the website of the managing authority 2. Amendments adopted in the area of the Value Added Tax Act, which are applicable from 1.1.2010, the purpose of which is to prevent tax fraud in the area of the levying of VAT: - under certain conditions joint and several liability of the recipient of goods or services is introduced if that person knew or should have known that, by making the purchase, he/she was taking part in transactions designed to avoid the payment of VAT; - introduction of a reverse charge mechanism in risky activities (services in the construction sector, recruitment for the provision of services in the construction sector, the supply of land and buildings for which the supplier opted for taxation and the supply of waste, scrap and used materials); - additional reporting obligations of taxable persons that submit a VAT return for the first time; - in certain cases the tax authority may also require taxable persons to present a guarantee for the payment of tax obligations before they are allocated an identification number for VAT purposes; - the presentation of a guarantee may also be required in order to acquire a vehicle from another Member State, prior to the entry of a motorised vehicle in the records of the taxation authority, in order to fulfil a VAT obligation for the acquisition of the vehicle; - the possibility of immediate withdrawal of an identification number for VAT purposes also in cases where the ID number is found to have been used for fraudulent purposes; - the possibility of ordering a taxable person to submit a VAT return earlier than the statutory deadline if it is established in the inspection procedure that there is reason to believe that the VAT levied on certain supplies will not be paid.|

SK|1. Update of the National Strategy for the Protection of the EU's Financial Interests in the Slovak Republic and its annexes, in force as from 25 May 2009; update of the National Strategy action plan, in force as from 1 January 2010 to improve and enhance cooperation between Slovak bodies and cooperation with OLAF on the protection of the EU's financial interests in the Slovak Republic.2. The amendment to Act No 528/2008 on assistance and support from European Community funds, in force from 7 July 2009.Its purpose is to enable major projects to be realised even before the Commission confirms the assistance. An extensive amendment to this Act is under preparation. 3. Update of Guidance Document No 16/2008 on irregularities in the financial management of the Structural Funds, the Cohesion Fund and the European Fisheries Fund – in force since 9 September 2009, issued by the Slovak Ministry of Finance. The main aim of the update is to specify the conditions for reporting irregularities for the audit authority and cooperating bodies carrying out audits under Article 62(1)(a) and (b) of Council Regulation (EC) No 1083/2006 and the records and resolution of irregularities at national level. 4. The amendment to Act No 652/2004 on State administrative authorities in the field of customs, amending certain acts, in force as from 1 January 2009, gives customs inspectors full investigative powers and substantially accelerates and streamlines the investigation of offences and crimes committed in connection with violations of customs and tax law within the scope of the customs authorities. |

FI|Adoption of the Decree giving effect to the Second Protocol to the Convention on the protection of the European Communities' financial interests and bringing into force the Act giving effect to provisions coming within the scope of the Protocol (26/2009). Finland acceded to the Protocol in February 2003. |

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UK|Serious Fraud Office (SFO): Bribery Bill introduced into Parliament on 19 November 2009 will:- Make it a criminal offence to give, promise or offer a bribe and to request, agree to receive or accept a bribe either at home or abroad. There is a separate offence of bribery of a foreign public official. - Increase the maximum penalty for bribery from 7 to 10 years’ imprisonment, with an unlimited fine. - Introduce a corporate offence of failure to prevent bribery by persons working on behalf of a business with a defense of having adequate procedures in place to prevent bribery.The Bill aims to reform the criminal law to provide a new, modern and comprehensive scheme of bribery offences that will enable courts and prosecutors to respond more effectively to bribery at home or abroad. It is already having a major impact on prevention as the business community examine the adequacy of their anti-corruption and fraud procedures.SFO national reporting centre for allegations of bribery: On 21 July 2009 the SFO national reporting point for allegations of bribery published a guide on its website (http://www.sfo.gov.uk/bribery--corruption/self-reporting-corruption.aspx) setting out the benefits of a corporate culture of self reporting. Wales (W):In April 2009 an Anti Fraud Unit was established to lead on the development of anti-fraud policies and procedures, from prevention, through to detection and investigation; and to develop an anti-fraud network / community of practice across the Welsh public sector. One of the objectives will be to establish and lead an anti-fraud practitioner network across the Welsh public sector. Her Majesty’s Revenue & Customs (HMRC):During 2009, HMRC set up an Evasion Referral Team which assesses cases (of suspected fraud, or other types of serious non-compliance) referred by operational teams across HMRC, with potential for this being further investigated with a view to applying either a civil evasion penalty or a successful criminal prosecution. |

2. IMPLEMENTATION OF REGULATION 2185/96 CONCERNING ON-THE-SPOT CHECKS IN THE MEMBER STATES

Regulation 2185/96 is based on a close reciprocal cooperation between OLAF and the National Authorities. The implementation of the Regulation may vary depending on the approach adopted by the National Authorities. In order to continue to ensure the effectiveness of the partnership with the National Authorities and a more widespread implementation of the "good practices" identified in the last Report on the application of the Regulation, it is necessary to know the national measures and practices adopted by each Member State in implementing it.

2.1. Conditions for gaining access to information provided by national legal framework

Member State:|2.1.1 What are the conditions (In the sense of Article 7, paragraph 1 of Regulation 2185/1996) under which national inspectors have access to all the information and documentation on the operations concerned and which are required for the proper conduct of the on-the-spot checks and inspections? |

BE|Taxation: in 2009 the Permanent Committee on combating tax fraud (CAF) was designated to provide operational support for OLAF to ensure access to information and documentation concerning the operations required for the proper conduct of the checks provided for by the Regulation as regards VAT and customs and excise in particular. This support makes it possible to obtain all the information available with a view to an inspection (Act of 23 December 2009 cited above).|

BG|The Public Financial Inspection Agency (ADFI) assists the European Commission's inspectors in conducting on the spot checks and inspections where they are denied access to premises, transport, or other places where documents, records or data carriers are stored, or where they are not provided with the documents, records or data carriers required for their inspections.|

CZ|The competent national inspection and audit bodies in the Czech Republic have access to all sources of information regarding the elements set out in Article 7(1) of Council Regulation (Euratom, EC) No 2185/96 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities, when meeting the conditions set out in the following generally binding legislation in particular. On-the-spot checks are undertaken according to internal inspection activity plans. Where there is a suspicion of a serious breach of the conditions, unscheduled checks according to need.|

DK|Section 5 of the Legal Certainty Act lays down the general rules for the written notification of the person or firm to be inspected. The basic rule concerning prior notification may be waived in a number of cases; for instance, an inspection may be notified on the spot if the objective would otherwise be jeopardised. The national inspectors have access to premises, documents and other material at any time without a court order. Material must be provided on request. The person or firm inspected must advise and assist the authorities in the implementation of the inspection. If necessary, the police may provide assistance in the implementation of the inspection.|

DE|As a general principle this is determined by German administrative procedural law. If criminal activity is suspected the Code of Criminal Procedure applies. Enforcement measures can be taken only within the framework of criminal proceedings.|

EE|Section 41 of the 2004-2006 Structural Funds Act (STS), Sections 14, 22, 31 of the 2007-2013 Structural Funds Act , Section 96 of the European Union Common Agricultural Policy Implementation Act, Section 213 of the Code of Criminal Procedure (KrMS)|

IE|Officials carrying out on-the-spot checks are entitled to have access to all information and documentation which they consider relevant to the project or operation which they are investigating (according to the Statutory Instrument - S.I. No. 168/1998, which gives effect to Council Regulation (Euratom, EC) No. 2185/1996).|

EL|Inspectors have access to all data and information relating to the subject of the check determined by the decision in question and are bound by the discretion provisions of the Ministerial Code. The obligation for the subject of the check to disclose all relevant data or information derives from the items of legislation applicable in each case. |

ES|Public bodies and third parties connected with the aid are obliged to cooperate and provide whatever documents are required during the inspection. This duty of cooperation is laid down in national law and is applicable to the State Administration and the Autonomous Communities. Failure to comply with the duty of cooperation is an administrative infringement.|

FR|The rural code for the EAGF provides for checks to be carried out by paying agencies. Customs agents have three legal instruments: the right of communication – Art. 65, the right of access to professional premises - Art. 63 and the right to search residential premises – Art. 64 of the Customs Code. The audits of the Structural Funds' management and control systems are governed by legal provisions.|

IT|The national inspectors have access to all the information and documents relating to the transactions that are the subject of the inspection. They can access the locations used for carrying on productive and/or commercial activities and other sites where the accounting documentation is kept. Applicable legislation: Presidential Decree 633/72, Presidential Decree 600/73 (Act 689/81), Legislative Decree 374/90 (Act 19/94, Act 20/94, Act 212/2000)|

CY|KOAP: Article 46, Law 64(Ι)/2003 on the Agricultural Payments Organisation (KOAP)Customs Department: Article 78 of Law 94 (Ι)/2004 on the Customs CodeInternal Audit Service: Article 11 (a) of Law 114(Ι)/2003 on Internal Audit Treasury: Article 22 (1) of the State Revenue and Expenditure Management and Accounting Law 2002.|

LV|1) The economic operator shall provide any information related to the project implementation as requested by the institutions that carry out on-the-spot checks. 2) The law enforcement institutions have access to all information and documents on the relevant operations when the checks under the regulatory enactments are carried out. 3) In performing criminal proceedings, record-keeping in administrative violation cases or administrative record-keeping, legal instruments are applied to ensure that various types of information should be obtained. Such instruments are applied equally in evaluation of all types of criminal offences: - in accordance with the regulation set out in the Criminal Procedure Law (hereinafter the CPL), in order to acquire the required information, or to examine information already acquired in criminal proceedings, law enforcement institutions are entitled to perform any investigative actions as set out in the CPL (including search, seizure, on-site examination of testimony, questioning) and special investigative actions as set out in the CPL.|

LT|By signing the project financing and administration agreement, the project implementer undertakes to send all information requested by representatives of the institutions administering EU structural assistance to them on time, to enable inspection of the project implementation and administration sites and of activities relating to the project being implemented and to allow access to documents relating to the project and to the implementation of the agreement.|

LU|Under the General Customs and Excise Law of 18 July 1977 (Articles 201 to 203), national customs and excise officers have access to the above documents at any time and in any place.Searching, provided for in Article 65 of the Code of Criminal Procedure and Investigations (CIC), is a coercive measure as well as an investigative measure which can be undertaken only after the case has been properly referred to the examining magistrate. In cases of flagrante delicto, Articles 31 and 33 CIC allow police officers to gather any relevant information.|

HU|Checks may be performed on the spot or at office premises. A condition for inspection is the lawful selection of the party to be checked and handing over the letter of authority. As a general rule, on-the-spot inspection must be notified orally or in writing in advance and information must be given on the objective, form, legal basis and duration of the procedure.|

MT|Art. 20(1) b of the Internal Audit and Financial Investigations Act (IAFI Act) – Chapter 461 of the Laws of Malta - empowers the investigators of the Internal Audit and Investigations Division (IAID) to require the economic operator to produce any information/ documentation relevant to the operation being checked. No specific conditions/restrictions are cited in the Act detracting this power.|

NL|No restrictive conditions are imposed.|

AT|Customs: Section 24(1) of the Customs Law Implementing Act, BGBl. 1994/659, allows inspections in respect of persons. BMLFUW [Federal Ministry for Agriculture, Forestry, Environment and Water Management] (for agricultural expenditure): Access to information on the basis of legal provisions, esp. Sections 22+23 of the 2007 Market Organisation Act ("MOG"), BGBl. I No 55/2007. ERDF+ESF: The beneficiary undertakes in the grant agreement to allow all inspectors access to books, documents, etc.|

PL|The Tax Ordinance Act of 29 August 1997 and the Treasury Control Act of 28 September 1991 grant the full access to documentation while inspecting the expediency and compliance with law of the management of public funds and funds from the EU and international financial institutions subject to reimbursement.|

PT|Decree-Law No 276/2007 laying down the legal regime for inspection activity provides that the direct, indirect and autonomous services of the State and public and private natural and legal persons subject to inspection have the duty to cooperate and provide information, and any breach of these duties is liable to entail disciplinary and criminal procedures. |

RO|DLAF can request any public institution or authority concerned, as well as any state-owned or private economic operator, to provide all the documents and information necessary for drawing up the inspection report. If they cannot be presented on the spot, the legal persons mentioned above have the obligation of providing an appropriate and complete response within a maximum of 10 days from the date of the request.|

SI|Budget inspectors may have access to premises, persons and data in relation to the inspection of the proper use of State and Community budget funds. Authorised persons from the tax and customs authorities, the Office for the Prevention of Money Laundering, the State Commission for the Prevention of Corruption and the system of implementation and control of European Funds also have access to all data needed for control.|

SK|Auditors or inspectors may: enter the premises of the audited or inspected body, demand and remove original documents or information, and demand cooperation and documents from third parties. Auditors or inspectors must: announce the government audit or inspection, present their authorisation to conduct a government audit or inspection, and issue receipts for any original documents removed (Acts No 502/2001 and No 10/1996).|

FI|The audit authority, certifying authority and managing authority have the right to conduct inspections relating to the use of Structural Funds. When an individual project is being inspected, the right of inspection applies to the project and its funding as a whole. The Government of the Province of Åland has the right to inspect the finances and operations of aid or loan recipients.|

SE|Public bodies: the inspector has access to all information that is not confidential; see Chapter 6 Section 5 of the Public Access to Information and Secrecy Act (OSL). A specific secrecy-breaking provision is required for information covered by secrecy rules. Individuals: there is no general provision entitling inspectors to access to information held by individuals subject to supervision, etc.|

UK|Provision is in place which covers access to inspection and information, and for inspectors to enter, seize and copy documents but with respect to the European Convention on Human Rights. Cases of suspected fraud are, where relevant, referred to the police.|

Member State:|2.1.2 Describe the procedures provided by your national legislation (laws and other legal instruments, e.g. national regulations, decisions etc) for gaining access to information located in a place other than the economic operator's premises (e.g. private residences, lawyers' offices, vehicles, etc.)?|

BE|Regarding tax on income (Article 319 of CIR 92), officials of the direct taxation administration can demand free access to business premises, vehicles assigned by the taxpayer to professional activities, even if only partially, and to any other place where business activities are carried out or presumed to be carried out. They can only enter domestic buildings or premises between five o’clock in the morning and nine in the evening and only with authorisation from a police court judge.Article 5 of the Act on trade in agricultural, horticultural and maritime fisheries products of 28/03/1975. Officials have free access to factories etc., but entry to domestic premises requires authorisation from a police court judge.|

BG|Where there is sufficient evidence that documents and/or electronic data of significance to the inspection are being held at premises other than those of the economic operator, the district court at the headquarters or address of the organisations or persons under inspection issues a warrant to carry out a search and seizure at these premises.|

CZ|Procedures laid down in Czech legislation for gaining access to information located in places other than at the operating premises of economic operators (such as private residences, lawyers’ offices, personal vehicles) are set out in more detail in, for example, a) in the case of private residences, Article 12 of the Charter on Human Rights and Freedoms, which forms part of the Constitution of the Czech Republic; b) in the case of a lawyer’s office, in accordance with Act No 85/1996 on practicing law, as amended; c) as far as personal vehicles are concerned, in Act No 361/2000 on road transport and amending certain Acts (the Road Transport Act), as amended. Also in Act No 106/1999 on free access to information, as amended by later legislation and by the Act No 320/2001 Coll. on financial control in public administration.|

DK|The person or firm responsible for the transaction is obliged to provide all the information, documents, etc., irrespective of where they are.The national inspectors may obtain from other public authorities the information needed to check compliance with the relevant aid provisions.|

DE|Private dwellings enjoy special protection under German constitutional law. Information on advisory professions can be obtained solely if criminal investigations are being conducted. Other enforcement measures can be taken only within the framework of criminal proceedings.|

EE|In administrative proceedings: Section 13 of the Administrative Procedure Act ( Haldusmenetluse seadus - hereinafter HMS); Section 25 of STS; Sections 9, 22, Chapter 6 of STS 2007+ (https://www.riigiteataja.ee/ert/act.jsp?id=13184742); In criminal proceedings: Section 91 (Searches) of KrMS (https://www.riigiteataja.ee/ert/act.jsp?id=13260374)|

IE|The procedures are provided for in subsection 7 of Regulation 4 of S.I. 168/1998, in summary a judge of the relevant District Court can issue a search warrant to authorise a named authorised officer, or other persons, at any time, within one month from the date of issue of the warrant, to enter a family home, other premises, vehicle, vessel or aircraft as specified in the warrant.|

EL|For on-the-spot checks without the subject's consent, a legal representative must be present pursuant to the Code of Criminal Procedure. The Special Audit Office (ΥΠΕΕ), particularly in the case of checks carried out in customs houses, temporary storage areas or free zones pursuant to the provisions of the Customs Code, works alongside the head of the relevant customs authority.|

ES|The officials responsible for the inspection have free access to all documents (including computerised supports), to the establishments in which the subsidised activity takes place, and to the bank accounts of the beneficiaries. Failure to comply with this obligation is regarded as resistance or use of excuses, and is subject to sanctions.|

FR|Searches of residential premises can only be carried out in pursuit of customs violations. They can be carried out in any place where merchandise and documents related to these violations are likely to be kept. Such searches require the authorisation of a magistrate for custody and release, except in cases of flagrante delicto, and the presence of an officer of the Criminal Police.|

IT|Access to premises other than those intended for the carrying on of commercial and professional activities may be obtained, with the authorisation of the Public Prosecutor, only in cases where there is substantial evidence of infringement. If the access gained is to premises intended for the exercise of professional activities, it must be so in the presence of the person in whose name the office is run or of a person authorised to represent him or her.|

CY|Article 78 (2) (6) and (7) of Law 94 (Ι) of 2004 on the Customs CodeArticle 11 (b) of Law 114(Ι) of 2003 on Internal Audit Article 22 (1) of Law 112(Ι)/2002In general, it is permitted to enter any buildings or other facilities and ask for all information and explanations deemed necessary.|

LV|In accordance with Section 15(2)(4) of the Law on Management of European Union Structural Funds and the Cohesion Fund, institutions that carry out checks may request information regardless of its whereabouts. Requirement of the information access economic operator fulfil according to the obligation set out in the agreement or contract on the project implementation under the civil law.Under the Rural Funds, checks may only be carried out in the places or premises related to the project implementation.State Police officers under Section 12 (23) of the Law on Police in performing duties assigned to them in conformity with the competence of the service, have the right in order to prevent and disclose an economic criminal offence, to carry out a check: requiring of the relevant officials an inventory, audit or inspection of the production, financial and commercial activities of institutions, private law legal persons and unions of persons; until the commencement of inventory taking, removal of documents or performance of an inspection, to seal the cash office facilities, as well as places where documents, money, goods and materially valuable items are kept, and to carry out other measures in order to ensure the preservation of such;In performing their functions of the tax administration process under Section 10(1)(1) of the Law on the State Revenue Service, the officials of the State Revenue Service may visit the territories or premises in the ownership or use of legal or natural persons. Law enforcement institutions, within the scope of their competence, are entitled to carry out specific checks in order to prevent and disclose criminal offences in national economy, and they may have access to information located in a place other than at the economic operator's premises in cases and in accordance with the procedures set out in Sections 163, 179-188, 190 of the Criminal Procedure Law.See also the response to question 2.1.1.|

LT|Within its remit and in accordance with the procedure laid down by law, an institution administering EU structural assistance is entitled to obtain any information it needs to perform its functions from institutions and bodies and the databases kept by them, as well as from the Interdepartmental Tax Data Warehouse, the Supervisory Committee, the Operational Programme Management Committees, the Regional Development Councils, applicants and project implementers.|

LU|See section 2.1.1. The provisions of the General Customs and Excise Law of 18 July 1977 apply in all places.Under Article 65(1) CIC, searches shall be carried out in all places where objects might be found that would be useful in determining the truth.A search in a law firm can be carried out only in the presence of the President of the Bar or his representative.Vehicles can be searched pursuant to Article 48(10) and 48(11) CIC.|

HU|On-the-spot inspection also includes checking the assets and documents stored and preserved outside the main headquarters or site of the economic operator. The inspector is authorised to control any location, room and vehicle that may be connected to the inspection. A private home may only be inspected if any part of it serves as a location for performing the given activities. The inspectors may inspect locations where projects are implemented.|

MT|IAID can enter and inspect any premises of the economic operator (eo), provided that if access is required to premises occupied in whole/part for habitation purposes, IAID would require a Magistrate’s warrant and that entry should take place during daytime. If the information regarding the eo is located at a third party, IAID would require the eo to procure and furnish such information himself. |

NL|Dutch legislation provides for full access to records. In criminal investigations access to records can be obtained only on the authorisation of the investigating judge. |

AT|Customs: Section 25 BMLFUW: Section 26, 2007 MOG. ERDF: distinguish between occasional administrative controls and any fraud audits. Where fraudulent activity is suspected the law enforcement authorities take action (with a search warrant, documents also secured in other places). ESF: Searches of private homes etc. under Section 93 Financial Crime Act.|

PL|Inspections are carried out at the headquarters of the person under inspection, at another place where documents are kept and at other places of running its business. Where books are kept or stored away from the headquarters at which an inspection is being carried out, the person under inspection is obliged to ensure access to the books at the headquarters or at the place where the books are kept or archived. |

PT|Decree-Law No 276/2007 governs inspection activities in the services and facilities of public and private entities under inspection. Access to information located on other premises may be requested from the police authorities, provided that the applicable provisions of the Code of Criminal Procedure ( Código de Processo Penal - CPP ) are met.|

RO|With a view to conducting inspections efficiently and rapidly, the inspection warrant imposes an obligation on any public institution or authority and on any state-owned or private economic operator to provide the DLAF agents with unconditional access to offices, areas, transport vehicles and other premises used for business purposes.|

SI|Access to vehicles and private residences is possible only on the basis of: the owner's authorisation, the decision of a competent court or the provisions of the agreement granting Community funds.|

SK|Auditors or inspectors may, as required, enter the premises, facilities, plant, means of transport or land of the audited or inspected body where these are used for the performance of tasks in the public interest, and may enter dwellings where these are also used for business purposes and entry is necessary for the performance of tasks under Act No 502/2001 etc. (Acts No 502/2001 and No 10/1996).|

FI|Section 56 of the Structural Fund Act (1401/2006) states that for the purpose of the inspection, the party being inspected has an obligation to produce the documentation required by the inspector without undue delay, and to cooperate with the inspection in any other way. Section 57 of the Act states that the police, customs authorities and tax authorities must provide any assistance necessary for conducting the inspection free of charge.|

SE|No provisions concerning secrecy rules are relevant to this question. Nor does administrative law contain any overall regulation of inspectors' right to take steps of this sort.|

UK|S : Relevant regulations provide for persons to whom records are transferred to in the course of business to keep them and provide access to them. In addition, inspectors are provided with powers to carry out inspections on any premises where such records are held. NI : The Managing, Paying or Certifying and Audit Authorities all have access to information pertaining to the Letter of Offer (LoO).|

Member State:|2.1.3 If applicable, describe the measures you can take, on the basis of your national legislation, to safeguard the chain of custody or continuity of possession over the records you select during the on-the-spot check.|

BE|Customs and excise: make copies of and seize documents and correspondence proving or helping to prove an infringement. Computerised system: retrieve copies of these documents in whatever form desired.In criminal cases, seals can be affixed or seizures effected.Structural Funds, documents have to be kept for 3 years after closure of the programming period; scope until 2020 for the 2007-2013 programming period.|

BG|Copies of the documents and/or electronic records seized are provided by the financial director of ADFI to the Commission's inspector together with a certificate of receipt and transfer, but the originals and the electronic records seized are held at ADFI until the inspection and on the spot check have been completed.|

CZ|To eliminate any breakdown in the chain of custody or possession of records removed in the on-the-spot check, copies are usually made of the necessary records; this ensures protection of the selected original documents against loss, destruction, damage or misuse. Copies are archived for the prescribed period in the project folder. For the Act No 320/2001 Coll. on financial control in public administration and Act No 552/1991 Coll. on state control, auditors have the authorisation to request original documents and in justified cases to make copies of them. These are held for a period of three years from the end of the programme, or three years from the end of the relevant part of the operational programme in line with a European Commission declaration on the closure of assistance.|

DK|Compliance with the requirements of good governance by the public authorities, including the keeping of records and other registration measures with a view to the appropriate storage of documents and other material.|

DE|There are no such provisions in German law.|

EE|The subject of an on-the-spot check can be photographed/filmed, supporting documents can be copied or entered in a list which becomes part of the official record. If data or property items are not preserved at the time of the inspection, the data, objects or rights are deemed not to exist. If the preconditions for the eligibility of expenditure are not substantiated, under Section 26 of STS and STS 2007+ the amounts are reclaimed or under Section 18 the decision granting aid is repealed. Section 125 of KrMS. |

IE|The procedures are provided for in S.I. No. 168/1998 in Subsection 1 of Regulation 4 of S.I. 168/1998: for example in subsection 1(g) a Commission inspector can “secure for later inspection the premises or any records, books, documents or products found therein”. |

EL|Inspection bodies keep full and detailed inspection records that are consistent with the inspection requirements. For structural operations, there are ongoing and permanent inspection records. For ΥΠΕΕ operations with serious violations where official documents and data from the party being inspected must be attached to the audit report, these are attached and sent to the tax office or to Customs. |

ES|The beneficiaries must keep the supporting documents justifying the use of public funds, including computerised documents. Moreover, inspection bodies can obtain copies and keep invoices and equivalent documents relating to operations from which it has been deduced that funds have been improperly obtained, enjoyed or used.|

FR|The documents can be seized by the administration and remain under its responsibility until the end of the legal proceedings (definitive transaction or definitive judicial ruling).|

IT|The documentation acquired must be described and listed in detail in the reports of the operations carried out, and may be kept at the head office of the inspected economic operator, with his or her consent, if it can be locked in premises in which its safe custody is guaranteed (including through the application of seals that prevent the documentation from being interfered with or removed). |

CY|Article 78 (4) of Law 94 (Ι)/2004 on the Customs Code Receipt, within a reasonable time, and retention, for a reasonable period, of any file, book, document or record to be produced under subparagraph (1) or (2)For the KOAP, photocopies are taken to avoid the risk of tampering with documents and data.|

LV|Under the EU Structural Funds, Cohesion Fund and Rural Funds:- in accordance with clause 3 of the Transitional Provisions of the Law on Management of European Union Structural Funds and the Cohesion Fund, economic operators shall store the originals of all documents related to the implementation of the EU Funds projects until 31 December 2021. This obligation is also set out in the agreement or contract on the project implementation under the civil law;- storage of documents at the national level is set out in the Law on Archives. The State Archive Council has determined a term of storage for standard documents of government institutions;- institutions may carry out on-the-spot checks – verify all documentation and information related to the project implementation; - economic operators must ensure the required access rights for the inspector to the place where the project is implemented, including the economic operator’s information systems, all original documents and databases related to the technical and financial management of the project, as well as the opportunity to organise interviews with the persons responsible for the project implementation and involved in the project, to inspect the documents regarding the premises or work stations, the issue of copies of the required documents, the presence of persons responsible for the project;- institutions may carry out repeated checks to obtain assurance about elimination of the shortcomings;- institutions may carry out independent audits for verification of the eligible expenditure under the project.See also the response to question 2.1.2.|

LT|Documents relating to the implementation of EU assistance must be stored in accordance with the procedure laid down by Order No 38 of the Director-General of the Lithuanian Archives Department under the Government of the Republic of Lithuania of 15 August 1997 (Official Gazette 1997, No 78-2006) (usually for 10 years after completion of the project), and their security and accessibility must be guaranteed.|

LU|The examining magistrate may conduct the seizure of all objects he deems useful in determining the truth or use of which might be detrimental to the proper conduct of the investigation. The objects seized must be lodged with the clerk of the district court or given to an officer entrusted with the safekeeping of such items.Article 203(2) of the General Customs and Excise Law of 18 July 1977 establishes the right to take copies or keep documents and/or correspondence.|

HU|Copies, excerpts and certificates may be made of the documents with due regard to the data protection and confidentiality requirements. In justified cases the original documents may be taken, leaving copies; however, when inspections have been closed these must be returned. If, during tax inspection, evidence is found when checking a vehicle, location or room, it may be seized if there is a risk of the evidence being hidden or destroyed, and the action of seizure must be officially recorded.|

MT|IAFI Act empowers IAID to retain in the original any documents retrieved from the economic operator. Additionally IAID’s Operating Manual provides the following guidelines with respect to documents retrieved: (i) To clearly indicate the source of the document; (ii) To explain any terms/notations found on the document; (iii) To explain reason of retention.|

NL|See answers to questions 2.1.1 and 2.1.2.|

AT|Customs: The customs authorities have many measures for viewing documents/records; all the data collected during inspections are documented and are available to the competent officials. BMLFUW: Sections 7+8 ( Verwaltungs-Vollstreckungsgesetz) +C14 [Administrative Enforcement Act] provide for enforcement measures and provisional security measures (these can be appealed against, but only after the measure is taken). ESF: Legal representation by the Federal Financial Prosecutor.|

PL|The Polish legal system has rules for evidence hearing and taking and securing evidence in specific cases. The matter is governed by Articles 122, 180 and 187(1) of the Tax Ordinance Act and Chapter 25 of the Code of Criminal Procedure. The chain of custody requires cooperation between representatives of the judicial system and officials of the competent authorities.|

PT|Decree-Law No 276/2007 (Article 16) lists, in particular, the following guarantees enabling inspectors to carry out their work: the right of access and freedom of movement, requisition for the purpose of investigation, consultation and addition to the file of documents and records, carrying out of on-the-spot checks, the option to seal premises and confiscate documents and other forms of evidence.|

RO|Under Section 214 of the Code of Criminal Procedure, DLAF acts as inspection body. Therefore, the DLAF agents have the authority to seize any material evidence, to assess damages and to carry out any other actions, as provided for by the law.|

SI|The documentation collected during the check is entered in the case-file by the responsible person. Once inspection, control and investigation have been completed, the case is closed and archived in accordance with the Rules on determining the retention period for documents of public administration authorities, the annex to which is also the summary classification plan laying down the retention periods for individual cases.|

SK|Auditors or inspectors may: remove original documents etc. unless their issue is prohibited by law. They must issue receipts to the audited or inspected body or third party for any original documents removed, must protect these from loss, destruction etc., and must return them unless they are required for further government audits or inspections (Acts No 502/2001 and No 10/1996).|

FI|Under Section 56 of the Structural Funds Act (1401/2006) the inspector has the right to take possession of accounting documents and other material referred to above if required for the inspection. The material must be returned when no longer required. At the request of the inspector, the party being inspected must also provide any other information required for carrying out the inspection properly.|

SE|There are no special rules about seizure, etc. which are generally applicable in a supervision context. If an inspector is entitled to see information held by a public body, the documents can, for example, be copied and the copies taken.|

UK|RPA : Compliance with the Criminal Proceedings and Investigations Act (CPIA), and various other Codes of Practice concerning specialist materials is essential. S : Relevant regulations normally provide inspectors with powers to copy and/or seize records (whether in written or electronic form) so as to preserve evidence. In addition, where crime is suspected, the police are entitled to remove, examine and retain evidence normally on the basis of a search warrant.|

Member State:|2.1.4 Are there any legal restrictions or limitations in place for obtaining the information relevant to the on-the-spot checks from documents, electronic resources or orally (interviews)? If Yes, describe.|

BE|Yes, on the use of information under provisions other than those for the execution of which the information was supplied. Also restrictions as regards documents belonging to persons with a duty of professional secrecy (lawyers, accountants, etc.) (Art.458 of the Criminal Code)1. The duty of professional secrecy applies to tax authority officials and other actors as regards information obtained in the course of their duties (Art. 93 bis and 337 of the CICR). They may not use the information obtained outside the framework of the legal provisions for the execution of which that information was supplied.2. Customs and excise: credit institutions, bankers and stockbrokers: communication of supporting documents is subject to special authorisation by the Administrateur général of Customs and Excise (Article 203(1)).3. Access to the offices of persons in the liberal professions and office-holders is not authorised while the taxpayer in question is conducting professional business in the presence of clients.|

BG|No|

CZ|Yes. An inspector is unable to access confidential information without a certificate for the relevant level of confidentiality under Act No 412/2005 on the protection of classified information and security clearance. Possible restrictions on the basis of Act No 101/2000 on the protection of personal data and amending certain acts, possible restrictions on the basis of the Charter of Human Rights and Freedoms. Only information and documents relating to the assistance granted may be requested. |

DK|No|

DE|Yes. Data protection rights, the right of individuals to determine what information should be made available and the right to refuse to give evidence in a hearing according to the situation|

EE|Yes. HMS Chapter 2 (Conduct of Administrative Proceedings), KrMS Section 214 (Conditions for disclosure of information in pre-litigation procedures) |

IE|Yes. The right to silence and restrictions under the Data Protection Act, 1988. |

EL|Yes. Legal restrictions lie in compliance with the provisions of the Code of Administrative Procedure and with Law 2472/97 "on the protection of personal data". The ΥΠΕΕ has access to all data relating to the check and is not subject to restrictions arising from tax, banking or financial secrecy. It must comply with confidentiality provisions.|

ES|No|

FR|No|

IT|Yes. The limitations mainly concern sensitive data relating to persons and to facts covered by secrecy concerning a preliminary judicial investigation or by professional confidentiality. In such a case, the law provides that the inspectors request authorisation from the appropriate court to carry out their inspection. In anticipation of such authorisation, the relevant documents may, however, be obtained and stored safely.|

CY|Yes. The Customs Department requires the issue of a warrant authorising entry and search at a given site by a judge of the District Court. The Internal Audit Service has access, for a reasonable time, to all books, records, accounts, property, payment orders, receipts, files, correspondence and other data. |

LV|No|

LT|No|

LU|No|

HU|Yes. The inspector may only procure data in respect of the persons listed in the letter of authority. If, during inspection, further information relating to other persons is needed, the basic inspection may be suspended and a so-called associated inspection started. Data protection and confidentiality requirements may impede access to data. The inspectors are subject to confidentiality obligations in respect of secret information received.|

MT|No|

NL|No|

AT|No|

PL|Yes. Hearings: Witnesses may refuse to answer questions where to do so might expose them or their relatives to prosecution for a criminal offence or fiscal crime or cause them to breach a statutory duty of professional secrecy.|

PT|No|

RO|Yes. The restrictions refer to compliance with the law on protecting personal data and observing banking secrecy rules, information confidentiality rules and the rules on classified information. Documents that are not handed over willingly can be forcefully seized only by the criminal prosecution body or by the court.|

SI|No|

SK|Yes. Restrictions on obtaining information arise from the protection of personal data or classified information and from the professional secrecy requirement laid down by law. The provision of original documents, correspondence and information is restricted where their issue is generally prohibited by binding legislation (Acts No 502/2001 and No 10/1996).|

FI|No|

SE|Yes. Nothing that is based on secrecy rules. There may of course be confidentiality obligations, etc. which impact on the ability to obtain information unless there is an obligation to supply information that entitles the inspector to see the information.|

UK|If seizing electronic data, authority may be required under Regulation of Investigatory Powers Act (RIPA). ISO Standards and Codes of Practice must be adhered to in the collection and storage of material. S: Generally, the Data Protection Act 1998 (DPA) governs the storing of information held in respect of persons and prescribes a number of mechanisms for access, retention and disclosure of data held in accordance with DPA. There are exemptions to this for the administration of justice where such information would be deemed to be admissible evidence relevant for the court.|

Member State:|2.1.5 What do you do, on the basis of your national legislation, if you find evidence of other irregularities that are not covered by the warrant for the on-the spot check?|

BE|Under Art. 29 of the Code of Criminal Procedure any official, authority, or the like who discovers a criminal offence is duty bound to report it to the public prosecutor. It is for the public prosecutor to decide what action, if any, to take in response. In cases relating to taxation, authorisation from the Regional Director is required. Article 210(3) of the General Act on Customs and Excise allows information obtained regarding other taxes owed by a person under inspection to be communicated to another tax authority.|

BG|The competent authorities are alerted.|

CZ|The procedure is laid down in the appropriate operation manuals and procedural guidance notes. A request is sent to the relevant authorities, the on-the-spot check warrant is extended, or a further official check that includes the suspicious elements is carried out. Any breach of budgetary discipline is notified by the inspector to the tax administrator (or a different body depending on the nature of the breach, for example to criminal authorities in accordance with Section 24 of the Act No 552/1991 Coll. on state control) and is noted in the check report. Cases of suspected fraud are referred to the criminal authorities.|

DK|If the on-the-spot check reveals evidence of infringements of provisions other than those covered by the inspection warrant, the authority concerned or the police will be notified. The police have the powers to conduct investigations.Section 5 of the Legal Certainty Act (see point 2.1.1) also lays down rules for any written notification of the person or firm concerning the more detailed check to be carried out.|

DE|Notification of the relevant authorities|

EE|Information is passed to the subsequent stages in the inspection chain; if necessary the matter is referred to the law-enforcement authorities.|

IE|The matter can be reported to the appropriate national authority, such as the Revenue Commissioners or Garda Síochána (National Police Force). The Revenue Commissioners can make use of the powers under Section 905 of Taxes Consolidation Act, 1997.|

EL|- Evidence is taken into account by service officials, who issue oral or written warrants for further action depending on the nature and contents of the evidence in question. - Special on-the-spot verification takes place. If there is evidence of infringements, data are forwarded to the disciplinary authorities or to the prosecuting authorities.- Extension of check within country or to MS. |

ES|There is a possibility of extending the checks to other aid lines or other periods, following a request by the body responsible to the body responsible for approving the initial inspection plan. In cases in which behaviour may constitute an offence, the Administration passes the evidence of criminal liability on to the competent criminal court and refrains from imposing sanctions. |

FR|If an irregularity is found that is not covered by the search warrant, the search team is authorised to communicate the data collected to the relevant administrative service. If there is a suspicion of fraud or if the irregularity observed constitutes a crime or misdemeanour, the Public Prosecutor must be informed in accordance with Article 40 of the Code of Criminal Procedure. |

IT|If further irregularities should come to light that were not covered by the warrant, the inspection body will, depending on the anomaly detected, either act on its own initiative or notify the various bodies concerned so that they can take the appropriate steps. (If it is not possible quickly to locate the competent authority, mention will be made of the fact in the report with a view to any subsequent challenge).|

CY|If other irregularities are discovered in the course of the check, immediate action is taken to stop the activity in question and the relevant authorities are notified immediately. If the check is performed on the basis of a warrant, a check concerning other irregularities can take place only after a new warrant has been issued.|

LV|During on-the-spot checks, information on other irregularities is forwarded to the competent institutions. The institution that carries out the check may decide on full audit of the economic operator’s project, which is followed by the decision on use of the funding granted and recovery of irregular expenditure.In cases where the State Police or the State Revenue Service carry out a check within the scope of their competence, additional irregularities that are identified are stated in the check report/statement which may result in administrative proceedings or criminal proceedings.|

LT|This information is recorded in the on-the-spot inspection report and is communicated to the irregularities inspector at the administering institution responsible for administering and monitoring the project in question. If a criminal offence is suspected, the competent law enforcement authority, namely the Financial Crime Investigation Service (the Lithuanian AFCOS), is notified immediately. |

LU|The following may be seized: all objects that have been used or were intended to be used to commit a crime, those which were the subject or are the proceeds of the crime, anything which appears to be of use in determining the truth or use of which might be detrimental to the smooth conduct of the investigation, and anything liable to be confiscated or recovered (Article 31(3) CIC).|

HU|Inspections are carried out in accordance with an annual inspection plan. An inspection plan is drawn up for the individual inspections; the inspector is authorised to access information to carry out the tasks in respect of the person/period listed in the programme on the basis of the letter of authority. The inspector may ask for an amendment of the letter of authority and, if this is not possible, a new investigation. There is no possibility for immediate action.|

MT|The IAID will retain such evidence and commence a separate check/investigation in relation to these irregularities. Moreover, the IAFI Act provides that if it is clear that if the irregularity, if proved, would constitute a criminal offence, the IAID has to immediately inform the Attorney General.|

NL|If the inspector is authorised to carry out supervision or investigations, he can do so independently. If he is not, he can inform the relevant inspection/ investigation department which has this as its core task. |

AT|Customs: Under the comprehensive right to take and inspect evidence, evidence may be taken even on hitherto unknown subject areas. However, this increase in scope must be recorded in writing and the person concerned must be informed. BMLFUW: Report to the competent authorities where necessary. ESF: Legal representation by the Federal Financial Prosecutor.|

PL|1. Notification of another body responsible for implementing EU funds. 2. Obligation to notify the law enforcement authorities of an offence prosecuted ex officio (Article 304(1) of the Code of Criminal Procedure).|

PT|Decree-Law No 276/2007 (Article 14) – Where a serious threat to the public interest is detected, the head of the inspection service may identify the measures provided for in the applicable legislation that can be implemented in each case to prevent or eliminate the threat in question.|

RO|In the event of finding irregularities that are not covered by the warrant for the on-the-spot check, the response is to widen the scope of the warrant accordingly.|

SI|In such cases, the inspector carrying out the inspection expands the decision on the launch of the inspection. A request is made for a corresponding check or for a transfer to the competent bodies. |

SK|A new authorisation or annex to the authorisation to conduct a government audit or inspection is issued. A report is submitted on the irregularity detected and, where necessary, the law-enforcement authorities are notified of any suspected criminal activity.|

FI|Good administrative practice dictates that the irregularity should be notified to the competent authority and, if necessary, the police.|

SE|Not really something provided for under the OSL. The principle of public access and the OSL do not, in themselves, prevent such information from being dealt with by public bodies and the appropriate authority being informed, at least not if the information is public.|

UK|Warrants are required to be descriptive and specific about what is being sought. Where a search takes place in alignment with the wording of the warrant and other incriminating material is found, this will generally be admissible. If the inspector also has / holds authority to deal with the new discovery, then this must be dealt with accordingly or referred to the police or other agencies to take action depending on the seriousness of the discovery.|

Member State:|2.1.6 During an on-the-spot check, how do you deal, on the basis of your national legislation, with requests to delay the access to information until the economic operator has consulted its lawyer?|2.1.7 How do you deal, on the basis of your national legislation, with claims of lawyer-client privilege?|

BE|In criminal cases, any such request is pointless. The search warrant is executed without the consent of the person concerned. How the data are dealt with at judicial level is independent of whether the suspect consults a lawyer.In cases involving tax on income, a persistent refusal to make documents available can entail penalties (Art. 315 of the CIR 92). If the necessary protective measures can be taken, the assistance of legal counsel can be permitted before consultation of the information begins.|It is usual for the investigating judge to go to the lawyer’s office and/or residence with the public prosecutor and the Chairman of the Bar Association or a member of the Bar Council designated by him. In the event of persistent refusal on the spot, the documents in dispute are seized and placed under seal with a view to thorough examination or debate before the investigating judge.The principle is laid down in Article 458 of the Criminal Code and no exception can be made except where the lawyer himself is implicated in committing the offence.|

BG|The Bulgarian legislation governing on the spot checks does not allow an economic operator to delay access to information in order to consult his lawyer.|If lawyer client privilege is infringed by an administrative body under Article 250 of the Code of Administrative Procedure, anyone with a legitimate interest may apply for the termination of actions carried out by an administrative authority or official that is not based on an administrative act or on the law. The dispute shall be settled by the competent administrative court.|

CZ|The inspection schedule allows for delays. Decree No 416/2004 implementing the Act No 320/2001 Coll. on financial control in public administration, Sections 1-9 (further details on inspection methods) and Sections 7-9 (further details on inspection procedures); Act No 552/1991 Coll. on state control – Section 11(g) – authorisation to impose fines; letter (d) – the right of the inspector to request clarification and truthful and complete information. The inspector stipulates the deadline for submission of documents and clarifications. Possibility to acquire information from other sources. Section 14 – the entity being checked is required to ensure the check progresses smoothly. |Decree No 416/2004 implementing the Act No 320/2001 Coll. on financial control in public administration, Sections 1-6 establish further details on inspection methods and Sections 7-9 establish further details on inspection procedures; The beneficiary may submit objections to the results of the check, which the inspection authority must deal with.|

DK|Under Section 5 of the Legal Certainty Act, the check has no suspensive effect once the operation has been reported. You are also referred to point 2.1.1.If there is a justified suspicion of fraud, the case is also referred to the police.|As part of the authorities' treatment of claims of lawyer-client privilege, the lawyer must be able to submit a power of attorney or confirmation from the client that the lawyer in question is serving his client's interests. |

DE|There is no legal means of enforcing cooperation in the case of administrative controls|As a general principle, the legal relationship between a client and his lawyer is a protected relationship of trust which is also guaranteed in administrative law|

EE|Beneficiaries are required to make available to the supervisory body all information and documents relating to the conduct of their project within three working days of being asked to do so, which should be sufficient time to consult a lawyer if necessary. Late submission of documents is recorded in the report/record of the on-the-spot inspection, and if a new deadline is also missed, under Section 31 of STS 2007+ an administrative order can be issued. KrMS Section 45|No special rules have been laid down.|

IE|The operator has no right to such delay unless he/she has obtained a court injunction preventing the check from being carried out. A delay would not be allowed once the officer is satisfied that he/she is acting within the legislation. |In general this would not be applicable, unless a lawyer was present at time of the inspection they could state that documents held by their client which were going to be seized are subject to legal professional privilege. If criminal proceedings were instituted lawyer/client privilege would be respected by the relevant court, where applicable.|

EL|ΥΠΕΕ inspectors allow a reasonable amount of time for informing the subject's legal advisor, but under no circumstances does this mean postponing or cancelling the audit, which must be carried out (cf. Article 20(9) of PD 154/97). For other inspection bodies no such contingency exists, so there are no specific provisions. |Confidentiality applies subject to Article 5 of Law 3691/08 "on the prevention and suppression of money laundering and the funding of terrorism and other provisions". The ΥΠΕΕ would point out that lawyer-client privilege is not covered by national legislation pursuant to Article 85 of Law 2238/94 on tax secrecy|

ES|Generally speaking, the inspection procedure lasts for twelve months when it involves a private individual benefiting from a national grant. If the request is regarded as an excuse or obstruction of the check, it is denied and an analysis carried out to see whether an infringement has occurred. If on the other hand the request is regarded as reasonable, it is granted.|The duty of cooperation is a direct obligation for the beneficiary organisation and any third parties who cannot invoke business secrecy (suppliers, customers, third parties with an interest in the completion of the project or programme, financial entities), therefore lawyer-client privilege is not an obstacle to conducting the checks. |

FR|Search powers are covered by the law and, except in the case of searches of residential premises, which require judicial authorisation, the presence of a lawyer does not entail the suspension of the procedure. |The professional confidentiality which lawyers are obliged to observe is a strong point in French law. It can only be waived by a court, which occurs only in exceptional circumstances in criminal cases (when the lawyer has been charged).|

IT|Legally, a request for prior consultation of a lawyer cannot be used to prevent the inspectors from seeking and examining the documents concerned. On the basis of practice in specific areas, however, some steps may be taken in consultation with the economic operator after the party concerned has requested the prior consultation or assistance of a professional person.|In principle, professional confidentiality may be invoked only in respect of such documents as have an interest other than the financial interest of the professional person or of the person receiving his or her assistance. If necessary, communications between lawyer and client may be examined personally by a judge or expressly delegated authorised representative (Article 103 of the Code of Criminal Procedure).|

CY|No such option exists. It is considered as a denial of access to information and therefore the application is rejected. The economic operator has the right to consult its lawyer during the check but this right cannot affect in any way or delay access to the requested information, on the day on which the on-the-spot check is carried out.|This confidentiality is inviolable. |

LV|Under the EU Structural Funds and Cohesion Fund, the institution that carries out the check notifies the economic operator about an on-the-spot check before the planned check takes place. The economic operator is given preparation time, including time to ensure the availability of documentation for the check. In cases where access to information is delayed, a repeated check may be carried out.Under the Rural Funds, the economic operator must ensure that the officials are able to carry out monitoring and control during the project implementation and its monitoring. Unless delay threatens the objective of the check, it is postponed. In cases where delay of the check threatens the objective of the check, it will be carried out despite the economic operator failing to contact its lawyer.State Police officers will continue any check of the department/administrative inspection that has been started.Regulatory enactments of the Republic of Latvia do not provide for the requirement or necessity to involve the taxpayer’s lawyer in administrative proceedings (Section 10(1)(1), (2), (3), (5) of the Law on the State Revenue Service and Sections 15(1)(6), 322(1) of the Law on Taxes and Fees).|Such privilege does not apply to on-the-spot checks (see also the responses to questions 2.1.1 and 2.1.2).In accordance with Section 677 of the CPL, in providing legal assistance, the lawyer is entitled to meet with the person (client) under conditions that ensure the confidentiality of the conversation, to submit evidence, to submit requests and to receive the data required to provide legal assistance in accordance with the procedures set out in regulatory enactments.In accordance with the provisions of Section 262 of the LAVC, a person who is held administratively liable and a victim may participate in the adjudication of the administrative violation matter with assistance of a representative in accordance with the provisions of the Administrative Procedure Law. In accordance with Section 35 of the APL, a participant in administrative proceedings may participate in the proceedings with the assistance of or through their representative. The representative may be any natural or legal person with capacity to act, subject to the restrictions set out in Sections 36 and 37 of this Law.|

LT|This situation is not specifically mentioned in the Lithuanian legislation on on-the-spot checks. Aid beneficiaries undertake to allow an on-the-spot check to be carried out. If the beneficiary does not provide the information needed to carry out the on-the-spot check or otherwise obstructs it, and this could undermine the purpose of the check, this may be deemed to constitute preventing a check from being carried out.|See 2.1.6.|

LU|The search will proceed and will not be affected by requests designed to delay access to the information.|Any failure by a lawyer to respect professional secrecy can result in both disciplinary action and criminal prosecution. "All persons who by virtue of their state in life or their profession are custodians of secrets entrusted to them, and who divulge such secrets, shall, except in cases where they are required to provide testimony in court or required by law to make known these secrets, be punished…" (Article 458 of the Criminal Code).|

HU|The economic operator has no possibility to deny access to information pending consultation of its legal representative, as there is no requirement for compulsory legal representation. The obligation to accept inspections and the sanctions applicable in the event of failure to do so must be set out in the aid contract. If the inspected party impedes tax inspection a default penalty may be imposed.|No person shall be heard during inspection on any facts considered as protected data that has not been exempted from confidentiality. Protected data is any confidential information specified by law and any profession-related secret. If the authorised legal representative does not disclose the necessary information on grounds of confidentiality, the competent organisation initiates an infringement procedure. |

MT|The economic operator has no right to delay access to information to the IAID investigators until he has consulted his lawyer. This is even more the case when the investigators are in possession of a magistrate warrant in the circumstance described above in 2.1.2.|Under Maltese law the lawyer-client privilege has to be respected in all cases. In addition art. 642 of the Criminal Code stipulates that lawyers may not be compelled to divulge knowledge of/evidence on the facts which have become known to them through their profession.|

NL|Unless there is a pressing reason, the matter is "put on hold" and the economi