Proposal for a European Parliament and Council Decision establishing a programme of Community action to reinforce the functioning of the indirect taxation systems of the internal market (Fiscalis programme) (97/C 177/05) COM(97) 175 final - 97/0128(COD)

(Submitted by the Commission on 29 April 1997)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty instituting the European Community, and in particular Article 100a thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the Economic and Social Committee,

Acting in accordance with the procedure laid down in Article 189b of the Treaty,

(1) Whereas in an internal market, the effective, uniform and efficient application of Community law is essential for the functioning of the indirect taxation systems, in particular for the protection of national and Community financial interests through the combating of tax avoidance and tax evasion, the avoidance of distortion of competition and the continuing reduction of compliance burdens on administrations and taxpayers;

(2) Whereas achieving this effective, uniform and efficient application is the responsibility of the Community in partnership with the Member States; whereas, although the Member States carry the greater responsibility in terms of resources, there is a significant role for the Community to provide an infrastructure and the necessary stimulus;

(3) Whereas a high common standard of understanding of Community law (and its implementation in the Member States) by indirect taxation officials is essential to its uniform application; whereas this can only be achieved through effective initial and continuous training by the Member States; whereas supplementary Community action is needed to coordinate and stimulate this training;

(4) Whereas efficient, effective and extensive cooperation among the Member States and between them and the Commission is essential to the functioning of the indirect taxation systems of the internal market; whereas a Community infrastructure for communication and information exchange is indispensable to achieve this; whereas without a Community stimulus, sufficient cooperation would not be achieved;

(5) Whereas the continuing improvement of administrative procedures is essential to the functioning of the indirect taxation systems of the internal market; whereas, although the primary responsibility for achieving this rests with the Member States, supplementary Community action is needed to coordinate and stimulate this continuing improvement;

(6) Whereas, therefore, in accordance with the principles of subsidiarity and of proportionally set out in Article 3b of the Treaty, the objectives of the measures laid down in this decision cannot be adequately achieved by the Member States and can therefore be better achieved by the Community; whereas this decision confines itself to the minimum required and does not go beyond what is necessary for this purpose;

(7) Whereas the experience of the operation of the VAT information exchange system (VIES) established by Council Regulation (EEC) No 218/92 (1) has shown the value of information technology in protecting revenue while minimizing administrative burdens; whereas it has proved itself to be an essential tool of cooperation that has also stimulated wider cooperation among Member States;

(8) Whereas communication and information exchange systems should be established and have their functioning assured as the needs of the indirect taxation systems evolve to secure further cooperation;

(9) Whereas the experience gained by the Community from the Matthaeus-tax programme established by Council Decision 93/588/EEC (2) and from the organization of multilateral control exercises has shown that exchanges, seminars and multilateral control exercises can, by bringing officials from different administrations together in work activities, achieve the objectives of the programme; whereas those activities should therefore be extended and continued;

(10) Whereas the experience gained from the Matthaeus-tax programme has indicated that the coordinated development and implementation of a common training programme established by Commission Decision 95/279/EC (3) can achieve the objectives of this programme, in particular in achieving a higher common standard of understanding of Community law, whereas such programmes should be developed further; whereas the Member States should therefore ensure that all of their officials receive the initial training and regular continuous training envisaged by the common training programmes;

(11) Whereas a sufficient standard of linguistic competence on the part of indirect taxation officials has proved to be essential to facilitate cooperation; whereas the Member States should therefore provide the necessary language training for their officials;

(12) Whereas the programme should be open to the participation of the associated countries of Central and Eastern Europe; whereas the programme should also be open to the participation of Cyprus;

(13) Whereas the financing of the programme should be shared between the Community and the Member States, and the Community contribution should appear in the budget of the Commission;

(14) Whereas this Decision lays down, for the entire duration of the programme, a financial framework constituting the principal point of reference, within the meaning of point 1 of the declaration of the European Parliament, the Council and the Commission of 6 March 1995 on the incorporation of financial provisions and legislative acts (4), for the budgetary authority during the annual budgetary procedure;

HAVE ADOPTED THIS DECISION:

Article 1

Fiscalis programme

A multiannual Community action programme (Fiscalis programme), hereinafter referred to as 'the programme`, is hereby established for the period 1 January 1998 to 31 December 2002 to reinforce the functioning of the indirect taxation systems of the internal market.

It shall comprise the areas of action referred to in Article 4, 5 and 6.

Article 2

Definitions

For the purpose of this Decision:

(a) 'indirect taxation` shall mean those indirect taxes which are the subject of Community legislation;

(b) 'administration` shall mean the public authorities in the Member States responsible for indirect taxation, and the Commission;

(c) 'official` shall mean an official responsible for the application of Community or national law, regulations or procedures relating to indirect taxation;

(d) 'exchange` shall mean a work-based visit in the Community interest of an official from one administration to another, organized under the programme;

(e) 'bilateral and multilateral control exercises` shall mean joint collaboration of two or more administrations to integrate their controls of taxable persons having indirect tax obligations in each of the Member States concerned, within the Community legal framework for cooperation;

(f) 'the Community legal framework for cooperation` shall mean the body of Community legislation which provides for mutual assistance and administrative cooperation between Member States on indirect taxation.

Article 3

Objectives

The objectives of the programme shall be to reinforce, through Community action, the efforts of the Member States:

(a) to achieve a high common standard of understanding of Community law and of its implementation in the Member States among officials;

(b) to secure efficient, effective and extensive cooperation among the Member States and between them and the Commission;

(c) to ensure the continuing improvement of administrative procedures to take account of the needs of administrations and taxpayers through the development and dissemination of administrative best practice.

Article 4

Communication and information exchange systems, manuals and guides

1. The Commission and the Member States shall establish and ensure the functioning of necessary communication and information exchange systems, manuals and guides.

2. The Community elements of the communication and information exchange system shall be the equipment, software and network links between Member States, required to be common to all Member States in order to ensure the overall interconnection and interoperability of the systems, whether they be installed in the premises of the Commission (or a designated subcontractor) or in the premises of the Member States (or a designated subcontractor).

3. The non-Community elements of the communication and information exchange systems shall include national databases forming a part of these systems, network links between the Community and non-Community elements and such software and hardware applications as each Member States shall deem appropriate for the full exploitation of these systems throughout their administration.

Article 5

Exchanges, seminars and multilateral control exercises

1. The Commission and the Member States shall organize exchanges. The exchanges shall vary in length, as appropriate, but shall not be longer than one year. Each exchange shall be targeted on a particular work activity and shall be sufficiently prepared beforehand, and evaluated afterwards, by the officials concerned.

Member States shall take the necessary steps to enable exchange officials to play an effective part in the host administration's activities, and to this end such officials shall be authorized to carry out the tasks relating to the duties entrusted to them by the host administration in accordance with its legal system.

During the exchange, the civil liability of the official in the performance of his duties shall be treated in the same way as that of officials of the host administration.

Exchange officials shall be bound by the same rules of professional secrecy as national officials.

2. Seminars shall be organized by the Commission and the Member States.

3. The Commission and the Member States shall organize, on a pilot basis, bilateral and multilateral control exercises within the Community legal framework for cooperation.

Article 6

Common training initiative

1. The Commission and the Member States shall develop existing and new common training programmes to provide a common core of training for officials. Member States shall ensure that their officials receive initial training as set out in the common training programmes; that all these officials shall receive regular continuous training as set out in the common training programmes.

2. Member States shall provide the necessary language training for their officials to ensure that they attain a sufficient standard of linguistic competence.

3. The Commission and the Member States shall develop the Community tools for indirect taxation training, including linguistic training tools.

Article 7

Participation of the associated countries

The programme shall be open to the participation of the associated countries of Central and Eastern Europe in accordance with the conditions laid down in Europe Agreements or their additional Protocols relating to their participation in Community programmes and in so far as Community law on indirect taxation so permits. The programme shall also be open to the participation of Cyprus in accordance with the common resolution on the establishment of a structured dialogue between the EU and Cyprus and in so far as Community law on indirect taxation so permits.

Article 8

Expenditure

1. The expenditure necessary for the implementation of the programme shall be shared between the Community and the Member States as provided for in paragraphs 2 and 3.

2. The Community shall pay the following:

(a) the travel and subsistence expenses for officials participating in another Member State in the activities provided for in Article 5 as well as the costs relating to the organization of the seminars provided for in Article 5 (2);

(b) the cost of the development of the Community indirect taxation training tools provided pursuant to Article 6 (3) and the manuals and guides provided pursuant to Article 4 (1);

(c) the costs of the development, purchase, installation and maintenance necessary of the Community elements of the communication and information exchange systems defined in Article 4 (2) and the cost of the day-to-day operation of the Community elements installed in the premises of the Commission (or a designated subcontractor).

3. Member States shall pay the following:

(a) the costs relating to the initial and continuing training of their officials as provided for in Article 6 (1) and to the language training of their officials as provided for in Article 6 (2). Member States shall pay the costs relating to the participation of their officials in any extra activities organized within the framework of Article 5, in addition to those paid for by the Community;

(b) the costs relating to the establishment and functioning of the non-Community elements of the communication and information exchange systems defined in Article 4 (3) and the cost of the day-to-day operation of the Community elements of these systems installed in their premises (or those of a designated subcontractor).

Article 9

Financial framework

The financial framework for the implementation of the present programme for the period 1 January 1998 to 31 December 2002 is hereby set at ECU 45 million. The annual appropriations shall be authorized by the budgetary authority within the limits of the financial perspective.

Article 10

Implementation

The rules necessary for the implementation of this Decision shall be determined by the Commission in accordance with the procedure laid down in Article 11.

Article 11

Committee

1. In carrying out its tasks, the Commission shall be assisted by the Standing Committee on Administrative Cooperation in the field of Indirect Taxation established by Article 10 of Regulation (EEC) No 218/92, acting in an advisory capacity.

2. The representative of the Commission shall submit to the Committee a draft of the measures to be taken. The Committee shall deliver its opinion on the draft within a time limit which the chairman may lay down according to the urgency of the matter, if necessary by taking a vote.

The opinion shall be recorded in the minutes; in addition, each Member State shall have the right to ask to have its position recorded in the minutes.

The Commission shall take the utmost account of the opinion delivered by the Committee. It shall inform the Committee of the manner in which its opinion has been taken into account.

Article 12

Evaluation

1. This programme shall be subject to continuous evaluation, carried out in partnership between the Commission and the Member States. The evaluation shall be pursued by means of the reports referred to in paragraphs 2 and 3.

2. Member States shall forward to the Commission:

(a) by 30 June 2000 at the latest, an interim report, and

(b) by 31 December 2002 at the latest, a final report

on the implementation and the impact of this programme.

3. The Commission shall submit to the European Parliament and to the Council:

(a) by 30 June 2001 at the latest, a communication, on the basis of the Member States' interim reports, on the desirability of continuing this programme, accompanied, if necessary, by a suitable proposal;

(b) by 30 June 2003 at the latest, a final report on the implementation of this programme.

The reports shall also be forwarded to the Economic and Social Committee and to the Committee of the Regions for information.

Article 13

Entry into force

This Decision shall enter into force on the 20th day following that of its publication in the Official Journal of the European Communities.

It shall apply from 1 January 1998.

Article 14

Addressees

This Decision is addressed to the Member States.

(1) OJ No L 24, 1. 2. 1992, p. 1.

(2) OJ No L 280, 13. 11. 1993, p. 27.

(3) OJ No L 172, 22. 7. 1995, p. 24.

(4) OJ No C 102, 4. 4. 1996, p. 4.