EN Official Journal of the European Union CE 88/525

(2004/C 88 E/0538)

WRITTEN QUESTION E-0740/04

by José García-Margallo y Marfil (PPE-DE) to the Commission

(11 March 2004)

Subject: Agency to combat tax fraud

Tax fraud within the European Union deprives the Member States of significant amounts of revenue. Merely in the case of VAT, tax fraud is estimated to represent 10 % of revenue, i.e. EUR 70 000 million.

Has the Commission considered proposing the setting up of an Agency to combat tax fraud, along the lines of the many independent agencies which already exist within the EU?

Answer given by Mr Bolkestein on behalf of the Commission

(23 April 2004)

VAT fraud does indeed pose a significant problem in the Community as it affects Member States' VAT revenue, distorts competition and jeopardizes legitimate trade. Although VAT collection and control is primarily an issue for Member States, the Commission's role is to ensure an efficient legal framework making it possible for Member States' administrations to cooperate across borders and for Member States' transnational VAT fraud enforcement to be effective. The Commission therefore made a proposal for reinforced mutual assistance and exchange of information, specifically in respect of fraud cases, which was adopted by the Council on 8 October 2003, and which entered into force on 1 January 2004. This Regulation (1) has considerably improved the legal framework for administrative cooperation between Member States and is therefore a major tool for Member States in their fight against VAT fraud. In this respect, the Commission will shortly present a report to the Council and the Parliament on the use of administrative cooperation arrangements in the fight against VAT fraud. Furthermore, while the new regulation on administrative cooperation was a prerequisite in order to improve Member States' cooperation in the fight against VAT fraud, it has also been necessary to accompany this legislative initiative by concrete measures enhancing cooperation between the different tax administrations and their officials. As the Honourable Member well knows, the Fiscalis 2003-2007 programme (2) was therefore adopted by the Council and the Parliament in order to enhance day-to-day cooperation between Member States' officials.

As a further important step, the Commission is in the course of preparing a proposal for a new regulation on mutual administrative assistance for the protection of the Community's financial interests against fraud and other illegal activities. This proposal will cover, inter alia, transnational VAT fraud and related money laundering activity. It is intended to address information exchanges between Member States and the Commission and is aimed at providing the latter with an enhanced platform for both transnational VAT fraud enforcement coordination and related risk analysis/intelligence activity.

The setting-up of a Community Agency to combat tax fraud as the Honourable Member suggests would be difficult in that several Member States would be unwilling to surrender their sovereignty in the field of tax collection and control. Moreover, the Commission does not consider that such a step is justifiable at the current time. The Commission will continue where necessary and appropriate to provide both a suitably robust legislative environment and enhanced administrative cooperation machinery to make it possible for Member States to cooperate efficiently and effectively with each other and with the Commission in order to combat transnational VAT fraud.

Finally, for the information of the Honourable Member, the Commission's Anti-Fraud Office (OLAF) already has a VAT team which assists the Member States with the coordination of operational cross-border VAT fraud cases in the framework of article 280 of the EU Treaty. OLAF's Intelligence Directorate and Magistrates' Unit also provide their respective support to Member States during the investigation and judicial phases of operational casework.

(1) Council Regulation (EC) No 1798/2003 of 7 October 2003 on administrative cooperation in the field of value added tax and repealing Regulation (EEC) No 218/92, OJ L 264, 15.10.2003.

(2) Decision No 2235/2002/EC of the Parliament and of the Council of 3 December 2002 adopting a Community programme to improve the operation of taxation systems in the internal market (Fiscalis programme 2003-2007) OJ L 341, 17.12.2002.