MODIFICATION TO THE PROPOSAL FOR A COUNCIL REGULATION ( EEC ) CONCERNING ADMINISTRATIVE COOPERATION IN THE FIELD OF INDIRECT TAXATION
Date: 1991-04-30
Institutions: European Commission
Subjects: VAT, administrative cooperation, exchange of information, single market, standing committee (EU)

IOMVIISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0MC91) 115 

f i n al 

-  SYN  275 

Brussels,  30  April  1991 

M o d i f i c a t i on  to  t he  proposal  f or  a 

CQWCIL  RfiÇW^TIOW  (EEC) 

concerning  a d m i n i s t r a t i ve  c o o p e r a t i on  in  t he 

f i e ld  of 

i n d i r e ct 

t a x a t i on 

( p r e s e n t ed  by  t he  Commission  pursuant  to  A r t i c le  149(3) 
of  t he  EEC-Treaty) 

EXPLANATORY MEMORANDUM  ^ 

On 19 June 1990 the Coromission presented & proposal^*) to 
the  Council  for  a  Council  Regulation  concerning 
administrative  cooperation  in  the  fiejjâ  of  indirect 
taxation. 

|§ 

The  Opinion^2) of  the  Economic  and  Social. Committee  was 
given  on  19  September  1990.  The  Economic  and  Social 
Committee  endorsed  the  purpose  and  cjontent  of  the 
proposed  Regulation,  though  it  disputed  the  legal  base 
and the use of a Regulation. 

to 

support 

The Parliamentary  report(3) by  the Committee  on  Economic 
and  Monetary  Affairs  and  Industrial  Policy  gave 
proposal, 
favourable 
particularly concerning the legal base  (Article 100A) and 
the  reinforcement  of  the  role  of  the  Commission  in 
applying  the  administrative  cooperation  procedures.  On 
22  November  1990  the  European  Parliament  voted 
Of  the  six 
unanimously  in  favour  of  the  report. 
amendments  proposed  by  the  European  Parliament  the 
Commission accepts the four which are the subject of this 
modification paper. 

Commission 

the 

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^|COM(90) 183 final - SYN 275 O.J. No. C187 of 27.7.90 
(2| E SC Document CES 1014/90  (OJ...) 
(3>EP Document Â3-0279/90  (OJ ...) 

-  1 -

Modifications to the proposal for a COUNCIL REGULATION 
concerning administrative cooperation in the field of 
indirect taxation 

(presented by the Commission in accordance with Article 
149, paragraph 3 of the Treaty) 

Original text 

Modified text 

Preamble and Article 1 unchanged 

Article 2 

Paragraphs 1 and 2 unchanged. 

3. The Commission 
shall publish 
and, where 
necessary, update 
in the Official 
Journal the list 
of competent 
authorities. 

Articles 3 to 6 unchanged 

Article 7 

1.  At the request of an applicant 
authority, two or more of the 
administrative authorities 
referred to in Article 2 shall 
consult together for the purposes 
of determining cases and procedures 
for coordinated tax examinations. 
Each authority involved shall 
decide whether or not it wishes 
to participate in a particular 
coordinated tax examination. 

1. At the request 
of an applicant 
authority, two or 
more of the 
administrative 
authorities 
referred to in 
Article 2 shall 
consult together 
for the purposes 
of determining 
cases and pro 
cedures for co 
ordinated tax 
examinations. 
Each authority 
involved shall 
decide whether 
or not it wishes 
to participate 
in a particular 
coordinated tax 
examination; 
should it decide 

- 2 -

not to 
participate, it 
shall forward a 
justification to 
the applicant 
authority and 
also notify the 
Commission. 

2.  Unchanged 

Articles 8-18 unchanged 

Article 19 (new) 

The procedures for 
the practical 
application and 
the operation of 
the arrangements 
for administrative 
co-operation pro 
vided for in this 
regulation, as well 
as the procedures 
covering standard 
practices for the 
validation and 
verification of 
intra-Community 
transactions, 
shall be laid 
down according to 
the methods 
covered by 
Article 20(2). 

Article 19 becomes Article 20 

1. The Commission shall organize 
meetings with the representatives 
of the Member States during which 
- the operation of the 
arrangements for administrative 
cooperation provided for in 
this Regulation shall be 
examined in general terms, with 
particular regard to the 
development of standard practices 
for the validation and 
verification of intra-Community 
transactions, 

- common practical procedures 
for forwarding the information 

1. The Commission 
shall be assisted 
by an advisory 
committee, composed 
of £he representa 
tives from Member 
States and chaired 
by a Commission 
representative, and 
be called "Standing 
Committee on 
Administrative co 
operation in the 
field of indirect 
taxation". 

referred to in Article 3 shall be 
laid down, taking due account of 
any agreements under Article 11, 

- the information sent to the 
Commission pursuant to Article 3 
shall be examined with a view to 
drawing the relevant 
conclusions, determining the 
measures required to put an 
end to any operations found 
to be contrary to the law on 
indirect tax matters and, where 
necessary, suggesting 
amendments to existing Community 
provisions on the drawing up of 
additional ones, 

- cases and procedures 
concerning coordinated tax 
examinations provided for in 
Article 7. shall be examined 
discussed. 

2. (a) 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 the 
time limit which 
the chairman may 
lay down according 
to the urgency of 
the matter if 
necessary by 
taking a vote; 

(b) the opinion of 
the committee 
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; 

(c) 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 to 
be taken into 
account. 

3. Within the 
framework of the 
Committee provided 
for in paragraph 1, 
the Member States 
shall monitor and 
evaluate the 
operation of the 
co-operation pro 
cedures provided 
for in Article 19 
and pool their 
experience, 
especially con-

4 -

ceriûng new means 
or methods of tax 
avoidance or 
evasion, with a 
view to improving 
such co-operation 
and, where 
appropriate, 
drawing up new 
rules. 

Article 19, paragraphs 2 -5  becomes Article 21 

2. On matters of bilateral interest,  Becomes paragraph 1 
the competent authorities of the 
Member States may communicate 
directly with each other.  The 
competent authorities of the Member 
States may, by mutual agreement, 
permit authorities designated by 
them to communicate directly 
with each other in specified 
cases or in certain categories 
of cases. 

3. For the purposes of applying 
this Article, Member States 
shall take all the necessary 
steps to: 

(a) ensure sound internal 

coordination between the 
competent authorities 
referred to in Article 1; 

(b) establish direct co 

operation between the 
authorities specially 
empowered for the purposes 
of such coordination; 

(c) make suitable arrangements 
for ensuring the smooth 
operation of the arrangements 
for administrative co 
operation provided for in 
this Regulation, including 
the nomination of a central 
office as required under 
Article 2(2). 

4. The Member States shall, 
together with the Commission, 
constantly monitor the co 
operation procedure provided 
for in this Article and shall 

Becomes paragraph 2 

Cancelled, 

- 5 -

pool their experience, 
especially concerning new 
means or methods of tax 
avoidance or evasion with a 
view to improving such co 
operation and, where 
appropriate, drawing up a 
body of rules as described 
in paragraph 1. 

5. The Commission shall 
communicate to the competent 
authorities of each Member 
State, as soon as it is 
available, any information 
which it receives under the 
provisions of Article 3, or 
any other relevant information 
which it is able to supply. 

Becomes paragraph 3 

Article 20 becomes Article 22 (unchanged) 

Article 21 becomes Article 23 

1. Every two 
years from 
the date of 
implementation set 
out in Article 25, 
the Commission 
shall draw up a 
report for the 
Council and 
European Parliament 
on the conditions 
of application of 
the present 
Regulation, notably 
on the basis of the 
constant monitoring 
procedures provided 
for in Article 
20(3). 

Becomes paragraph 2 

Becomes paragraph 3 

1. Member States shall communicate 
to the Commission the texts of 
any provisions of national law 
which they subsequently adopt in 
the field covered by this 
Regulation. 

2. The arrangements provided for 
by this Regulation do not limit, 
nor are they limited by, those 
contained in other agreements 
or instruments which relate to 

- 6 -

cooperation in tax matters. 

3. This Regulation shall not 
affect the application in the 
Member States of the rules on 
mutual assistance in criminal 
matters. 

Becomes paragraph 4 

Articles 22-23 become Articles 24-25 (unchanged) 

ISSN 0254-1475 

COM(91) 115 final 

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