Proposal for a COUNCIL DECISION on the adoption of a programme of Community action on the subject of the vocational training of indirect taxation officials (Matthaeus-Tax)
Date: 1992-12-14
Institutions: European Commission
Subjects: EU programme, administrative cooperation, civil servant, indirect tax, single market, vocational training

COMMISSION OF THE EUROPEAN CCMVUJNITIES 

C0MC92)  550  f i n al  -  SYN  446 

Brussels,  14  December  1992 

Proposal  for  a 

fflMNfill  DECISION 

on  the  adoption  of  a  programme  of  Community  a c t i on 

on  the  subject  of  the  vocational  t r a i n i ng  of 

i n d i r e ct  taxation  o f f i c i a ls 

(Matthaeus-Tax) 

(presented  by  the  Commission) 

•B-#NK' 

EXPUANATQRY MEMORANDUM 

Introduction 

The  present  proposition  has  its  origins  in  the 
implementation  of  the  Commission's  White  Paper  on  the 
completion  of  the  Internal  Market  published  in  1985  and 
given effect by the Single European Act in 1987. 

The adoption by the Council of the directives  instituting 
the  transitional  VAT  regime  (1), the  harmonised  excise 
regime  (2) and  the regulation  relating  to  administrative 
cooperation  in VAT  (3) forms a  fundamental  aspect  of  the 
Internal Market of which it is important, from now on, to 
ensure the optimal management. 

The removal  of  all  forms of  taxation  and  customs  control 
when  crossing  an  internal  frontier  will  lead  to 
considerable  changes  in  the  working  methods  in  the 
administrations  responsible  for  the  collection  and 
control of indirect taxes in the Member States. 

To guarantee a proper application of  indirect taxation to 
the  exchanges  between  Member  States,  the  removal  of 
fiscal  frontiers  will  require  the  setting  up  of  a  deep 
and  permanent  cooperation  between  the  responsible 
administrations. 

This cooperation has its legal basis  in the texts adopted 
by the Council. 

Besides  the  legal  basis,  administrative  cooperation 
assumes  the mutual  trust  between the  partners, which  can 
only arise from a high degree of mutual understanding. 

The  exchanges  of  officials  between  the  relevant 
administrations  in  the  Member  States  provides  an  ideal 
method  of  achieving  this reciprocal  understanding.  This 
point has  been underlined  by the  Commission  in  its  first 
communication  on  the  "implementation  of  the  instruments 
for  the  accomplishment  of  the  single  market",  published 
in September  1989 (4). 

In  the  same  spirit,  the  Commission  has  initiated,  since 
1989,  a  pilot  action  of  exchanges  of  officials  between 
customs  administrations,  established  by  the  adoption  by 
the  Council,  on  20  June  1991,  of  the  Community  action 
(5) .  Other actions have been, since 
programme,  Matthaeus 

(1)  Council Directive 91/680/CEE of  16.12.1991, OJ  L 376 

(2)  Council Directive 92/12/CEE of  25.2.1992, OJ  L 76 of 

(3)  Council Regulation 218/92/CEE of 27.1.1992, OJ L 24 

(4)  COM(89)422 
(5)  Council Decision 91/341/CEE of 20.6.1991, OJ L 187 

of  31.12.1991 

23.3.1992 

of 1.2.1992 

of  13.7.1991 

then, organised  on the same basis, such as the action for 
the exchange  of national officials  in the veterinary  area 
(6) or  the  Karolus  programme  (7) , adopted  by  the  Council 
on 22 September 1992. 

In  the  sphere  of  indirect  taxation,  the  Commission 
initiated,  in  1991,  a  pilot  action  of  exchanges  of 
officials  from national  indirect  taxation  administrations 
(8) in the VAT area, extended to officials concerned with 
excise harmonisation  in 1992. 

The  lessons drawn  from  this pilot  action,  as well  as the 
other  programmes  referred  to  above  -  especially  the 
Matthaeus  programme  - lead the Commission  to propose  that 
the Council adopt the present draft Decision  establishing 
an  action  programme  for  the  vocational  training  of 
officials  responsible 
the 
Matthaeus-Tax  programme. 

for  indirect 

taxation, 

Objectives 

The objectives of the programme are the  following: 

States' 
to  prepare  the  officials  of  Member 
administrations  responsible  for  indirect  taxation 
for  the  implications  flowing  from  the  establishment 
of  the  Internal  Market  and  also  to  ensure  a  better 
application  of  the  new  Community  rules  on  the 
subject, applicable from 1 January 1993; 

to  allow  the  national  officials  concerned  a  better 
understanding  of  the  administrative  procedures  of 
other Member States; 

to  increase  the  awareness  by  the  officials  of  the 
Community  dimension of their work; 

- 

to  allow  a  fruitful  exchanges  of  ideas  between  the 
officials  of  the  administrations  of  the  different 
Member  States  on  the  best  way  to  implement  the 
Community  legislation  and,  at  the  same  time,  to 
facilitate  a  form  of  collaboration  which  will 
intensify  in the context of the Internal Market. 

Nature of the action programme 

The  programme  applies  to  all  the  officials  responsible 
for  indirect  taxation  in  the  fiscal  administrations  of 
the  Member  States,  in  the  area  of  VAT  and  harmonised 
excises,  and  more  particularly  to  those  which  will  be 
involved 
administrative 
cooperation. 

in  mutual  assistance 

and 

(6)  Commission  Decision 91/280 of 14.5.1991, OJ L 142 of 

(7)  Council Decision 92/481/CEE of 22.9.1992, OJ L 286 

6.6.1991 

of  1.10.1992 

(8)  Commission  Decision of  4.3.1991 

It comprises the following elements: 

of 

between 

officials 

national 
exchanges 
administrations  in  order  to  develop  a  reciprocal 
knowledge  of  procedures,  structures  and  personnel. 
To  achieve  this  objective,  the  exchange  officials 
will  be  called  on  to  participate  actively  in  the 
activities  of the host  service; they  will  be bound 
by the professional  secrecy  in the  same way  as the 
officials of the host country; 

seminars  which  comprise,  in  the  manner  of  the 
seminars  in  the  Matthaeus  programme,  a  suitable 
meeting  place  for  the  exchange  of  ideas  and 
experiences  between  those  responsible  in  national 
administrations  for the  implementation  of  Community 
legislation,  for  tax  control,  and  the  procedures 
intended  for the proper functioning  of the Internal 
Market, as well as for training; 

common  training  programmes,  the  objective  of  which 
will  be  to  encourage  common  practices  and  the 
diffusion  of  teaching  methods  developed  in  Member 
States  or  training  modules  on  subjects  of  common 
interest, defined in close liaison with the training 
centres of the Member States. 

programmes 

These 
European 
Communities  and  their  basic  principles,  related 
Community  law,  as  well  as  subjects  to  be  jointly 
decided  on  (types  of  fraud,  methods  of  control, 
etc) ; 

cover 

could 

the 

- 

language courses, which will be dispensed  according 
to need, to allow officials to take full benefit of 
their  participation  in  the  activities  of  the 
programme.  It should be noted that the development 
of  linguistic  training will be  indispensable  in the 
context of administrative cooperation. 

Justification for programme 

The  implementation  of the Internal Market must  guarantee 
the  fair  exercise  of  free  competition  to  the  economic 
operators of the different Member States. 

This  imposes  on administrations  responsible  for  indirect 
taxation 
two  principal  objectives:  to  assure  a  high 
level of  cooperation  and mutual  assistance  to  avoid all 
developments  of  fraud  and  fiscal  evasion,  as well  as a 
consistent  application  of Community  legislation  in order 
to  avoid  distortions  of  treatment  of  operators  between 
Member States. 

Only  a  Community  action  will  offer  to  these 
administrations  the  legal, organisational  and  logistical 
framework  necessary  to  ensure  that  account  is  taken  of 

the  transnational  aspect  of  training  to  achieve  the 
objectives already referred to. 

Financing the action programme 

The  implementation  of  the  objectives  set  out  in  the 
programme  will  result  in  the  improved 
Matthaeus-Tax 
management  of  the  Internal  Market  and  will  benefit  the 
Community  as well as the Member States. It is therefore 
desirable that the costs of implementing the programme be 
shared between the Community  and Member  States as in the 
Matthaeus  programme: 

- 

the Community will meet the cost of the exchanges of 
officials  and  the  seminars  (travel  and  subsistence 
expenses  of officials  in a Member  State  other than 
the  Member  State  of  origin)  as  well  as  the 
activities  connected  with  the  organisation  and 
implementation of the  Matthaeus-Tax  programme; 

The financial cost is estimated, on a full year basis, at 
600,000  Ecus  for  1993.  This  amount  will  allow  for the 
exchange  of  100  officials  and  the  organisation  of  6 
seminars, in Brussels and in the Member States. 

Member  States will assume, for their part, the cost 
of  the  linguistic  training  of  the  officials 
participating in the activities of the programme. 

As with  the pilot action, which will  continue until the 
programme  is  fully  operational,  the  financing  of  these 
actions is on line B5 3051 of the Community budget. 

Legal basis 

Article  100A has been  chosen  as the  legal  basis  of the 
present decision, due to the fact that the object of the 
programme  is  the  proper  functioning  of  the  Internal 
Market.  By improving reciprocal knowledge between fiscal 
administrations  of  the  Community,  it  allows  for  the 
establishment  of a climate of mutual  confidence  in which 
administrative  cooperation  may  be  developed  in  an 
harmonious  way  and  distortions  of  competition  between 
Member States can be eliminated. 

s 

COUNCIL DECISION 

of 

on the adoption of a programme of Community action 

on the subject of the vocational training of 

indirect taxation officials 

(Matthaeus-Tax) 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

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

Having regard to the proposal from the Commission, 

In cooperation with the European Parliament, 

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

Whereas  in  a  single  market  without  internal  frontiers, 
indirect  taxation  officials will  play  an  essential part 
in  ensuring  the  proper  functioning  of  the  Internal 
Market; 

Whereas it must be ensured that the abolition of internal 
borders does not give rise to distortions in competition, 
deflection  of  trade or  increased  risk  of  fraud  and tax 
evasion;  whereas  it  is  consequently  necessary  to 
stimulate  intensive  and  on-going  cooperation  at  all 
levels  in  the  indirect  taxation  administrations  with  a 
view  to  preparing  them  to  work  together  within  the 
framework of the Internal Market; 

Whereas this will be achieved through optimizing the use 
of human resources in Member States and therefore through 
suitable vocational training; 

Whereas the measures taken in this sphere by each of the 
national administrations are not in themselves sufficient 
to  achieve  the  objective  being  pursued;  whereas  it  is 
consequently  essential  to  reinforce  national  efforts 
through  joint  action  to  increase  the  awareness  of 
indirect  taxation  officials  of  the  increasing  Community 
dimension  of  their  tasks  and  of  the  need  to  cooperate 
more closely together; 

Whereas  only  a  better  mutual  knowledge  of  the 
organisation,  methods  and  procedures  applied  in  the 
different Member States can ensure the climate of mutual 
confidence  necessary  for  a  proper  functioning  of  the 
Internal Market; 

Whereas the experience acquired by the Community  from the 
organisation of the Matthaeus programme, intended for the 
customs  officials  of  the  Member  States,  showed  the 
benefit  of  training  activities,  supplementing  those 
organised  at  the  national  level,  in  developing  a 
Community  spirit  of  the  officials  working  in  the 
Internal  Market;  whereas  this  experience  must,  mutatis 
mutandis, be spread to the indirect taxation area; 

Whereas,  in  these  conditions,  the  implementation  of  a 
training  programme  at  a  Community  level  for  indirect 
taxation officials  (Matthaeus-Tax)  constitutes one of the 
most appropriate ways to achieve this result; 

Whereas  the Commission  adopted  a pilot  project  for 1991 
and  1992  based  on  the  exchange  of  indirect  taxation 
officials  between  national  administrations  and  training 
seminars; whereas  the  aim  of  this  pilot  project  was to 
collect useful information to allow the implementation of 
a  more  ambitious  training  programme  extending  over 
several  years  and  supplemented  by  other  training 
measures; 

Whereas the experience acquired during the pilot project 
indicated  that  there  was  an  advantage  in  exchange 
officials  having  an  involvement  in  the  day-to-day 
activities of the host service; whereas this requirement 
will  be  met  most  effectively  if  the  exchange  officials 
have  sufficient  knowledge  of  the  language  of  the  host 
country; whereas, for this purpose, it is essential that 
the  national  administrations  organize  language  courses 
for  their  officials  so  they  can  participate  more 
effectively  in the programme; whereas these courses must 
be  of  an  on-going  nature  and  must  cover,  as  far  as 
possible, all the official languages of the Community; 

Whereas  the  legal  status  of  exchange  officials  will  be 
the  same  as  that  of  national  officials  where,  in 
performing their duties, their civil liability  is put at 
issue by  a third  party  and  they will  be  informed  about 
the civil liability rules applicable to them  in the host 
country; 

Whereas  exchange  officials  will  be  bound  by  the  same 
rules  of  professional  secrecy  as  national  officials, 
given that exchange officials will take part  in the day-
to-day work of the host administration; 

Whereas  the  number  of  officials  undergoing  an  exchange 
must, as far as possible, be increased each year; 

3 

I 

Whereas  training  measures  supplementary  to  the  exchange 
of  officials  between  national  administrations  are 
essential  to  the  achievement  of  the  objective  sought; 
whereas these measures may involve training  seminars and 
the  establishment  of  common  training  programmes  to  be 
taught in Member States' schools; 

Whereas seminars form an ideal forum  for the exchange of 
ideas  between  indirect  taxation  officials  in  the 
Community;  whereas  in  these  seminars,  suggestions  may 
emerge which could improve the legal instruments in force 
and  facilitate  cooperation  between  the  administrations 
concerned; 

and 

Whereas  the  said  seminars  should  concern  those  indirect 
taxation  officials  who  belong,  as  necessary,  to  all 
in  national 
categories 
administrations'  schools,  officials  responsible  for 
implementing  indirect  taxation  law,  especially  where  it 
relates  the  control  of  transactions  involving  other 
Member  States,  and  officials  responsible  for  combating 
all types of fiscal fraud; 

especially 

trainers 

Whereas the setting up of common training  programmes, in 
so  far  as  necessary,  constitutes  a  suitable  means  of 
making  comparable  training  available  to  officials 
throughout the Community; whereas these programmes should 
include  the  teaching  of  Community  law  as  well  as  the 
study  of  Community  institutions  and  their  foundations, 
since  indirect  taxation officials will  increasingly have 
to integrate these Community aspects; 

Whereas the implementation of these common programmes can 
be  accomplished  only  if  Member  States  provide  the 
necessary facilities; 

Whereas,  for  the  implementation  of  the  Matthaeus-Tax 
programme,  the  sharing  of  expenses  under  the  programme 
between  the  Community  and  the  Member  States  should  be 
determined;  whereas,  consequently,  expenses  could  be 
shared  by  assigning  those  relating  to  the  language 
training  of  their  officials  to  Member  States  and  the 
travel 
officials 
participating in the programme in another Member State as 
well  as  the  costs  relating  to  the  organisation  of  the 
seminars to the Community; 

subsistence 

expenses 

and 

of 

Whereas  there  are  reasons  to  anticipate  a  programme 
lasting for 4 years; 

Whereas it is necessary to ensure the uniform application 
of this Decision and, for that purpose, to provide for a 
Community  procedure  for  the  enactment  of  implementing 
rules; whereas a committee should be set up to provide a 
forum  for close and effective cooperation  between Member 
States and the Commission in this field; 

y  I 

HAS ADOPTED THIS DECISION: 

Article 

1 

This  Decision  establishes  the  Community  action  programme 
for  the  vocational  training  of  indirect  taxation 
officials of national administrations 

(Matthaeus-Tax). 

For the purposes of this Decision: 

Article  2 

(a)  Mindirect  taxation"  shall  mean  only  those  indirect 
Community 

are  the 

subject 

which 

of 

taxes 
legislation; 

(b)  "exchange  official"  shall mean  an  indirect  taxation 
official of a Member State required  to visit  another 
Member State within the context of this Decision; 

(c)  "host  service"  shall  mean  the  indirect  taxation 
service  in  which  the  exchange  official  is  required 
to perform his duties; 

(d)  "donor  service"  shall  mean  the  indirect  taxation 
service  in  which  the  exchange  official  normally 
performs his duties. 

Article  3 

The objectives of the  Matthaeus-Tax  programme shall be: 

(a)  to  prepare  indirect  taxation  officials  of  Member 
States  for  the  implications  arising  out  of  the 
creation  of  the  Internal Market  and  the  development 
of  administrative  cooperation,  and  thus  ensure  a 
better application of Community law; 

(b)  to  make  national  officials  aware  of  the  Community 
dimension  of  their  work  and  to  build  mutual 
confidence 
taxation 
the 
administrations of Member States; 

indirect 

between 

(c)  to 

adapted 
training to indirect taxation officials; 

supplementary, 

provide 

vocational 

(d)  to utilize to the maximum advantage the knowledge of 
the  indirect  taxation  services  in  the  Community 
through  greater  mobility  of  staff  and  thus  improve 
the management and the effectiveness of the  Internal 
Market; 

I 

(e)  to stimulate  intensive  and  continuous  cooperation at 
all  levels  of  the  relevant  administrations  with  a 
view  to  them working  together  within  the  context  of 
the Internal Market. 

Article  4 

The  Matthaeus-Tax 
following training measures: 

programme  shall  consist  of  the 

(a)  exchanges  of  indirect  taxation  officials  between 
national  administrations,  in accordance with Article 
5; 

(b)  training 

seminars  for  officials,  particularly 
trainers  in  training  schools,  officials  responsible 
for  administrative  cooperation  as  well  as  officials 
responsible  for  indirect  taxation  controls  and  the 
fight against fraud and tax evasion; 

(c)  the 

coordinated 

vocational 
training  programmes  in  the  training  schools  of 
Member States; 

implementation 

of 

(d)  the  organization  in  Member  States  of  language 
training courses for officials  likely to participate 
in exchanges, in accordance with Article  6. 

Article 5 

1.  Member  States  shall  take  the  necessary  steps  to 
enable exchange officials to be  actively  involved  in 
the work of the host service. 

2. 

During  the  exchange,  the  civil  liability  of  the 
exchange  official  in  the  performance  of  his  duties 
shall  be  assimilated  to  that  of  the  national 
officials in the host service. 

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

Article 

6 

Member  States  shall  provide  the  necessary  language 
training  for  those  of  their  officials  who  are  likely  to 
participate  in the programme. 

Article  7 

to 

1.  The  expenses  arising  from  the  measures  taken  in 
Article 4 shall be shared between the Community and 
the  Member  States  as  provided  for  in  paragraphs  2 
and 3. 

2.  The  Community  shall pay  the  travel  and  subsistence 
expenses for exchanges of officials between national 
administrations as provided for in Article 4(a). 

The  Community  shall  also  pay  the  travel  and 
subsistence  expenses of officials  participating,  in 
another Member State, in the seminars referred to in 
Article 4 (b),  as well as the costs relating to the 
organisation of these seminars. 

3.  Member States shall pay the expenses relating to the 
language training of their staff as provided  for in 
Article 6. 

Article  8 

The  annual  budget  appropriations  for  the  measures 
provided  for  in  the  programme  shall  be  adopted  in  the 
context of the budgetary procedure and in compliance with 
the relevant financial perspective. 

Article 

9 

The  arrangements  necessary  for  the  application  of  this 
Decision are decided by the Commission  in accordance with 
the procedure set out in Article 10. 

Article  10 

1.  The  Commission  shall be assisted  by  a  committee of 
an  advisory  nature  composed  of  the  representatives 
of  the  Member  States  and  chaired  by  the 
representative of the Commission (1). 

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. 

(1)  Committee  instituted  under  Council  Decision  no 
91/341/CEE of 20 June 1991 (JO L 187/41 of 13.7.91) 

I 

t 

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 

11 

1.  The  Matthaeus-Tax  programme  will  last  for  4 years, 

starting from 1 July 1993. 

2.  The Commission  shall submit an annual report on the 
implementation of the  Matthaeus-Tax  programme to the 
European Parliament and to the Council. 

Article  12 

This Decision is applicable from 1 July 1993. 

This Decision is addressed to Member States. 

Article 

13 

Done at 

For  the  Council 

The  President 

FINANCIAL PAPER 

1.  TITLE OF ACTION : 

I 

1z 

Programme of Community action for the vocational  training 
of 
taxation 
officials 
(Matthaeus-Tax). 

responsible 

indirect 

for 

2. 

BUDGET LINES CONCERNED : 

B5.3051  (title) 

3.  LEGAL BASIS : 

Article 100A of the Treaty. 

4.  DESCRIPTION OF THE ACTION 

4.1  Specific objectives 

a)  to  prepare  the  officials  of  the  administrations  in 
Member  States  responsible  for  indirect  taxation  to 
the  implications  proceeding  from  the  establishment 
of  the  Single  Market  and  also  to  ensure  a  better 
application of the new Community  rules applicable on 
1 January 1993; 

b)  to  allow  national  officials  a  better  understanding 
of  the  administrative  procedures  of  other  Member 
States; 

c)  to  increase  the  understanding  of  national  officials 

of the European dimension of their work; 

d)  to  allow  national  officials  to  learn  a  method  of 
collaboration  which,  in any  case, will  intensify  in 
the Single Market. 

For  1993,  it  is  planned  to  exchange  100  officials,  to 
organise  6  training  seminars  and  to  prepare  a  first 
common training programme. 

These actions, as well as the budgetary  amounts which are 
planned  for  them  in  this  financial  paper,  concern  the 
year  1993  in  its totality.  During  the  first  half  year, 
these  actions will be conducted  under  the  heading  of the 
pilot action initiated by the Commission  in 1991. 

4.2  Duration 

Multiannual action  (1.7.93 - 30.6.97). 

4.3  Target group for the action 

I 

M> 

Officials  responsible  for  indirect  taxation  in  the 
national administrations of the Member States. 

5.  CLASSIFICATION OF THE EXPENDITURE OR RECEIPTS 

5.1  DNO 

5.2  CD 

5.3  Types of receipts anticipated 

No direct receipts.  However, a better mutual knowledge 
of the working methods and of the procedures applied in 
the  indirect  taxation  administrations  of  Member  States 
will  facilitate the administrative  cooperation  essential 
It  will  lead  to  a  better 
to  the  internal  market. 
application  of  fiscal  law  and  an  improvement  in the 
collection of own resources (VAT contribution,  etc). 

6.  TYPE OF EXPENDITURE/RECEIPT 

6.1  Not 100% grant. 

6.2  Grant  for  co-financing  with  other  public  sector 

and/or private sources. 

In  parallel  with  the  Community  expenditure  of  0.600 
Mecus,  Member  States  organise  linguistic  training  of 
around  0.300 Mecus  for the benefit  of  their officials; 
this being approximately 30% of the global expense. 

6.3  No allowance of interest. 

6.4  100% payment  of  the  expenses  of  the  exchange and 
training of officials of Member States. 

6.5  No reimbursement planned. 

6.6  No receipts. 

7.  FINANCIAL IMPACT 

7.1  Method of calculation of total cost of action. 

- 

- 

- 

100 exchanges of 15 days, on average : 0.300 Mecus; 

6 training seminars : 0.230 Mecus 

development  of  a  first  common  training  programme; 
setting up training modules : 0.050 Mecus 

publications : 0.020 Mecus 

Total 1993: 

0.600 Mecus. 

1994 and thereafter: 

0.600Mecus  (1992 base). 

8.  ANTI-FRAUD  ARRANGEMENTS  PROVIDED  FOR  IN  THE  PROPOSITION 

FOR ACTION 

*n  I 

The  verification  of  the  allocations, or  the  receipt of 
the  allowances  and preliminary  studies, the  feasibility 
or  the  required  evaluation  is  made  by  the  Commission 
services  before  payment,  taking  account  of  the 
contractual obligations and the principles of economy and 
good  financial management  or  global.  Some  anti-fraud 
arrangements  (controls,  receipt  of  reports,  etc)  are 
included  in all the agreements or contracts between the 
Commission and the beneficiaries of the payments. 

9.  COST EFFECTIVENESS ANALYSIS 

9.1  Objectives 

These actions are linked to the abolition of the interior 
They  are  intended  to 
frontiers  on  1  January  1993. 
prepare officials from national administrations for their 
new roles in the Single Market. 
The  objective  is  therefore  to  ensure,  by  the  common 
training activities provided to all the officials in the 
indirect  taxation  administrations  of  the  Community,  a 
proper application of the new Community indirect taxation 
regulations which come into force on 1 January 1993. 

The implementation of the Single Market assumes in fact: 

the  indirect  tax  administrations  apply  the  fiscal 
directives of the Council  in the  same way wherever 
the taxable operations take place in the Community; 

the  implementation  of  an  effective  cooperation 
between  indirect  taxation  administrations  in  order 
to  be  able  to  control  the  taxation  of  operations 
involving several Member States; 

that  the  removal  of  controls  at  the  interior 
frontiers will not produce a significant addition to 
fraud  or evasion  in the area of  indirect taxation, 
in accordance with the guarantee  having  been given 
to Member  States, economic  agents  and  the citizens 
of the Community. 

This will  also  fulfil  the  conditions  necessary  for the 
movement towards the "definitive VAT regime", planned by 
the Council for 1 January 1997. 

9.2  Justifications for the actions 

9.2.1 

Cost: 

From  1993, the  indirect taxation  administrations  of the 
Community will be called upon to manage an economic area 
without internal frontiers.  This implies a high level of 
cooperation and collaboration between administrations. 

I 

their 

missions, 

accomplish 

To 
States' 
administrations  will  have  to  adapt  the  training 
programmes  and  training  methods  for  their  staff.  The 
objective  may  be  attained  only  at  the  Community  level, 
producing  the  legal,  organisational  and  logistic 
framework  ensuring  that  account  is  taken  of  the 
transnational aspect of the procedures to be  implemented 
and  allowing  the  exchange  of  ideas  and  a  knowledge  of 
national practices?. 

Member 

An  initiative  by  the  Commission  in  this  area  is 
essential, as well as being anticipated  in the Commission 
Decision of 4 March 1991. 

9.2.2 

Effects  derived  (impact  beyond  the  specific 
objective(s)) 

All the activities will allow a better application of the 
indirect  taxation  rules, a more  effective  fight against 
fraud  and,  in  addition,  a  better  collection  of  own 
resources. 

The  better  mutual  understanding  between  the  indirect 
taxation administrations which will result will favour a 
climate  of  mutual  confidence,  necessary  for  the 
development  of administrative  cooperation,  and  therefore 
to the success of the fundamental objective of the Single 
Market, and will also facilitate the preparation  for the 
definitive VAT regime from 1997. 

9.2.3 

Multiplying effects  (capacity to activate other 
sources of finance) 

Other  than  Community  finance,  the  implementation  of the 
programme  involves  a  financial  effort  on  the  part  of 
Member  States,  which  translates  itself  into  the 
following: 

the linguistic training of officials, 

- 

part  of  the  financing  of  seminars,  when  they  are 
organised in a Member State, 

some expenses  incurred, by the host  administration, 
to  make  the  best  use  of  the  course  (eg:  travel 
costs, when the participants  are required  to travel 
within the host country), 

the cost  represented  by  the  non  availability  of an 
official during his stay in another Member State. 

I 

9.3  Follow up and evaluation of the action. 

9.3.1 

Performance indicators selected 

Speed  and  reliability  of  the  exchanges  of 
information  and  of  the  control  operations  in  the 
area of indirect taxation  (especially those foreseen 
in the administrative cooperation rule: CEE n 218/92 
of 27 January 1992). 

- 

Dissemination  of  the  experience  acquired  by 
(procedures 
officials 
established  by  national  administrations  to  ensure 
the follow-up of exchanges). 

exchanges 

during 

the 

Actions begun, both  at the  Community  level as well 
as  by  Member  States,  to  improve  procedures  or 
regulations,  especially  those  related  to  the 
subjects studied in the seminars. 

Satisfaction  expressed  by  the  participants  and  the 
administrations  within the arrangements  referred to 
below (see 9.3.2). 

9.3.2 

Arrangements  and  interval 
planned. 

of  evaluation 

Evaluation  report  by  each  participant  in  the 
exchanges. 

Continuous follow-up and evaluation by the Committee 
and of the seminars. 

- 

Annual  report  to  the  Council  and  the  European 
Parliament. 

9.4  Consistency with the financial programme 

9.4.1 

Is  the  planned  action  in  the  financial 
programme of the DG for the years concerned? 

Yes.  In  accordance  with  the  Commission  Decision  of 4 
March 1991, the  Matthaeus-Tax  pilot action is transformed 
into  a  training  programme  of  Community  action  of  the 
Council. 
The  draft  plan  will  be  accompanied  by  a 
financial paper. 

9.4.2 

Indicate which objective most generally defined 
in  the  financial  programme  of  the  DG 
corresponds  to  the  objective  of  the  action 
proposed. 

Training policy of the officials of indirect taxation and 
customs  administrations  of Member  States  in  the context 
of the achievement of the Internal Market. 

I 

-n 

9.4.3 

Principal  factors  of  uncertainty  which  could 
affect the specific results of the activity. 

delay or failure of the national administrations in 
carrying  out  the  tasks  incumbent  on  them  in  the 
implementation of the programme; 

10.  ADMINISTRATIVE EXPENSES  (PART OF THE BUDGET) 

10.1 

Does the proposed  action  imply  an  addition to 
the number of staff of the Commission? 

1 grade A official 
1 grade B official 
1 grade C official 

Awaiting  the  definative  results  of  the  1993  budgetary 
procedure. 

10.2 

Expenses of the running costs and of the staff 
generated by the proposal. 

personnel  (titles Al and A2) : 3x90000 Ecus = 270000 
Ecus ; 

costs  of  missions,  travel  expenses  and  other 
incidental expenses (A130): 20000 Ecus; 

1 detached national expert; line A1520: 44000 Ecus; 

Matthaeus-Tax  Consultative Committee  (created by the 
Council Decision); item A2500: 

6  meetings  per  year  (2  experts  per  Member 
State): 75000 Ecus. 

Total for A for 1993: 

409000 Ecus. 

1994 exercise and thereafter: 409000 Ecus (1992 base). 

' o 
ISSN 0254-1475 

COM(92) 550 final 

DOCUMENTS 

EN 

16 

Catalogue number : CB-CO-92-572-EN-C 

ISBN 92-77-50681-4 

Office for Official Publications of the European Communities 

L-2985 Luxembourg