Amended 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)
Date: 1997-11-24
Institutions: European Commission
Subjects: action programme, administrative cooperation, indirect tax, single market, tax system

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

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Brussels,  24.11.1997 
COM(97) 621 final 

97/0128 (COD) 

Amended  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) 

(presented  by  the Commission  pursuant  to  Article  189 a (2) 
of the  EC-Treaty) 

EXPLANATORY  MEMORANDUM 

Following the opinion of the European Parliament1 of 20 November  1997 on the 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)2  and  in  accordance  with  Article  189  A,  paragraph  2  of  the  EC 
Treaty, the Commission has decided to amend the aforementioned  proposal. 

The Commission has accepted, in substance, the amendments concerning: 

-  a reference to the experience of the Customs 2000 programme (Amendment 4); 

- 

- 

- 

- 

- 

the  objective  on  a  common  standard  of  understanding  of  Community 
(Amendment 7); 

law 

the  existing  communication  and  information  exchange  systems  to be  covered  by  the 
programme (Amendments  1  and Amendment 8); 

the  definition  of  exchanges  (Amendment  5); and  the  arrangements  for  exchanges  of 
officials  (Amendment 9); 

invitations to outside experts in the field to seminars for tax officials  (Amendments 2 
and 10); 

the  definition  of  multilateral  controls  (Amendment  6);and  the  arrangements  for 
organising multilateral controls (Amendment  11); 

-  The  arrangements  for  implementing  the  common  training  initiative,  including  the 
establishment  of a cooperation  network, the tasks of the network  and  responsibilities 
of the Member  States (Amendments  3 and  12), with the exception of the reference  to 
the  Committee  foreseen  in Article  11 which  is  inappropriate  to  the  establishment  of 
the cooperation network; 

- 

the  cost  of  any  impact  studies  of  the  programme  (Amendment  13)  and  the 
arrangements for reports on the impact (Amendment  15); 

- 

the arrangements for the implementation of the programme (Amendment 14); 

- 

the financial  arrangements for implementation of the programme (Amendments  16, 17 
and 18). 

Doc. PE 223.491 

2  OJNoC  177 of 11 June  1997, p. 8 

Amended 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) 

Original Text 

Amended Text 

Recital 7 

Whereas the experience of the operation  of the 
VAT  Information  Exchange  System  (VIES) 
established  by  Council  Regulation 
(EEC) 
No218/92 has  shown  the  value  of  information 
technology 
revenue  whilst 
minimizing administrative burdens;  whereas it 
has  proved  itself  to  be  an  essential  tool  of 
cooperation  that  has  also  stimulated  wider 
cooperation among Member States; 

in  protecting 

Whereas  the  experience  of  the  operation  of 
information  exchange systems in the European 
Community  has 
the  value  of 
shown 
information  technology  in  protecting  revenue 
whilst  minimizing  administrative  burdens; 
whereas  it  has  proved  itself  to be  an  essential 
tool  of  cooperation  that  has  also  stimulated 
wider cooperation among Member States; 

Recital 9a (new) 

Whereas  seminars  form  an ideal  forum  for  the 
exchange  of  ideas  between  indirect  taxation 
officials  and,  where  appropriate,  other  experts 
in the field, such as academics, taxable persons 
(both  large  companies  and  SMEs)  or  their 
representatives  and  advisers;  whereas  in  such 
seminars suggestions may emerge which could 
force, 
improve 
encourage the convergent evolution  of national 
facilitate 
systems  and 
indirect 
the 
tax 
cooperation  between 
administrations 
the 
concerned. 

instruments 

legal 

the 

in 

Recital 10 

can 

95/279/EC3 

the  experience  gained  from 

coordinated 
a 
of 
established 

the 
Whereas 
Matthaeus-Tax  programme  has  indicated  that 
and 
the 
development 
common 
implementation 
training 
by  Commission 
programme 
Decision 
the 
achieve 
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 
training 
programmes; 

common 

the 

by 

Whereas  administrative  cooperation  depends 
on  the  professional  skills  and  knowledge, 
including  in  languages,  of  indirect  taxation 
officials;  whereas a cooperation network of the 
national  organisations,  academies  or  schools, 
and officials  responsible  for  training  should be 
established  to  identify  the  common  skills  and 
knowledge  that  these  officials  should  possess 
and  develop  the  necessary  common  training 
programmes 
the 
necessary  common  skills  and  knowledge; 
whereas, in the final report to be submitted, the 
Commission  may  consider  the  need  for  a 
Community  academy  for 
taxation 
officials; 

to  enable 

to  gain 

indirect 

them 

OJ No L  172, 22.7.1995, p. 24. 

Recital 11 

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

the  experience  gained  from 

Whereas 
the 
Customs  2000  programme4  has  shown  that 
actions  to promote  administrative  cooperation 
between national  Customs  administrations  can 
also  strengthen 
the 
instruments for combating fraud; 

the  effectiveness  of 

Article 2(d) 

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

"exchange"  shall  mean  a  work-based  visit  in 
the  Community  interest  of  an  official  to  the 
administration or training institution of another 
Member 
the 
programme; 

organized 

under 

State, 

Article 2(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; 

controls" 

shall  mean 

joint 
"multilateral 
collaboration  of  at  least  three  administrations 
to  integrate  or  coordinate  their  controls  of 
taxable persons having indirect tax  obligations 
in  the  Member  States  concerned,  within  the 
Community legal framework for cooperation; 

Article 3(a) 

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

of  Community 

to  achieve  a  high  common  standard  of 
understanding 
in 
particular,  in the field of indirect taxation, and 
of  its  implementation  in  the  Member  States 
among  officials; 

law, 

Article 4.1 

The Commission  and  the Member  States  shall 
establish  and  ensure  the  functioning  of  such 
new communication and information  exchange 
systems, manuals and guides  as they  consider 
necessary; 
the 
shall 
functioning  of  such  existing  systems,  manuals 
and guides as they consider necessary; 

ensure 

they 

also 

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

the 

OJ No L 33,4.2.1997, p. 24 

Article 4.2 

of 

Community 

the 
elements 
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  sub-contractor)  or  in  the 
premises  of 
(or  a 
designated sub-contractor). 

the  Member  States 

of 

Community 

elements 
the 
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  sub-contractor)  or  in  the 
premises  of 
(or  a 
designated  sub-contractor). 

the  Member  States 

If  subcontractors  are  used,  they  shall  be 
selected  on  the  basis  of  invitations  to  tender 
organized  in  accordance  with  the  relevant 
financial provisions. 

Article 5.1, first subparagraph 

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 
officials 
concerned. 

afterwards, 

the 

by 

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

Article 5.2 

shall  be 
Seminars 
Commission and the Member States. 

organized 

by 

the 

be 

by 

shall 

organised 

the 
Seminars 
Commission  and  the  Member  States  to  bring 
together  officials 
from  different  Member 
States  and  from  the  Commission  and,  where 
appropriate,  other  experts  in the  field,  such  as 
academics, 
their 
representatives and advisers. 

persons 

taxable 

or 

Article  53 

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

the  Community  within 

The Commission  and  the  Member  States  shall 
select  specific  and  multilateral  controls  to  be 
supported  by 
the 
Community  legal  framework  for  cooperation. 
The  participating  Member  States  shall  send 
reports  and  evaluations  of  the  controls  to  the 
Commission and the other Member States; 

Article 6 

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. 

Member  States  shall  provide 

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

1. 
The  Member  States,  in  co-operation 
with  the  Commission,  shall  establish  a  co 
national 
operation 
organisations,  academies  or  schools,  and 
officials  responsible  for  training  in  indirect 
taxation with the tasks  of: 

network 

the 

of 

a) 
identifying  the  common  professional 
skills  and  knowledge,  including  in  languages, 
that officials  should possess; 

b) 
developing  existing  common  training 
programmes  and,  if  necessary,  devising  new 
programmes,  to  provide  a  common  core  of 
training  for  officials  to  enable  them  to  attain 
the  necessary  common  professional  skills  and 
knowledge; 

opening  the  training  courses  provided 
c) 
by  each  Member  State  for  their  own  officials 
to  officials  from  all  other  Member  States, 
where appropriate; 

developing 

d) 
the  necessary  common 
tools  for  indirect  taxation  training,  including 
language training tools; 

analysing  the 

e) 
information  provided 
annually  by  the  Member  States  under  Article 
6.2 on the training provided to their  officials. 

training  necessary 

2. 
The  Member  States  shall  ensure  that 
their  officials  shall  receive  the  initial  and 
regular  continuous 
to 
possess  the  common  professional  skills  and 
knowledge,  in  accordance  with  the  common 
training  programmes.  They  shall  inform  the 
Commission  annually  of  the  content  and 
amount  of  training  they  provide  to  their 
officials. 

The  Commission  and  the  Member  Delete 

3. 
States  shall  develop  the  Community  tools  for 
indirect  taxation  training,  including  linguistic 
training tools. 

Article 7 

to 

laid 

down 

shall  be  open 

The  programme 
the 
participation  of  the  associated  countries  of 
central  and  eastern  Europe  in  accordance  with 
the 
in  Europe 
conditions 
Agreements  or 
their  Additional  Protocols 
relating  to  their  participation  in  Community 
programmes  and  in so  far  as  Community  law 
so  permits.  Hie 
on 
programme 
the 
participation  of Cyprus  in accordance  with the 
Common  Resolution  on the establishment  of a 
structured  did ogue  between 
the  EU  and 
Cyprus  and  in  so  far  as  Community  law  on 
indirect taxation so permits. 

shall  also  be  open 

taxation 

indirect 

to 

to 

down 

indirect 

taxation 

shall  be  open 

The  programme 
the 
participation  of  the  associated  countries  of 
central  and eastern  Europe  in accordance  with 
laid 
the 
in  Europe 
conditions 
Agreements  or 
their  Additional  Protocols 
relating  to  their  participation  in  Community 
programmes  and  in so  far  as  Community  law 
so  permits.  The 
on 
programme 
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.  The  expenditure 
shall  be 
generated  by 
meial  framework  of  this 
additional  to  the  fin 
programme. 

shall  also  be  open 

this  participation 

to 

Article 8.2(d) (new) 

The  cost  of  any  independent  studies  of  the 
impact  of 
if  deemed 
this  programme, 
necessary; 

Article 9 

for 

financial 

framework 

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

for 

financial 

framework 

the 
The 
implementation  of  the  present  programme  for 
the  period  1  January  1998  to  31  December 
2002  is  hereby  set  at  ECU 45  million.  This 
financial  framework  is  in  part  covered  by  the 
financial  perspective  1993-99.  The  annual 
appropriations  shall  be  authorized  by 
the 
budgetary  authority  within  the  limits  of  the 
financial perspective. 

Article 10 

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

measures 

necessary 

the 
implementation  of  the  present  programme 
shall  be  determined  by  the  Commission  in 
accordance  with  the  procedure  laid  down  in 
Article  11. 

for 

Article  12.3(b) 

by  30 June 2003  at the  latest, a final report  on  by  30 June 2003  at the  latest, a final report  on 
the  implementation  and  the  impact  of  this 
the implementation of this programme. 
programme. 

ISSN 0254-1475 

COM(97) 621 final 

DOCUMENTS 

EN 

09  10  01  06 

Catalogue number  :  CB-CO-97-637-EN-C 

ISBN 92-78-27783-5 

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