COMMON POSITION (EC) No 10/98 adopted by the Council on 26 January 1998 with a view to adopting Decision No 98/../EC of the European Parliament and of the Council establishing a programme of Community action to improve the indirect taxation systems of the internal market (Fiscalis programme)
Date: 1998-01-26
Institutions: Council of the European Union
Subjects: EU programme, action programme, fiscal policy, project evaluation, single market, tax law

C  62/38

EN

Official  Journal  of  the  European  Communities

26.2.98

COMMON  POSITION  (EC)  No  10/98

adopted  by  the  Council  on  26  January  1998

with a view to adopting Decision No 98/. ./EC of the European Parliament and of the Council
establishing a programme of Community action to improve the indirect taxation systems of the
internal  market  (Fiscalis  programme)

(98/C  62/04)

THE  EUROPEAN  PARLIAMENT  AND  THE  COUNCIL  OF
THE  EUROPEAN  UNION,

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

Having  regard  to  the  proposal  from  the  Commission (1),

Having regard to the opinion of the Economic and Social
Committee (2),

Acting  in  accordance  with  the  procedure  laid  down  in
Article  189b  of  the  Treaty (3),

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

financial 

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

(3)  Whereas  in  order  to  ensure  uniform  application  of
that  officials
Community 
responsible  for 
indirect  taxation  have  a  high
common standard of understanding of Community
law  and  its  implementation  in  the  Member  States;

is  essential 

law 

it 

(1)  OJ  C  177,  11.6.1997,  p.  8.
(2)  OJ  C  19,  21.1.1998,  p.  48.
(3)  Opinion  of  the  European  Parliament  of  20  November  1997
(not yet published in the Official Journal), Council Common
Position  of  26  January  1998  and  Decision  of  the  European
Parliament  of 
in  the  Official
. . .  (not  yet  published 
Journal).

whereas  such  a  standard  can  be  achieved  only
through  effective  initial  and  continuous  training
the  Member  States;  whereas
provided  by 
supplementary  Community  action 
is  useful  to
coordinate  and  foster  such  training;

(4)  Whereas 

and 

effective 

efficient, 

extensive
cooperation  among  Member  States  and  between
them  and  the  Commission  is  important  for  the
functioning  of  the  indirect  taxation  systems  of  the
internal 
Community
infrastructure  for  communication  and  information
exchange  is  indispensable  in  order  to  achieve  this
the
an 
objective;  whereas 
Community  makes  it  easier  to  reach  a  sufficient
level  of  cooperation;

whereas 

impetus 

market; 

from 

(5)  Whereas continuing improvement of administrative
procedures  is  essential  for  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  such  improvement;

(6)  Whereas, 

therefore, 

in  accordance  with 

the
principles of subsidiarity and of proportionality set
out  in  Article  3b  of  the  Treaty,  the  objectives  of
the measures laid down in this Decision cannot all
be  sufficiently  achieved  by  the  Member  States  and
can  therefore  be  better  achieved  at  Community
level;  whereas  this  Decision  does  not  go  beyond
what  is  necessary  for  this  purpose;

(7)  Whereas  the  operation  of  information-exchange
systems at Community level in the field of indirect
taxation,  in  particular  the  system  relating  to  VAT
(VIES) referred to in Council Regulation (EEC) No
218/92  of  27  January  1992  on  administrative
cooperation 
indirect  taxation
(VAT) (4)  has  shown  the  value  of  information

in  the  field  of 

(4)  OJ  L  24,  1.2.1992,  p.  1.

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technology  in  protecting  revenue  while  minimising
administrative  burdens;  whereas  those  systems
have  proved  to  be  essential  tools  of  cooperation
which  have  also  stimulated  greater  cooperation
among  Member  States;

(8)  Whereas  communcation  and  information-exchange
systems  should  be  set  up  and  their  operation
ensured  in  accordance  with  the  changing  needs  of
indirect  taxation  systems  so  as  to  ensure  ongoing
cooperation;

(9)  Whereas  the  experience  gained  by  the  Community
from 
the  programme  established  by  Council
Decision  93/588/EEC  of  29  October  1993  on  the
adoption of a programme of Community action on
the  subject  of  the  vocational  training  of  indirect
taxation  officials  (Matthaeus-tax) (1)  and  from
multilateral  control  exercises  has  shown  that
exchanges, 
seminars  and  multilateral  control
exercises  could  achieve  the  objectives  of  the
programme  by  bringing  officials  from  different
national 
in  work
activities;  whereas  those  activities  should  therefore
be  continued;

administrations 

together 

administrations, 

(10)  Whereas  seminars  constitute  an  ideal  framework
for  the  exchange  of  ideas  between  officials  of
national 
Commission
representatives  and,  if  necessary,  other  indirect
taxation  experts;  whereas  suggestions  may  emerge
legal
from  such  seminars  for 
instruments  in  force  and  facilitating  cooperation
between  administrations  with  a  view  to  enabling
national  indirect  taxation  systems  to  converge;

improving  the 

(11)  Whereas 

the 

from 

gained 

experience 

the
Matthaeus-tax  programme  has  indicated  that  the
coordinated  development  and  implementation  of  a
common  training  programme  such  as  the  one
established  by  Commission  Decision  95/279/EC  of
12  July  1995  laying  down  certain  provisions  for
implementing Council Decision 93/588/EEC on the
adoption of a programme of Community action on
the  subject  of  the  vocational  training  of  indirect
taxation officials (2) could achieve the objectives of

this programme, in particular in achieving a higher
common standard of understanding of Community
law;  whereas  training  programmes  should  be
developed  further  in  areas  to  be  defined  by  the
Commission  and  the  Member  States;  whereas  the
Member  States  should  therefore  ensure  that  all
their officials receive the initial training and regular
continuous  training  envisaged  by  the  common
training programmes;

(12)  Whereas  a 

sufficient 

standard  of 

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

(13)  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;

(14)  Whereas the financing of the programme should be
shared  between  the  Community  and  Member
States,  and  the  Community  contribution  should
appear  in  the  general  budget  of  the  European
Communities  (part  two,  section  III,  Commission);

(15)  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  by  the
the
European  Parliament, 
the  Council  and 
the
Commission  of  6  March  1995  on 
incorporation 
into
provisions 
financial 
legislative  acts (3),  for  the  budgetary  authority
during  the  annual  budgetary  procedure,

of 

HAVE  ADOPTED  THIS  DECISION:

Article  1

Fiscalis programme

A  multiannual  Community  action  programme  (Fiscalis)
hereinafter  referred  to  as  ‘the  programme’,  is  hereby
established  for  the  period  1  January  1998  to  31
December  2002  to  improve  the  functioning  of  the
indirect  taxation  systems  of  the  internal  market.  It  shall
comprise  the  areas  of  action  referred  to  in  Articles  4,  5
and  6.

(1)  OJ  L  280,  13.11.1993,  p.  27.
(2)  OJ  L  172,  22.7.1995,  p.  24.

(3)  OJ  C  102,  4.4.1996,  p.  4.

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Article  2

Definitions

Article  4

Communication  and  information-exchange  systems,
manuals  and  guides

For  the  purposes  of  this  Decision:

(a)  ‘indirect  taxation’  means  those  indirect  taxes  which
come  within  the  scope  of  Community  legislation;

(b) ‘administration’  means  the  public  authorities 
Member  States  responsible  for  indirect  taxation;

in

(c)  ‘official’  means  an  official  of  an  administration
responsible  for  the  application  of  Community  or
national  law,  regulations  or  procedures  relating  to
indirect  taxation;

(d) ‘exchange’ means a working visit organised under the
programme  in  the  Community  interest  of  an  official
from  an  administration  in  another  Member  State;

(e)  ‘multilateral  controls’  means  collaboration  of  at  least
three administrations to integrate and coordinate their
controls  of  taxable  persons  having 
indirect  tax
obligations  in  the  Member  States  concerned,  within
the  Community  legal  framework  for  cooperation;

(f)  ‘the  Community  legal  framework  for  cooperation’
means  the  body  of  Community  legislation  which
provides  for  mutual  assistance  and  administrative
cooperation  between  Member  States  on 
indirect
taxation.

1. The Commission and Member States shall ensure that
such  existing  communication  and  information-exchange
systems,  manuals  and  guides  as  they  consider  necessary
are operational. They shall establish and keep operational
such  new  communication  and 
information-exchange
systems,  manuals  and  guides  as  they  consider  necessary.

2. The  Community  components  of  the  communication
and information-exchange systems shall be the hardware,
software  and  network  connections,  which  must  be
common  to  all  Member  States  so  as  to  ensure  the
interconnection  and 
interoperability  of  the  systems,
whether  they  be 
installed  at  the  premises  of  the
Commission  (or  a  designated  subcontractor)  or  at
premises  of  Member 
a  designated
subcontractor).

States 

(or 

of 

components 

non-Community 

3. The 
the
communication  and  information-exchange  systems  shall
comprise  the  national  databases  forming  a  part  of  these
systems, 
the
Community  and  non-Community  components  and  such
software and hardware as each Member State shall deem
appropriate  for  the  full  operation  of  those  systems
throughout  its  administration.

connections  between 

the  network 

Article  3

Objectives

Article  5

Exchanges,  seminars  and  multilateral  controls

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

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

taxation,  and  of 

field  of 

indirect 

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

(c)  to 

the 

ensure 

of
continuing 
administrative  procedures  to  take  account  of  the
needs  of  administrations  and  taxpayers  through  the
development and dissemination of good adminstrative
practices.

improvement 

1. The  Commission  and  Member  States  shall  organise
exchanges of officials. The exchanges may vary in length,
depending  on  the  case,  but  may  not  exceed  six  months.
Each  exchange  shall  be  targeted  on  a  particular  work
activity  and  shall  be  sufficiently  prepared  and  evaluated
afterwards  by 
administrations
concerned.

the  officals 

and 

The  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 authorised 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  exchange
official in the performance of his duties shall be treated in
the  host
the  same  way  as 

that  of  officials  of 

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

Article  7

Participation  of  the  associated  countries

2. The  Commission  and  the  Member  States  shall
organise  seminars  to  be  attended  by  officials  from  the
administrations,  Commission  representatives  and, 
if
necessary,  other  indirect  taxation  experts.

3. The Commission and the Member States may, within
the  Committee  referred  to  in  Article  11,  choose,  for
experimental  purposes,  from  among  the  multilateral
controls  organised  by  the  Member  States  within  the
Community 
legal  framework  for  cooperation  those
whose  costs  are  to  be  borne  by  the  Community  in
accordance  with  Article  8.  The  participating  Member
States shall send reports and evaluations concerning such
controls  to  the  Commission  and  to  the  Member  States.

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  the  Europe
Agreements  and  the  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  so  far  as  Community  law  on  indirect  taxation
permits.

Article  8

Expenditure

Article  6

Common  training  initiative

1. The  expenditure  necessary  for  implementation  of  the
programme shall be divided between the Community and
Member  States  in  accordance  with  paragraphs  2  and  3.

2. The  Community  shall  bear  the  following:

1.
In order to encourage structured cooperation between
national  training  bodies  and  officials  responsible  for
training  in  indirect  taxation  in  administrations,  Member
States  shall,  in  cooperation  with  the  Commission:

(a)  develop  existing  training  programmes  and,  where
necessary,  devise  new  programmes  to  provide  a
common  core  of  training  for  officals  so  as  to  enable
them  to  acquire  the  necessary  common  professional
skills  and  knowledge;

(b) where  appropriate,  open  the  training  courses  in
indirect  taxation  provided  by  each  Member  State  for
its  own  officials  to  officials  from  all  Member  States;

(c)  develop  the  necessary  common  tools  for  indirect
taxation  training,  including  linguistic  training  tools.

2. Member  States  shall  ensure  that  their  officials  receive
the  initial  and  continuous  training  necessary  to  acquire
the  common  professional  skills  and  knowledge 
in
accordance  with  the  common  training  programmes  and
the  linguistic  training  necessary  for  those  officials  to
attain  a  sufficient  standard  of  linguistic  competence.  In
accordance  with  Article  12(2),  they  shall  inform  the
Commission  of  the  content  and  amount  of  training  that
they  provide  for  their  officials.

(a)  the  travel  and  subsistence  expenses  of  officials
participating in another Member State in the activities
provided  for  in  Article  5,  the  travel  and  subsistence
expenses  of  the  other 
indirect  taxation  experts
participating  in  the  seminars  provided  for  in  Article
5(2),  and 
the
organisation  of  the  seminars;

the  costs 

likewise 

relating 

to 

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

communication 

(c)  the  cost  of  the  development,  purchase,  installation
and  maintenance  of  the  Community  components  of
information-exchange
and 
the 
systems  provided  for  in  Article  4(2)  and  the  cost  of
the  Community
the  day-to-day  operation  of 
components 
the
Commission  (or  a  designated  subcontractor);

the  premises  of 

installed  at 

(d) the  cost  of  studies  to  be  carried  out,  if  necessary,  by
third  parties  on  the  impact  of  the  programme,  while
guaranteeing  the  confidentiality  of  the  data.

3. Member  States  shall  bear  the  following:

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(a)  the costs relating to the initial and continuing training
of their  officials and to the  linguistic  training of their
officials  as  provided  for  in  Article  6.  Member  States
shall  bear  the  costs  relating  to  the  participation  of
in  any  extra  activities  organised
their  officials 
pursuant to Article 5, over and above those borne by
the  Community;

the  non-Community 

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

components  of 

the  Treaty  in  the  case  of  decisions  which  the  Council  is
required  to  adopt  on  a  proposal  from  the  Commission.
The  votes  of  the  representatives  of  the  Member  States
within the committee shall be weighted in the manner set
out  in  that  Article.  The  Chairman  shall  not  vote.

3.  (a)  The Commission shall adopt measures which shall

apply immediately.

(b) However,  if  these  measures  are  not  in  accordance
with  the  opinion  of  the  Committee,  they  shall  be
communicated  by  the  Commission  to  the  Council
forthwith.  In  that  event:

Article  9

Financial framework

The  financial  framework  for  the  implementation  of  the
programme  for  the  period  1  January  1998  to  31
December  2002  is  hereby  set  at  ECU  40  million.  The
annual  appropriations  shall  be  authorised  by 
the
budgetary  authority  within  the  limits  of  the  financial
perspective.

Article  10

Implementation

The  measures  necessary  for  carrying  out  this  programme
shall  be  adopted  by  the  Commission  in  accordance  with
the procedure laid down in Article 11. The implementing
measures 
shall  not  affect  Community  provisions
governing  collection  and  control  and  administrative
cooperation  and  mutual  assitance  in  the  field  of  indirect
taxation.

Article  11

Committee

1. 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.

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.  The  opinion  shall  be
delivered  by  the  majority  laid  down  in  Article  148(2)  of

—  the  Commission  shall  defer  application  of  the
measures  which  it  has  decided  for  a  period  of
of
from 
three  months 
communication,

date 

the 

—  the  Council,  acting  by  a  qualified  majority,
may  take  a  different  decision  within  the  time
limit  referred  to  in  the  first  indent.

4.
In  addition  to  the  measures  referred  to  in  Article  10,
the  Committee  shall  consider  matters  raised  by  its
Chairman,  either  on  his  own  initiative  or  at  the  request
of  the  representative  of  a  Member  State,  concerning  the
application  of  this  Decision.

Article  12

Evaluation

1. The  programme  shall  be  subject  to  continuous
evaluation,  carried  out  jointly  by  the  Commission  and
Member  States.  The  evaluation  shall  be  effected  on  the
basis  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;

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

implementation  and 

impact  of 

the 

the 
programme.

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

(a)  by  30  June  2001  at  the  latest  a  communication,
drawn  up  on  the  basis  of  the  Member  States’  interim
reports,  on 
the
programme,  accompanied,  if  necessary,  by  a  suitable
proposal;

the  desirability  of  continuing 

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(b) by  30  June  2003  at  the  latest,  a  final  report  on  the

It  shall  apply  from  1  January  1998.

implementation  and  impact  of  the  programme.

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

Article  14

Addressees

This  Decision  is  addressed  to  the  Member  States.

Article  13

Entry  into  force

Done  at  . . .,  . . .

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

For  the  European  Parliament

For  the  Council

The  President

The  President

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STATEMENT  OF  THE  COUNCIL’S  REASONS

I. 

INTRODUCTION

1.  On  13  May  1997  the  Commission  submitted  a  proposal,  based  on  Article  100a  of  the
Treaty,  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.  The  European  Parliament  and  the  Economic  and  Social  Committee  delivered  their

opinions  on  20  November  1997  and  29  October  1997  respectively.

The  Commission  submitted  its  amended  proposal  on  26  November  1997.

3.  The  Council  adopted  its  common  position,  in  accordance  with  Article  189b  of  the

Treaty,  on  26  January  1998.

II.  PURPOSE

The  purpose  of  the  proposal  is  to  contribute  to  the  effective,  uniform  and  efficient
application  of  Community  provisions  on  indirect  taxation  (first  recital)  and  thus  to
reinforce  the  functioning  of  the  indirect  taxation  systems  of  the  internal  market
(Article  1).

To  the  above  end  the  Commission  proposes  a  Community  action  programme  lasting  five
years  (1  January  1998  to  31  December  2002),  called  the  Fiscalis  programme  (Article  1)
with the purpose of reinforcing through Community action, chiefly by contributing to their
funding,  the  efforts  of  Member  States:

(a)  to achieve a high level of common understanding among officials of Community law, in
particular  in  the  field  of  indirect  taxation,  and  its  implementation  in  Member  States;

(b) to  secure  efficient,  effective  and  extensive  cooperation  among  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.

It  is  also  a  matter  of  developing  the  technical  infrastructure  for  communicating  and
exchanging  information  which,  according  to  the  Commission,  plays  a  major  role  in
reinforcing VAT  and  excise  duty systems. The data-transmission infrastructure in question
already  exists  in  part  in  the  form  of  the  VIES,  SCENT  and  SEED  systems,  which  were
developed  and  financed  in  the  framework  of  the  IDA  programme  adopted  by  the  Council
on  6  November  1995.  The  IDA  programme  expires  at  the  end  of  1997.

The  Fiscalis  system  is  to  replace  the  IDA  programme  in  the  field  of  indirect  taxation  and
provide  a  new  legal  and  budget  basis  for  continuing  the  VIES,  SEED  and  EMVS  systems
and  facilitate  the  establishment  of  new  systems  in  the  future.  However,  the  nature  of  the
action is still the same: essentially its aim is to ensure at technical level the interconnection
and  interoperability  of  national  data-transmission  networks  in  the  specific  field  of  indirect
taxes.  The  production  of  manuals  and  guides  necessary  for  the  smooth  functioning  of
interconnected  systems  is  to  be  regarded  as  an  ancillary  activity  indissociable  from  that
task.

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III.  ANALYSIS  OF  THE  COMMON  POSITION

The text was considerably recast during the discussion. The common position differs from
the  original  Commission  proposal  on  a  number  of  points:

—  it  should  be  clear  that  the  objective  of  the  Fiscalis  programme  is  to  ensure  better
coordination on the part of the Member States’ tax authorities. The indirect taxes more
directly  concerned are those managed by the Member States and their officials (Article
2),

—  the  Commission  and  Member  States  are  to  ensure  the  functioning  of  existing
communication  and  information  exchange  systems,  manuals  and  guides.  New  systems,
manuals  and  guides  are  to  be  established  if  they  are  considered  necessary  (Article  4),

—  the exchanges of officials organised by the Commission and the Member States may not

be  for  longer  than  six  months  (Article  5),

—  Member  States  are  to  cooperate  with  the  Commission  in  order  to  encourage
cooperation  between  national  training  bodies  and  officials  responsible  for  training  in
indirect  taxation  in  administrations  (Article  6),

—  the  Community  is  to  bear  the  cost  of  studies  to  be  carried  out  by  third  parties  on  the
impact  of  the  programme,  while  guaranteeing  the  confidentiality  of  the  data  (Article
8),

—  the  financial  framework  for  the  implementation  of  the  programme  may  not  exceed
ECU  40  million  for  the  period  from  1  January  1998  to  31  December  2002  (Article
9),

—  the  standing  Committee  to  assist  the  Commission  in  the  implementation  of  the
programme  will  have  to  act  as  an  ad  hoc  management  committee  in  accordance  with
procedure  II  (b)  laid  down  in  the  Council  Decision  on  ‘commitology’  (Decision
87/373/EEC).

IV.  AMENDMENTS  PROPOSED  BY  THE  EUROPEAN  PARLIAMENT

1.  European  Parliament  amendments  adopted  in  full  or  in  part  by  the  Council  and  the

Commission

The  substance  of  amendment  1  (recital  7)  was  accepted  because  the  information
exchange  systems  do  not  only  cover  VAT.  It  was  accordingly  specified  that  the
information  exchange  systems  involved  are  ‘in  the  field  of  indirect  taxation’.

Amendment 2 (recital 10) was accepted as it helps to underline the role and importance
of  seminars  in  enabling  national  indirect  taxation  systems  to  converge.

The substance of amendment 5 (Article 2(d)) was accepted, as Article 6(1)(b) stipulates
that  Member  States  are  to  open  the  training  courses  in  indirect  taxation  provided  for
their  own  officials  to  officials  from  all  Member  States,  where  appropriate.

Amendment 6 (Article 2(e)) was adopted, given that the definition of bilateral controls
was  no  longer  necessary  owing  to  an  amendment  to  Article  5(3).

Amendment  7  (Article  3(a))  was  adopted  because  the  programme  relates  in  particular
to  the  field  of  indirect  taxation.

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Amendment  8  (Article  4(1))  was  adopted,  subject  to  a  drafting  amendment  so  that
existing  communication  and  information  exchange  systems,  manuals  and  guides  could
be  maintained  where  they  were  useful  or  amended  or  new  ones  established  where
necessary.

Amendment 9 (Article 5(1)) was adopted, as it was considered reasonable both because
exchanges  of  officials  must  not  be  for  longer  than  six  months  and  because  exchanges
were  to  be  evaluated  not  only  by  the  officials  but  also  by  the  administrations
concerned.

The  substance  of  amendment  10  (Article  5(2))  was  accepted  to  allow  indirect  taxation
experts  other  than  officials  from  the  national  administrations  and  the  Commission  to
attend  seminars.

The substance of amendment 11 (Article 5(3)) was accepted in so far as a choice would
have  to  be  made  as  to  which  exercises  would  be  paid  for  by  the  Community  if  the
number  of  applications  ruled  out  financing  all  of  them.

Amendment  12  (Article  6)  was  accepted  only  in  part.  Hence,  it  was  accepted  that  the
development  of  training  programmes  and  the  devising  of  new  programmes  should  be
carried  out  by  the  Member  States  in  cooperation  with  the  Commission;  however,
instead  of  establishing  a  network  for  cooperation  with  the  institutions  responsible  for
training  officials,  the  Council  felt  that  it  would  be  more  desirable  to  encourage
cooperation  between  training  bodies  and  officials  responsible  for  training  in  national
administrations.

—  The  new  subparagraph  (a)  in  paragraph  1  proposed  by  the  European  Parliament
was  not  accepted.  It  was  felt  that  the  stipulation  of  the  knowledge  required,
including  the  languages  which  officials  must  know,  was  a  matter  for  individual
Member  States,

—  the new subparagraph (b) in paragraph 1 proposed by the European Parliament was
reproduced  in  subparagraph  1(a),  which  stipulates  that  existing  programmes  must
be  developed  and  if  necessary  new  training  programmes  devised  to  provide  a
common  core  of  training,

—  the  substance  of  the  new  subparagraph  (c)  proposed  by  the  European  Parliament
was  reproduced  in  subparagraph  1(b),  as  indicated  above  under  amendment  5,

—  the new subparagraph (d) in paragraph 1 proposed by the Parliament was accepted

and  included  in  subparagraph  (c),  which  states  that  Member  States,

—  in  cooperation  with  the  Commission,  may  develop  the  necessary  common  tools  for

indirect  taxation  training,  including  linguistic  training  tools,

—  the  new  subparagraph  (e)  in  paragraph  1  was  not  accepted.  It  was  felt  that  the
training of officials was a matter for Member States and should not be analysed by
the  other  Member  States  or  the  Commission,

—  the  amendment  to  paragraph  2  was  accepted.  It  was  added  that  officials  should
receive  the  necessary  language  training  for  them  to  attain  a  sufficient  standard  of
linguistic competence.

Amendment  13  (Article  8(2)(d))  was  reproduced  almost  in  whole,  while  guaranteeing
the  confidentiality  of  data.

Amendment  14  (Article  10)  was  accepted  because  it  helped  clarify  that  the  measures
involved  were  measures  for  carrying  out  the  programme.

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Amendment  15  (Article  12(3)(b))  was  accepted  because  it  is  important  that  the
Commission,  in  its  report  to  the  European  Parliament  and  the  Council,  give
information  on  the  impact  of  the  programme.

2.  European  Parliament  amendments  accepted  by  the  Commission  but  not  by  the

Council

Amendment 3 (recital 11) was rejected as the Council only adopted part of amendment
12.

Amendment  4  (recital  12)  was  not  accepted,  as  the  programme  covered  only  indirect
taxation,  not  customs.

The  oral  amendment  referring  to  Article  4(2)  was  not  accepted.  It  was  felt  that  if  the
need  for  recourse  to  subcontractors  were  to  arise  the  financial  provisions  in  force
would  obviously  have  to  be  complied  with.

The  oral  amendment  referring  to  Article  7  was  not  accepted.  It  was  pointed  out  that
under the conditions laid down in the Europe Agreements or in the additional Protocols
relating  to  the  participation  of  associated  countries  in  Community  programmes,  the
costs involved in such participation could not be covered from the funds earmarked for
such  programmes.

The  oral  amendment  referring  to  Article  9  was  not  accepted.  It  was  considered
adequate,  as  regards  the  financial  framework,  to  state  that  the  annual  authorisations
would  be  authorised  by  the  budgetary  authority  within  the  limits  of  the  financial
perspective.

V.  AMENDMENTS  MADE  BY  THE  COUNCIL  WHICH  WERE  PROPOSED  BY  NEITHER  THE

EUROPEAN  PARLIAMENT  NOR  THE  COMMISSION

In  Article  9,  the  financial  framework  was  reduced  to  ECU  40  million.  Such  a  sum  was
regarded  as  sufficient  for  attaining  the  objectives  laid  down  in  the  programme.

In Article 10, additional clarification was added to indicate the limits of such implementing
measures,  as  the  provisions  governing  collection,  control,  administrative  cooperation  and
mutual  assistance  in  the  field  of  indirect  taxation  were  dealt  with  in  a  separate  legal
framework.

In  Article  11,  it  was  felt  that  the  Committee  responsible  for  assisting  the  Commission  as
regards  administrative  cooperation  in  the  field  of  indirect  taxation  should  deliver  its
opinions  by  qualified  majority  in  accordance  with  procedure  II(b)  of  the  Council  Decision
on  ‘commitology’  (Decision  87/373/EEC  —  Management  Committee).  It  was  felt  that  a
mere  ‘advisory’  committee  as  proposed  by  the  Commission  would  not  be  appropriate  for
the  tasks  entrusted  to  it  by  this  programme.