Opinion of the Economic and Social Committee on the 'Proposal for a European Parliament and Council Regulation clarifying Council Regulation (EC) No 2223/96 as concerns principles for recording taxes and social contributions'
Date: 2000-01-26
Institutions: European Economic and Social Committee
Subjects: EU Member State, European Commission, exchange of information, national tax, tax collection, tax harmonisation

15.3.2000

EN

Official Journal of the European Communities

C 75/19

3.3.5.
The audit process should also be reviewed, with
stronger emphasis on accurate and stringent information from
the beginning, and use of common systems, rather than the
evolutionary ‘case by case’ approach which pertains at present.

T i m e t a b l e f o r s u b m i s s i o n a n d a g r e e m e n t o f
C I P p l a n s

3.3.6.
The timetables for submission and agreement of
plans (paragraph 53), (as indeed for all stages) should be
reviewed in the light of what is actually likely to happen, and
this should be taken into account in the programme. Current
programmes all too often work to fictitious timetables, which
all parties know will not be met in practice. This undermines
the effectiveness of programmes, and their reputation.

M o n i t o r i n g a n d e v a l u a t i o n o f n a t i o n a l p r o -
g r a m m e s

The role of monitoring committees should be
3.3.7.
strengthened (paragraph 55), with more structures in place to
ensure good quality attendance and the forming of effective
links with other key bodies.

As mentioned above, programme level monitoring
3.3.8.
(paragraph 56) should be reviewed and made more appropriate
to the innovative and trans-national nature of the programme,
with the inclusion of measures of ‘soft’ outcomes and learning,
not just crude output measures.

3.3.9.
The timetable for programme evaluation (at both MS
and EU level) should ensure that information is available to
influence future developments, and does not come too early
or too late.

Brussels, 26 January 2000.

The President

of the Economic and Social Committee

Beatrice RANGONI MACHIAVELLI

Opinion of the Economic and Social Committee on the ‘Proposal for a European Parliament and
Council Regulation clarifying Council Regulation (EC) No 2223/96 as concerns principles for
recording taxes and social contributions’

(2000/C 75/08)

On 14 January 2000 the Council decided to consult the Economic and Social Committee, under Article
262 of the Treaty establishing the European Community, on the above-mentioned proposal.

The Economic and Social Committee decided to appoint Mr Vasco Cal as rapporteur-general for this
opinion.

At its 369th plenary session of 26 and 27 January 2000 (meeting of 26 January), the Economic and
Social Committee adopted the following opinion by 79 votes in favour with 3 abstentions.

1.

Introduction

1.2.
In this connection, some Member States declare taxes
and contributions which are actually due (according to assess-
ments and declarations), including amounts which will never
be collected, i.e. taxes unpaid because of insolvency, bank-
ruptcy etc. Other Member States declare actual cash receipts,
which arrive much later.

1.1.
The European System of Accounts (ESA) determines
Member States’ general government net borrowing, i.e. govern-
ment deficit. This is a key factor in connection with the
protocol on the excessive deficit procedure which, in turn,
governs the stability and growth pact. The protocol requires
that the government deficit of each Member State can be
calculated quickly. The figures must also be transparent and
comparable.

The Commission thus proposes that ‘taxes and social
1.3.
contributions recorded in the system (should) not include
amounts unlikely to be collected’ and that, ‘accordingly, taxes

C 75/20

EN

Official Journal of the European Communities

15.3.2000

and social contributions recorded in the system on an accrual
basis, (should) be equivalent over a reasonable amount of time
to the corresponding amounts actually received.’

1.4.
In practical terms, the Commission proposes that each
of the recorded categories of taxes and social contributions
should be subject to a weighting in order to eliminate sums
regularly left uncollected. Where declarations are based on
cash receipts, the Commission requires that the amounts relate
precisely to the specific time frames and activities concerned.

2. The ESC’s comments

The Committee approves the draft regulation in prin-
2.1.
it will be adopted by the Council
ciple and hopes that
without delay, as far as possible during the current Portuguese
presidency.

2.2.
The Committee notes that, at around 2 % of GNP,
levels of uncollected taxes and contributions are relatively low.
Their importance becomes clearer, however, when measured
against the cuts — also in the region of 2 % — which Member
States are supposed to make to their deficits under their
stability and growth plans.

2.3.
The Committee urges strict application of the weight-
ings for each category of taxes and social security contri-
butions. A blanket weighting not only compromises the

Brussels, 26 January 2000.

transparency and comparability of figures between Member
States, but would also make it more difficult to carry out
tax
the research needed to launch a gradual process of
harmonisation in the European Union.

3. Specific comments

3.1. Article 3 a)

The Committee urges that the coefficients should not only be
estimated on the basis of past experience, but should also
reflect expected events which may affect the macro-economic
context.

3.2. Article 3 b)

The Committee welcomes this provision which ensures that
taxes and contributions are related strictly to the particular time
frame and activity concerned. Continuity in the application of
the principles is vital.

3.3. Enforcement

A transitional period not exceeding two years should be laid
down for Member States which do not yet apply the provisions
of Article 3 and whose current figures diverge from those that
would have been obtained had they done so.

The President

of the Economic and Social Committee

Beatrice RANGONI MACHIAVELLI