WRITTEN QUESTION E-0512/00 by Christopher Huhne (ELDR) to the Commission. Offshore centres and the exchange of information concerning payments.
Date: 2000-02-28
Institutions: European Parliament, Provisional data
Subjects: European tax cooperation, exchange of information, money laundering, tax avoidance

C 26 E/52

Official Journal of the European Communities

EN

26.1.2001

During the 1998, 1999 and 2000 budgetary procedures, the Commission actively sought to reassign some
of its human resources available with a view to strengthening its activities in priority areas. When the
preliminary draft budget was being prepared, 1 % of posts were set aside to create a pool of human
resources to be allocated to activities considered as priorities. For the 1998 and 1999 budgets the annual
allocation exercises covered both the (vacant) posts corresponding to the 1 % set aside and the annual
instalment of 110 new posts connected with the last enlargement (Austria, Finland and Sweden).

During the period 1997 to 1999, staff increases were mainly for the Directorate-General for Health and
Consumer Protection, programme management, in particular in the field of external action, including the
creation of the Relex Common Service and the establishment of ad hoc task forces to deal with the Kosovo
crisis. Some of the other departments which received significant staff increases were the Unit for the
Coordination of Fraud Prevention (UCLAF), the Justice and Home Affairs Task Force, the Directorate-
General for Economic and Financial Affairs and the Directorate-General for Competition.

During the current year, human resources are being allocated in parallel with a root and branch
reorganisation of Commission departments in a bid to increase efficiency and effectiveness. Reorganisation
began in September 1999. Some Directorates-General have been merged (for example, the new DGs
Enterprise, Education and Culture and Energy and Transport) and new departments have been created
(for example the new DGs Enlargement and Justice and Home Affairs). This involved transfers of duties
and staff from one department to another. By rationalising departments, the reorganisation released
significant numbers of human resources (approx. 2 %) which were assigned to priority activities. Together
with the human resources thus released, the allocation of the 1 % of posts set aside (see above) concerned
the departments which have not undergone major reorganisation. In all, the equivalent of more than
500 man/years were reassigned in the year 2000 allocation exercise.

The allocation exercise for the year 2000 assigned additional staff
in
particular in the area of external action, to the setting up of the new DGs Enlargement and Home Affairs,
to activities relating to the President(cid:146)s enhanced coordination role as coordinator, to competition policy
and to other aspects of the internal market.

to programme management,

(2001/C 26 E/066)

WRITTEN QUESTION E-0512/00

by Christopher Huhne (ELDR) to the Commission

(28 February 2000)

Subject: Offshore centres and the exchange of information concerning payments

In the light of the answer to Written Question E-2234/99 (1) by Mr Bolkestein (17 January 2000), is there
any reason why similar measures to those outlined in the answer might not be applied to offshore centres
which failed to enter into agreements for the exchange of information concerning payments to non-
residents?

(1) OJ C 219 E, 1.8.2000, p. 128.

Answer given by Mr Bolkestein on behalf of the Commission

(10 April 2000)

Beyond the scope of current anti-money-laundering provisions, the exchange of information regarding tax
matters is generally governed by bilateral tax treaties which are entirely within the competence of the
governments concerned. The finance ministers of the Group of seven most industrialized countries (G7)
have recently expressed concern, however, about offshore financial centres and tax havens which under-
mine international standards of financial regulation and which are shelters to avoid or evade payment
of tax.

26.1.2001

EN

Official Journal of the European Communities

C 26 E/53

Representatives of the Financial action task force on money laundering and the Organization for economic
cooperation and development (OECD) committee of fiscal affairs have been considering how anti-money-
laundering systems could be strengthened and how the effectiveness of
tax information exchange
arrangements could be increased.

The OECD has also identified the lack of exchange of information as a key factor in identifying tax havens.
Accordingly it recommends that countries that do not have rules concerning reporting of international
transactions and foreign operations of resident taxpayers should consider adopting such rules and that
countries exchange information obtained under these rules. The OECD intends to publish a list of tax
havens later this year and will consider the possibility of co-ordinating countermeasures against jurisdic-
tions that are uncooperative in the fight against harmful tax competition.

The Community has already adopted directives both to counter money-laundering and to provide mutual
assistance in the field of direct and indirect taxation. The latter specifically includes provisions for the
exchange of information between tax administrations in order to combat tax evasion and avoidance in the
Community. Furthermore the Community has taken the lead in identifying the need for co-ordinated
action, and in taking concrete steps to tackle harmful tax competition,
including in Member States(cid:146)
dependent and associated territories.

(2001/C 26 E/067)

WRITTEN QUESTION P-0514/00

by Marianne Thyssen (PPE-DE) to the Commission

(17 February 2000)

Subject: Compensation for cocoa-producing farmers

Amendment of the directive on cocoa and chocolate products for human consumption is currently being
considered by the European Parliament at second reading. Although the exact outcome of the codecision
procedure is not yet known it seems likely that the 1973 chocolate directive will be substantially amended.
The main change is that after a certain time vegetable fats other than cocoa butter will be permitted in
chocolate.

This will affect sales of cocoa from the ACP and other developing countries.

In the interests of fairness in North-South relations and our legal obligations under the LomØ agreements
and the cocoa agreement, it seems obvious that cocoa-producing farmers should be adequately compen-
sated one way or another and possibly helped to switch to other crops.

Is there a legal basis that the Commission can use for initiatives in this area? If so, which one?

Does the Commission plan to take any initiatives in this area? What are its reasons, if it does not?

Answer given by Mr Nielson on behalf of the Commission

(27 March 2000)

The estimation of the impact of the proposed directive (1) on the use of vegetable fats, other than cocoa, in
chocolate manufacture is not feasible before the directive comes into force nor justified in the light of the
in December 1999 (2). For example, the
provisions of the common position adopted by the Council
Council agreed to limit the vegetable fats to those of tropical origin and produced by African, Caribbean
and Pacific ACP countries; further, vegetable fats can only be present to the extent of 5 % and only be
added to the minimum content of cocoa required for each product; finally, it is not clear to what extent
vegetable fats will be more used than at present. All these elements need to be considered when assessing