Proposal for a Council Decision concerning the Community position within the Association Council on the participation of Slovakia in the Community programme Fiscalis
Date: 2001-08-02
Institutions: European Commission
Subjects: EU programme, Slovakia, action programme, association agreement (EU), indirect tax, tax system

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 2.8.2001
COM(2001) 457 final

Proposal for a

COUNCIL DECISION

concerning the Community position within the Association Council on the participation
of Slovakia in the Community programme Fiscalis

(presented by the Commission)

EXPLANATORY MEMORANDUM

1.

Introduction

In line with Article 7 of the European Parliament and Council Decision 888/98/EC1, the
existing Fiscalis programme may be opened to the candidate countries of Central and Eastern
Europe (CEECs) and Cyprus. No mention is made of Malta and Turkey in this provision.

Previously, the European Council, at its meeting in Luxembourg (December 1997), stressed
the importance of the participation of candidate countries in Community programmes in the
context of the pre-accession strategy, as a means to familiarise them with Community
working methods and procedures. The Helsinki European Council of December 1999
confirmed the enlargement process launched in Luxembourg. The enhanced Pre-Accession
Strategy defined in 1997 has been reiterated, which includes the participation of the 13
candidate States in Community programmes as an important part of such strategy.

As regards the ten candidate countries of Central and Eastern Europe (CEECs), participation
in Community programmes is provided in their respective Europe Agreements. Pursuant to
the Europe Agreements, the conditions and modalities of these countries’ participation are
defined by the respective Association Councils.

In addition to those Community programmes in which candidate countries already participate,
it is now proposed to decide terms and conditions for the participation of Bulgaria, the Czech
Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia
in the Community programme Fiscalis for the duration of its remaining lifetime, i.e. till 31
December 2002.

The general objectives of the Fiscalis programme are:

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

• to secure efficient, effective and extensive co-operation among Member States and

between them and the Commission;

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

The objective of opening it
to the candidate countries will further contribute to their
preparations for accession as a key feature of the pre-accession strategy. It will also enable
these countries to familiarise themselves with the procedures and methods used in this
Community programme.

1

OJ L 126 of 28.04.1998, p.1

2

2.

Candidate countries of Central and Eastern Europe (CEECs)

The Europe Agreements with these countries entered into force on various dates and provide
for their participation in Community programmes dealing with a wide range of areas. They
provide the possibility that other fields of Community activities may be added, if considered
to be of mutual interest, so that activities in the field of internal market can be included too.

The decision-making process for this participation requires a decision by the Association
Council of each of these Europe Agreements, which sets up the terms and conditions for such
participation.

According to the provisions of the Europe Agreements or their additional protocols
concerning these countries’ participation in Community programmes, they will meet the costs
resulting from their participation.

In this connection, the Luxembourg European Council indicated that candidate countries
should steadily increase their own financial contribution, but agreed that Phare, if necessary,
would continue to part-finance these countries’ financial contributions; such support should,
however, “remain at around 10% of the Phare appropriation, not including participation in
the research and development framework programme”. The European Council also stated
that “The applicant States should be allowed to take part, as observers and for the points
which concern them,
in the management committees responsible for monitoring the
programmes to which they contribute financially, under specific arrangements adapted to the
case in question".

The ten CEECs, namely Bulgaria,
the Czech Republic, Estonia, Hungary, Latvia,
Lithuania, Poland, Romania, the Slovakia and Slovenia, confirmed to the Commission in
writing their willingness to participate in the Fiscalis programme as from 2001, under the
terms and conditions of the annexed draft Association Council Decisions, and to make
available the necessary budgetary appropriations, as calculated by the Commission services.

The main issues addressed in these draft Decisions between the EC and, respectively, the
above-mentioned 10 countries adopting the terms and conditions for their participation in the
Fiscalis programme are the following:

• conditions for submission, assessment and selection of applications will be as far as

possible in conformity with those prevailing for the Member States of the Union

• CEECs will contribute financially to the Community budget of the programme. The
financial contributions have been calculated with a view to approximating CEEC
conditions as far as possible to those applied to Member States. The annual contribution
from each CEEC may be financed partly from its own budget and partly from its national
Phare allocation, which should not exceed the above-mentioned 10% limit

• they will be invited as observers and for the points which concern them to the meetings of

the programme committee

• these countries will be associated to the monitoring of their participation in the programme

• the Decisions shall apply for the remaining lifetime of the programme. Nevertheless,
should the Community decide to extend the lifetime without any substantial change within
the programme, the Decisions may also be extended correspondingly and automatically if
no Party denounces them.

3

3.

Conclusions

The adoption of the Association Council Decisions for the ten CEECs, allowing these
candidate countries to participate in the Community’s Fiscalis programme as from 2001, will
offer them the opportunity to actively integrate in the Community’s policies in this area, as
part of the pre-accession strategy. It will also contribute to reinforce their institutional and
administrative capacity (“Institution Building”). It is, therefore, of considerable political
importance.

In order to allow the participation of Bulgaria, the Czech Republic, Estonia, Hungary,
Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia in the Community Fiscalis
programme as from 2001, the Council is invited to take the respective Community position
within the corresponding Association Council as set up in the ten annexed draft Council
Decisions.

4

Proposal for a

COUNCIL DECISION

concerning the Community position within the Association Council on the participation
of Slovakia in the Community programme Fiscalis

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular
Article 95 in connection with Article 300(2), second indent thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

(4)

The Additional Protocol2 to the Europe Agreement establishing an association
between the European Communities and their Member States, of the one part, and
Slovakia, of the other part, has been concluded by decision of the Council and the
Commission of 22 April 1996;

According to Article 1 of the Additional Protocol, Slovakia may participate in
framework programmes, specific programmes, projects or other actions dealing with a
wide range of areas; it also provides that other fields of Community activities to those
listed can be included too;

Pursuant to Article 2, the terms and conditions for the participation of Slovakia in the
activities referred to in Article 1 shall be decided by the Association Council;

Decision No 888/98/EC of the European Parliament and of the Council of 30 March
19983 establishing a programme of Community action to ameliorate the indirect
taxation systems of the internal market (Fiscalis programme) provides in Article 7 that
this programme shall be open to the participation of the candidate countries of Central
and Eastern Europe (CEECs), in accordance with the terms laid down in the Europe
Agreements and the Additional Protocols relating to their participation in Community
programmes and insofar as Community law on indirect taxation so permits,

2

3

OJ L 115 of 09.05.1996, p. 43
OJ L 126 of 28.04.1998, p. 1

5

HAS DECIDED AS FOLLOWS:

The position to be taken by the Community within the Association Council established by the
Europe Agreement between the European Communities and their Member States, of the one
part, and Slovakia, of the other part, concerning the participation of Slovakia in the
Community Programme Fiscalis,
in the attached draft decision of the
Association Council.

is that set out

Done at Brussels,

For the Council
The President

6

Decision n° ..../2001 of the Association Council between the European Communities and
their Member States, of the one part,
and Slovakia, of the other part,

of ..........2001

adopting the terms and conditions for the participation of Slovakia
in the Community programme Fiscalis

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement4 between the European Communities and their
Member States, of the one part, and Slovakia, of the other part,

Having regard to the Additional Protocol5
to the Europe Agreement establishing an
association between the European Communities and their Member States, of the one part, and
Slovakia, of the other part, concerning Slovakia’s participation in Community programmes,
and in particular Articles 1 and 2 thereof,

Whereas

(1)

(2)

(3)

According to Article 1 of the said Additional Protocol, Slovakia may participate in
Community framework programmes, specific programmes, projects or other actions
dealing with a wide range of areas;

It also provides that other fields of Community activities to those listed can be
included too;

According to Article 2 of the said Additional Protocol, the terms and conditions for the
participation of Slovakia in the activities referred to in Article 1 shall be decided by
the Association Council,

HAS DECIDED AS FOLLOWS:

Article 1

Slovakia shall participate in the European Community programme Fiscalis according to the
terms and conditions set out in Annexes I and II which shall form an integral part of this
Decision.

4

5

OJ L 359 of 31.12.1994, p. 2
OJ L 115 of 09.05.1996, p. 43

7

Article 2

This Decision shall apply for the duration of the remaining lifetime of the Programme.
Nevertheless, should the Community decide to extend the duration without any substantial
change within the Programme, this Decision would also be extended correspondingly and
automatically if no Party denounces it.

Article 3

This Decision shall enter into force the day of its adoption by the Association Council.

Done at Brussels,

For the Council
The President

8

TERMS AND CONDITIONS FOR THE PARTICIPATION OF SLOVAKIA
IN THE FISCALIS PROGRAMME.

ANNEX I

1.

2.

3.

4.

6

7

As stated in Article 7 of Decision No 888/98/EC6 of the European Parliament and of
the Council of 30 March 1998 establishing a programme of Community action to
ameliorate the indirect
taxation systems of the internal market - the Fiscalis
programme (hereinafter called “the Programme”) – Slovakia’s participation in the
Programme shall be in accordance with the conditions laid down in the Europe
Agreement, the Additional Protocol and insofar as Community law on indirect
taxation so permits. Accordingly, Slovakia’s participation in the Programme’s
activities shall be under the following conditions:

–

–

–

Activities foreseen in Article 4 (communication and information-exchange
systems, manuals and guides) will be allowed insofar as Community indirect
taxation provisions make it possible;

Activities foreseen in Article 5 (1) (exchanges of officials) and (2) (seminars)
as well as those foreseen in Article 6 (common training initiative) will be
allowed under the conditions laid down in these articles;

Activities foreseen in Article 5 (3) (multilateral controls) would not be allowed
as the Community legal framework7 for co-operation in this domain is only
applicable to countries which are Member States of the EU.

the submission, assessment and selection of
The terms and conditions for
applications for seminars and exchanges related to officials of Slovakia shall be the
same as those applicable to officials of the 15 national administrations of the
Member States of the European Union.

Annex II establishes the financial contribution to the general budget of the European
Union that Slovakia will have to pay at the beginning of every financial year to cover
the costs resulting from its participation in the Programme, from 2001 to 2002. The
Association Committee is entitled to adapt this contribution whenever necessary in
accordance with the principles laid down in Article 108 (2) of the Europe Agreement
between the European Communities and their Member States, of the one part, and
Slovakia, of the other part.

Representatives of Slovakia will participate, as observers and for the points which
concern them, in the Standing Committee on Administrative Co-operation in the
field of Indirect Taxation foreseen in Article 11 (1) of Decision No 888/98/EC. This
Committee shall meet without the presence of representatives of Slovakia for the rest
of the points, as well as at the time of voting.

OJ L 126 of 28.04.1998, p. 1
Directive 77/799/EEC and Regulation 218/92/EEC

9

5.

6.

7.

8.

The Member States of the European Union and Slovakia will make every effort,
within the framework of the existing provisions, to facilitate the free movement and
residence of all eligible persons to the Programme moving between Slovakia and the
EU Member States for the purpose of participating in activities covered by the
Decision.

Without prejudice to the responsibilities of the Commission of the European
Communities and the Court of Auditors of the European Communities in relation to
the monitoring and evaluation of the Programme pursuant to the Decision concerning
Fiscalis,
the participation of Slovakia in the Programme will be continuously
monitored on a partnership basis involving Slovakia and the Commission. Slovakia
will submit the necessary reports to the Commission and take part in other specific
activities set out by the Community in that context.

The language to be used as regards the application process, contracts, reports to be
submitted and other administrative arrangements for the Programme, will be one of
the official languages of the European Community.

The Community and Slovakia may terminate activities under this Decision at any
time upon twelve months’ notice in writing. Activities in progress at the time of
termination shall continue until their completion under the conditions laid down in
this Decision.

10

1.

2.

3.

4.

5.

ANNEX II

FINANCIAL CONTRIBUTION OF SLOVAKIA
TO THE FISCALIS PROGRAMME

The financial contribution of Slovakia will be added to the amount available each
year in the general budget of the European Union for commitment appropriations to
meet the Commission’s financial obligations stemming from work to be carried out
for the implementation, management and operation of the Fiscalis programme.

The financial contribution has been calculated considering an average daily
allowance of EURO 146 and an average travel allowance of EURO 695 representing
costs incurred for participating in seminars and exchanges. It is estimated for the
calculation of the financial contribution that Slovakia will participate in 15 seminars
and 20 exchanges, as an average number of activities per year. The financial
contribution may be adjusted at the beginning of each year to take into account the
actual number of activities in which Slovakia plans to participate during that year.
The adjustment will take place by means of the required call for funds that Slovakia
will receive from the Commission, as referred to under item 6 below.

Slovakia’s contribution will be of EURO 94.984 for every single year of
participation, unless determined otherwise within the conditions under item 2. From
this sum, an amount of EURO 6.214 will cover supplementary costs of an
the Programme by the
administrative nature related to the management of
Commission stemming from Slovakia’s participation.

Slovakia will pay the annual supplementary costs of an administrative nature referred
to under item 3 from its national budget.

Slovakia will pay 50% of the annual remaining cost of its participation from its
national budget for year 2001, 60% for year 2002.

Subject to Phare separate programming procedures, the remaining 50% will be paid
from Slovakia’s annual Phare allocations – subject to the availability of the relevant
budgetary appropriations, for year 2001; 40% for year 2002. The requested Phare
funds will be transferred to Slovakia by means of a separate Financing
Memorandum. Together with the part coming from Slovakia’s State budget, these
funds will constitute Slovakia’s national contribution, out of which it will make
payments in response to annual calls for funds from the Commission.

6.

The financial regulation applicable to the general budget of the European Union will
apply, notably to the management of the contribution of Slovakia.

Upon entry into force of this Decision, the Commission will send to Slovakia one or
more call for funds corresponding to its contribution to the costs of the activities for
the current year. The contribution will be expressed in EURO and paid into an
EURO bank account of the Commission.

Slovakia will pay its contribution according to the call for funds:

• for the part financed from its national budget, at the latest three months after the

call for funds is sent out;

11

• for the part financed from Phare, at the latest in a period of 30 days after the

corresponding Phare funds have been sent to the country.

Any delay in the payment of the contribution shall give rise to the payment of
interest by Slovakia on the outstanding amount from the due date. The interest rate
corresponds to the rate applied by the European Central Bank, on the due date, for its
operations in EURO, increased by 1,5 percentage points.

The daily subsistence allowances are applicable to all participants in the Programme
and are determined on a country per country basis by the Commission. Slovakia will
receive a first budget advance from the Commission at the beginning of every year.
A second advance may be paid at the middle of the year depending on the actual
participation of Slovakia in the Programme activities and on the expected
participation for the rest of the year. The Slovak department concerned will use these
advances to pay for the travel tickets and daily subsistence allowances for Slovak
participants.

Travel costs and subsistence costs incurred by representatives and experts of
Slovakia for the purposes of taking part as observers in the work of the committee
referred to in Annex I, point 4 shall be reimbursed by the Commission on the same
basis as the Member States of the European Union.

7.

8.

12

FINANCIAL STATEMENT

1.

TITLE OF OPERATION

Opening of Community Programme Fiscalis to Slovakia

2.

BUDGET HEADING(S) INVOLVED

Revenue: 6091 Revenue accruing from the participation of candidate countries in
Community programmes

Expenditure: B7-030 Economic aid to the associated countries of Central and Eastern
Europe

3.

LEGAL BASIS

Treaty establishing the European Community, and in particular Article 95,
conjunction with Article 300(2), second indent thereof.

in

Additional Protocol8 to the Europe Agreement with Slovakia of 11 December 1995
providing for the opening-up of Community programmes.

Decision No 888/98/EC9 of the European Parliament and of the Council of 30 March
1998 establishing a programme of Community action to ameliorate the indirect
taxation systems of the internal market.

4.

4.1

1.

2.

3.

4.

8

9

DESCRIPTION OF OPERATION

General objective

To enable officials to achieve a high common standard of understanding of
its
in the field of
Community law,
implementation in Member States.

taxation and of

in particular

indirect

To secure efficient, effective and extensive co-operation among Member States and
between them and the Commission.

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

Slovakia's participation in the Community programme Fiscalis will further contribute
to its preparation for accession as a key feature of a reinforced pre-accession
strategy. It will also enable Slovakia to familiarise itself with the procedures and
methods used in this Community programme.

OJ L 115 of 09.05.1996, p. 43
OJ L 126 of 28.04.1998, p. 1

13

5.

6.

The decision-making process for this participation requires a decision by the
Association Council of the Europe Agreement. This decision sets up the terms and
conditions for such participation.

The Additional Protocol to the Europe Agreement with Slovakia of 4 December
1995 provides for Slovakia’s participation in Community Programmes dealing with a
wide range of areas. Since it also provides for addition of other Community areas,
activities in the field of internal market can be included too.

4.2

Period covered and arrangements for renewal

From the entry into force of this Decision until
programme, i.e. 31.12.2002.

the end of this Community

5.

5.1

5.2

5.3

CLASSIFICATION OF EXPENDITURE OR REVENUE

Compulsory/Non-compulsory expenditure

Differentiated/Non-differentiated appropriations

Type of revenue involved

Since the first paragraph of Article 3 of the Additional Protocol stipulates that
Slovakia itself will meet the costs of its participation, it will be invited to transfer its
contribution to item 6091 of the EU's budget receipts. However, as the Community
may supplement Slovakia’s contribution (through its national Phare allocation),
Slovakia will contribute only part of its national budget. The remaining part of this
contribution will be taken from its Phare National Programme. The required Phare
funds will be charged to heading B7-030 and transferred to Slovakia by means of a
separate Financing Memorandum. Together with the part coming from Slovakia’s
State budget, these funds will constitute Slovakia’s national contribution out of
which it will make payments in response to annual calls for funds from the
Commission.

6.

TYPE OF EXPENDITURE OR REVENUE

Expenditure comprises reimbursement of participants’ travel expenses and daily
subsistence allowances, organisational costs and costs incurred through seminars and
exchanges.

As far as revenue is concerned, provision for Slovakia's contribution to cover the cost
of its participation is made under item 6091. The revenue will be allocated to the
items for expenditure on the programme concerned and, where appropriate, to the
relevant items of operating expenditure.

The total revenue expected is given under item 7.4.

14

7.

7.1

FINANCIAL IMPACT

Method of calculating total cost of operation (relation between individual and
total costs)

The calculation is based on the following preconditions:

–

–

Slovakia’s contribution to the financing of the activities referred to in the
Additional Protocol to the Europe Agreement is calculated according to the
principle that the country bears the costs of participation itself. Heading 6091
has been created in the statement of budget revenue for that purpose.

Based on the Additional Protocol to the Europe Agreement with Slovakia, the
financial and budgetary arrangements for the programme concerned are as
follows: the costs have been calculated on the basis of various assumptions
related to the participation in a number of 15 seminars and 20 exchanges per
year, including average costs of travel of EURO 695 from Slovakia to the
country of the host administration, the duration of exchanges or seminars and
average daily subsistence allowance of EURO 146.

On the basis of these assumptions, the total cost of Slovakia's participation will be
EURO 94.984 per year.

From the above-mentioned figure, the supplementary cost of an administrative nature
of EURO 6.214 per year is to be borne exclusively by Slovakia.

Of the remaining sum, Slovakia shall pay 50% from its national budget for year
2001, 60% for year 2002.

Subject to the Phare programming procedures, the remaining 50% will be paid from
Slovakia’s Phare national allocation for year 2001; 40% for year 2002.

7.2

Itemised breakdown of cost in EURO

EXCHANGES

FINANCIAL CONTRIBUTION

Number of exchanges*

Length of exchanges (days)

Number of participants per exchange

Subsistence allowances**

Travel expenses***

TOTAL

PER YEAR

20

14

1

40.880

13.900

54.780

15

SEMINARS

FINANCIAL CONTRIBUTION

PER YEAR

Number of seminars*

Number of participants in each seminar

Length of seminar (days)

Subsistence allowances**

Travel expenses***

TOTAL

TOTAL SEMINARS+EXCHANGES

7% administrative costs

15

2

3

13.140

20.850

33.990

88.770

6.214

94.984

TOTAL PER YEAR
*

number of exchanges and seminars yearly attended by Member States with the same population as
Slovakia
€
€

146/day (average daily subsistence allowance)
695 (average travel allowance)

**
***

7.3

Operational expenditure for studies, experts etc. included in Part B of the
budget

None

7.4

Schedule for multi-annual operations:

TOTAL EXPENDITURE:

Item 6091

2001

2002

TOTAL

88.770

88.770

177.540

6.214

6.214

12.428

Seminars
+
exchanges

7%
administra
tive costs

TOTAL

94.984

94.984

189.968

16

PHARE CONTRIBUTION:

TOTAL

of

2001
50%
operational
expenditures
B7-030

of

2002
40%
operational
expenditures
B7-030

Item

44.385

35.508

79.893

Slovakia’s contribution from its national budget:

Item 6091

2001

2002

TOTAL

of

50%
operational
expenditures

of

60%
operational
expenditures

Operational
expenditure

7%
administrativ
e costs

44.385

53.262

97.647

6.214

6.214

12.428

TOTAL

50.599

59.476

110.075

8.

FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN

All the Commission's contracts, agreements and other legal commitments provide for
on-the-spot checks by the Commission and Court of Auditors. Among other things,
the beneficiaries of the operations are obliged to file reports and financial statements.
These are analysed from the point of view of their content and the eligibility of the
expenditure in line with the objective of Community financing.

The anti-fraud provisions of the basic budget headings apply to this heading too
when adapted to the case of Slovakia.

9.

9.1

ELEMENTS OF COST-EFFECTIVENESS ANALYSIS

Specific and quantified objectives; target population

The main objectives of the Programme are to contribute to the achievement of a high
common standard of understanding of Community legislation in the field of indirect
taxation, secure efficient co-operation among Member States and the Commission
and improve administrative procedures.

The Fiscalis programme allows exchanges of officials involved in implementing
Community legislation and the organisation of seminars.

17

The aim of opening up the Community programme Fiscalis is to bring to Slovakia
the same benefits as the Member States of the European Union already enjoy from
the Programme. The objective for each year is to have Slovak officials participate in
an average number of 20 exchanges by a placement in one of the 15 EU members
and in an average number of 15 seminars.

The integration of Slovak officials in Community networks will make a definite
contribution to preparing Slovakia for future membership.

9.2

Monitoring and evaluation of the operation

The monitoring and evaluation procedures included in the Fiscalis programme will
also cover Slovak participants.

10.

ADMINISTRATIVE EXPENDITURE (SECTION III, PART A OF THE BUDGET)

Actual mobilization of the necessary administrative resources will depend on the
Commission’s annual decision on the allocation of resources, taking into account the
number of staff and additional amounts authorized by the budgetary authority.

10.1

Effect on the number of posts

Type of post

Staff required to manage
the operation

Source

Duration

Per year

Permanent
posts

Temporary
posts

Additional
resources

Existing
of
resources
the DG or
department
concerned

0,02

0,02

0,02

or
Officials
temporary staff

A

B

C

Other
resources
(Technical
assistance, item
A-7002)

0,02

0,02

0,02

TOTAL

0,06

0,06

18

10.2

Overall financial impact of additional human resources

(in EURO)

Total

Method of calculation (total cost
of the action per year)

EURO

6.480 0,06 man/year x 108.000 EURO

Officials

Temporary staff

Other
assistance, item A-7002)

resources

(Technical

TOTAL

6.480

*

existing
By
(calculation based on A-1, A-2, A-4, A-5, A-7).

resources

using

required

to

manage

the

operation

10.3

Increase in other administrative expenditure as a result of the operation

2001

2002

TOTAL

A.701
(missions)*

1.740

1.740

3.480

A.7031

4.474

4.474

8.848

(compulsory
committees)**

TOTAL

6.214

6.214

12.428

*
**

Average cost for a 2-day mission of 2 officials per year in Slovakia
Participation of Slovakia in SCAC meetings

The above expenditure will be met from the receipts (art. 4 § 2 third indent of the
financial regulation) received from Slovakia (see point 5.3 and 7.4 of the financial
statement).

19