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

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 02.08.2001
COM(2001) 462 final

Proposal for a

&281&,/(cid:3)’(&,6,21

FRQFHUQLQJ(cid:3)WKH(cid:3)&RPPXQLW\(cid:3)SRVLWLRQ(cid:3)ZLWKLQ(cid:3)WKH(cid:3)$VVRFLDWLRQ(cid:3)&RXQFLO(cid:3)RQ(cid:3)WKH
SDUWLFLSDWLRQ(cid:3)RI(cid:3)/DWYLD(cid:3)LQ(cid:3)WKH(cid:3)&RPPXQLW\(cid:3)SURJUDPPH(cid:3))LVFDOLV

(presented by the Commission)

(;3/$1$725<(cid:3)0(025$1’80

(cid:20)(cid:17)

,QWURGXFWLRQ

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
%XOJDULD,  the  &]HFK(cid:3) 5HSXEOLF,  (VWRQLD,  +XQJDU\,  /DWYLD,  /LWKXDQLD,  3RODQG,
5RPDQLD,  6ORYDNLD  and  6ORYHQLD  in  the  Community  programme  )LVFDOLV  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.

(cid:21)(cid:17)

1

&DQGLGDWH(cid:3)FRXQWULHV(cid:3)RI(cid:3)&HQWUDO(cid:3)DQG(cid:3)(DVWHUQ(cid:3)(XURSH(cid:3)(cid:11)&((&V(cid:12)

OJ L 126 of 28.04.98, p.1

2

                                                
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,  ‡UHPDLQ(cid:3) DW(cid:3) DURXQG(cid:3) (cid:20)(cid:19)(cid:8)(cid:3) RI(cid:3) WKH(cid:3) 3KDUH
DSSURSULDWLRQ(cid:15)(cid:3) QRW(cid:3) LQFOXGLQJ(cid:3) SDUWLFLSDWLRQ(cid:3) LQ(cid:3) WKH(cid:3) UHVHDUFK(cid:3) DQG(cid:3) GHYHORSPHQW
IUDPHZRUN(cid:3)SURJUDPPH·. The European Council also stated that ‡7KH(cid:3)DSSOLFDQW(cid:3)6WDWHV
VKRXOG(cid:3)EH(cid:3)DOORZHG(cid:3)WR(cid:3)WDNH(cid:3)SDUW(cid:15)(cid:3)DV(cid:3)REVHUYHUV(cid:3)DQG(cid:3)IRU(cid:3)WKH(cid:3)SRLQWV(cid:3)ZKLFK(cid:3)FRQFHUQ(cid:3)WKHP(cid:15)(cid:3)LQ
WKH(cid:3) PDQDJHPHQW(cid:3) FRPPLWWHHV(cid:3) UHVSRQVLEOH(cid:3) IRU(cid:3) PRQLWRULQJ(cid:3) WKH(cid:3) SURJUDPPHV(cid:3) WR(cid:3) ZKLFK
WKH\(cid:3) FRQWULEXWH(cid:3) ILQDQFLDOO\(cid:15)(cid:3) XQGHU(cid:3) VSHFLILF(cid:3) DUUDQJHPHQWV(cid:3) DGDSWHG(cid:3) WR(cid:3) WKH(cid:3) FDVH(cid:3) LQ
TXHVWLRQ(cid:5).

The ten CEECs, namely %XOJDULD, the &]HFK(cid:3)5HSXEOLF, (VWRQLD, +XQJDU\, /DWYLD,
/LWKXDQLD,  3RODQG,  5RPDQLD,  the  6ORYDNLD  and  6ORYHQLD,  confirmed  to  the
Commission in writing their willingness  to participate  in  the  )LVFDOLV  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 )LVFDOLV 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

3

•  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.

(cid:22)(cid:17)

&RQFOXVLRQV

The adoption of the Association Council Decisions for the ten CEECs, allowing these
candidate  countries  to  participate  in  the  Community’s  )LVFDOLV  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  %XOJDULD,  the  &]HFK(cid:3) 5HSXEOLF,  (VWRQLD,
+XQJDU\,  /DWYLD,  /LWKXDQLD,  3RODQG,  5RPDQLD,  6ORYDNLD  and  6ORYHQLD  in  the
Community  )LVFDOLV  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

3URSRVDO(cid:3)IRU(cid:3)D

&281&,/(cid:3)’(&,6,21

FRQFHUQLQJ(cid:3)WKH(cid:3)&RPPXQLW\(cid:3)SRVLWLRQ(cid:3)ZLWKLQ(cid:3)WKH(cid:3)$VVRFLDWLRQ(cid:3)&RXQFLO(cid:3)RQ(cid:3)WKH
SDUWLFLSDWLRQ(cid:3)RI(cid:3)/DWYLD(cid:3)LQ(cid:3)WKH(cid:3)&RPPXQLW\(cid:3)SURJUDPPH(cid:3))LVFDOLV(cid:17)

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  Europe  Agreement2  establishing  an  association  between  the  European
Communities and their Member States, of the one part, and Latvia, of the other
part, entered into force on 1 February 1998;

According to Article 109 of the Europe Agreement, Latvia may participate in
framework programmes, specific programmes, projects or other actions of the
Community  in  the  fields  laid  down  in  Annex  XVIII  and,  according  to  this
Annex, the Association Council may agree to add other fields of Community
activities to those listed in the annex;

According  to  the  above-mentioned  Article  109,  the  terms  and  conditions  for
the  participation  of  Latvia  in  these  activities  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 26 of 02.02.98, p. 3
OJ L 126 of 28.04.98, 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  Latvia,  of  the  other  part,  concerning  the
participation  of  Latvia  in  the  Community  Programme  Fiscalis,  is  that  set  out  in  the
attached draft decision of the Association Council.

Done at Brussels,

)RU(cid:3)WKH(cid:3)&RXQFLO
7KH(cid:3)3UHVLGHQW

6

Draft

’HFLVLRQ(cid:3)Q(cid:131)(cid:3)(cid:17)(cid:17)(cid:17)(cid:17)(cid:18)(cid:21)(cid:19)(cid:19)(cid:20)(cid:3)RI(cid:3)WKH(cid:3)$VVRFLDWLRQ(cid:3)&RXQFLO(cid:3)EHWZHHQ(cid:3)WKH(cid:3)(XURSHDQ
&RPPXQLWLHV(cid:3)DQG(cid:3)WKHLU(cid:3)0HPEHU(cid:3)6WDWHV(cid:15)(cid:3)RI(cid:3)WKH(cid:3)RQH(cid:3)SDUW(cid:15)
DQG(cid:3)/DWYLD(cid:15)(cid:3)RI(cid:3)WKH(cid:3)RWKHU(cid:3)SDUW(cid:15)

RI(cid:3)(cid:17)(cid:17)(cid:17)(cid:17)(cid:17)(cid:17)(cid:17)(cid:17)(cid:17)(cid:17)(cid:21)(cid:19)(cid:19)(cid:20)

DGRSWLQJ(cid:3)WKH(cid:3)WHUPV(cid:3)DQG(cid:3)FRQGLWLRQV(cid:3)IRU(cid:3)WKH(cid:3)SDUWLFLSDWLRQ(cid:3)RI(cid:3)/DWYLD
LQ(cid:3)WKH(cid:3)&RPPXQLW\(cid:3)SURJUDPPH(cid:3))LVFDOLV

THE ASSOCIATION COUNCIL,

Having  regard  to  the  Europe  Agreement  between  the  European  Communities  and
their Member States, of the one part, and Latvia, of the other part4, and in particular
Article 109 thereof;

Whereas:

(1)

(2)

(3)

According to Article 109 of the Europe Agreement, Latvia may participate in
framework programmes, specific programmes, projects or other actions of the
Community in the fields laid down in Annex XVIII;

According  to  this  Annex,  the  Association  Council  may  agree  to  add  other
fields of Community activities to those listed in the Annex;

According  to  the  above-mentioned  Article  109,  the  terms  and  conditions  for
the  participation  of  Latvia  in  these  activities  shall  be  decided  by  the
Association Council,

HAS DECIDED AS FOLLOWS:

$UWLFOH(cid:3)(cid:20)

Latvia 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.

$UWLFOH(cid:3)(cid:21)

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

4

OJ L 26 of 02.02.98, p. 3

7

                                                
substantial  change  within  the  Programme,  this  Decision  would  also  be  extended
correspondingly and automatically if no Party denounces it.

$UWLFOH(cid:3)(cid:22)

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

Done at Brussels,

)RU(cid:3)WKH(cid:3)$VVRFLDWLRQ(cid:3)&RXQFLO
7KH(cid:3)3UHVLGHQW

8

$11(;(cid:3),

7(506(cid:3)$1’(cid:3)&21’,7,216(cid:3))25(cid:3)7+((cid:3)3$57,&,3$7,21(cid:3)2)(cid:3)/$79,$
,1(cid:3)7+((cid:3)),6&$/,6(cid:3)352*5$00((cid:17)

As stated in Article 7 of Decision No 888/98/EC5 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”)  -
Latvia’s  participation  in  the  Programme  shall  be  in  accordance  with  the
conditions  laid  down  in  the  Europe  Agreement  and  insofar  as  Community
law on indirect taxation so permits. Accordingly, Latvia’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  framework6  for  co-operation  in  this
domain  is  only  applicable  to  countries  which  are  Member  States  of  the
EU.

The  terms  and  conditions  for  the  submission,  assessment  and  selection  of
applications for seminars and exchanges related to officials of Latvia 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  Latvia  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 114 (2) of the Europe Agreement between the European
Communities  and  their  Member  States,  of  the  one  part,  and  Latvia,  of  the
other part.

Representatives  of  Latvia  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 Latvia for the rest of the points, as  well  as at  the time of
voting.

OJ L 126 of 28.04.98, p. 1
Directive 77/799/EEC and Regulation 218/92/EEC

9

1.

2.

3.

4.

5

6

                                                
5.

6.

7.

8.

The  Member  States  of  the  European  Union  and  Latvia  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 Latvia 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  Latvia  in  the  Programme
will  be  continuously monitored on  a partnership  basis  involving  Latvia  and
the Commission. Latvia 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  Latvia  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.

$11(;(cid:3),,

),1$1&,$/(cid:3)&2175,%87,21(cid:3)2)(cid:3)/$79,$
72(cid:3)7+((cid:3)),6&$/,6(cid:3)352*5$00(

The  financial  contribution  of  Latvia  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  Latvia  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 Latvia plans to participate during that  year. The adjustment will take
place by means of the required call for funds that Latvia will receive from the
Commission, as referred to under item 5 below.

Latvia’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 administrative nature related to the management of the Programme by
the Commission stemming from Latvia’s participation.

Latvia  will  pay  the  total  contribution  of  its  participation  from  its  national
budget, since Phare assistance has not been requested for this purpose.

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

Upon entry into force of this Decision, the Commission will  send to  Latvia
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.

Latvia  will  pay  its  contribution  to  the  annual  cost  under  this  Decision
according to the calls for funds and at the latest three months after the calls
for  funds  are  sent.  Any  delay  in  the  payment  of  the  contribution  shall  give
rise to the payment of interest by Latvia 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.

11

6.

7.

The  daily  subsistence  allowances  are  applicable  to  all  participants  in  the
Programme  and  are  determined  on  a  country  per  country  basis  by  the
Commission.  Latvia  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  Latvia  in
the Programme activities and on the expected participation for the rest of the
year.  The  Latvian  department concerned  will use  these  advances  to  pay  for
the travel tickets and daily subsistence allowances for Latvian participants.

Travel costs and subsistence costs incurred by representatives and experts of
Latvia  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.

12

),1$1&,$/(cid:3)67$7(0(17

(cid:20)(cid:17)

7,7/((cid:3)2)(cid:3)23(5$7,21

Opening of Community Programme Fiscalis to Latvia

(cid:21)(cid:17)

%8’*(7(cid:3)+($’,1*(cid:11)6(cid:12)(cid:3),192/9(’

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

(cid:22)(cid:17)

/(*$/(cid:3)%$6,6

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

The  Europe  Agreement7  with  Latvia,  entered  into  force  on  1  February  1998,
providing for the opening-up of Community programmes (Article 109 in conjunction
with Annex XVIII).

Decision No 888/98/EC8 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.

(cid:23)(cid:17)

(cid:23)(cid:17)(cid:20)

1.

2.

3.

4.

7

8

’(6&5,37,21(cid:3)2)(cid:3)23(5$7,21

*HQHUDO(cid:3)REMHFWLYH

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.

Latvia’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 Latvia to familiarise itself with the procedures and methods used in
this Community programme.

OJ L 26 of 02.02.98, p. 3
OJ L 126 of 28.04.98, 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  Europe  Agreement  with  Latvia  entered  into  force  on  1  February  1998  and
provides  for  Latvia’s  participation  in  Community  Programmes  dealing  with  a  wide
range  of  areas.  Since  Annex  XVIII  also  provides  for  addition  of  other  Community
areas, activities in the field of internal market can be included too.

(cid:23)(cid:17)(cid:21)

3HULRG(cid:3)FRYHUHG(cid:3)DQG(cid:3)DUUDQJHPHQWV(cid:3)IRU(cid:3)UHQHZDO

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

(cid:24)(cid:17)

(cid:24)(cid:17)(cid:20)

(cid:24)(cid:17)(cid:21)

(cid:24)(cid:17)(cid:22)

&/$66,),&$7,21(cid:3)2)(cid:3)(;3(1’,785((cid:3)25(cid:3)5(9(18(

1RQ(cid:16)FRPSXOVRU\(cid:3)H[SHQGLWXUH

’LIIHUHQWLDWHG(cid:3)DSSURSULDWLRQV

7\SH(cid:3)RI(cid:3)UHYHQXH(cid:3)LQYROYHG

Since Article 109 of the Europe Agreement stipulates that Latvia 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.

(cid:25)(cid:17)

7<3((cid:3)2)(cid:3)(;3(1’,785((cid:3)25(cid:3)5(9(18(

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 Latvia'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.

),1$1&,$/(cid:3),03$&7

0HWKRG(cid:3) RI(cid:3) FDOFXODWLQJ(cid:3) WRWDO(cid:3) FRVW(cid:3) RI(cid:3) RSHUDWLRQ(cid:3) IRU(cid:3) HYHU\(cid:3) VLQJOH(cid:3) ILQDQFLDO(cid:3) \HDU
(cid:11)UHODWLRQ(cid:3)EHWZHHQ(cid:3)LQGLYLGXDO(cid:3)DQG(cid:3)WRWDO(cid:3)FRVWV(cid:12)

The calculation is based on the following preconditions:

–  Latvia’s contribution to the financing of the activities referred to in Article 109 of
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.

(cid:26)(cid:17)

(cid:26)(cid:17)(cid:20)

14

–  Based  on  the  Europe  Agreement  with  Latvia,  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  Latvia  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  Latvia's  participation  will  be
EURO 94.984 per year from its national budget.

From the above-mentioned figure, the supplementary cost of an administrative nature
is of EURO 6.214 per year.

(cid:26)(cid:17)(cid:21)

,WHPLVHG(cid:3)EUHDNGRZQ(cid:3)RI(cid:3)FRVWV(cid:3)LQ(cid:3)(852

(;&+$1*(6

),1$1&,$/(cid:3)&2175,%87,21

Number of exchanges*

Length of exchanges (days)

Number of participants per exchange

Subsistence allowances**

Travel expenses***

727$/

3(5(cid:3)<($5

20

14

1

40.880

13.900

(cid:24)(cid:23)(cid:17)(cid:26)(cid:27)(cid:19)

6(0,1$56

),1$1&,$/(cid:3)&2175,%87,21

Number of seminars*

Number of participants in each seminar

Length of seminar (days)

Subsistence allowances**

Travel expenses***

727$/

3(5(cid:3)<($5

15

2

3

13.140

20.850

(cid:22)(cid:22)(cid:17)(cid:28)(cid:28)(cid:19)

15

727$/(cid:3)6(0,1$56(cid:14)(;&+$1*(6

7% administrative costs

727$/(cid:3)3(5(cid:3)<($5

(cid:27)(cid:27)(cid:17)(cid:26)(cid:26)(cid:19)

6.214

(cid:28)(cid:23)(cid:17)(cid:28)(cid:27)(cid:23)

number of exchanges and seminars yearly attended by Member States with the same population as Latvia
…(cid:3)(cid:20)(cid:23)(cid:25)(cid:18)GD\(cid:3)(cid:11)DYHUDJH(cid:3)GDLO\(cid:3)VXEVLVWHQFH(cid:3)DOORZDQFH(cid:12)
…(cid:3)(cid:25)(cid:28)(cid:24)(cid:3)(cid:11)DYHUDJH(cid:3)WUDYHO(cid:3)DOORZDQFH(cid:12)

*
**
***
2SHUDWLRQDO(cid:3) H[SHQGLWXUH(cid:3) IRU(cid:3) VWXGLHV(cid:15)(cid:3) H[SHUWV(cid:3) HWF(cid:17)(cid:3) LQFOXGHG(cid:3) LQ(cid:3) 3DUW(cid:3) %(cid:3) RI(cid:3) WKH
EXGJHW

(cid:26)(cid:17)(cid:22)

None

(cid:26)(cid:17)(cid:23)

6FKHGXOH(cid:3)RI(cid:3)FRPPLWPHQWV(cid:3)DQG(cid:3)SD\PHQW(cid:3)DSSURSULDWLRQV

TOTAL EXPENDITURE:

Item 6091

2001

2002

TOTAL

88.770

88.770

177.540

6.214

6.214

12.428

Seminars  +
exchanges

7%
administrati
ve costs

TOTAL

94.984

94.984

189.968

(cid:27)(cid:17)

)5$8’(cid:3)35(9(17,21(cid:3)0($685(6(cid:30)(cid:3)5(68/76(cid:3)2)(cid:3)0($685(6(cid:3)7$.(1

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 Latvia.

16

(cid:28)(cid:17)

(cid:28)(cid:17)(cid:20)

(/(0(176(cid:3)2)(cid:3)&267(cid:16)())(&7,9(1(66(cid:3)$1$/<6,6

6SHFLILF(cid:3)DQG(cid:3)TXDQWLILHG(cid:3)REMHFWLYHV(cid:30)(cid:3)WDUJHW(cid:3)SRSXODWLRQ

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.

The aim of opening up the Community programme Fiscalis is to bring to Latvia the
same benefits as the Member States of the European  Union  already  enjoy  from the
Programme. The objective for each year is to have Latvian 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  Latvian  officials  in  Community  networks  will  make  a  definite
contribution to preparing Latvia for future membership.

(cid:28)(cid:17)(cid:21)

0RQLWRULQJ(cid:3)DQG(cid:3)HYDOXDWLRQ(cid:3)RI(cid:3)WKH(cid:3)RSHUDWLRQ

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

(cid:20)(cid:19)(cid:17)

$’0,1,675$7,9((cid:3)(;3(1’,785((cid:3)(cid:11)6(&7,21(cid:3),,,(cid:15)(cid:3)3$57(cid:3)$(cid:3)2)(cid:3)7+((cid:3)%8’*(7(cid:12)

Actual  mobilisation  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 authorised by the budgetary authority.

17

(cid:20)(cid:19)(cid:17)(cid:20)

(IIHFW(cid:3)RQ(cid:3)WKH(cid:3)QXPEHU(cid:3)RI(cid:3)SRVWV

7\SH(cid:3)RI
SRVW

6WDII(cid:3)UHTXLUHG(cid:3)WR
PDQDJH(cid:3)WKH
RSHUDWLRQ

3HUPD
QHQW
SRVWV

7HPSRUD
U\(cid:3)SRVWV

6RXUFH

’XUDWLRQ

3HU(cid:3)\HDU

$GGLWLRQDO
UHVRXUFHV

([LVWLQJ
UHVRXUFHV(cid:3)RI
WKH(cid:3)’*(cid:3)RU
GHSDUWPHQW
FRQFHUQHG

0,02

0,02

0,02

0,02

0,02

0,02

2IILFLDOV(cid:3)RU
WHPSRUDU\
VWDII

$

%

&

2WKHU
UHVRXUFHV
(cid:11)7HFKQLFDO
DVVLVWDQFH(cid:15)
LWHP(cid:3)$(cid:16)
(cid:26)(cid:19)(cid:19)(cid:21)(cid:12)

727$/

(cid:19)(cid:15)(cid:19)(cid:25)

(cid:19)(cid:15)(cid:19)(cid:25)

(cid:20)(cid:19)(cid:17)(cid:21)

2YHUDOO(cid:3)ILQDQFLDO(cid:3)LPSDFW(cid:3)RI(cid:3)DGGLWLRQDO(cid:3)KXPDQ(cid:3)UHVRXUFHV

(in EURO)

7RWDO

(852

0HWKRG(cid:3) RI(cid:3) FDOFXODWLRQ(cid:3) (cid:11)WRWDO(cid:3) FRVW(cid:3) RI
WKH(cid:3)DFWLRQ(cid:3)SHU(cid:3)\HDU(cid:12)

6.480 0,06 man/year x 108.000 EURO

2IILFLDOV

7HPSRUDU\(cid:3)VWDII

2WKHU(cid:3)
DVVLVWDQFH(cid:15)(cid:3)LWHP(cid:3)$(cid:16)(cid:26)(cid:19)(cid:19)(cid:21)(cid:12)

UHVRXUFHV(cid:3)

(cid:11)7HFKQLFDO

727$/

(cid:25)(cid:17)(cid:23)(cid:27)(cid:19)

*

By using existing resources required to manage the operation (calculation based on A-1, A-2, A-4, A-5,
A-7).

18

(cid:20)(cid:19)(cid:17)(cid:22)

,QFUHDVH(cid:3)LQ(cid:3)RWKHU(cid:3)DGPLQLVWUDWLYH(cid:3)H[SHQGLWXUH(cid:3)DV(cid:3)D(cid:3)UHVXOW(cid:3)RI(cid:3)WKH(cid:3)RSHUDWLRQ

2001

2.444

2002

2.444

TOTAL

4.888

A.701

(missions)*

A.7031

3.770

3.770

7.540

(compulsory

committees)
**

TOTAL

6.214

6.214

12.428

*
**

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

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

19