Proposal for a Decision of the European Parliament and of the Council adopting a Community programme to improve the operation of taxation systems in the internal market (Fiscalis 2007 programme)
Date: 2002-01-17
Institutions: European Commission
Subjects: EU programme, action programme, budget, fiscal policy, single market, tax law

30.4.2002

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Official Journal of the European Communities

C 103 E/361

Proposal for a Decision of the European Parliament and of the Council adopting a Community
programme to improve the operation of taxation systems in the internal market (Fiscalis 2007
programme)

(2002/C 103 E/27)

COM(2002) 10 final — 2002/0015(COD)

(Submitted by the Commission on 17 January 2002)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

activities. Those activities should therefore be continued,
but extended to cover taxes on income, on capital and on
insurance.

Having regard to the Treaty establishing the European
Community, and in particular Article 95 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the Economic and Social
Committee,

Acting in accordance with the procedure laid down in Article
251 of the Treaty,

Whereas:

in particular

taxation systems,

(1) In the internal market, the effective, uniform and efficient
application of Community law is essential for the func-
the
tioning of
protection of national and Community financial interests
through combating tax evasion and tax avoidance,
avoiding
reducing
burdens on administrations and taxpayers. Achieving
this effective, uniform and efficient application is a
matter for the Community acting in partnership with
the Member States.

competition

distortions

and

for

of

(5) The establishment and functioning of a communication
and information exchange infrastructure has a vital part
to play in reinforcing the taxation systems within the
Community.
Information
Exchange System (VIES), referred to in Council Regulation
(EEC) No 218/92 of 27 January 1992 on administrative
co-operation in the field of indirect taxation (VAT) (2), has
shown the value of information technology in protecting
revenue whilst minimising administrative burdens.

particular

VAT

the

In

(6) In order to ensure uniform application of Community law
it is essential that officials responsible for taxation have a
high common standard of understanding of Community
law and its implementation in the current and future
Member States. Such a standard can be achieved only
through
training
provided by the current and future Member States.
Supplementary Community action is useful to co-ordinate
and foster such training.

continuous

effective

initial

and

the

that

(7) The experience gained from the Fiscalis programme has
indicated
and
coordinated
implementation of a common training programme could
achieve the objectives of this programme, in particular in
achieving a higher common standard of understanding of
Community law.

development

(2) Decision No 888/98/EC of the European Parliament and
the Council of 30 March 1998 establishing a programme
of Community action to ameliorate the indirect taxation
systems of the internal market (Fiscalis programme) (1) has
those
significantly contributed to the achievement of
overall objectives for the period 1998 to 2002.
is
It
therefore considered desirable to continue the Fiscalis
programme
five-year period. Decision
another
No 888/98/EC should accordingly be repealed.

for

(3) Efficient, effective and extensive co-operation among the
current and future Member States and between them and
the Commission is important for the functioning of the
taxation systems of the internal market.

(4) The experience gained by the Community from the
Fiscalis programme has shown that exchanges, seminars
the
and multilateral control exercises could achieve
objectives of the programme by bringing officials from
different national administrations together in professional

(8) A sufficient standard of linguistic competence on the part
of taxation officials has proved to be essential to facilitate
co-operation. Participating countries
should therefore
provide the necessary language training for their officials.

and

stimulus.

necessary

rests with

participating

infrastructure

(9) Although the primary responsibility for achieving these
objectives
countries,
the
supplementary Community action is needed for the coor-
dination of such activities as well as for the provision of
an
In
the
accordance with the principle of subsidiarity as set out
in Article 5 of the Treaty, the objectives of the measures
laid down in this Decision cannot all be sufficiently
achieved by the participating countries and can therefore,
by reason of the scale and the effect of the action, be
better achieved at Community level. In accordance with
the principle of proportionality as set out in that Article
this Decision confines itself to the minimum required in
order to achieve those objectives and does not go beyond
what is necessary for that purpose.

(1) OJ L 126, 28.4.1998, p. 1.

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

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a

financial

(10) This Decision lays down, for the entire duration of the
framework constituting the
programme,
principal point of
reference, within the meaning of
point 33 of the Interinstitutional Agreement of 6 May
1999 between the European Parliament, the Council and
the
and
on
improvement of the budgetary procedure (1).

Commission

budgetary

discipline

(11) Since the measures necessary for the implementation of
this Decision are management measures within the
meaning of Article 2 of Council Decision 1999/468/EC
of 28 June 1999 laying down the procedures for the
exercise of
conferred on the
Commission (2), they should be adopted by use of the
management procedure provided for in Article 4 of that
Decision,

implementing powers

HAVE ADOPTED THIS DECISION:

CHAPTER I

SCOPE AND OBJECTIVES

Article 1

Fiscalis 2007 programme

1.
A multiannual Community action programme (Fiscalis
is hereby
2007) hereinafter referred to as ‘the programme’,
established for the period 1 January 2003 to 31 December
2007 to improve the operation of the taxation systems of
the internal market.

2.

The activities of the programme shall consist in:

(a) communication and information-exchange systems;

(b) multilateral controls involving Member States and those
applicant countries which have bilateral or multilateral
agreements either with one another or with Member
States of the European Union permitting such activity;

(c) seminars;

(d) exchanges;

(e) training activities;

(f) any other activities which shall be decided on a case-
by-case basis in accordance with the procedure referred
to in Article 13(2).

Article 2

Definitions

For the purpose of this Decision:

(a)

‘taxation’ means the following taxes applied in the partici-
pating countries:

(i) value added tax;

(ii) excise duties on alcohol and tobacco products and

mineral oils;

(iii) taxes on income and on capital as defined in Article

1(2) of Council Directive 77/799/EEC (3);

(iv) taxes on insurance as defined in Article 3 of Council

Directive 76/308/EEC (4);

(b) ‘administration’ means the public authorities in the partici-
pating countries responsible for administering taxation;

(c)

‘participating countries’ means the Member States and the
countries referred to in Article 4;

(d) ‘official’ means an official of the administration;

(e)

(f)

‘exchange’ means a working visit organised under the
from an administration in
programme of an official
another participating country;

‘multilateral control’ means a co-ordinated control of the
tax liability of one or more related taxable persons, which
is organised by several participating countries, and having a
common or complementary interest.

Article 3

Objectives

The overall objective of

1.
the programme shall be to
improve the proper functioning of the taxation systems in
the internal market by increasing co-operation between partici-
pating countries,
their administrations and officials, and to
identify and remedy areas, such as legislation and adminis-
trative practices which make this co-operation more difficult.

2.

The objectives of the programme shall be:

(a) For value added tax:

to support the European Union VAT strategy as outlined in
the Communication from the Commission to the Council
and the European Parliament, entitled ‘A Strategy to
the VAT system within the
improve the operation of
the internal market (5)’, or any future such
context of
strategy adopted by the Commission;

(b) For excise duties:

to improve the co-operation between Member States,
ensuring a more uniform application of existing rules and
developing a common approach on legal and adminis-
trative aspects in the field of excise duties;

(1) OJ C 172, 18.6.1999, p. 1.
(2) OJ L 184, 17.7.1999, p. 23.

(3) OJ L 336, 27.12.1977.
(4) OJ L 73, 19.3.1976, p. 18.
(5) COM(2000) 348 final.

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(c) For direct taxation:

taxation and providing

to raise awareness of Community policies in the field of
direct
for pooling
experiences, information exchange and other administrative
co-operation;

support

(d) For the applicant countries:

to meet the special needs of applicant countries taking the
necessary measures for the accession in the field of tax
legislation and administrative capacity.

3.
The operational objectives of the programme shall be set
out annually in accordance with the procedure referred to in
Article 13(2).

Article 4

Participation of applicant countries

The programme shall be open to the participation of:

(a) the applicant countries of central and eastern Europe,

in
accordance with the conditions laid down in the Europe
Agreements, in the additional protocols thereto and in the
decisions of the respective Association Councils;

(b) Cyprus, Malta and Turkey, on the basis of bilateral
agreements on this matter concluded with these countries.

CHAPTER II

PROGRAMME ACTIVITIES

Article 5

Communication and information-exchange systems

1.
The Commission and the participating countries shall
ensure that the following communications and information-
exchange systems are operational in so far as their operation
is necessary under Community legislation:

(a) the Common Communications Network/Common Systems
Interface (CCN/CSI) to the extent necessary to support the
functioning of
referred to in this
paragraph;

the other

systems

New communication and information-exchange systems
2.
may be established in accordance with the procedure referred
to in Article 13(2).

3.
The Community components of the communication and
information-exchange systems shall be the hardware, software
and network connections, which shall be common to all
participating countries so as to ensure the inter-connection
and interoperability of the systems, whether they be installed
at
a designated
sub-contractor) or at the premises of participating countries
(or
a designated sub-contractor). The Commission shall
conclude the necessary contracts to assure the operational
nature of these components in the name of the Community.

the Commission (or

the premises of

these

systems,

forming part of

4.
The non-Community components of the communication
and information-exchange systems shall comprise the national
databases
the network
connections between the Community and non-Community
components and such software and hardware as each partici-
pating country shall deem appropriate for the full operation of
those systems throughout its administration. The participating
countries shall ensure that the non-Community components
are kept operational and shall assure the interoperability of
these components with the Community components.

5.
The Commission shall co-ordinate, in co-operation with
the participating countries, those aspects of the establishment
the Community and non-Community
and functioning of
the systems and infrastructure referred to in
elements of
paragraph 1.

Article 6

Multilateral controls

Participating countries shall choose, from among the multi-
lateral controls organised by them, those whose costs are to
be borne by the Community in accordance with Article 11.
The participating countries shall send annual
reports and
evaluations concerning such controls to the Commission.

Article 7

Seminars

The Commission and the participating countries shall together
organise seminars to be attended by officials from the adminis-
trations, Commission representatives and, if appropriate, other
experts.

(b) the VAT Information Exchange System (VIES) and its

messaging systems;

Article 8

Exchanges of officials

(c) the excise movement Verification System;

(d) the early warning system for excise;

(e) the excise duty tables system.

The Commission and participating

shall
1.
organise exchanges of officials. The exchanges may not
exceed one month. Each exchange shall be targeted on a
particular professional
sufficiently
prepared and subsequently evaluated by the officials and
administrations concerned.

and shall be

countries

activity

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The participating countries shall take the necessary steps
2.
to enable exchange officials to play an effective part in the host
administration's activities. To this end such officials shall be
authorised to carry out
relating to the duties
the tasks
entrusted to them by the host administration in accordance
with its legal system.

3.
During the exchange, the civil liability of the exchange
official in the performance of his duties shall be treated in the
same way as that of officials of
the host administration.
Exchange officials
shall be bound by the same rules of
professional secrecy as national officials.

2.

The Community shall bear expenditure as follows:

(a) the cost of the development, purchase, installation, main-
tenance and the cost of the day-to-day operation of the
Community components of
communication and
information-exchange
systems described in Article 5
unless the Commission, in accordance with the procedure
referred to in Article 13(2), decides otherwise;

the

(b) the cost of the travel and subsistence expenses relating to

multilateral controls and exchanges of officials;

Article 9

Training activities

(c)

the cost of the travel and subsistence expenses and other
costs relating to seminars and training activities;

In order to encourage structured co-operation between
1.
national training bodies and officials responsible for training
in taxation in administrations, participating countries shall, in
co-operation with the Commission:

(d) such proportion of the cost of other activities as shall be
decided on a case-by-case basis in accordance with the
procedure referred to in Article 13(2).

(a) develop

existing

training

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

programmes

(b) where appropriate, open the training courses in taxation
provided by each participating country for its own officials
to officials from all participating countries;

(c) develop the necessary common tools for taxation training.

2.
Participating countries shall also 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.

CHAPTER III

FINANCIAL PROVISIONS

Article 10

Financial framework

framework for

The financial
the
programme for the period 1 January 2003 to 31 December
2007 is hereby set at EUR 56 million. The annual appro-
shall be authorised by the budgetary authority
priations
within the limits of the financial perspective.

the implementation of

Article 11

Expenditure

1.
The expenditure necessary for the implementation of the
programme shall be shared by the Community and the partici-
pating countries in accordance with paragraphs 2, 3 and 4:

3.
The Commission shall, in accordance with the Financial
Regulation applicable to the general budget of the European
Communities, determine the rules relating to the payment of
expenses and shall communicate them to the participating
countries.

The participating countries shall bear expenditure as

4.
follows:

(a) 100 % of the development, purchase,

installation, main-
tenance and the cost of the day-to-day operation of the
non-Community components of the communication and
information-exchange
systems described in Article 5
unless the Commission, in accordance with the procedure
referred to in Article 13(2), decides otherwise;

(b) the difference, if any, between the expenditure paid by the
Community in accordance with paragraph 1, and the actual
cost of the activity;

(c)

the costs relating to the initial and continuing training,
including linguistic training, of their officials.

Article 12

Financial control

Financing decisions and any agreements or contracts resulting
from this Decision shall be subject to financial control, and if
necessary, on-the-spot audits by the Commission, including the
European Anti-fraud Office (OLAF), and by the European Court
of Auditors. Any grants made pursuant to this Decision shall
be subject to agreement in writing, in advance, by the bene-
ficiaries. This agreement shall contain the acceptance of the
beneficiaries to an audit by the European Court of Auditors
into the use made of the financing granted.

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CHAPTER IV

OTHER PROVISIONS

Article 13

Committee

1.
The Commission shall be assisted by a committee, called
the ‘Fiscalis Committee’, composed of representatives of the
the
Member States and chaired by a representative of
Commission.

reference

2. Where
the
management procedure laid down in Article 4 of Decision
1999/468/EC shall apply, in compliance with Articles 7 and
8 thereof.

to this paragraph,

is made

The period provided for in Article 4(3) of Decision

3.
1999/468/EC shall be three months.

Article 14

Follow-up

The programme shall be subject

1.
to continuous joint
monitoring by the participating countries and the Commission.

2.
Each year the Commission shall submit to the Committee
referred to in Article 13(1) a follow-up report setting out the
progress of all
in terms of
implementation and results.

the programme's activities

The administrations of the participating countries shall
information necessary for

3.
send the Commission all
follow-up reports to be drawn up as efficiently as possible.

the

Article 15

Interim and final evaluation

1. Mid-term and final evaluations of the programme shall be
carried out under the Commission's responsibility using the
reports drawn up by
countries. The
programme's effectiveness and efficiency shall be evaluated in
terms of the objectives set out in Article 3. Evaluations shall be
conducted using the reports referred to in paragraph 2.

the participating

— The mid-term evaluation shall review the initial results and
impact of the programme's activities. It shall also assess the
use of
follow-up and
implementation.

funding and the progress of

— The final evaluation shall assess the effectiveness and effi-

ciency of the programme's activities.

2.

The participating countries shall send the Commission:

(a) by 31 December 2004 at the latest a mid-term evaluation
report on the programme's effectiveness and efficiency;

(b) by 31 December 2007 at the latest a final evaluation report

on the programme's effectiveness and efficiency.

The Commission shall

3.
Parliament and the Council:

present

to

the

European

(a) by 30 June 2005 at the latest a mid-term evaluation report
on the programme's effectiveness and efficiency and a
communication on the desirability of continuing the
programme, accompanied, where relevant, by a suitable
proposal;

(b) by 30 June 2008 at the latest an evaluation report on the

programme's effectiveness and efficiency.

These reports shall also be sent to the Economic and Social
Committee and the Committee of
their
information.

the Regions

for

4.
The evaluation reports referred to in paragraph 3 shall be
based on the reports referred to in paragraph 2, the follow-up
reports referred to in Article 14(2) and any other relevant
information.

Article 16

Repeal

Decision No 888/98/EC is hereby repealed.

Article 17

Entry into force

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

The Decision shall apply from 1 January 2003.

Article 18

Addressees

This Decision is addressed to the Member States.