WRITTEN QUESTION E-0740/04 by José García-Margallo y Marfil (PPE-DE) to the Commission. Agency to combat tax fraud.
Date: 2004-03-11
Institutions: European Parliament, Provisional data
Subjects: EU office or agency, VAT, administrative cooperation, fiscal policy, fraud against the EU, tax evasion, tax system

8.4.2004

EN

Official Journal of the European Union

C 88 E/525

(2004/C 88 E/0538)

WRITTEN QUESTION E-0740/04

by José García-Margallo y Marfil (PPE-DE) to the Commission

(11 March 2004)

Subject: Agency to combat tax fraud

Tax fraud within the European Union deprives the Member States of significant amounts of revenue.
Merely in the case of VAT, tax fraud is estimated to represent 10 % of revenue, i.e. EUR 70 000 million.

Has the Commission considered proposing the setting up of an Agency to combat tax fraud, along the
lines of the many independent agencies which already exist within the EU?

Answer given by Mr Bolkestein on behalf of the Commission

(23 April 2004)

VAT fraud does indeed pose a significant problem in the Community as it affects Member States’ VAT
revenue, distorts competition and jeopardizes legitimate trade. Although VAT collection and control is
primarily an issue for Member States, the Commission’s role is to ensure an efficient legal framework
making it possible for Member States’ administrations to cooperate across borders and for Member States’
transnational VAT fraud enforcement to be effective. The Commission therefore made a proposal for
reinforced mutual assistance and exchange of information, specifically in respect of fraud cases, which was
adopted by the Council on 8 October 2003, and which entered into force on 1 January 2004. This
Regulation (1) has considerably improved the legal framework for administrative cooperation between
Member States and is therefore a major tool for Member States in their fight against VAT fraud. In this
respect, the Commission will shortly present a report to the Council and the Parliament on the use of
administrative cooperation arrangements in the fight against VAT fraud. Furthermore, while the new
regulation on administrative cooperation was a prerequisite in order
to improve Member States’
cooperation in the fight against VAT fraud,
it has also been necessary to accompany this legislative
initiative by concrete measures enhancing cooperation between the different tax administrations and their
officials. As the Honourable Member well knows, the Fiscalis 2003-2007 programme (2) was therefore
adopted by the Council and the Parliament in order to enhance day-to-day cooperation between Member
States’ officials.

As a further important step, the Commission is in the course of preparing a proposal for a new regulation
on mutual administrative assistance for the protection of the Community’s financial interests against fraud
and other illegal activities. This proposal will cover, inter alia, transnational VAT fraud and related money
laundering activity.
It is intended to address information exchanges between Member States and the
Commission and is aimed at providing the latter with an enhanced platform for both transnational VAT
fraud enforcement coordination and related risk analysis/intelligence activity.

The setting-up of a Community Agency to combat tax fraud as the Honourable Member suggests would be
difficult in that several Member States would be unwilling to surrender their sovereignty in the field of tax
collection and control. Moreover, the Commission does not consider that such a step is justifiable at the
current time. The Commission will continue where necessary and appropriate to provide both a suitably
robust legislative environment and enhanced administrative cooperation machinery to make it possible for
Member States to cooperate efficiently and effectively with each other and with the Commission in order
to combat transnational VAT fraud.

Finally, for the information of the Honourable Member, the Commission’s Anti-Fraud Office (OLAF)
already has a VAT team which assists the Member States with the coordination of operational cross-border

C 88 E/526

Official Journal of the European Union

EN

8.4.2004

VAT fraud cases in the framework of article 280 of the EU Treaty. OLAF’s Intelligence Directorate and
Magistrates’ Unit also provide their respective support to Member States during the investigation and
judicial phases of operational casework.

(1) Council Regulation (EC) No 1798/2003 of 7 October 2003 on administrative cooperation in the field of value

added tax and repealing Regulation (EEC) No 218/92, OJ L 264, 15.10.2003.

(2) Decision No 2235/2002/EC of the Parliament and of the Council of 3 December 2002 adopting a Community
programme to improve the operation of taxation systems in the internal market (Fiscalis programme 2003-2007)
OJ L 341, 17.12.2002.

(2004/C 88 E/0539)

WRITTEN QUESTION E-0742/04

by José García-Margallo y Marfil (PPE-DE) to the Commission

(11 March 2004)

Subject: Regional impact of the Growth Initiative

The purpose of the European Growth Initiative adopted by the European Council in December 2003 is to
align the EU economy with the objectives laid down in the Lisbon Strategy, i.e. to turn it by 2010 into the
world’s most competitive and dynamic knowledge-based economy.

How can regional governments contribute to the structural reforms designed to bring about greater
competitiveness, promote full employment and enable environmental challenges to be met? Has this
regional dimension been taken into account in the planning of the Growth Initiative?

Has the Commission carried out a region-by-region assessment of the impact which the Growth Initiative
is likely to have? If it has, what is the situation regarding the Valencia region in Spain?

Answer given by Mr Prodi on behalf of the Commission

(23 April 2004)

The aim of the European Initiative for Growth is to contribute to the achievement of the objectives laid
down in the Lisbon Strategy, namely by stimulating investment both in Trans-European transport and
energy networks and in a knowledge-based society. To this end,
the projects, programmes and
technologies listed in the Communication from the Commission ‘A European initiative for growth (cid:1)
Investing in Networks and Knowledge for Growth and Jobs’ (1) have been identified.

The Commission has not carried out a region-by-region assessment of the impact which the Growth
Initiative is likely to have. With respect to the projects and programmes in the context of the Trans-
European transport and energy networks, the aim is to improve trans-border connections and capacities as
well as to cope with actual or potential bottlenecks and connecting all regions in Europe to these
networks.

The Broad Economic Policy Guidelines, Internal Market Strategy and the Employment Guidelines and
Recommendations point to several areas where further structural reforms would deliver more and better
jobs, increased productivity and thus higher growth. Regional governments can, in particular, contribute
by redirecting their public expenditures and investments towards growth and employment enhancing
projects, by ensuring efficient implementation of their investment programmes and by seeking a higher
leverage of public support on private investment.