Proposal for a COUNCIL REGULATION on the methods and procedure for making available the own resource based on the financial transaction tax
Date: 2011-11-09
Institutions: European Commission
Subjects: financial transaction, own resources, tax, tax collection

EUROPEAN COMMISSION 

Brussels, 9.11.2011 
COM(2011) 738 final 

2011/0334 (CNS) 

Proposal for a 

COUNCIL REGULATION 

on the methods and procedure for making available the own resource based on the 
financial transaction tax 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The purpose of this proposal is to lay down, in accordance with Article 322(2) of the Treaty 
on  the  Functioning  of  the  European  Union  (hereinafter  "TFEU"),  provisions  necessary  to 
determine  the  methods  and  procedure  whereby  Member  States  make  available  to  the 
Commission  the  own  resource  based  on  the  financial  transaction  tax  (hereinafter  "FTT"), 
referred to in Article 2(1)(b) of Council Decision […/…] on the system of own resources of 
the European Union (hereinafter "ORD 2014")1. 

These  practical  arrangements  implement  the  system  set  out  in  ORD  2014  in  respect  of  the 
establishment  of  the  FTT-based  own  resource,  the  accounting  arrangements,  the  timing  for 
making  it  available,  the  payment  of  interest  in  instances  of  delay,  the  conservation  of 
supporting  documents  and  administrative  cooperation.  In  addition,  these  arrangements 
complement  implementing  measures  laid  down  under  Article  311(4)  TFEU  concerning 
control and supervision and supplementary reporting requirements2. 

The proposal of the Commission draws upon past experience in administering own resources. 
It  combines  the  most  appropriate  aspects  from  two  of  the  existing  systems:  those  for 
traditional  own  resources  and  the  current  VAT-based  own  resource.  To  avoid  undue 
constraints on the legal arrangements that Member States need to put in place to implement a 
financial transaction tax it is proposed that an entitlement to the own resource will not arise 
until a Member State has actually collected the revenue. However, to enable the own resource 
to  be  collected  more  rapidly  and  more  efficiently  it  is  proposed  that  the  revenue  be  made 
available  via  a  system  of  monthly  statements  giving  a  clear  date  by  which  amounts  of  own 
resources must be made available.  

The content of the proposal is summarised below. Throughout the following section reference 
is  made  to  Council  Regulation  (EC,  EURATOM)  1150/20003.  The  Commission  adopted  a 
proposal for a recast of this regulation on 29 June 20114.  

2. 

LEGAL ELEMENTS OF THE PROPOSAL 

2.1 Introduction 

This  proposal  forms  part  of  a  package,  which  also  includes  a  proposal  for  a  Council 
Regulation concerning the arrangements for making available to the EU budget the new VAT 

1 
2 

3 
4 

OJ L […], […], p. […]. 
Amended proposal for a Council Regulation laying down implementing measures for the system of own 
resources of the European Union, COM(2011)740 of 9.11.2011. 
OJ L 130, 31.5.2000, p.1. 
COM(2011)512 of 29 June 2011. 

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own  resource5  as  well  as  an  amended  recast  of  the  existing  Council  Regulation  on  making 
available the traditional own resources and the GNI-based own resource6.  

The  Commission  will  examine  the  possibility  to  consolidate  the  provisions  for  determining 
and making available all the own resources of the Union in one single Regulation following 
an overall agreement on the own resources package. 

2.2 Chapter I 'General Provisions' 

– 

– 

Article 1  of  the  proposal,  'Subject  matter':  This  Article  specifies  that  the  proposed 
arrangements  apply  to  the  new  own  resource  set  out  in  Article 2(1)(b)  of  Decision 
[…/...].  

Article 2 of the proposal, 'Establishment of the FTT-based own resource': Defines the 
point in time when the Union's entitlement to the FTT-based own resource arises. 

2.3 Chapter II 'Making the FTT own resource available' 

– 

– 

– 

– 

5 

6 

Article 3  of  the  proposal,  'Accounting  arrangements':  The  arrangements  already  in 
use  for  the  existing  own  resources  under  Article  9  of  Regulation  1150/2000  are 
proposed for the FTT-based own resource too. 

Article 4  of  the  proposal,  'Entry  in  the  accounts,  reporting  and  timing  of  making 
available': Similar provisions to those in use under Article 6 of Regulation 1150/2000 
are proposed  for the FTT-based own resource namely  the earliest possible monthly 
cut-off  point  and  the  use  of  a  monthly  statement.  The  Commission  will  work  out 
detailed  rules  for  the  monthly  statements  via  implementing  acts  adopted  in 
accordance  with  the  advisory  procedure.  It  is  proposed  that  the  FTT-based  own 
resource and the monthly statements connected thereto be made available by the first 
working  day  of  the  second  month  following  the  month  in  which  the  Union's 
entitlements  were  established  by  the  Member  States.  Given  that  amounts  made 
available  may  fluctuate  significantly  from  month  to  month,  it  is  also  proposed  that 
Member  States  send  estimates  of  the  sums  that  are  going  to  be  entered  in  the 
accounts. 

Article 5  of  the  proposal,  'Interest  on  amounts  made  available  belatedly':  It  is 
proposed that any delays in making the FTT-based own resource available be subject 
to the same late interest regime as currently applies under Article 11 of Regulation 
1150/2000. 

Article 6 of the proposal, 'Accounting corrections' proposes that the same time limit 
currently  used  for  other  own  resources  under  Article  7  of  Regulation  1150/2000 
applies to FTT too. 

Proposal for a Council Regulation on the methods and procedure for making available the own resource 
based on the value added tax, COM(2011)737 of 9.11.2011. 
Amended  proposal  for  a  Council  Regulation  on  the  methods  and  procedure  for  making  available  the 
traditional  and  GNI-based  own  resources  and  on  the  measures  to  meet  cash  requirements, 
COM(2011)742 of 9.11.2011. 

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2.4 Chapter III 'Administrative arrangements' 

– 

Articles 7  and  8  of  the  proposal,  'Conservation  of  supporting  documents'  and 
'Administrative cooperation' propose that the obligations currently laid upon Member 
States  concerning  the  other  own  resources  under  Articles  3  and  4  respectively  of 
Regulation 1150/2000 be similarly applied for the FTT-based own resource.  

2.5 Chapter IV 'Final Provisions' 

– 

Article  9  of  the  proposal  'Committee  Procedure':  Provides  for  FTT-based  own 
resource  to  be  dealt  with  by  the  Advisory  Committee  on  Own  Resources  (ACOR) 
currently operating under Article 20 of Regulation 1150/2000 and in accordance with 
Regulation (EU) No 182/2011.  

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2011/0334 (CNS) 

Proposal for a 

COUNCIL REGULATION 

on the methods and procedure for making available the own resource based on the 
financial transaction tax 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article  322(2)  thereof,  in  conjunction  with  the  Treaty  establishing  the  European  Atomic 
Energy Community, and in particular Article 106a thereof, 

Having regard to the proposal from the European Commission, 

Having regard to the opinion of the European Parliament7,  

Having regard to the opinion of the European Court of Auditors8 

Whereas: 

(1) 

(2) 

(3) 

The own resource of the Union based on the financial transaction tax (FTT) referred to 
in Article 2(1)(b) of  Council  Decision […/…]on the system  of own resources of  the 
European Union9 (hereinafter "FTT-based own resource") should be made available to 
the  Union  in  the  best  possible  conditions and  accordingly  rules  should  be  laid  down 
for the Member States on making that own resource available to the Commission.  

The establishment of the FTT-based own resource should be linked to the receipt by a 
Member  State  of  payment  of  FTT  in  the  interests  of  administrative  and  accounting 
simplicity, and certainty. Moreover, this approach would offer a clear and direct link 
between the revenue from the FTT and the Union's own resources. 

The FTT-based own resource should be made available in the form of an entry of the 
amounts  due  in  an  account  opened  for  this  purpose  under  Council  Regulation  (EC, 
Euratom) No 1150/2000 of 22 May 2000 implementing Decision 94/728/EC, Euratom 
on  the  system  of  the  Communities'  own  resources10.  Member  States  should  pay 
interest in the event of delays in entering the FTT-based own resource in the accounts. 
In accordance with the principle of sound financial management, care should be taken 
that  the  cost  of  recovery  of  interest  due  does  not  exceed  the  amount  of  the  interest 
payable. 

7 
8 
9 
10 

OJ C , , p. . 
OJ C […], […], p. […].  
OJ L […], […], p. […]. 
OJ L 130, 31.5.2000, p.1. 

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(4)  Member States should keep at the disposal of the Commission and, where necessary, 
forward to it the documents and information needed to allow it to exercise the power 
conferred  upon  it  as  regards  the  own  resources  of  the  Union.  In  particular,  Member 
States  should  transmit  to  the  Commission  monthly  statements  of  the  established 
entitlements. 

(5) 

(6) 

(7) 

The national authorities responsible for the collection of own resources should be able 
to  provide  the  Commission  at  all  times  with  the  documents  substantiating  the  own 
resources collected.  

It  is  necessary  to  ensure  close  collaboration  between  Member  States  and  the 
Commission  in  order  to  facilitate  proper  application  of  the  financial  rules  relating  to 
own resources. 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  this  Regulation, 
implementing powers should be conferred on the Commission. Those powers should 
be  exercised  in  accordance  with  Regulation  (EU)  No  182/2011  of  the  European 
Parliament and of the Council of 16 February 2011 laying down the rules and general 
principles concerning mechanisms for control by Member States of the Commission’s 
exercise of implementing powers11. 

(8) 

The advisory procedure should be used for the adoption of implementing acts in order 
to  establish  detailed  rules  for  the  monthly  statements  of  the  accounts  for  the  FTT-
based own resource, given the technical nature of those statements. 

(9) 

This Regulation should apply on the same day as Decision […/…], 

HAS ADOPTED THIS REGULATION: 

CHAPTER I 

GENERAL PROVISIONS 

Article 1 

Subject matter 

This Regulation lays down rules on making available to the Commission the own resource of 
the Union based on a share of the financial transaction tax (FTT) referred to in Article 2(1)(b) 
of Decision […/…] (hereinafter "FTT-based own resource"). 

11 

OJ L 55, 28.2.2011, p. 13. 

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Article 2 

Establishment of the FTT-based own resource 

1. For the purpose of applying this Regulation, the Union's entitlement to the FTT-based own 
resource  referred  to  in  Article  2(1)(b)  of  Decision  […/…]  shall  be  established  as  soon  as  a 
Member State entitled to levy FTT on a given transaction has received any payment of the tax 
due on that transaction in accordance with Council Directive […/…]12 including receipts by 
way of advance payment or payment of balance. 

2. Where a chargeable transaction within the meaning of Directive […/…] has taken place but 
only  part  of  the  tax  due  has  been  paid,  the  Member  State  concerned  shall  ensure  that  the 
amount  due  as  own  resource  is  made  available  to  the  Commission  before  any  revenue 
deriving from FTT accrues to the Member State.  

CHAPTER II 

MAKING THE FTT-BASED OWN RESOURCE AVAILABLE 

Article 3 

Accounting arrangements  

1.  Each  Member  State  shall  credit  the  FTT-based  own  resource  to  the  account  opened 
pursuant to Article 9 of Regulation (EC, Euratom) 1150/2000 in the name of the Commission 
with its Treasury or the body it has appointed. 

2.  Member  States  or  the  bodies  appointed  by  them  shall  transmit  the  following  to  the 
Commission by electronic means: 

(a)  at  the  latest  on  the  second  working  day  following  the  crediting  to  the  account  of  the 
Commission, a statement of account showing the entry of the FTT-based own resource; 

(b) where the statement referred to in point (a) is not available on the working day on which 
the own resources are credited to the account of the Commission, a credit advice showing the 
entry of the FTT-based own resource. 

3. The amounts credited shall be accounted for in euro in accordance with Council Regulation 
(EC, Euratom) No 1605/200213. 

4. A summary account for the FTT-based own resource shall be kept by the Treasury of each 
Member State or by the body appointed by each Member State.  

12 
13 

OJ L […], […], p. […]. 
OJ L 248, 16.9.2002, p. 1. 

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5.  For  FTT-based  own-resource  accounting  purposes,  the  month  shall  end  no  earlier  than  1 
p.m. on the last working day of the month during which establishment of that own resource 
took place.  

Article 4 

Entry in the accounts, reporting and timing for making available 

1. The amounts established pursuant to Article 2 shall be entered in the account specified in 
Article 3(1), on the first working day of the second month following the month in which the 
amount was established. 

2. At least ten working days before the date specified in paragraph 1, each Member State shall 
send to the Commission a monthly statement of the accounts for the FTT-based own resource. 

3. An entry in the summary account specified in Article 3(4) shall be made at the latest by the 
first  working  day  of  the  second  month  following  the  month  in  which  the  amount  was 
established pursuant to Article 2. 

4. The Commission shall adopt implementing acts establishing detailed rules for the monthly 
statements referred to in paragraph 2 of this Article. Those implementing acts shall be adopted 
in accordance with the advisory procedure referred to in Article 9(2). 

Article 5 

Interest on amounts made available belatedly 

1. Any delay in making the entry in the account referred to in Article 3(1) shall give rise to the 
payment of interest by the Member State concerned.  

However, recovery of amounts of interest below EUR 500 shall be waived. 

2. Interest shall be levied at the rates and conditions provided for in Article 11(2) and (3) of 
Regulation (EC, Euratom) No 1150/2000.  

3.  For  the  payment  of  interest  referred  to  in  paragraph  1,  Article  3(2)  and  (3)  shall  apply 
mutatis mutandis.  

Article 6 

Accounting corrections 

After  31  December  of  the  third  year  following  a  given  year,  no  further  corrections  shall  be 
made  to  the  sum  of  the  monthly  statements  communicated  by  Member  States  under  Article 
4(5) for the given year, except on points notified before that date either by the Commission or 
by the Member State concerned. 

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CHAPTER III 

ADMINISTRATIVE ARRANGEMENTS 

Article 7 

Conservation of supporting documents 

Member  States  shall  take  all  appropriate  measures  to  ensure  that  the  supporting  documents 
concerning making the FTT-based own resource available are kept for at least three calendar 
years, counting from the end of the year to which those supporting documents refer. 

If verification pursuant to Article 5 of Regulation (EU) […/…] of the supporting documents 
referred to in the first paragraph shows that a correction is required, those documents shall be 
kept beyond the time limit provided for in the first paragraph for a sufficient period to permit 
the correction to be made and monitored. 

Where a dispute between a Member State and the Commission concerning the obligation to 
make available a certain amount of FTT-based own resource is settled by mutual agreement 
or  by  a  decision  of  the  Court  of  Justice  of  the  European  Union,  the  Member  State  shall 
transmit  the  supporting  documents  necessary  for  the  financial  follow-up  to  the  Commission 
within two months after that settlement.  

Article 8 

Administrative cooperation 

1. Each Member State shall provide the Commission with the following information: 

(a) the names of the departments or agencies responsible for establishing, collecting, 
making  available  and  controlling  the  FTT-based  own  resource  and  the  basic 
provisions relating to the role and operation of those departments and agencies; 

(b) the general provisions laid down by law, regulation or administrative action and 
those relating to the accounting procedures concerning the collection of FTT, making 
the own resource derived therefrom available to the Commission and the provisions 
relating to control by the Commission of that own resource; 

(c) the precise title of all administrative and accounting records in which is entered 
the  FTT-based  own  resource,  in  particular  those  used  for  drawing  up  the  accounts 
provided for in Article 4. 

The Commission shall be informed immediately of any changes in that information.  

2. The Commission shall, at the request of a Member State, transmit to all Member States the 
information referred to in paragraph 1. 

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CHAPTER IV 

FINAL PROVISIONS 

Article 9 

Committee procedure 

1. 

2. 

The  Commission  shall  be  assisted  by  the  Advisory  Committee  on  Own  Resources 
established  by  Regulation  (EU)  No  […/…].  That  committee  shall  be  a  committee 
within the meaning of Regulation (EU) No 182/2011. 

Where  reference  is  made  to  this  paragraph,  Article  4  of  Regulation  (EU)  No 
182/2011 shall apply. 

Article 10 

Entry into force 

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

It shall apply from 1 January 2014. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s) concerned in the ABM/ABB structure 

1.3.  Nature of the proposal/initiative  

1.4.  Objective(s)  

1.5.  Grounds for the proposal/initiative  

1.6.  Duration and financial impact  

1.7.  Management method(s) envisaged  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected  

3.2.  Estimated impact on expenditure  

3.2.1. Summary of estimated impact on expenditure  

3.2.2. Estimated impact on operational appropriations  

3.2.3. Estimated impact on appropriations of an administrative nature 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party participation in financing  

3.3.  Estimated impact on revenue

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Proposal for a Council Regulation on the methods and procedures for making available the 
own resource based on the financial transaction tax (FTT). 

1.2. 

Policy area(s) concerned in the ABM/ABB structure14  

EU budget revenue (Title 1, Own Resources). 

1.3. 

Nature of the proposal/initiative  

(cid:59) The proposal/initiative relates to a new action  

(cid:133) The proposal/initiative relates to a new action following a pilot project/preparatory action15  

(cid:133) The proposal/initiative relates to the extension of an existing action  

(cid:133) The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objectives 

1.4.1.  The Commission's multiannual strategic objective(s) targeted by the proposal/initiative  

The proposal completes and refines proposals made by the Commission on 29 June 2011 
regarding the EU's own resources system [see COM(2011)510, 511 and 512]. 

1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned  

Specific objective No.. 

ABM/ABB activity(ies) concerned 

Titre 1 – own resources 

14 
15 

ABM: Activity-Based Management – ABB: Activity-Based Budgeting. 
As referred to in Article 49(6)(a) or (b) of the Financial Regulation. 

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1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

Financial  transaction  taxation  (FTT)  could  constitute  a  new  revenue  stream,  which  could 
reduce the existing Member State contributions, give national governments extra room for 
manoeuvre  and  contribute  to  the  general  budgetary  consolidation  effort.  Although  some 
form of financial transaction taxation already exists in a limited number of Member States, 
the analysis also made it clear that action at EU level could prove both more effective and 
efficient  than  uncoordinated  action  by  Member  States  given  the  level  of  cross-border 
activity and high mobility of the tax bases. Furthermore, it could play a role in reducing the 
existing fragmentation of the Internal market. The EU initiative will constitute a first step 
towards the application of a FTT at global level. 

1.4.4. 

Indicators of results and impact  

Specify the indicators for monitoring implementation of the proposal/initiative. 

This proposal should provide the framework for a timely and correct making available of 
FTT-based own resources to the EU budget. 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term  

The rules for making the FTT-based available to the EU budget should be agreed upon in 
time for ensuring the timely implementation of the new own resource. 

1.5.2.  Added value of EU involvement 

Cf. 1.4.3 above. 

1.5.3.  Lessons learned from similar experiences in the past 

n.a. 

1.5.4.  Coherence and possible synergy with other relevant instruments 

This proposal is part of a package of proposals also including an Amended proposal for a 
Council  Decision  on  the  system  of  own  resources  of  the  European  Union,  an  Amended 
proposal for a Council Regulation laying down implementing measures for the system of 
own resources of the  European  Union and the proposed Council  Directive on a  financial 
transaction  tax  in  the  EU.  Together,  these  proposals  clarify  the  possible  interaction 
between the FTT Directive and the own resources provisions. 

1.6. 

Duration and financial impact  

(cid:133) Proposal/initiative of limited duration  

–  (cid:133)  Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY  

–  (cid:133)  Financial impact from YYYY to YYYY  

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(cid:59) Proposal/initiative of unlimited duration 

–  Implementation with a start-up period from 1/1/2013 to 31/12/2013, 

–  followed by full-scale operation from 1/1/2014. 

1.7.  Management mode(s) envisaged16  

(cid:59) Centralised direct management by the Commission  

(cid:133) Centralised indirect management with the delegation of implementation tasks to: 

–  (cid:133)  executive agencies  

–  (cid:133)  bodies set up by the Communities17  

–  (cid:133)  national public-sector bodies/bodies with public-service mission  

–  (cid:133)  persons entrusted with the implementation of specific actions pursuant to Title V of 
the  Treaty  on  European  Union  and  identified  in  the  relevant  basic  act  within  the 
meaning of Article 49 of the Financial Regulation  

(cid:133) Shared management with the Member States  

(cid:133) Decentralised management with third countries  

(cid:133) Joint management with international organisations (to be specified) 

If more than one management mode is indicated, please provide details in the "Comments" section. 

Comments  

16 

17 

Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: 
http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 
As referred to in Article 185 of the Financial Regulation. 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

Provisions for the monitoring and reporting in relation to making available the FTT-based 
own resource can be found in chapters III and IV of the proposed Council Regulation. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

The  main  potential  risks  include:  the  incorrect  establishment  of  the  FTT-based  own 
resource, the incorrect entry in the accounts, the late making available of the resource, and 
accounting errors. 

2.2.2.  Control method(s) envisaged  

These  risks  are  systematically  addressed  in  the  proposal,  which  also  includes  specific 
provisions on administrative cooperation and a comitology procedure. 

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

In  addition  to  provisions  mentioned  under  2.2.2.,  it  should  be  noted  that  provisions  on 
control and supervision are included in the accompanying Amended proposal for a Council 
Regulation  laying  down  implementing  measures  for  the  system  of  own  resources  of  the 
European Union. 

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3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1. 

Heading(s) of the multiannual financial framework and expenditure budget line(s) affected  

Not applicable. 

3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial framework:  

5 

" Administrative expenditure " 

Constant 2011 prices, EUR million 

(cid:121) Human resources  

(cid:121) Other administrative expenditure  

TOTAL DG BUDGET 

TOTAL appropriations 
under HEADING 5 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

2013 

2014 

2015 

2016 

0.508 

2.144 

2.144 

2.144 

0.072 

0.197 

0.197 

0.287 

Appropriations  

0.580 

2.341 

2.341 

2.431 

2017 and 
beyond 

2.144 

0.212 

2.356 

Total commitments  
= Total payments 

Commitments 

Payments 

0.580 

2.341 

2.341 

2.431 

2.356 

0.580 

2.341 

2.341 

2.431 

0.580 

2.341 

2.341 

2.431 

2.356 

2.356 

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3.2.2.  Estimated impact on operational appropriations  

–  (cid:59)  The proposal/initiative does not require the use of operational appropriations  

–  (cid:133)  The proposal/initiative requires the use of operational appropriations. 

3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary  

–  (cid:133)  The  proposal/initiative  does  not 

require 

the  use  of  administrative 

appropriations  

–  (cid:59)  The  proposal/initiative  requires  the  use  of  administrative  appropriations,  as 

explained below: 

Constant 2011 prices, EUR million 

2013 

2014 

2015 

2016 

2017 and 
beyond 

HEADING 5 
of the multiannual 
financial framework 

Human resources  

0.508 

2.144 

2.144 

2.144 

2.144 

0.072 

0.197 

0.197 

0.287 

0.212 

0.580 

2.341 

2.341 

2.431 

2.356 

Other administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual financial 
framework  

Outside HEADING 518 
of the multiannual financial 
framework  

Human resources  

Other expenditure  
of an administrative nature 

Subtotal  
outside HEADING 5 
of the multiannual financial 
framework  

TOTAL 

0.580 

2.341 

2.341 

2.431 

2.356 

18 

Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of  EU 
programmes and/or actions (former "BA" lines), indirect research, direct research. 

EN 

17 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.2.  Estimated requirements of human resources  

–  (cid:133)  The proposal/initiative does not require the use of human resources  

–  (cid:59)  The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

Estimate to be expressed in full amounts (or at most to one decimal place) 

(cid:121) Establishment plan posts (officials and temporary agents) 

27 01 01 01 (Headquarters and Commission’s Representation Offices) 

4 

13 

13 

13 

13 

2013  2014  2015  2016 

2017 
and 
beyond 

XX 01 01 02 (Delegations) 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

(cid:121) External personnel (in Full Time Equivalent unit: FTE)19 

27 01 02 01 (CA, INT, SNE from the "global envelope") 

0 

7 

7 

7 

7 

XX 01 02 02 (CA, INT, JED, LA and SNE in the delegations) 

XX 01 
04 yy 20 

- at Headquarters21 

- in delegations  

XX 01 05 02 (CA, INT, SNE - Indirect research) 

10 01 05 02 (CA, INT, SNE - Direct research) 

Other budget lines (specify) 

TOTAL 

The  human  resources  required  will  be  met  by  staff  from  the  DG  who  are  already 
assigned to management of the action and/or have been  redeployed within the DG, 
together  if  necessary  with  any  additional  allocation  which  may  be  granted  to  the 
managing  DG  under  the  annual  allocation  procedure  and  in  the  light  of  budgetary 
constraints. 

19 

20 
21 

CA= Contract Agent; INT= agency staff ("Intérimaire"); JED= "Jeune Expert en Délégation" (Young 
Experts in Delegations); LA= Local Agent; SNE= Seconded National Expert;  
Under the ceiling for external personnel from operational appropriations (former "BA" lines). 
Essentially  for  Structural  Funds,  European  Agricultural  Fund  for  Rural  Development  (EAFRD)  and 
European Fisheries Fund (EFF). 

EN 

18 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Description of tasks to be carried out: 

Officials, temporary 
agents and External 
personnel 

The  new  FTT-based  own  resource  unit  would  control  that  the  Member 
States  establish,  account  for,  recover  and  make  available  correctly  and  on 
timely  basis  the  FTT-based  own  resource  ("FTT  OR")  that  is  collected  by 
them for financing the EU Budget.  

The main tasks to be carried out are as follows:  

1) Inspections  

-  control  Member  States'  action  in  the  area  of  FTT  OR  via  on-the-spot 
inspections carried out on the basis of an annual, risk based, programme. As 
a  rule,  the  5  biggest  collectors  could  be  visited  twice  and  other  Member 
States once a year. The smallest Member States, however, could be visited 
every other year. All inspections reports and Member States replies to them 
to be discussed with the Member States at the FTT OR Advisory Committee 
on  Own  Resources,  organised  twice  a  year.  All  individual  inspection 
findings  would  require  a  financial  or  a  legal/administrative  follow-up  that 
could  be  closed  only  once  the  Member  State  concerned  has  taken  the 
necessary  remedial  action.  If  this  not  the  case,  an  infringement  procedure 
would need to be initiated.  

2) Follow-up of ECA audits 

Also the European Court of Auditors would carry out FTT OR related audits 
(DAS or special) in Member States. In addition to the follow-up of its own 
inspection findings, the unit would be responsible for the follow-up all ECA 
audit findings vis-à-vis the Member States concerned.  

3) Monitoring recovery and follow-up of individual cases  

The unit would monitor Member States' FTT OR recovery action in specific 
cases  which  have  a  significant  financial  impact  (e.g.  relating  to  large  scale 
investigations carried out by OLAF). For the overall monitoring of recovery 
in  cases  of  fraud  and  irregularity  the  unit  could  need  to  manage  specific 
databases  (new  or  based  on  existing  systems  such  as  OWNRES)  to  which 
Member  States  could  send  reports  on  all  cases  exceeding  €10.000.  In 
addition,  all  particular  cases  where  a  Member  State's  administrative  error 
would cause a loss of FTT OR would require a follow-up action.  

4) Management of Member States write-off reports  

For  all  cases  of  irrecoverable  FTT  OR  amounts  exceeding  a  certain 
threshold  Member  States  could  be  obliged  to  send  a  report  explaining  the 
reasons  why  amount  could  not  be  recovered  and  made  available  to  the 
Commission.  The  unit  would  examine,  in  co-operation  with  the  Legal 
Service, DG TAXUD and OLAF, whether the Member State concerned had 
acted diligently and could thus be released from the obligation to make the 
amount  available.  All  cases  where  a  Member  States  would  be  considered 
liable for the loss of FTT OR would require a follow-up action by the unit.  

EN 

19 

   EN 

 
5)  Monitoring  preparedness  and  providing  assistance  to  the  candidate 
countries  

The  unit  would  monitor  the  preparedness  of  the  candidate  countries  in  the 
area of FTT OR, e.g. by making monitoring visits and analysing their replies 
to  questionnaires  and  simulation  exercises.  In  addition,  a  pre-accession 
assistance  programme  would  be  provided  to  them  including  seminars  and 
workshops  where  their  future  obligations  in  the  area  of  FTT  OR  would  be 
explained in detail. 

3.2.4.  Compatibility with the current multiannual financial framework  

–  (cid:133)  Proposal/initiative is compatible the current multiannual financial framework. 

–  (cid:59)  Proposal/initiative  will  entail  reprogramming  of  the  relevant  heading  in  the 

multiannual financial framework. 

This  proposal  is  closely  related  to  the  proposals  for  the  next  multiannual  financial 
framework  adopted  by  the  Commission  on  29  June  2011.  This  proposal  aims  at 
ensuring appropriate means of financing for the EU budget from 1/1/2014, that is, the 
start of the next financial framework. 

–  (cid:133)  Proposal/initiative requires application of the flexibility instrument or revision 

of the multiannual financial framework. 

3.2.5.  Third-party contributions  

–  (cid:59) The proposal/initiative does not provide for co-financing by third parties  

–  (cid:133)  The proposal/initiative provides for the co-financing estimated below. 

3.3. 

Estimated impact on revenue  

–  (cid:133)  Proposal/initiative has no financial impact on revenue. 

–  (cid:59)  Proposal/initiative has the following financial impact: 

(cid:59) 

(cid:133) 

on own resources  

on miscellaneous revenue  

Budget revenue line: 

Appropriations 
available for the 
ongoing budget 
year 

EUR million, current prices 

Impact of the proposal/initiative22 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

New (in Title 1) 

43.692 

45.335 

46.801 

48.414 

50.175 

52.108 

54.226 

22 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e. gross amounts after deduction of 25% for collection costs. 

EN 

20 

   EN 

 
 
                                                 
Specify the method for calculating the impact on revenue. 

The  Annex  to  the  Report  on  the  operation  of  the  own  resources  system 
[SEC(2011)876, part II, pp. 25-26] and the impact assessment to the proposal for a 
Council  Directive  on  a  common  system  of  financial  transaction  tax  and  amending 
Directive 2008/7/EC provide quantitative estimates and explanations on assumptions 
used. 

Formula used 

Estimates  are  based  on  a  formula  initially  developed  by  the  French  Ministry  of 
Finance  in  2000  and  used  more  recently  by  Jetin  and  Denys  (2005)  and  by 
McCulloch and Pacillo (2011). It assumes that tax revenue R can be calculated as: 

R

×××=

EV

τ

1

+

⎛
⎜
⎝

ετ
⎞
⎟
c
⎠

, 

where  τ  is  the  tax  rate,  V  the  annual  transaction  volume,  and  E  is  interpreted  as 
relocation and fiscal evasion. The variable c describes the transaction costs in percent 
of the transaction volume and ε is the tax elasticity which describes the effect of a tax 
increase  on  the  transaction  volume,  i.e.  the  tax  base.  The  last  term  in  brackets 
describes the volume reaction of markets due to an increase in transaction costs only. 
The relocation and evasion is captured directly by E in this formula. 

Data sources 

Data on currency transactions (turnover in foreign exchange spot, foreign exchange 
swaps  and  foreign  exchange  outright  forwards  markets)  come  from  the  Bank  for 
International Settlements (BIS). 

Data  for  equity  calculations  is  based  on  figures  available  from  the  Federation  of 
European  Securities  Exchanges  (FESE).  The  data  contain  information  on  equity 
trades  in  regulated  exchanges.  There  are  no  data  on  turnover  in  private  exchanges 
like exchange systems of some large banks (like the Sigma X of Goldman Sachs) and 
on private placement of shares. 

For  derivatives,  the  turnover  in  terms  of  notional  values  and  the  notional  amounts 
outstanding reported by the BIS are proxies to measure the market activity in over-
the-counter (OTC) derivative markets. 

Quantitative estimates 

Assumptions  used  strongly  affect  the  revenue  estimates  and  vary  for  the  various 
market  segments.  The  resulting  estimates  are  therefore  provided  on  an  illustrative 
basis, building on 2010 data. 

The  amount  presented  corresponds  to  the  combination  of  the  following  three 
categories:  

i)  A  Securities  Transaction  Tax  (STT)  levied  on  all  bonds  and  stock  transactions 
executed in regulated markets with a rate of 0.1 %. 

EN 

21 

   EN 

 
ii) Imposing a rate of 0.01 % on Exchange Derivatives, notably Single Stock Futures, 
Stock Index Options, Stock Index Futures, Bond Options and Bond Futures. 

iii) The same rate applied to OTC interest rates derivatives, including Forward Rate 
Agreements, Swaps and Options.  

Specific assumptions on transaction costs, fiscal evasion and elasticities can be found 
in the impact assessment accompanying the proposal for a Directive on the financial 
transaction tax [SEC(2011)1102 and 1103]. 

A share of two-thirds is assumed to be retained for the EU budget. 

Starting  from  2010  estimates,  amounts  are  increased  using  nominal  GNI  growth 
estimates. 

EN 

22 

   EN