(1)

The Fiscalis 2020 programme, which was established by Regulation (EU) No 1286/2013 of the European Parliament and of the Council (3) and is implemented by the Commission in cooperation with the Member States and associated countries, and its predecessors have significantly contributed to facilitating and enhancing cooperation between tax authorities within the Union. The added value of those programmes, including as regards the protection of the financial and economic interests of Member States of the Union and of taxpayers, has been recognised by the tax authorities of the participating countries. The challenges identified for the next decade can often not be tackled effectively if Member States do not look beyond the borders of their administrative territories and cooperate intensively with their counterparts.

(2)

The Fiscalis 2020 programme offers Member States a Union framework within which to develop those cooperation activities, and which is more cost-effective than if each Member State were to set up individual cooperation frameworks on a bilateral or multilateral basis , whether among themselves or with third countries with which the Union cooperates closely in the field of taxation . It is therefore appropriate to ensure the continuation of that programme by establishing a new programme in the same area, the Fiscalis programme (the ‘Programme’).

(2 a)

The Programme should enable Member States’ capacity to combat tax fraud, corruption, tax evasion and aggressive tax planning to be strengthened, including by means of technical assistance for human resources training and the development of administrative structures. Such assistance should be provided in a transparent manner .

(3)

In providing a framework for actions which supports the single market, fosters fair competition in the Union and protects the financial and economic interests of the Union and its Member States, the Programme should contribute to preventing and fighting tax fraud, tax evasion , aggressive tax planning and double non-taxation ; preventing and reducing unnecessary administrative burden for citizens and businesses in cross-border transactions; supporting fairer and more efficient tax systems; achieving the full potential of the single market and fostering fair competition in the Union as well as supporting a joint Union approach in international fora.

(4)

This Regulation lays down a financial envelope for the Programme, which is to constitute the prime reference amount, within the meaning of point 17 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management (4), for the European Parliament and the Council during the annual budgetary procedure.

(5)

In order to support the process of accession and association by third countries, the Programme should be open to the participation of acceding and candidate countries as well as potential candidates and partner countries of the European Neighbourhood Policy if certain conditions are fulfilled. It may also be open to other third countries, in particular least developed countries, in accordance with the conditions laid down in specific agreements between the Union and those countries covering their participation to any Union programme.

(5 a)

The European Parliament has laid down its priorities. The current lack of financial resources hinders the achievement of the objectives set by the European Parliament for the post-2020 multiannual financial framework [2017/2052(INI)]. More effective cooperation in tax matters could enable a more effective collection of the necessary resources for the implementation of the future multiannual financial framework.

(6)

Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (5) (the ‘Financial Regulation’) applies to this Programme. It lays down rules on the implementation of the Union budget, including the rules on grants, prizes, procurement and reimbursements of external experts.

(7)

The actions which applied under the Fiscalis 2020 programme have proven to be adequate and should therefore be maintained. In order to provide more simplicity and flexibility in the execution of the Programme and thereby better deliver on its objectives, the actions should be defined only in terms of overall categories with a list of illustrative examples of concrete activities. However, actions should aim at addressing priority topics to protect the financial and economic interests of the Union and its Member States. Through cooperation and capacity building, the Fiscalis programme should also promote and support the uptake and leverage of innovation to further improve the capabilities to deliver on the core priorities of taxation.

(8)

Given the increasing mobility of taxpayers, the number of cross-border transactions and the internationalisation of financial instruments and the resulting increased risk of tax fraud, tax evasion and aggressive tax planning , which go well beyond the Union borders, adaptations of or extensions of European electronic systems to third countries not associated to the Programme and international organisations could have an interest for the Union or the Member States. In particular, they would avoid the administrative burden and the costs implied by developing and operating two similar electronic systems for, respectively, Union and international exchanges of information. Therefore, when duly justified by such an interest, adaptations of or extensions to European electronic systems for cooperation with third countries and international organisations should be eligible costs under the Programme. Provided priority topics have been fully funded, specific actions involving least developed countries, in particular regarding the automatic sharing of information, should also be encouraged under the Programme where appropriate.

(9)

Considering the importance of globalisation and the importance of combating tax fraud, tax evasion and aggressive tax planning, the Programme should continue to provide the possibility of involving external experts within the meaning of Article 238 of the Financial Regulation. The selection of experts should be transparent and be based on their skills, experience and knowledge relevant to the specific action as well as their ability to contribute to that action. It should be ensured that those experts are impartial and that there is no possible conflict of interest with their professional role. Balanced representation of all relevant stakeholders should be ensured.

(9 a)

In view of the recent adoption of Council Directives 2014/107/EU  (6) ; (EU) 2015/2376  (7) ; (EU) 2016/881  (8) ; (EU) 2016/2258  (9) ; (EU) 2018/822  (10) and the ongoing negotiations on a Common Consolidated Corporate Tax Base (CCCTB), the Programme should aim to train staff at tax administrations to ensure the effective implementation of those directives.

(10)

In line with the Commission's commitment to ensure the coherence and simplification of funding programmes, set out in its Communication of 19 October 2010 entitled ‘The EU Budget Review’ (11), resources should be shared with other Union funding instruments if the envisaged actions under the Programme pursue objectives that are common to various funding instruments, excluding however double financing. Actions under the Programme should ensure coherence in the use of the Union's resources supporting tax policy and tax authorities.

(10 a)

For the sake of cost-effectiveness, the Fiscalis Programme should exploit possible synergies with other Union measures in related fields, such as the Customs Programme, the EU Anti-Fraud Programme, the Single Market Programme and the Reform Support Programme.

(10 b)

Individual national anti-fraud initiatives could potentially shift the fraud to other, often neighbouring, Member States, and create a disproportionate administrative burden on compliant businesses as well as a lack of legal certainty when trading internationally. It is therefore crucial that the Commission aligns national anti-fraud measures through coordination of national best practices at Union level.

(11)

Information Technology (IT) capacity building actions are set to attract a considerable share of the budget under the Programme. Therefore, specific provisions should describe, respectively, the common and national components of the European electronic systems. Moreover, the scope of actions and the responsibilities of the Commission and the Member States should be clearly defined. There should be smooth interoperability among the common and national components of the European electronic systems and synergies with other electronic systems of relevant Union programmes.

(12)

Currently, there is no requirement to draw up a Multi-Annual Strategic Plan for Taxation (MASP-T) for creating a coherent and interoperable electronic environment for taxation in the Union. In order to ensure coherence and coordination of IT capacity building actions, the Programme should provide for the creation of such a MASP-T.

(13)

This Regulation should be implemented by means of work programmes. In view of the mid to long-term nature of the objectives pursued and building on experience gained over time, work programmes should be able to cover several years. The shift from annual to multiannual work programmes will reduce the administrative burden for both the Commission and Member States but it should not, in any circumstance, result in a loss of information or transparency to taxpayers . Multiannual work programmes should reflect all relevant information produced in the context of annual reports or mapping exercises as referred to in this Regulation. Those annual reports should be made publicly available in order to inform taxpayers about best practices, lessons learnt, challenges and remaining obstacles identified within the Programme.

(14)

In order to supplement this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union (TFEU) should be delegated to the Commission in respect of the adoption of work programmes .

(15)

Pursuant to paragraph 22 and 23 of the Inter-institutional agreement of 13 April 2016 on Better Law-Making (12), there is a need to evaluate the Programme on the basis of information collected through specific monitoring requirements, while avoiding overregulation and administrative burdens, in particular on Member States , thereby also taking into consideration REFIT . These requirements, where appropriate, should include measurable indicators, as a basis for evaluating the effects of this Regulation on the ground. The results of that monitoring should be object of an annual consolidated report, produced by the Commission, based on input provided by the Member States. It should contain a mapping of remaining obstacles in the Member States in realizing the Programme objectives in Article 3 and addressing the priority topics in Article 7(2a) as well as suggestions for best practices. Additionally, the Commission should produce an interim and a final evaluation of the Programme. Both the annual reports and the evaluation reports should be made publicly accessible on a dedicated webpage.

(15 a)

The Commission should convene a biannual seminar including two representatives of beneficiary Member States to discuss issues and suggest potential improvements related to the themes of the Programme, including the exchange of information between tax administrations. The participants in the seminar shall be, respectively a representative of a decision-making body of tax administrations, a representative of a trade union of staff working at tax administrations, and a representative of the European Parliament and of the Council.

(16)

In order to respond appropriately to changes in tax policy priorities, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of amending the list of indicators to measure the achievement of the specific objectives of the Programme. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(17)

In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (13), and Council Regulations (Euratom, EC) No 2988/95 (14), (Euratom, EC) No 2185/96 (15) and (EU) 2017/1939 (16), the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities and fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In particular, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation (Euratom, EC) No 2185/96, the European Anti-Fraud Office (OLAF) may carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) may investigate and prosecute fraud and other criminal offences affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council (17). In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the EPPO and the European Court of Auditors and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights.

(18)

Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 TFEU apply to this Regulation. These rules are laid down in the Financial Regulation and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes, indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also concern the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States, as the respect for the rule of law is an essential precondition for sound financial management and effective EU funding.

(19)

The types of financing and the methods of implementation under this Regulation should be chosen on the basis of their ability to achieve the specific objectives of the actions and to deliver results, taking into account, in particular, the costs of controls, the administrative burden, and the expected risk of non-compliance. This should include consideration of the use of lump sums, flat rates and unit costs, as well as financing not linked to costs as referred to in Article 125(1) of the Financial Regulation. The coverage of travel expenses should be a priority, so that the participation of national experts in joint actions is ensured.

(20)

Since the objective of this Regulation cannot be sufficiently achieved by the individual Member States but can rather, by reason of its scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.

(21)

This Regulation replaces Regulation (EU) No 1286/2013 of the European Parliament and of the Council, which should therefore be repealed,

(a)

As regards meetings and similar ad-hoc events:

(b)

As regards structured collaboration:

(d)

As regards human competency and capacity building actions:

1.

Union Law and Policy Application and Implementation Index (Number of actions under the Programme organised in this area and recommendations issued following those actions)

2.

Learning Index (Learning modules used; number of officials trained; quality score by participants)

3.

Availability of European electronic systems (in time percentage terms)

4.

Availability of the Common Communication Network (in time percentage terms)

5.

IT simplified procedures for the national administrations and economic operators (number of registered economic operators, numbers of applications and number of consultations in the different electronic systems funded by the Programme)

6.

Collaboration Robustness Index (degree of networking generated, number of face-to-face meetings, number of on-line collaboration groups)

7.

Best Practices and Guideline Index (number of actions under the Programme organised in this area; percentage of tax administrations that made use of a working practice/guideline developed with the support of the Programme)

1.

Revenues collected in the fight against tax fraud, tax evasion and aggressive tax planning in the course of joint audits

2.

Number of requests for administrative and judicial cooperation made, received and responded to for each Member State