As Approved by the Fiscalis 2013 Committee on 27/11/2012

EUROPEAN COMMISSION DIRECTORATE-GENERAL TAXATION AND CUSTOMS UNION Resources Information and management of programmes

Brussels, Taxud.r.3/NP/vv D(2012)

ANNUAL WORK PROGRAMME 2013 FOR THE IMPLEMENTATION OF FISCALIS 2013

AS APPROVED BY THE FISCALIS 2013 COMMITTEE ON 27/11/2012

DOC F13-040

Contact Information

Ms. Nancy Peeters, [email protected], Phone number +32-2-296.33.17

Commission européenne/Europese Commissie, 1049 Bruxelles/Brussel – Belgique/België. Telephone: (32-2) 299 11 11.

Office: LX40 06/47. Telephone: direct line +32-2 296-33-17. Fax: +32-2 299-81.00. Part A: Strategic Framework of the AWP 2013

1. CONTEXT

The aim of the Fiscalis 2013 programme is to improve the operation of the taxation systems in the internal market. As such, the programme is a tool which is used to support and implement the overall Union tax policy. The strategic framework of the Annual Work Programme 2013 builds on this overall Union tax policy and in particular on:

For value added tax, excise, other indirect taxes:

– The Commission's Communication on the future of VAT – Towards a simpler, more robust and efficient VAT system tailored to the single market1;

– The implementation of the current VAT rules;

– Initiatives to further improve the dialogue between tax administrations and all stakeholders, in particular in VAT with business experts;

– Initiatives to further improve the EU legislative framework and its practical implementation on environmental taxation, excise duties and other indirect taxes, as defined in the Fiscalis programme decision2;

– Initiatives to improve the coordination of excise and customs legislation and its practical implementation, in particular in relation to import and export.

For direct taxation:

– The EU direct tax policy which is to address the concerns of individuals and businesses operating within the Internal Market by focusing:

– on the elimination of tax obstacles (ie. double taxation) from all forms of cross-border economic activity;

– on the elimination of double non-taxation, in addition to continuing the fight against harmful tax competition.

An increased co-ordination of tax systems, including improving the dialogue between tax administrations and all stakeholders, is being aimed for as it would help Member States to meet these objectives.

For administrative co-operation and mutual recovery assistance:

– The coordinated strategy to improve the fight against VAT fraud in the European Union3;

1 COM(2011) 851, 6.12.2011. 2 OJ L 330/1, 15.12.2007 3 COM(2008)807 final, 1.12.2008

EN EN – Initiatives to improve the Union policy framework and its practical implementation on administrative co-operation between Member States' tax authorities with a view to combating tax fraud and tax evasion in the field of direct taxation;

– Initiatives to further improve the Union legislative framework and its practical implementation on administrative co-operation between Member States’ tax authorities with a view to combating tax fraud and tax evasion in the field of excise;

– Initiatives to facilitate the administrative cooperation, especially in reference to third countries.

2. POLICY AREAS AND RELATED PRIORITIES FOR 2013

The strategic framework of the Annual Work Programme is structured according to the overall objective and specific objectives (Article 4 of the Fiscalis programme decision) for the different areas falling within its scope, being VAT and excise duties, taxes on energy products and electricity, taxes on income and on capital and taxes on insurance premiums as defined in Article 2 of the Fiscalis programme decision.

Activities will be carried out in the year 2013 to support the following policy areas: 1.1. Improve the proper functioning of the taxation systems in the internal market. 1.2. Information exchange and administrative co-operation among Member States and, within this framework and as appropriate, between Member States and third countries. 1.3. Understanding of the Union law and of its implementation in Member States. 1.4. The sharing, development and dissemination of good administrative practice. 1.5. Co-operation between Member States related to taxes on insurance premiums. 1.6. Meet the special needs of acceding, candidate and potential candidate countries. 1.7. Horizontal programme issues. Each of these seven policy areas has been split up into thematic priorities for the year 2013, as follows:

2.1. Improve the proper functioning of the taxation systems in the internal market

Overall objective of Article 4 §1 of the F2013 Decision

2.1.1. Fight against fraud

– Provide general support for the fight against fraud and the framework for discussions on anti-fraud issues, including co-ordination of researches, exchange of views on systematic fraud developments and trends as well as the enhancement of common measures to counter fraud.

– Assist participating countries with the implementation of Eurofisc and provide technical and logistical support for the functioning of this network, with the aim of strengthening participating countries' anti-fraud strategies.

EN EN 2.1.2. Optimise tax administration to support the internal market

– Support compliance risk management and develop and improve common risk management methodologies.

– Support tax compliance through the exchange of best practices and of new approaches to reduce the tax gap, including on the principles of good governance in the tax area both within the EU and towards the third countries.

– Enhance dialogue between tax administrations and stakeholders, and in particular with the view to develop a VAT web portal; support the evolution of the web portal to other taxes, in particular direct taxation, subject to further decision.

– Reduce administrative burden on businesses and individuals through the simplification and modernisation of tax obligations and compliance requirements with simultaneous consideration of anti-fraud issues.

– Providing technical assistance to tax administrations of Member States in order to support the implementation of best practices.

– Share knowledge and support the exchange of best practices among tax administrations related to managerial and organisational issues to improve the planning, control, performance management and quality.

– Support the development of an e-administration strategy within the participating countries.

2.1.3. Focus on international dimension to support internal market

– Facilitate the operation of double tax conventions between Member States by means of supporting a better functioning of procedures for claiming treaty benefits and of mutual agreement procedures, and sharing experience and knowledge on the interpretation of double tax convention clauses and ECJ case law in this area.

– Improve participating countries’ knowledge and awareness of international developments that are relevant to Union law in the direct and indirect taxation field, in particular developments at OECD level and in relation to tax treaties.

– Facilitate a common understanding of transfer pricing principles, including practical aspects of transfer pricing.

– Facilitate the administrative cooperation with third countries and international organisations, such as OECD and IOTA, in the field of indirect taxes and direct taxes, amongst others by promoting and supporting the integrated use of IT common specifications developed by the EU.

– Support the collaboration between the Member States and Eastern Partnership (EaP) countries in the context of multilateral agreements to modernise and develop their tax systems, in particular in the areas of good governance and approximation of VAT and excise duty systems to the EU's systems.

EN EN 2.2. Information exchange and administrative co-operation among Member States

Objectives 2 (a) i and 2 (b) i (part 1 of sentence) of Article 4 of the F2013 Decision

2.2.1. Support the implementation of administrative co-operation arrangements between tax administrations

2.2.1.1. Support administrative cooperation in the field of taxation

– Support the development and enhancement of mechanisms of administrative co-operation, through joint approaches and exchange of best practices, in particular with a view to evaluating the effectiveness of Union legislation on direct and indirect taxation.

– Stimulate feedback, monitoring and the exchange of best practices to improve the quality of data exchanged and the speed of the exchanges.

– Support the network of liaison officers for administrative co-operation through common activities dealing with practical issues.

– Support the use of standard electronic forms and formats for the exchange of information on request, automatic, spontaneous, feedback and recovery between Member States and, if appropiate, also between Member States and third countries .

– Exchange experience and know how in the area of automatic exchange of information for direct taxation, in particular on methods of improving the quality and use of data transmitted under the EU Savings Taxation Directive.

– Support the development of computerised country profiles in the field of direct taxation.

– Support automated access by competent authorities to certain types of data contained in other Member States' databases (Council Regulation (EU) No 904/2010, Article 21).

– Exchange experience on the implementation of various tools under Council Regulation (EU) No 904/2010, Council Regulation (EU) No 389/2012, and Council Directive 2011/16/EU: presence of tax officials in the other Participating Countries' tax administrations, participation in administrative inquiries in other Participating Countries, consultation between competent authorities.

– Provide support to the mandatory automatic exchange of information (Council Directive 2011/16/EU, Article 8).

– Facilitate the definition and collection of information aiming to evaluate the administrative cooperation tools (e.g. Council Regulation 904/2010/EU, Art 49; Council Directive 2011/16/EU, Art 23).

EN EN – Support discussions on the use of the data exchanged between Member States about Intra-Union transactions, which since 1/1/2010 are exchanged on a monthly basis.

– Support the exchange of information in the field of excise duties and support discussions on the use of risk analysis data and real-time information available in EMCS.

– Support the implementation of multilateral cooperation in the field of direct and indirect taxation.

2.2.1.2. Support mutual recovery assistance

– Provide support concerning the improvement of administrative procedures in relation to the Recovery Directive and the implementing measures, in particular through the update of automatic translated forms and of the uniform instrument permitting enforcement and the uniform notification form.

– Provide support for the exchange of information without prior request (i.a implementation of Council Directive 2010/24/EU, Article 6; access to databases).

– Provide support for adapting the electronic request forms to allow their use for recovery assistance on the basis of other agreements (Council Directive 2010/24/EU, Article 24 (3)).

– Stimulate feedback and exchange of experiences and best practices, to evaluate the use of the new legislation (Council Directive 2010/24/EU and Commission Implementing Regulation EU 1189/2011) and to improve the quality and efficiency of the mutual recovery assistance.

– Support the implementation of multilateral cooperation in the field of mutual recovery assistance.

2.2.1.3. Support the Multilateral Controls

– Enhance the organisation and improve the conduct of Multilateral Controls covering VAT, excise duties and direct tax.

– Support the planning and management of the Multilateral Controls in order to improve the quality and processing time of the MLC’s.

– Strive for a greater use of Multilateral Controls, especially in terms of more participating countries making use of and initiating MLC's.

– Assess and provide support to the communication needs for Multilateral Controls by setting up new communication structures when required.

– Provide support to achieve a better knowledge of the risk areas where Multilateral Controls could be the most effective.

EN EN – Explore how Multilateral Controls could be implemented in the context of an authorised intermediary system for claiming withholding tax relief (FISCO).

2.2.2. Support the Communication and Information Exchange Systems

2.2.2.1. Ensure the development, operation, support, maintenance and improvement to the following systems as required:

– Common Communications Network/Common System’s Interface (CCN/CSI) – including the development and promotion of the next generation for CCN, CCN2 architecture and organisational model and the possible extension – as provided for by relevant legal basis - of this system to third countries. Deploy the next generation of CCN-MAIL facilities;

– VAT Information Exchange System (VIES), VAT on e-Services (VoeS) and VIES on-the-Web;

– VAT Package trans-European systems: in particular the improved functioning of the VAT refund system

– Excise systems such as SEED, SEED on Europa, and EMCS (Excise Movement and Control System) for movements under suspension of excise duty and upcoming functionalities to partially include duty paid movements and distance selling;

– Taxes in Europe and Tax Reforms (TEDB/TAXREF) databases;

– The Taxation of Savings System (ToS);

– Systems to fight against tax fraud and tax evasion, such as Eurofisc.

– Support for regionalisation, allowing more rapid direct exchanges between designated regional or local offices in different Member States.

– Systems in the field of direct taxation such as computerised country profiles and the TIN on-the-web.

2.2.2.2. Ensure the development, operation, support, maintenance and improvement to the following systems in support of new Union legislation in the field of indirect taxation or direct taxation when it will be adopted or in view of its adoption:

– Mini one stop shop system;

– Electronic forms for administrative co-operation in the field of VAT, excise, direct taxes and recovery, and the development of a Common Web Forms system;

– Computerised formats for automatic exchange of information in application of Article 8 of Council Directive 2011/16/EU and in

EN EN application of agreements between EU Member States and third countries on automatic information exchange;

– A system to faciliate claims for withholding tax relief by financial intermediaries on behalf of cross border investors (FISCO) based on the recommendations of the feasibility study and subject to further decision;

– EU VAT web portal: provide support for the feasibility study to develop a VAT web portal as well as support for the web portal development, maintenance and operation; support the evolution of the web portal to other taxes, in particular direct tax, subject to further decision;

– Systems to fight against fraud and tax evasion, subject to future decisions

2.2.2.3. Provide horizontal support to the communication and information exchange systems

– Initiate and develop an IT Security Policy applicable to taxation similar to the existing policies for EMCS addressing confidentiality, integrity and availability requirements as well as liability issues.

– Implement synergies between tax and customs IT systems, e.g. by providing an access to SMS (customs stamps) to tax administrations and in particular by interfacing EMCS with the Customs trans European Systems.

– Support the management of IT services supply and the use of standards and best practices for the development and deployment of trans-European IT systems.

– Provide support to strengthen the efficiency and cost effectiveness of operations and support by integrating/merging the current IT service management and CCN/CSI operations, support structures and tools in a common service desk.

– Review the IT governance for European Information Systems for taxation and related IT development and operation.

2.3. Understanding of Union law and of its implementation in Member States

Objectives 2 (a) ii and 2 (b) ii of Article 4 of the F2013 Decision

2.3.1. Enhance the understanding of the Union law in the tax area:

– Improve the participating countries’ knowledge of other tax administrations’ VAT and direct taxation legislation as well as the understanding of the working procedures.

– Exchange experience and know how in the area of environmental taxation. Exchange experience and know how in the area of national implementation of certain provisions of the energy taxation.

– Exchange experience and know how in the area of alcohol and tobacco taxation, in particular on the application of Council Directive 2011/64/EU on

EN EN manufactured tobacco and the use of price and tax measures as an instrument for control of tobacco consumption.

– Exchange experience and know how in the area of recovery of taxes, in particular with regard to precautionary measures and other measures guaranteeing the payment or recovery of taxes.

– Gain a better understanding of tax evasion and tax avoidance with the view to seeking consistency and close down opportunities for using arbitrage, non- cooperative jurisdictions/tax havens and aggressive tax planning.

– Share and improve the knowledge of the Union law and of the judgements of the Court of Justice of the European Union on VAT and other indirect taxes, excise duties (including passenger car taxation), and direct taxation cases aiming to facilitate a consistent understanding of their consequences as well as sharing experiences and competence in the field of tax litigation.

2.3.2. Contribute to a consistent implementation framework of the Union law in the tax area:

– Support a consistent implementation framework of existing and upcoming EU VAT, excise duties and direct tax legislation.

– Develop a coordinated approach for compliance measures (including audits) at national level on paying agents and other economic operators relevant to the EU Savings Taxation Directive to ensure the correct and effective application of the Directive.

– Investigate possible improvements in procedures for the movement of excise goods released for consumption (duty paid and distance selling).

– Ensure consistency and coherence between the customs and tax procedures under EU legislation, as well as their implementation, notably to take account of the most recent developments in the area of customs.

2.3.3. Enhance the understanding of the Union law in the mutual recovery assistance area and contribute to a consistent implementation framework:

– Support the use and functioning of the EU recovery legislation and of other EU law affecting Member States' recovery possibilities.

– Share and improve the knowledge of the EU law and of the judgements of the Court of Justice of the European Union on recovery cases aiming to facilitate a consistent understanding of their consequences.

2.4. To share, develop and disseminate good administrative practice

Objectives 2 (a) iii and (b) i (part 2 of sentence) of Article 4 of the F2013 Decision

EN EN 2.4.1. Registration and Identification of tax payers

– Share knowledge of best practice on the identification of taxpayers, including in relation to recovery assistance.

– Facilitate the exchange of information among Member States concerning issues involving tax representatives of taxable persons (natural and legal persons), such as communication with and delivering to representatives of taxable persons.

– Discuss confidentiality matters regarding information about taxable persons, providing information in tax matters to other administrative authorities, including the provisions of Directive 95/46/EC on data protection.

2.4.2. Processing of tax declarations and tax claims

– Exchange views and best practices between tax administrations in the field of the processing of tax declarations.

– Share knowledge and best practice in relation to ways to assist taxpayers operating across borders who may have compliance obligations in two or more Member States and may need to make claims for tax refunds from one Member State on account of taxes paid in another.

2.4.3. Tax control and audit

– Exchange experience in the area of non-conventional ways of control.

– Share best practices and improve the knowledge in the area of e-commerce, including the legal framework (Electronic Commerce Directive).

– Share best practices and improve the knowledge of electronic commerce audit and control techniques.

– Develop and share strategies for detection and identification of financial transactions on the Internet.

– Develop and stimulate the use of new audit technologies by tax administrations and in particular build on the ongoing developments in the field of e-auditing.

– Share best practice on the electronic exchange of information between taxable persons and tax administrations for audit purposes, in particular relating to the Standard Audit File.

– Develop and improve common audit techniques for combating tax evasion and avoidance.

– Share best practices in risk analysis for tax control and audit, in particular with regard to the selection of entities.

EN EN 2.4.4. Collection and recovery of taxes

– Exchange views and best practices between tax administrations in the field of the collection and recovery of taxes, including one-stop shops, simplified claim forms, multi-lingual forms, publication of information for taxpayers.

– Support the exchange of experience used in the assets determination procedure.

– Exchange know how and experiences on the efficiency of precautionary measures and on the creation and the notification of an enforceable title.

2.5. Support the co-operation among Member States related to taxes on insurance premiums

Objective 2 (c) of Article 4 of the F2013 Decision

– Improve co-operation between Member States ensuring a better application of the existing rules in relation to taxes on insurance premiums.

– Support the recovery rules and mutual assistance arrangements in a similar way as is being undertaken for VAT and excise duties.

2.6. Meet the special needs of acceding, candidate and potential candidate countries

Objective 2 (d) of Article 4 of the F2013 Decision

– Meet the special needs of acceding, candidate and potential candidate countries so that they take the necessary measures for accession in the field of tax legislation and administrative capacity.

2.7. Horizontal programme issues

2.7.1. Management of the Fiscalis 2013 programme

– Support and improve the management and the implementation of the Fiscalis programme.

– Improve the steering and co-ordination of programme activities.

– Ensure the efficient use of programme management instruments such as those to manage the budget and activities (Activity Reporting Tool (ART2)).

– Adapt ART to support the successor Fiscalis programme.

– Work on a common and appropriate use of programme activity tools.

– Follow-up of the implementation of the recommendations of the mid term evaluation of Fiscalis 2013 based on an action plan proposed by the Commission.

– Support the final evaluation of the Fiscalis 2013 programme.

EN EN – Prepare for a successor Fiscalis programme and ensure transparency about the progress of the legal adoption procedure to relevant stakeholders.

2.7.2. Common training

Article10 of the F2013 Decision

– Develop, maintain and update where necessary EU e-learning modules, in particular in the areas to be identified during the annual topic selection process with the Training Steering Group.

– Ensure efficient localisation processes for EU eLearning courses and identification and implementation of appropriate improvement measures.

– Initiate the activities related to common competency requirements for identified taxation areas with sufficient EU commonality, in cooperation with national tax administrations and other potential stakeholders.

2.7.3. Communication and information sharing

Article 12 of the F2013 Decision

– Enlarge the user community and optimise the use by sharing best practices of the common platform PICS (Programmes Information and Collaboration Space) allowing online collaboration as a modern and efficient way to strengthen co-operation between the national tax administrations.

– Optimise the use of PICS by sharing best practices. Build bridges with other programme tools such as ART2 and CIRCABC.

– Align and address the future communication needs on policy or legislative initiatives in partnership with the EU Communication Network for Taxation and Customs (ECNtc).

– Coordinate, develop and implement common communication projects on policy or legislative initiatives to raise awareness, ensure compliance, support and promote actions of national tax administrations.