Regulation (EU) 2021/847 establishing the ‘Fiscalis’ programme for cooperation in the field of taxation

What it is

to establish the fiscalis programme for cooperation in the field of taxation for the period 2021-2027. PROPOSED ACT: Regulation of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: the fiscalis 2020 programme 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 Committee on Economic and Monetary Affairs adopted the report by Sven GIEGOLD (Greens/EFA, DE) on the proposal for a regulation of the European Parliament and of the Council establishing the ‘Fiscalis’ programme for cooperation in the field of taxation. The committee recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the Commission's proposal as follows. Objectives : the general objectives of the programme of supporting tax authorities and taxation with a view to (i) improving the functioning of the single market, (ii) fostering fair competition within the Union, (iii) protecting the financial and economic interests of the Union and its Member States, including against tax fraud, tax evasion and aggressive tax planning , and improving tax collection. Its specific objectives would be to support tax policy and its proper implementation, and to encourage tax cooperation, exchange of tax information, strengthening of administrative capacity building, including human skills, and the development and operation of European electronic systems, as well as the progressive modernisation of reporting, auditing and software tools to be applied uniformly across Member States. The Programme shall also help tax administrations to facilitate and improve the implementation of the Union directives on taxation, and to train their staff in that regard. Budget : Members proposed that the financial envelope for the implementation of the programme over the period 2021-2027 should be set at EUR 300 million at 2018 prices (or EUR 339 million in current prices). Third countries associated with the programme : provided priority topics have been fully funded, least developed countries shall be encouraged to participate in the Programme. The participation of least developed countries in the Programme shall be cost-free for them and shall focus on achieving international tax objectives, such as the automatic exchange of tax information. Eligible actions : the priority topics shall be as follows: (i) closing loopholes in the effective implementation of Council Directive 2011/16/EU , as amended; (ii) effective exchange of information and development of useable formats taking into account international initiatives; (iii) removing obstacles to cross-border cooperation; (iv) removing obstacles to accessibility to beneficial owners; (v) combating…

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