EC Calls For Modernisation Of EU's Tax And Customs Administration

by Ulrika Lomas, Tax-News.com, Brussels

19 May 2006

The European Commission is urging member states and the EU Parliament to support its proposals for "crucial" reforms to the bloc's tax and customs information systems aimed at cutting compliance costs for businesses and combating fiscal crime such as carousel fraud.

The EC's proposals would see the 'Fiscalis 2007' and 'Customs 2007' programmes extended until the end of 2013.

Fiscalis 2013 would continue to facilitate cooperation between tax authorities and assist them in developing an appropriate balance between efficiency of controls and burdens on taxable persons. Customs 2013 would support new security policy initiatives, the modernisation of the customs code and the introduction of a pan-European paperless customs environment.

Both programmes would contribute to the development and management of the trans-European IT tax and customs systems, the Commission stated.

Laszlo Kovacs, Commissioner for Taxation and Customs said that the need for EU tax and customs administrations to be modernised and strengthened has come about because of the increasing globalisation of trade, the development of new markets, and the changes in the methods and speed of the movement of goods.

"The Fiscalis 2013 and Customs 2013 programmes will actively contribute to enhance cooperation between tax and customs administrations. They will simplify and speed up procedures, facilitate legitimate trade, and support the fight against tax and customs fraud," he explained.

According to the EC, recent reports have shown that the the customs programme is "crucial" to making the Customs Union work. The main objectives of Customs 2013 are to reinforce security and safety within the Community and at the external border, strengthen the fight against fraud and create an electronic customs environment to speed up customs procedures.

The fight against fraud is also a major objective of Fiscalis 2013, in particular the fight against VAT 'carousel fraud'. Other aims include reducing the administrative burden on taxpayers and administrations alike, and facilitating more efficient exchange of information between national tax authorities by creating the aforementioned trans-European tax IT system.

"The Customs 2013 will increase security and safety of EU citizens," observed Kovacs.

"I urge the EU Ministers and the European Parliament to adopt a decision implementing the two proposed programmes in a timely manner," he added.

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