(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, as well as its predecessor programmes, 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 the Member States and of the taxpayer, has been recognised by the tax authorities of the participating countries. The challenges for the next decade can only be tackled if Member States 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 cooperation activities. That framework is more cost-effective than if each Member State were to set up individual cooperation frameworks on a bilateral or multilateral basis. It is therefore appropriate to ensure the continuation of the Fiscalis 2020 programme by establishing a new programme in the same area, the Fiscalis programme (the ‘Programme’).

(3)

In providing a framework for actions which supports the internal market, fosters the competitiveness of the Union and protects the financial and economic interests of the Union and its Member States, the Programme should contribute to: supporting tax policy and the implementation of Union law relating to taxation; preventing and fighting tax fraud, tax evasion, aggressive tax planning and double non-taxation; preventing and reducing unnecessary administrative burdens for citizens and businesses in cross-border transactions; supporting fairer and more efficient tax systems; achieving the full potential of the internal market and fostering fair competition in the Union; supporting a joint Union approach in international fora; supporting the administrative capacity building of tax authorities including by modernising reporting and auditing techniques; as well as supporting training the staff of tax authorities in that regard.

(4)

This Regulation lays down a financial envelope for the Programme, which is to constitute the prime reference amount, within the meaning of point 18 of the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources (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 countries and candidate countries as well as potential candidates and partner countries of the European Neighbourhood Policy if certain conditions are fulfilled. It might also be open to other third countries, in accordance with the conditions laid down in specific agreements between the Union and those countries covering their participation in any Union programme.

(6)

Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (5) (the ‘Financial Regulation’) applies to this Programme. The Financial Regulation lays down rules on the implementation of the Union budget, including the rules on grants, prizes, procurement, indirect management, financial instruments, budgetary guarantees, financial assistance and the reimbursement of external experts.

(7)

The actions 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, such as meetings and similar ad hoc events, including, where appropriate, presence in administrative offices and participation in administrative enquiries, project-based structured collaboration, including, where appropriate, joint audits, and IT capacity building, including, where appropriate, access by tax authorities to interconnected registers. Where appropriate, actions should also aim to address priority topics in order to fulfil the objectives of the Programme. Through cooperation and capacity building, the 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, the internationalisation of financial instruments and the resulting increased risk of tax fraud, tax evasion and aggressive tax planning, all of which go well beyond Union borders, adaptations of or extensions to European electronic systems for cooperation with third countries not associated with the Programme and international organisations could be of interest to the Union or to Member States. In particular, such adaptations or extensions would avoid the administrative burden and the costs inherent in developing and operating two similar electronic systems for Union and international exchanges of information. Therefore, when duly justified by that interest, such adaptations or extensions should be eligible for funding under the Programme.

(9)

Considering the importance of globalisation and the importance of combating tax fraud, tax evasion and aggressive tax planning, the Programme should provide for the possibility of involving external experts within the meaning of Article 238 of the Financial Regulation. Such external experts should mainly be representatives of governmental authorities, including governmental authorities of non-associated third countries, including least developed countries, as well as representatives of international organisations, of economic operators, of taxpayers and of civil society. In that context, a least developed country should be understood to mean a third country or non-EU territory that is eligible to receive official development assistance in accordance with the relevant list made publicly available by the Development Assistance Committee of the Organisation for Economic Cooperation and Development and based on the United Nations’ definition of least developed countries. The selection of experts in expert groups should be based on the Commission decision of 30 May 2016 establishing horizontal rules on the creation and operation of Commission expert groups. As regards experts appointed in their personal capacity for acting independently in the public interest, the Commission should ensure that those experts are impartial, that they have no possible conflicts of interest with their professional responsibilities and that information about their selection and participation is publicly available.

(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 on the EU Budget Review, resources should be shared with other Union funding instruments if the actions envisaged under the Programme pursue objectives that are common to various funding instruments, excluding double financing. Actions under the Programme should ensure coherence in the use of the Union’s resources supporting tax policy and tax authorities.

(11)

With a view to cost-effectiveness, the Programme should exploit possible synergies with other Union measures in related fields, such as the Customs Programme established by Regulation (EU) 2021/444 of the European Parliament and of the Council (6), the Union Anti-Fraud Programme established by Regulation (EU) 2021/785 of the European Parliament and of the Council (7), the Single Market Programme established by Regulation (EU) 2021/690 of the European Parliament and of the Council (8), the Recovery and Resilience Facility established by Regulation (EU) 2021/241 of the European Parliament and of the Council (9) and the Technical Support Instrument established by Regulation (EU) 2021/240 of the European Parliament and of the Council (10).

(12)

Information Technology (IT) capacity-building actions are set to attract the greatest part of the budget under the Programme. Therefore, specific provisions should describe and distinguish between the common and national components of the European electronic systems. Moreover, the scope of actions and the responsibilities of the Commission and of Member States should be clearly defined. To the extent possible, there should be interoperability between the common and national components of the European electronic systems, and synergies with other electronic systems of relevant Union programmes.

(13)

Currently, there is no requirement to draw up a Multi-Annual Strategic Plan for Taxation for creating a coherent and interoperable electronic environment for taxation in the Union. In order to ensure that IT capacity-building actions are coherent and coordinated, the Programme should provide for the requirement to draw up such a plan, a planning tool which should be compliant with and should not go beyond the obligations arising from the relevant legal acts of the Union.

(14)

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, it should be possible for work programmes to cover several years. A shift from annual to multiannual work programmes, which should each cover no more than three years, would reduce the administrative burden on both the Commission and Member States.

(15)

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. (11)

(16)

Pursuant to paragraphs 22 and 23 of the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (12), this Programme should be evaluated on the basis of information collected in accordance with specific monitoring requirements, while avoiding an administrative burden, in particular on Member States, and overregulation. Those requirements, where appropriate, should include measurable indicators as a basis for evaluating the effects of the Programme on the ground. The interim and final evaluations, which should be performed no later than four years after the start of the implementation and the completion of the Programme, respectively, should contribute to the decision-making process of the next multiannual financial frameworks. The interim and final evaluations should also address the remaining obstacles to the achievement of the Programme’s objectives and make suggestions for best practices. In addition to the interim and final evaluations, as part of the performance reporting system, annual progress reports should be issued to monitor the progress made. Those reports should include a summary of the lessons learnt and, where appropriate, of the obstacles encountered, in the context of the activities of the Programme that have taken place in the year in question.

(17)

The Commission should organise regular seminars of tax authorities at which representatives of beneficiary Member States discuss issues and suggest potential improvements related to the objectives of the Programme, including the exchange of information between tax authorities.

(18)

In order to respond appropriately to changes in tax policy priorities, 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 amending the list of indicators to measure the achievement of the specific objectives of the Programme and supplementing this Regulation with provisions on the establishment of a monitoring and evaluation framework. It is of particular importance that the Commission carry 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 of 13 April 2016 on Better Law-Making. 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.

(19)

In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (13) and Council Regulations (EC, Euratom) 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 by means of proportionate measures, including measures relating to the prevention, detection, correction and investigation of irregularities, including fraud, to the recovery of funds lost, wrongly paid or incorrectly used, and, where appropriate, to the imposition of administrative penalties. In particular, in accordance with Regulations (Euratom, EC) No 2185/96 and (EU, Euratom) No 883/2013, the European Anti-Fraud Office (OLAF) has the power to 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. The European Public Prosecutor’s Office (EPPO) is empowered, in accordance with Regulation (EU) 2017/1939, to investigate and prosecute 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 financial interests of the Union, grant the necessary rights and access to the Commission, OLAF, the Court of Auditors and, in respect of those Member States participating in enhanced cooperation pursuant to Regulation (EU) 2017/1939, the EPPO, and ensure that any third parties involved in the implementation of Union funds grant equivalent rights.

(20)

Third countries which are members of the European Economic Area (EEA) may participate in Union programmes in the framework of the cooperation established under the Agreement on the European Economic Area (18), which provides for the implementation of the programmes on the basis of a decision adopted under that Agreement. Third countries may also participate on the basis of other legal instruments. A specific provision should be introduced in this Regulation requiring third countries to grant the necessary rights and access required for the authorising officer responsible, OLAF and the Court of Auditors to comprehensively exercise their respective competences.

(21)

Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 TFEU apply to this Regulation. Those rules are laid down in the Financial Regulation and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes and indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also include a general regime of conditionality for the protection of the Union budget.

(22)

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 cost of controls, the administrative burden, and the expected risk of non-compliance. That choice should include the consideration of the use of lump sums, flat-rate financing and unit costs, as well as financing not linked to costs as referred to in Article 125(1) of the Financial Regulation. The eligible costs should be determined by reference to the nature of the eligible actions. The coverage of travel, accommodation and subsistence costs for participants in meetings and similar ad hoc events and the coverage of costs linked to the organisation of events is of utmost importance in order to ensure the participation of national experts and tax authorities in joint actions.

(23)

In accordance with Article 193(2) of the Financial Regulation, a grant may be awarded for an action which has already begun, provided that the applicant can demonstrate the need for starting the action prior to signature of the grant agreement. However, the costs incurred prior to the date of submission of the grant application are not eligible, except in duly justified exceptional cases. In order to avoid any disruption in Union support which could be prejudicial to Union’s interests, it should be possible to provide in the financing decision, during a limited period of time at the beginning of the multi-annual financial framework 2021-2027, and only in duly justified cases, for eligibility of activities and costs from the beginning of the 2021 financial year, even if they were implemented and incurred before the grant application was submitted.

(24)

Since the objective of this Regulation cannot be sufficiently achieved by the 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.

(25)

Regulation (EU) No 1286/2013 should therefore be repealed.

(26)

In order to ensure continuity in providing support in the relevant policy area and to allow implementation to start from the beginning of the multi-annual financial framework 2021-2027, this Regulation should enter into force as a matter of urgency and should apply, with retroactive effect, from 1 January 2021,