Brussels, 27/11/2006 (Agence Europe) - In its conclusions to be adopted on Tuesday, the Ecofin Council said that it was aware of the urgent need for Community-wide implementation of a strategy for fighting tax fraud as a means to complete efforts made at a national level. It is calling on the Commission to present the main focal points of this strategy by “June 2007”.
According to the Council, the future European strategy is expected to prioritise the following elements: implementation of an “action plan”; ensuring that Member States accord the same priority to value added tax (VAT) receipts in their own and other countries; the adoption of measures facilitating “more rapid and detailed information exchange” between tax administrations (reciprocal access to national data bases); the elaboration of legislative proposals, which will oblige companies to provide more information to national administrations, accompanied by “an assessment of additional administrative charges” (the Commission will consider a “rating” system of companies) and reflection on possible amendments to the VAT directive (777/388/EEC) in order to strengthen the legal means to fight against tax fraud.
The Council indicates that it has examined amendments to the VAT system which involve the possibility of taxing intra-Community transactions or the application on a case by case basis of a “reverse charge mechanism” for the most costly kinds of VAT fraud. Nonetheless, it recognises that discussions have not finished on this point. (mb)