Opinion of the Economic and Social Committee on the 'Proposal for a European Parliament and Council Regulation clarifying Council Regulation (EC) No 2223/96 as concerns principles for recording taxes and social contributions'
15. 3. 2000 EN Official Journal of the European Communities C 75/19 3. 3. 5. The audit process should also be reviewed, with stronger emphasis on accurate and stringent information from the beginning, and use of common systems, rather than the evolutionary ‘case by case’ approach which pertains at present. T i m e t a b l e f o r s u b m i s s i o n a n d a g r e e m e n t o f C I P p l a n s 3. 3. 6. The timetables for submission and agreement of plans (paragraph 53), (as indeed for all stages) should be reviewed in the light of what is actually likely to happen, and this should be taken into account in the programme. Current programmes all too often work to fictitious timetables, which all parties know will not be met in practice. This undermines the effectiveness of programmes, and their reputation. M o n i t o r i n g a n d e v a l u a t i o n o f n a t i o n a l p r o - g r a m m e s The role of monitoring committees should be 3. 3. 7. strengthened (paragraph 55), with more structures in place to ensure good quality attendance and the forming of effective links with other key bodies. As mentioned above, programme level monitoring 3. 3. 8. (paragraph 56) should be reviewed and made more appropriate to the innovative and trans-national nature of the programme, with the inclusion of measures of ‘soft’ outcomes and learning, not just crude output measures. 3. 3. 9. The timetable for programme evaluation (at both MS and EU level) should ensure that information is available to influence future developments, and does not come too early or too late. Brussels, 26 January 2000. The President of the Economic and Social Committee Beatrice RANGONI MACHIAVELLI Opinion of the Economic and Social Committee on the ‘Proposal for a European Parliament and Council Regulation clarifying Council Regulation (EC) No 2223/96 as concerns principles for recording taxes and social contributions’ (2000/C 75/08) On 14 January 2000 the Council decided to consult the Economic and Social Committee, under Article 262 of the Treaty establishing the European Community, on the above-mentioned proposal. The Economic and Social Committee decided to appoint Mr Vasco Cal as rapporteur-general for this opinion. At its 369th plenary session of 26 and 27 January 2000 (meeting of 26 January), the Economic and Social Committee adopted the following opinion by 79 votes in favour with 3 abstentions. 1. Introduction 1. 2. In this connection, some Member States declare taxes and contributions which are actually due (according to assess- ments and declarations), including amounts which will never be collected, i. e. taxes unpaid because of insolvency, bank- ruptcy etc. Other Member States declare actual cash receipts, which arrive much later. 1. 1. The European System of Accounts (ESA) determines Member States’ general government net borrowing, i. e. govern- ment deficit. This is a key factor in connection with the protocol on the excessive deficit procedure which, in turn, governs the stability and growth pact. The protocol requires that the government deficit of each Member State can be calculated quickly. The figures must also be transparent and comparable. The Commission thus proposes that ‘taxes and social 1. 3. contributions recorded in the system (should) not include amounts unlikely to be collected’ and that, ‘accordingly, taxes C 75/20 EN Official Journal of the European Communities 15. 3. 2000 and social contributions recorded in the system on an accrual basis, (should) be equivalent over a reasonable amount of time to the corresponding amounts actually received. ’ 1. 4. In practical terms, the Commission proposes that each of the recorded categories of taxes and social contributions should be subject to a weighting in order to eliminate sums regularly left uncollected. Where declarations are based on cash receipts, the Commission requires that the amounts relate precisely to the specific time frames and activities concerned. 2. The ESC’s comments The Committee approves the draft regulation in prin- 2. 1. it will be adopted by the Council ciple and hopes that without delay, as far as possible during the current Portuguese presidency. 2. 2. The Committee notes that, at around 2 % of GNP, levels of uncollected taxes and contributions are relatively low. Their importance becomes clearer, however, when measured against the cuts — also in the region of 2 % — which Member States are supposed to make to their deficits under their stability and growth plans. 2. 3. The Committee urges strict application of the weight- ings for each category of taxes and social security contri- butions. A blanket weighting not only compromises the Brussels, 26 January 2000. transparency and comparability of figures between Member States, but would also make it more difficult to carry out tax the research needed to launch a gradual process of harmonisation in the European Union. 3. Specific comments 3. 1. Article 3 a) The Committee urges that the coefficients should not only be estimated on the basis of past experience, but should also reflect expected events which may affect the macro-economic context. 3. 2. Article 3 b) The Committee welcomes this provision which ensures that taxes and contributions are related strictly to the particular time frame and activity concerned. Continuity in the application of the principles is vital. 3. 3. Enforcement A transitional period not exceeding two years should be laid down for Member States which do not yet apply the provisions of Article 3 and whose current figures diverge from those that would have been obtained had they done so. The President of the Economic and Social Committee Beatrice RANGONI MACHIAVELLI