Annexes to COM(2013)71 - Implementation of enhanced cooperation in the area of financial transaction tax - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2013)71 - Implementation of enhanced cooperation in the area of financial transaction tax. |
|---|---|
| document | COM(2013)71  |
| date | February 14, 2013 |
LEGISLATIVE FINANCIAL STATEMENT
1. FRAMEWORK OF THE PROPOSAL/INITIATIVE
1.1. Title of the proposal/initiative
Council Directive implementing enhanced cooperation in the area of financial transaction tax
1.2. Policy area(s) concerned in the ABM/ABB structure
14 05 Taxation Policy
1.3. Nature of the proposal/initiative
The proposal relates to a new action
1.4. Objective(s)
1.4.1. The Commission's multiannual strategic objective targeted by the proposal
Financial stability
1.4.2. Specific objectives and ABM/ABB activity(ies) concerned
Specific Objective No.3 To develop new tax initiatives and actions to support EU policy objectives ABM/ABB activity(ies) concerned Title 14 Taxation and Customs Union; ABB 05 Taxation Policy
1.4.3. Expected result(s)
To avoid fragmentation in the internal market for financial services, bearing in mind the increasing number of uncoordinated national tax measures being put in place. To ensure that financial institutions make a fair and substantial contribution to covering the costs of the recent crisis, and to ensure even taxation of the sector vis-à-vis other sectors. To create appropriate disincentives for transactions which do not enhance welfare or the efficiency of financial markets and to complement regulatory measures aimed at avoiding future crisis.
1.5. Grounds for the proposal/initiative
1.5.1. Requirement(s) to be met in the short or long term
Contribute to the overall objective of stability in the EU in the aftermath of the financial crisis
1.5.2. Added value of EU involvement
A fragmentation of financial markets across activities and across borders can only be avoided and equal treatment of financial institutions in the EU and, ultimately, the proper functioning of the internal market, can only be ensured through action at EU level if necessary through enhanced cooperation.
1.5.3. Lessons learned from similar experiences in the past
Introducing a broad-based FTT at national level achieving the three above objectives without serious delocalisation effects has proven to be hardly possible (example of Sweden)".
1.5.4. Coherence and possible synergy with other relevant instruments
Taxes are part of the global resolution framework. Levying FTT would facilitate efforts of budgetary consolidation in the participating Member States. Moreover, the Commission has proposed to use part of the proceeds of the FTT as a future own resource – if they were to be used for financing EU budget, the participating Member States would see their GNI-based national contributions reduced.
1.6. Duration and financial impact
Proposal of unlimited duration
1.7. Management method(s) envisaged
N/A.
2. Management measures
2.1. Monitoring and reporting rules
Participating Member States must take appropriate measures for FTT to be levied accurately and timely, which includes measures of verification. The provision of appropriate measures to ensure payment of the tax and to monitor and verify correct payment is left to participating Member States.
2.2. Management and control system
2.2.1. Risk(s) identified
1. Delays in the transposition of the Directive at participating Member States' level 2.Risk of evasion, avoidance and abuse 3. Risk of relocation
2.2.2. Control method(s) envisaged
Article 11 of the Directive mentions the specific provisions relating to the prevention of evasion, avoidance and abuse: delegated acts and administrative cooperation in tax matters. The risks of relocation are tackled by the choice of an appropriate set of tax rates and a broad definition of the taxable base.
2.3. Measures to prevent fraud and irregularities
Specify existing or envisaged prevention and protection measures.
3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE
3.1. Heading(s) of the multiannual financial framework and expenditure budget line(s) affected
· Existing expenditure budget lines
In order of multiannual financial framework headings and budget lines.
Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution
Number [Description………….] || Diff./non-diff ([41]) || from EFTA[42] countries || from candidate countries[43] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation
|| [XX.YY.YY.YY] || Diff./non-diff. || YES/NO || YES/NO || YES/NO || YES/NO
· New budget lines requested
In order of multiannual financial framework headings and budget lines.
Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution
Number [Heading…………..] || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation
|| [XX.YY.YY.YY] || || YES/NO || YES/NO || YES/NO || YES/NO
3.2. Estimated impact on expenditure
3.2.1. Summary of estimated impact on expenditure
EUR million (to 3 decimal places)
Heading of multiannual financial framework: || Number || [Heading ……………...…………………………………………….]
DG: <…….> || || || Year N[44] || Year N+1 || Year N+2 || Year N+3 || … enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL
Ÿ Operational appropriations || || || || || || || ||
Number of budget line || Commitments || (1) || || || || || || || ||
Payments || (2) || || || || || || || ||
Number of budget line || Commitments || (1a) || || || || || || || ||
Payments || (2a) || || || || || || || ||
Appropriations of an administrative nature financed from the envelope for specific programmes[45] || || || || || || || ||
Number of budget line || || (3) || || || || || || || ||
TOTAL appropriations for DG <…….> || Commitments || =1+1a +3 || N/A || N/A || N/A || N/A || N/A || N/A || N/A || N/A
Payments || =2+2a +3 || N/A || N/A || N/A || N/A || N/A || N/A || N/A || N/A
Ÿ TOTAL operational appropriations || Commitments || (4) || N/A || N/A || N/A || N/A || N/A || N/A || N/A || N/A
Payments || (5) || N/A || N/A || N/A || N/A || N/A || N/A || N/A || N/A
Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || || || || || || || ||
TOTAL appropriations under HEADING <….> of the multiannual financial framework || Commitments || =4+ 6 || N/A || N/A || N/A || N/A || N/A || N/A || N/A || N/A
Payments || =5+ 6 || N/A || N/A || N/A || N/A || N/A || N/A || N/A || N/A
If more than one heading is affected by the proposal / initiative:
Ÿ TOTAL operational appropriations || Commitments || (4) || || || || || || || ||
Payments || (5) || || || || || || || ||
Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || || || || || || || ||
TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) || Commitments || =4+ 6 || N/A || N/A || N/A || N/A || N/A || N/A || N/A || N/A
Payments || =5+ 6 || N/A || N/A || N/A || N/A || N/A || N/A || N/A || N/A
Heading of multiannual financial framework: || 5 || " Administrative expenditure "
EUR million (to 3 decimal places)
|| || Year 2013 || Year 2014 || Year 2015 || Year 2016 || From 2017 onwards
DG: TAXUD ||
Ÿ Human resources || 0.254 || 0.762 || 0.762 || 0.762 || 0.762
Ÿ Other administrative expenditure || 0.040 || 0.036 || 0.036 || 0.036 || 0.036
TOTAL DG TAXUD || || 0.294 || 0.798 || 0.798 || 0.798 || 0.798
TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 0.294 || 0.798 || 0.798 || 0.798 || 0.798
EUR million (to 3 decimal places)
|| || Year 2013 || Year 2014 || Year 2015 || Year 2016 || From 2017 onwards
TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 0.294 || 0.798 || 0.798 || 0.798 || 0.798
Payments || 0.294 || 0.798 || 0.798 || 0.798 || 0.798
3.2.2. Estimated impact on operational appropriations
– X The proposal/initiative does not require the use of operational appropriations
3.2.3. Estimated impact on appropriations of an administrative nature
3.2.3.1. Summary
– X The proposal/initiative requires the use of administrative appropriations, as explained below:
EUR million (to 3 decimal places)
|| Year 2013 || Year 2014 || Year 2015 || Year 2016 || From 2017 onwards
HEADING 5 of the multiannual financial framework || || || || ||
Human resources || 0.254 || 0.762 || 0.762 || 0.762 || 0.762
Other administrative expenditure || 0.040 || 0.036 || 0.036 || 0.036 || 0.036
Subtotal HEADING 5 of the multiannual financial framework || 0.294 || 0.798 || 0.798 || 0.798 || 0.798
Outside HEADING 5[46] of the multiannual financial framework || || || || ||
Human resources || || || || ||
Other expenditure of an administrative nature || || || || ||
Subtotal outside HEADING 5 of the multiannual financial framework || N/A || N/A || N/A || N/A || N/A
TOTAL || 0.294 || 0.798 || 0.798 || 0.798 || 0.798
3.2.3.2. Estimated requirements of human resources
– X The proposal/initiative requires the use of human resources, as explained below:
|| Year 2013 || Year 2014 || Year 2015 || Year 2016 || From 2017 onwards
Ÿ Establishment plan posts (officials and temporary agents) || || || || ||
14 01 01 01 (Headquarters and Commission’s Representation Offices) || 0.254 || 0.762 || 0.762 || 0.762 || 0.762
14 01 01 02 (Delegations) || p.m. || p.m. || p.m. || p.m. || p.m.
14 01 05 01 (Indirect research) || p.m. || p.m. || p.m. || p.m. || p.m.
10 01 05 01 (Direct research) || p.m. || p.m. || p.m. || p.m. || p.m.
Ÿ External personnel (in Full Time Equivalent unit: FTE)[47] || || || || ||
14 01 02 01 (CA, INT, SNE from the "global envelope") || p.m. || p.m. || p.m. || p.m. || p.m.
14 01 02 02 (CA, INT, JED, LA and SNE in the delegations) || p.m. || p.m. || p.m. || p.m. || p.m.
XX 01 04 yy [48] || - at Headquarters[49] || p.m. || p.m. || p.m. || p.m. || p.m.
- in delegations || p.m. || p.m. || p.m. || p.m. || p.m.
XX 01 05 02 (CA, INT, SNE - Indirect research) || p.m. || p.m. || p.m. || p.m. || p.m.
10 01 05 02 (CA, INT, SNE - Direct research) || p.m. || p.m. || p.m. || p.m. || p.m.
Other budget lines (specify) || || || || ||
TOTAL || 0.254 || 0.762 || 0.762 || 0.762 || 0.762
Estimate to be expressed in full amounts (or at most to one decimal place)
14 is the policy area or budget title concerned.
The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.
Description of tasks to be carried out:
Officials and temporary agents || The current staff allocation of DG TAXUD does not really take the total issue of a common system of FTT into account and will require internal redeployment. Main tasks of the assigned officials will be: to elaborate the technicalities on the practical functioning of the tax so as to help the negotiation process, monitor the subsequent implementation, prepare legal interpretations and working documents, contribute to the delegated acts among others on anti-avoidance/anti-abuse provisions, prepare infringement procedures as appropriate etc.
3.2.4. Compatibility with the current multiannual financial framework
– X Proposal/initiative is compatible the current multiannual financial framework.
3.2.5. Third-party contributions
– The proposal/initiative does not provide for co-financing by third parties
3.3. Estimated impact on revenue
– X Proposal/initiative as such has no financial impact on revenue. However, if parts of the proceeds of the FTT were to be used as an own resource, thus reducing the residual GNI-based own resource drawn from the participating Member States, the composition of the revenue sources would be impacted.
[1] COM(2011) 594 final.
[2] Financial institutions, either directly or indirectly, largely benefited from the rescue and guarantee operations (pre-)financed by the European taxpayer in the course of 2008 to 2012. These operations, together with the faltering of economic activity caused by the spread of uncertainty about the stability of the overall economic and financial system have triggered a deterioration in the public finance balances across Europe by more than 20% of GDP. Also, most financial and insurance services are exempted from VAT.
[3] P7_TA-(2012)0217.
[4] ECO/321 – CESE 818/2012 (OJ C 181, 21.06.2012, p. 55).
[5] CDR 332/2011 (OJ C 113, 18.04.2012, p. 7).
[6] FTT was first on the agenda of the Council on Economic and Financial Affairs on 8 November 2011 and then at three subsequent meetings in March, June and July 2012. From December 2011 to June 2012 seven Council Working Party meetings on Tax Questions – Indirect taxation were devoted to the subject.
[7] COM(2012) 631 final/2.
[8] COM(2011) 510 final. http://ec.europa.eu/budget/library/biblio/documents/fin_fwk1420/proposal_council_own_resources_en.pdf
[9] COM(2011) 739 final.
http://ec.europa.eu/budget/library/biblio/documents/fin_fwk1420/COM_2011_0739_EN.pdf
[10] OJ L 46, 21.2.2008, p.11.
[11] http://ec.europa.eu/taxation_customs/taxation/other_taxes/financial_sector/index_en.htm.
[12] O.J.L 22, 25.1.2013, p.11.
[13] Reference is made to the definition of financial instruments in Annex I to Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC (OJ L 145, 30.4.2004, p. 1). This definition covers units in collective investment undertakings. Consequently, shares and units of undertakings for collective investment in transferable securities (UCITS) as defined in Article 1(2) of Directive 2009/65/EC (OJ L 302, 17.11.2009, p. 32) and alternative investment funds (AIF) as defined in Article 4(1)(a) of Directive 2011/61/EU (OJ L 174, 1.7.2011, p. 1) are financial instruments.
[14] Notably Directive 2004/39/EC (cf. previous footnote).
[15] OJ L 338, 12.12.2012, p. 41.
[16] OJ L 64, 11.3.2011, p. 1.
[17] OJ L 84, 31.3.2010, p. 1.
[18] With certain exceptions in the case of Directive 2011/16/EU but which are no relevant here.
[19] http://www.oecdilibrary.org/docserver/download/fulltext/2311331e.pdf?expires=1309623132&id=id&accname=ocid194935&checksum=37A9732331E7939B3EE154BB7EC53C41
[20] OJ L 347, 11.12.2006, p. 1.
[21] COM(2011) 510 final. http://ec.europa.eu/budget/library/biblio/documents/fin_fwk1420/proposal_council_own_resources_en.pdf
[22] COM(2011) 739 final.
http://ec.europa.eu/budget/library/biblio/documents/fin_fwk1420/COM_2011_0739_EN.pdf
[23] OJ L 22, 25.1.2013, p. 11
[24] OJ C …, …, p.. .
[25] OJ C …, …, p. ..
[26] OJ L 46, 21.2.2008, p.11.
[27] OJ L 55, 28.2.2011, p. 13
[28] OJ L 145, 30.4.2004, p. 1.
[29] OJ L 241, 2.9.2006, p.1.
[30] OJ L 177, 30.6.2006, p. 201.
[31] OJ L 177, 30.6.2006, p. 1.
[32] OJ L 335, 17.12.2009, p. 1.
[33] OJ L 302, 17.11.2009, p. 32.
[34] OJ L 235, 23.9.2003, p. 10.
[35] OJ L 174, 1.7.2011, p.1.
[36] OJ L 222, 14.8.1978, p. 11.
[37] OJ L 201, 27.7.2012, p.1.
[38] OJ L 166, 11.6.1998, p. 45.
[39] OJ L OJ L 46, 21.2.2008, p.11.
[40] OJ L 347, 11.12.2006, p. 1.
[41] Diff. = Differentiated appropriations / Non-Diff. = Non-differentiated appropriations.
[42] EFTA: European Free Trade Association.
[43] Candidate countries and, where applicable, potential candidate countries from the Western Balkans.
[44] Year N is the year in which implementation of the proposal/initiative starts.
[45] Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former "BA" lines), indirect research, direct research.
[46] Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former "BA" lines), indirect research, direct research.
[47] CA= Contract Agent; INT= agency staff ("Intérimaire"); JED= "Jeune Expert en Délégation" (Young Experts in Delegations); LA= Local Agent; SNE= Seconded National Expert.
[48] Under the ceiling for external personnel from operational appropriations (former "BA" lines).
[49] Essentially for Structural Funds, European Agricultural Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF).