On 8 June 2018, the European Commission tabled a proposal for a Regulation establishing the 'Fiscalis' programme for cooperation in the field of taxation as part of the Multiannual Financial Framework (MFF) for the years 2021-2027. The proposal's aim was to replace the Fiscalis 2020 programme (Regulation 1286/2013).

The proposal for the new ‘Fiscalis’ programme provided mechanisms, means as well as the necessary funding aiming to support tax policy and to improve cooperation between tax authorities.

It had the following general objectives:

• to support tax authorities and taxation to enhance the functioning of the single market,
• to foster the Union competitiveness,
• to protect the financial and economic interests of the European Union and its Member States.

and specific objectives:

• to support tax policy and tax cooperation,
• to build administrative capacity, including human competency,
• to support the development and operation of the European electronic systems.

The proposed budget will mainly be spent on IT infrastructure, as tax cooperation needs a communication network that allows national administrations to exchange information securely.

The proposal was subject to the ordinary legislative procedure, requiring support in both Council and Parliament.

A provisional agreement was reached between Parliament and Council in March 2021. The financial envelope for the implementation of the programme for the 2021-2027 period will be €269 million in current prices, up from €223.2 million in the 2014-2020 period. Parliament and Council both officially supported the agreement in May 2021, enabling the regulation to enter into force with retroactive effect, from 1 January 2021. The final act was published in the Official Journal on 28 May 2021.

References:

• EP Legislative Observatory, Procedure file for the Fiscalis programme for cooperation in the field of taxation 2021–2027, 2018/0233(COD)
• European Commission, Proposal for a regulation of the European Parliament and the Council establishing the 'Fiscalis' programme for cooperation in the field of taxation, COM(2018) 443, June 2018
• Council of the EU, Note Multiannual Financial Framework (MFF) 2021-2027 - Progress report, March 2019
• European Parliament, Fiscalis programme for cooperation in the field of taxation 2021–2027, Text adopted at second reading (Summary), May 2021
• Official Journal of the EU, Regulation (EU) 2021/847 of the European Parliament and of the Council of 20 May 2021 establishing the ‘Fiscalis’ programme for cooperation in the field of taxation and repealing Regulation (EU) No 1286/2013, May 2021

Further reading:

• European Parliamentary Research Service, 2021-2027 multiannual financial framework and new own resources, analysis of the Commission's proposal, July 2018

Author: Pieter Baert, Members' Research Service, legislative-train@europarl.europa.eu