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Wednesday, 02.07.2025, 06:37
New measures to combat tax fraud and evasion in the EU states

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Protecting the EU's customs territory and implementing common rules on taxation require strong cooperation among the member states tax authorities. Hence the EU new customs and fiscalis programs will help at minimal cost provide a European added value, offering numerous advantages in the interests of citizens and businesses. The Commission is proposing a continued financial
commitment of €950 million for the EU's customs programme and €270 million
for the EU's Fiscalis programme, representing just 0.07% and 0.02% of the
next EU budget respectively.
Background The EU customs program has already boosted the customs authorities’
efficiency, facilitated trade and protected EU citizens from dangerous and
counterfeit goods. It has also enabled better and more efficient collection
of EU customs duties, which in 2017 made up almost 16% of the EU's overall
budget. In 2018, the EU’s Customs Union is celebrating its 50th anniversary in 2018; hence the new proposal
is to ensure continued improvements to the main sector of the EU's Single
Market. In parallel, the EU's Fiscalis Program has also showed
good results in assisting EU states’ tax administrations to cooperate in
order to improve tax collection and combating tax fraud. First designed in
1993 purely as a training and exchange programme for tax officials, fiscalis
has become a game-changer for the
EU's taxation landscape over the last 20 years. It offers a flexible and
simple environment for tax cooperation, with a substantial EU added value and
impact despite its relatively limited size. It was calculated that in one
year alone it can help the EU states to recover over €590 million in taxes
through joint EU control measures. Present 'Fiscalis' program comes at a time
where public sentiment against tax avoidance runs high, with EU governments
needing to recoup more than €50 billion a year lost to Value Added Tax (VAT)
fraud.
New customs program Modern EU customs union will prioritize corporate and business
interests in the following ways: -by increasing information and
data exchange between national customs administrations
to better detect the flow of dangerous and counterfeit goods: a total of 2.7
million pieces of ammunition and 188,000 pieces of explosives were seized at
EU borders in 2017; -by supporting customs authorities in protecting the EU financial and
economic interests in the correct collection of customs duties, import VAT
and excise duties. The new program will improve the capacity of customs
administrations to deal with growing trade and changing economic and working
models such as e-commerce and blockchain and will enhance cooperation and
training across sectors; - by devising better risk management strategies to protect the EU's financial interests;
and help the EU better respond to security threats and transnational crime; - by continuing to facilitate growing levels of trade: EU customs authorities handled 331 million
declarations last year.
New fiscalis program It will support cooperation among the EU states' tax
administrations and better contribute to combating tax fraud, tax evasion and
tax avoidance, by: - creating better and more connected IT systems, which each EU state would otherwise have to
develop individually. This includes developing and maintaining interoperable
and cost-effective IT solutions to support tax authorities in implementing EU
legislation; - sharing good practices and training to boost efficiency: this includes
helping prevent unnecessary administrative burdens for citizens and
businesses (including SMEs) in cross-border transactions and significantly
adding to the 423,000 tax professionals trained since 2014; - organising joint actions in risk management and audits: since
2014 over 1,000 actions have been organised among
EU states; - fostering Union competitiveness, boosting innovation and facilitating the
implementation of new economic models.
Perspectives A swift agreement on the long-term EU budget and its
sectoral issues is essential to ensure that EU funds for programs, which
include customs union and combating tax avoidance and evasion. Any delays would mean that the EU loses out on revenues
to the EU budget from an efficient collection of EU customs duties, as customs
authorities are less able to keep the borders safe, and that citizens are
less protected from dangerous and counterfeit goods. An agreement on the next long-term budget in 2019 would
provide for a quicker transition between the current long-term budget
(2014-2020) and the new one and would ensure predictability of funding to the
benefit of all.
More information in: - MEMO on the Customs and Fiscalis programmes; - EU budget for the future; - Factsheets and legal
texts on the Fiscalis and Customs programs In: https://ec.europa.eu/commission/publications/tax-customs-legal-texts-and-factsheets_en
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Commission
press release on boosting cooperation between customs and tax authorities,
8.06.2017 in: