TAE praises new reform approach but sees further demand for
action as to allowances and tax-free lump sums
The President of the Taxpayers Association of Europe (TAE), Rolf von Hohenhau, praises the reform of the European Delegate Status as a milestone and positive reform approach. This reform fulfils a long lasting TAE claim.
Mr von Hohenhau is particularly delighted that the Deputy Chairman of the Board’s Working Group “Delegate Statute“, Dr. Ingo Friedrich (Member of the European Parliament), is also a member of the Taxpayers Association of Bavaria.
The cases published in the media are still unforgotten – fraudulent behaviour regarding daily allowances, self-service in terms of travel and secretariat allowances. This reform of delegate remunerations and travel costs as well as restrictions as to the employment of family members will put an end to self-service and fraudulent behaviour of individual European Delegates, says the President of the European Taxpayers Association.
Unified EU Delegate remuneration
In future, all delegates will receive a flat rate remuneration from the European budget. This remuneration will represent 38.5 % of the basic salary of a judge at the Court of Justice of the European Communities, currently 7,412.69 €, says von Hohenhau. So far, Members of the European Parliament have been remunerated like their national colleagues. This resulted in enormous differences in terms of remunerations paid to individual EU Delegates and, as a consequence, was an incentive for fraudulent behaviour.
Travel costs only according to costs actually spent
Like travel costs by car and train, travelling by air to the different working places of the Parliament will no longer be refunded in form of a flat rate but according to costs actually spent. With this, self-service will be extremely difficult, says the Taxpayers Association of Europe. It remains to be seen if the EU Delegates’ travelling behaviour undergoes any changes and less so-called „cheap flights“ are booked.
No employment of family members
In future, employment of first and nearest partners and relatives, i.e. parents and children via secretariat allowances, will no longer be possible for EU Delegates. Spouses that are employed on paper only in order to get the secretariat allowance will be a thing of the past, says Rolf von Hohenhau.
Demand for action with respect to daily subsistence allowances
Taxpayers Association of Europe still sees demand for action with respect to daily subsistence allowances. Only last week, some Delegates were discovered when they wanted to register in the attendance list - with their luggage already packed - in order to receive attendance fees for this very day although they had no intention to stay. A simple method to cope with this problem could be that lists are open for registration at a later point of the day or that Delegates have to register twice a day which would allow a subdivision of daily subsistence allowances.
Tax free cost lump sums – a thorn in the side
Rolf von Hohenhau still misses changes of the tax-free lump sum system which he considers to be a thorn in the side of the taxpayers. For him, it is incomprehensible that Delegates are far better off than normal taxpayers that have to collect every single voucher in order to enjoy tax deductions.
As a short-term solution of the problem, the Taxpayers Association proposes an imitation of the Dutch model, a „Code of Honour“ for all EU Delegates in which the Delegates undertake the repayment of flat rates that exceed actual costs to the European Parliament.
Rolf von Hohenhau is hopeful that the Member of the European Parliament, Dr. Ingo Friedrich and the Chairman of the Board’s Working Group “Delegate Statute“ Martine Roure, also a Member of the European Parliament, are ready to handle these open questions.
Brussels/Munich, 4 June 2008
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action as to allowances and tax-free lump sums
The President of the Taxpayers Association of Europe (TAE), Rolf von Hohenhau, praises the reform of the European Delegate Status as a milestone and positive reform approach. This reform fulfils a long lasting TAE claim.
Mr von Hohenhau is particularly delighted that the Deputy Chairman of the Board’s Working Group “Delegate Statute“, Dr. Ingo Friedrich (Member of the European Parliament), is also a member of the Taxpayers Association of Bavaria.
The cases published in the media are still unforgotten – fraudulent behaviour regarding daily allowances, self-service in terms of travel and secretariat allowances. This reform of delegate remunerations and travel costs as well as restrictions as to the employment of family members will put an end to self-service and fraudulent behaviour of individual European Delegates, says the President of the European Taxpayers Association.
Unified EU Delegate remuneration
In future, all delegates will receive a flat rate remuneration from the European budget. This remuneration will represent 38.5 % of the basic salary of a judge at the Court of Justice of the European Communities, currently 7,412.69 €, says von Hohenhau. So far, Members of the European Parliament have been remunerated like their national colleagues. This resulted in enormous differences in terms of remunerations paid to individual EU Delegates and, as a consequence, was an incentive for fraudulent behaviour.
Travel costs only according to costs actually spent
Like travel costs by car and train, travelling by air to the different working places of the Parliament will no longer be refunded in form of a flat rate but according to costs actually spent. With this, self-service will be extremely difficult, says the Taxpayers Association of Europe. It remains to be seen if the EU Delegates’ travelling behaviour undergoes any changes and less so-called „cheap flights“ are booked.
No employment of family members
In future, employment of first and nearest partners and relatives, i.e. parents and children via secretariat allowances, will no longer be possible for EU Delegates. Spouses that are employed on paper only in order to get the secretariat allowance will be a thing of the past, says Rolf von Hohenhau.
Demand for action with respect to daily subsistence allowances
Taxpayers Association of Europe still sees demand for action with respect to daily subsistence allowances. Only last week, some Delegates were discovered when they wanted to register in the attendance list - with their luggage already packed - in order to receive attendance fees for this very day although they had no intention to stay. A simple method to cope with this problem could be that lists are open for registration at a later point of the day or that Delegates have to register twice a day which would allow a subdivision of daily subsistence allowances.
Tax free cost lump sums – a thorn in the side
Rolf von Hohenhau still misses changes of the tax-free lump sum system which he considers to be a thorn in the side of the taxpayers. For him, it is incomprehensible that Delegates are far better off than normal taxpayers that have to collect every single voucher in order to enjoy tax deductions.
As a short-term solution of the problem, the Taxpayers Association proposes an imitation of the Dutch model, a „Code of Honour“ for all EU Delegates in which the Delegates undertake the repayment of flat rates that exceed actual costs to the European Parliament.
Rolf von Hohenhau is hopeful that the Member of the European Parliament, Dr. Ingo Friedrich and the Chairman of the Board’s Working Group “Delegate Statute“ Martine Roure, also a Member of the European Parliament, are ready to handle these open questions.
Brussels/Munich, 4 June 2008
return to menu