the austrian tax and customs administration annual report 2015 · 2020. 4. 29. · value added tax...

The Austrian Tax and Customs AdministrationAnnual Report 2015Information from the Federal Ministry of Finance.

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Facts and Figures 2015Overview

General Information Values

Economic Data

Gross domestic product (GDP) – at current prices 337 bn EUR

Real GDP growth compared to previous year 0.9%

Tax and contribution ratio acc. to ESVG - Taxes and social security contribution 44.5%

Inflation (HICP) 0.8%

Unemployment rate acc. to Eurostat definitions 5.7%

Consumer price index (CPI 2010) 110.7%

Budget deficit in % of GDP (Maastricht) -1.2%

Tax/Customs Revenues

Gross tax revenues (UG 16) 82.43 bn EUR

of which Wage tax 27.27 bn EUR

Value added tax (VAT) incl. import VAT 26.31 bn EUR

Corporation tax 6.32 bn EUR

Excise duties on mineral oil 4.20 bn EUR

Capital yields tax 3.86 bn EUR

Income tax 3.62 bn EUR

Insurance tax (incl. engine-related insurance tax) 3.03 bn EUR

Excise duties on tobacco 1.78 bn EUR

Real estate transfer tax 1.01 bn EUR

Duties acc. to gambling act 0.52 bn EUR

Standard fuel consumption tax 0.39 bn EUR

Alcohol and other excise duties 0.33 bn EUR

Customs duties 0.26 bn EUR

Disbursed family allowance payments 3.38 bn EUR

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Tax Offices Values

FinanzOnline (FON) participants (citizens) 3.55 m citizens

FinanzOnline (FON) participants (companies) 0.43 m businesses

Number of telephone calls 6.02 m calls

Average waiting time during telephone calls 41.56 seconds

General Assessment

FinanzOnline (FON) quota of employee tax assessments (L1) 65%

Processed employee tax assessments (L1) 3.78 m assessments

Processing time for employee tax assessment 24 calendar days

Processed requests, evaluations of family allowance applications 598,947 requests

Processing time for family allowance payments 25 calendar days

Business Assessment and Auditing

FinanzOnline (FON) quota of business assessments 87%

Completed tax returns (UEK) 2.08 m returns

Processing time for business assessments (UEK) 21 calendar days

Tax audits and special VAT audits 29,252 cases

Additional revenue from tax audits and special VAT audits 747.9 m EUR

Other audit measures 26,682 cases

Additional revenue from other audit measures 67.48 m EUR

Joint audits of wage-dependent taxes 11,798 cases

Additional revenue from joint audits of wage-dependent taxes 161.54 m EUR

Finalized penal procedures (incl. judicial procedures) 6,463 procedures

Safeguarding of Revenue

Collectable tax debts 1.644 m EUR

Total tax debt 7.908 m EUR

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Customs Offices Values

Traffic of Goods

Clearances 4.08 m clearances

Controls (declarations) 162,275 cases

Licences – customs 8,191 licenses

Audits and Controls

Completed audits 1,102 cases

Additional revenue 23.81 m EUR

Controls (customs surveillance) 5,891 cases

Mobile controls 2,706 operations

Excise Duties

Declarations (incl. distillation of alcohol) 55,441 declarations

Controls (supervision) 7,390 cases

Licenses – excise 9,517 licenses

Travellers

Controls (travellers) 230,900 persons

Tax refunds (U34) 2.23 m declarations

Seizures

CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) 1,310 seizures

Cash Control 92 discoveries

Counterfeit goods 2,771 seizures

Drugs 242 seizures

Reports to other administrations 1,461 reports

Cigarette smuggling cases 3,227 discoveries

Number of detected cigarettes 10.09 m cigarettes

Finalized penal procedures (incl. judicial procedures) 4,163 procedures

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Audit Unit for Large Traders Values

Audits/special VAT audits 3,030 cases

Additional revenue from audits/special VAT audits 902.17 m EUR

Audits of VAT foreigners 318 cases

Additional revenue from audits of VAT foreigners 118.98 m EUR

Other auditing measures 1,093 cases

Additional revenue from other auditing measures 11.28 m EUR

Tax Investigation Unit Values

TI investigations 152 cases

Confiscated cash 10.06 m EUR

Additional revenue from TI 13.40 m EUR

Tax Office for Duties, Transfer Taxes and Gambling Values

Audits 478 cases

Additional revenue 136.74 m EUR

Financial Police Values

Examined businesses 29,513 businesses

Examined employees 58,047 persons

of which illegal employees 11,961 persons

Number of examinations of games of chance 1,075 examinations

Safeguarding measures of revenue 28.1 m EUR

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Budget in millions of EUR Preliminary success 2015 Budget 2015

Personnel expenses 545.84 541.88

Material expenses 93.18 91.09

Number of staff (excl. staff on Full employment % of % of % ofleave) as of 01/01/2016 equivalent women academics school graduates

Tax offices 6,333 54% 5% 47%

Tax Investigation Unit 137 38% 5% 65%

Audit Unit for Large Traders 465 37% 80% 12%

Financial Police 477 24% 3% 42%

Customs offices 1.500 30% 3% 55%

Total 8,912 48% 9% 47%

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FACTS AND FIGURES 2015, OVERVIEW 3

INTRODUCTION 111. Tasks 122. Organisational Structure 123. Employees 13 CORE ACTIVITIES AND OBJECTIVES 15

Objective I: Development of Costumer Relations to Improve Tax Compliance 171. Application-free Family Allowance 182. Costumer Service by Telephone 183. Comprehensive Information Offering 184. Future-oriented Cooperation 19

Objective II: Risk-oriented Auditing and Control Activity 211. Improved Risk Management 222. Solvency Checks 223. Monitoring of Mail-order Trade 224. Multilateral Controls 23

Objective III: Timely and Correct Levy of Taxes and Duties 251. Reduction of Tax Arrears 262. Continuous Development of Quality Management 263. Internal control System 274. Basic Determination for Agriculture and Forestry 27

Objective IV: Protection of Society and Economy 291. Internet Trade in Counterfeit Products 302. Detection Dogs 303. Measures against Social Fraud 314. Support during the Refugee Crisis 31

Table of Contents

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Objective V: Employee Orientation 331. Education and Training 342. Talent Management 343. Junior Management Programme 344. Measures Resulting from the Employee Survey 35

Objective VI: Organisational Development 371. Customer Service at the Infocentre 382. Concentration of the Joint Audit of Wage-dependent Taxes 383. Modernisation of Locations 394. Energy and Environment Management 39

INTERNATIONAL COOPERATION 411. “Mini One Stop Shop” for EU VAT Assessment 422. Automatic Exchange of Information 423. Exchange of Experience with Neighbouring Tax and Customs Administrations 42

SOCIAL RESPONSIBILITY 451. Initiatives for Tax Compliance 462. Investing into the Future: Girls’ Day 2015 463. Sport Promotion 46

OUTLOOK 491. Tax Reform 2015/2016 502. New Customs Code of the European Union 513. Organisational Development 524. Simplifications for Citizens 525. New Employees 53

FACTS AND FIGURES IN COMPARISON 54

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The Austrian Tax and Customs Administration is among the most innovative and successful administrations in Europe. As a modern and service-oriented institution, we continuously endeavour to further develop our services, thereby contributing significantly to simplification for the Austrian citizens.

This annual report by the Austrian Tax and Customs Adminis-tration provides information on its functions, organisation and current projects as well as on the objectives and performance in the year 2015.

Introduction

Mission of the Tax and Customs Administration

Our fundamental task is the safeguarding of the financi-al interests of the Republic of Austria and the European Union, and thus in particular the levying of taxes and other duties.

At the same time, we are an acknowledged partner of the Austrian industry and one of the constitutive factors in the long-term protection and strengthening of Austria as a business location.

Through control, supervision and auditing activities, we contribute significantly to the protection of the upright industry, of society and of the environment as well as to the enforcement of neutrality of taxation.

We strive to fulfill our responsibilities with a focus on ser-vice-orientation, proximity to the public and transparency.

We are an active part of shaping international decision and cooperate closely with other agencies on the national and international level.

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Locations of the Austrian Tax and Customs AdministrationThe locations of the Austrian Tax and Customs Administration and information on their opening hours can be found under www.bmf.gv.at > Offices.

1. Tasks

Taxes and duties are the foundation of our society, for they are used to finance the state’s polity. It is the responsibility of the Austrian Tax and Customs Administration to levy the legally defined taxes and duties and to grant family allowance pay-ments and other reimbursements.

Following the principle of uniformity of taxation, the Tax Admi-nistration secures the framework conditions for fair competition in the economy and supports the Austrian citizens and compa-nies in all tax and duty matters.

Besides securing tax revenues and enforcing tax regulations,customs affairs are a further important part of the Tax Adminis-tration’s portfolio. As part of the European Union Customs Union, the Austrian customs authority guarantees security for the free exchange of goods as well as monitoring the obser-vance of national regulations. In keeping with the notion of “fair play”, the Tax and Customs Administration supports those who pay – or want to pay – their taxes in full and on time while pursuing those who do not act in accordance with the law.

Anti-fraud activities und regulatory measures by the Financial Police (for example verification of abidance by gambling laws) complete the scope of the Tax and Customs Administration’s tasks.

2. Organisational Structure

The Austrian Tax and Customs Administration is a modern, efficient and service-oriented institution, and among the most innovative and successful administrations in Europe. Flat hierarchies, flexible forms of working and an orientation towards performance and impact characterise its organisation. Proximity to the public is the focus of our daily work.

The Austrian Tax and Customs Administration consists of the following organisational units:

Federal Ministry of Finance(incl. Tax and Customs Coordination Office)

Audit Unit for Large Traders

Tax Investigation Unit

Financial Police

Tax office for Duties, Transfer Taxes and Gambling

39 Tax Offices

9 Customs Offices

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3. Staff

We employ comprehensively trained staff and secure our strengths with sound professional and social education and training measures. Qualification as a tax or customs specialist is conveyed by our own educational institution, the Federal Academy of Finance. Our experts are internationally recognised and provide support in other countries as well.

For efficient control and support, our agencies (tax and customs offices) are arranged into five regions. Agencies with nationwide competence

Personnel (excl. staff on leave) as of 01/01/2016

Tax offices (incl. TO DTG) 72 % 54 % 5 % 47 %

Audit Unit for Large Traders 5 % 37 % 80 % 12 %

Tax Investigation Unit 2 % 38 % 5 % 65 %

Financial Police 5 % 24 % 3 % 42 %

Customs offices 16 % 30 % 3 % 55 %

Total 100 % 48 % 9 % 47 %

(Tax Office for Duties, Transfer Taxes and Gambling, Audit Unit for Large Traders, Tax Investigation Unit and Financial Police) operate locations in all five regions.

The region Vienna is the largest region with 2,648 employees. 2,235 staff members are employed in the region Middle (Upper Austria and Salzburg), 1,950 in the region South (Styria and Carinthia), 1,999 in the region East (Lower Austria and Burgenland), and the region West (Tyrol and Vorarlberg) has 1,484 employees serving the local population.

Personnel by units as of 01/01/2016

Tax InvestigationFinancial PoliceAULTCustoms officesTax offices(incl. TO DTG)

2% 5%5%

16%

72% 44%

AcademicsHigh school grad.Specialist and assistant services

9%

47%

Personnel by qualification as of 01/01/2016

% of total% ofwomen

% of acadmics% of high school

graduates

The fulfilment of the tasks of the tax offices, customs offices and federal departments (Tax Office for Duties, Transfer Taxes and Gambling, Audit Unit for Large Traders, Tax Investigation Unit and Financial Police) is based on laws, ordinances and supplementary decrees. These enactments form the basis for our administrative activity, and building upon them, our annual target agreements aim to ensure the efficacy of this activity.

Target agreements represent a significant element of the ma-nagement philosophy of the Federal Ministry of Finance. They guarantee the predictability of performance and resources in the Tax and Customs Administration, and are therefore also a requirement for self-monitoring and financial controlling.

Within the target agreement, six strategic objectives are de-fined and concretized by way of core areas and performance goals. The target agreement must always take into conside-ration the principle of impact orientation, which represents an important element of the reform of federal budget law. In order to evaluate this impact orientation, certain indices are constantly monitored.

Core Activitiesand Objectives

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Management Objectives of Core Tasks

Objective I Development of customer relations to improve tax complianceObjective II Risk-oriented auditing and control activityObjective III Timely and correct levy of taxes and dutiesObjective IV Protection of society and economy

Objectives for Internal Development

Objective V Employee orientationObjective VI Organisational development

In a service- and customer-oriented administration, communi-cation with the citizens and businesses represents an essential factor for success in all organisational units. As a modern administration, the Austrian Tax and Customs Administration strives to continually improve its services for citizens. In 2015, several innovations related to demand-oriented service and promotion of automation and digitalisation were implemented as a result. These included solutions that help to make interac-tions with our agencies as uncomplicated and quick as possible for citizens and reduce bureaucracy. The implementation of application-free family allowance payments in case of birth within Austria, for example, has provided significant relief for young families.

Measures like school visits to increase tax and customs com-pliance as well as cooperation in networks, including target-group-oriented services, were also implemented successfully. In total, the Tax and Customs Administration conducted more than 12,000 activities to improve tax discipline in 2015, including school visits, inaugural visits and networking.

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Objective IDevelopment of Customer Relations to Improve Tax Compliance

Main Priorities 2015

Development and implementation of measures to incre ase tax and customs compliance and improve ethical tax behaviour Optimisation of customer interaction with particular

emphasis on telephony Extension of networks with other administrations,

special interest groups, citizens and businesses in the spirit of Good Public Governance

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1.1. Application-free Family Allowance

As a highlight of our customer service, family allowance is now granted without the need for an application if a child is born in Austria. Until now, family allowance was granted exclusively upon application. The implementation of this joint project of the Federal Ministry of Finance and the Federal Ministry of Families and Youth saves young parents the hassle of the family allowance application as well as a trip to the tax office.

The innovation comes by way of a so-called “No-Stop-Shop” solution in which the required data are transferred electronically from the Central Civil Status Registry to the IT systems of the Tax Administration and automatically compared with existing information. If all required data is available to the Tax Administ-ration, family allowance is quickly and automatically granted and disbursed. With around 80,000 births every year, this results in a significant unburdening of the Austrian population, and around 52,600 parents have already benefitted from this reduction of bureaucracy in 2015. Almost 60 percent of all cases could be processed automatically within no more than one week and without the need for interaction with the affected citizens.

The two ministries were awarded several prizes for this “No-Stop-Shop” solution, including an Austrian Administration Prize 2016 and a European Public Sector Award 2015.

2. Customer Service by Telephone

The information desk service via telephone represents a signi-ficant challenge for our employees due to the large number of incoming calls. A specially designed seminar series entitled “Fit on the Phone” educated all our team leaders and their teams via multiple modules on how to conduct such calls in a stress-free fashion. This is particularly beneficial for our customers, as stress-free calls are usually also conducted in a friendlier manner. We therefore expect this measure to have a positive effect on our already high customer satisfaction.

3. Comprehensive Information Offering

Target-group-appropriate information events

Dialog events in schools have been an important part of our service for years. In 2105, Tax Administration staff visited a

large number of schools to lay the foun-dations for proper tax discipline by our future customers.

The target group of senior citizens was likewise comprehensively informed. In 2015, for example, service events on employee tax assessments were con-ducted in Lower Austria and Vienna in cooperation with the Senior Citizens’ Association.

In Vienna, our cooperation with the Austrian Integration Fund and the City Administration Department 17 for Inte-gration and Diversity under the motto “Finding Ways Together” was successfully continued.

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This cooperation resulted in eight workshops on topics like employee tax assessments, FinanzOnline, family assistance and taxation of registered associations, as well as two training events on diversity for tax office personnel by experts from the Austrian Integration Fund.

Timely Information about Legislative ChangesWith a view to the changes to real estate transfer taxes be-coming effective in 2016, the Tax Office for Duties, Transfer Taxes and Gambling organised an information event on self-assessment of the real estate transfer tax together with the Bar Association. The lectures by the experts from the Tax and Customs Administration not only clarified the legal foundations, but also provided examples of how to register assessments in FinanzOnline, explained the mode of payment for the self-assessed taxes, and pointed out the consequences of missing deadlines as well as possible fiscal criminal prosecution.

In November 2015, the Styrian Economic Chamber, the Province of Styria and the Graz Customs Office co-hosted an information event informing about the new recycling regu-lations for building materials. The target audience included builders, planners, building authorities and other affected parties in the building and waste management industries. The jointly developed Styrian Construction Waste Guideline 2016 provides additional target-group-specific, practical and step-by-step instructions for legally compliant and environment-friendly treatment of waste produced during construction, including the duty-relevant aspects of the Inherited Waste Remediation Contribution.

Information Offering at Trade FairsThe Tax and Customs Administration also participates in vari-ous trade shows. In 2015, citizens and businesses were offered information, support and comprehensive service at 14 events across Austria, e.g. at the Gewinnmesse in Vienna or the Grün-dermesse in Graz. The Customs Administration also exhibited for the first time at the annual Ferien-Messe Wien, with Vienna Airport employees sharing interesting and important infor-mation on duty-free allowances and excepted quantities for travellers.

Providing such target-group-specific information on selected topics is very important to the Austrian Tax and Customs Administration and contributes significantly to positively affec-ting taxpayer honesty in Austria.

4. Future-oriented Cooperation

Tax Compliance at SchoolsThe optional course “Tax Compliance” was offered at the Viennese higher technical school TGM in 2015. In April, stu-dents of the industrial engineering department presented the knowledge they had gained on the basics of the Austrian fede-ral budget and Austrian tax laws to a commission of represen-tatives of the Tax and Customs Administration and the school. The term tax compliance refers to the willingness to voluntarily comply with applicable tax laws and fulfil one’s tax duties cor-rectly. It is therefore particularly important to lay a foundation for responsible behaviour at a young age. This cooperation between the Tax and Customs Administration and the TGM represents an important contribution to improving tax honesty.

Horizontal Monitoring for BusinessesSince 2011, large businesses have been able to request ac-companying, cooperative monitoring by the Tax and Customs Administration. In 2015, 13 businesses participated in the pilot project “Horizontal Monitoring”. This close cooperation with the Austrian Tax Administration is beneficial for both sides, offering legal security and planning reliability for participating businesses as well as timely and compliant collection of duties for the Tax Administration. Under the motto “Horizontal Monitoring – Meeting for the Future”, a meeting between representatives of the participating businesses, their tax consultants, members of the responsible large business audit teams, and the business tax assessment teams of the processing tax offices was organised in November 2015. In the course of this meeting, all parties agreed that the model is viable and effective and should continue to be applied. The project will now undergo process-related evaluati-on, with a final report to be published in 2016.

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Tax honesty and discipline are affected by various factors; among these factors is risk-oriented audit and control activity by the Tax Administration. The likelihood of being audited, and the associated likelihood of the discovery of noncompliant be-haviour increase tax revenues by far more than just the direct additional revenue from the audit measures themselves due to their preventive effect. Effective audits and anti-fraud measu-res are primarily directed at those persons and businesses that do not meet their obligations voluntarily, and serve to ensure the neutrality of taxation.

Risk-oriented audit and control activity guarantees the efficient use of resources, supports anti-fraud measures and ensures general prevention.

In total, 79,000 external audits were conducted by the Tax and Customs Administration in 2015, e.g. VAT, transfer tax and gambling audits, joint audits of wage-related taxes and business audits (tax and customs), as well as enquiries and searches. These measures resulted in additional revenues of more than 2.1 million Euros.

Objective IIRisk-oriented Auditing and Control Activity


Optimisation of all audit measures, in part through intensification of risk analysis and efficient execution of audits Continuous development of risk management Combating tax evasion and tax fraud,

if necessary by enlisting international administrative assistance Customs checks with special focus on avoidance, anti-

dumping and returned goods

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1. Improved Risk Management

Efforts during the elapsed year focused on optimising our risk management, increased use of various situational and target-group-oriented supervision and audit measures, and national as well as international administrative cooperation.

Within the framework of its local risk management, for ex-ample, the Tax Office for Duties, Transfer Taxes and Gambling analysed common areas of fraud and defined appropriate risk criteria. To improve tax discipline and ensure timely and correct tax payments, steps were taken to improve the data basis, and the direct exchange of information with the local anti-fraud coordinator was implemented. Thanks to optimised case selec-tion and the measures taken, the additional revenue generated by the Tax Office for Duties, Transfer Taxes and Gambling was increased from nearly 58 million Euros in 2014 to more than 136 million Euros.

Project “Predictive Analytics”Predictive Analytics is already seeing manifold use in commer-ce. Online shops use it to link products and prices and analyse the surfing behaviour of users to predict their buying patterns; banks employ it an attempt to predict the risk of credit de-faults; credit card companies use it to calculate the likelihood of fraudulent withdrawals. These statistical methods of analysis will also help to increase the hit rate for tax audit case selec-tion in the coming years.

A pilot project was initially launched with the goal of optimising case selection for the joint audit of wage-related taxes using these new methods of analysis. Further on down the road, a “Predictive Analytics Competence Centre” (PACC) will be esta-blished to assure the prediction of risk-oriented measures for the entire Tax and Customs Administration. Among others, this new organisational unit will assume the responsibilities of the existing Risk, Information and Analysis Centre. Predictive Analytics will also be used in the fields of business auditing, international VAT fraud, customs duties and the reco-very of tax arrears.

Pilot Project “Start-up Risk Management”Besides intensified cooperation with the register courts and the risk-oriented inaugural visits, the pilot project “Start-up Risk Management” is to be developed into an effective new tool for local risk management. In this context, the tax offices of the Eastern region are focusing on start-ups, which are conside-red risk businesses in terms of taxes. Indicators for possible dubious company establishments can be a fraud-prone industry sector, a dubious address or managing directors with a history of tax issues. In order to prevent fraudulent activity outright, or at least discover it as quickly as possible, special measures will be in place from the get-go. The current plan is to pilot these measures until the end of 2016.

2. Solvency checks

Solvency checks are performed on businesses with solvency problems in the case of tax arrears as part of the risk management strategy. Timely, concrete and comprehensive enquiries into the current income and asset situation can allow appropriate recovery measures to be taken early on, thereby avoiding tax losses. This solvency assessment of businesses is conducted by specially trained auditors. In 2015, 398 cases were assessed throughout Austria. In 91 of these cases, a per-manent insolvency or overindebtedness was determined which eventually led to bankruptcy filing to avoid a further increase of liabilities towards the state and other creditors.

3. Monitoring of Mail Order Trade

The sale of goods to end customers in Austria by foreign com-panies is a significant commercial sector with two-digit growth annual rates. Correct taxation of corresponding foreign goods deliveries in Austria not only increases tax revenue, but also prevents competitive advantages for foreign businesses due to different VAT rates within the Single Market, thereby protec-ting the domestic economy. Customised information, increased publicity, and cooperation with the Austrian Economic Chamber and its foreign trade departments have resulted in a signifi-

cant increase of 44 percent in new registrations of mail order businesses. To ascertain Austrian tax entitlements, the Tax and Customs Administration increased its focus on monitoring newly registered mail order businesses in 2015. This focus on anti-fraud monitoring in mail order trade led to additional VAT revenues of 10.2 million Euros.

4. Multilateral Controls

The economy is becoming ever more networked and internati-onalised. Business audits at the national level quickly reach the limits of their investigative possibilities when applied to trans-national circumstances and business structures. One means offered by the regulations on VAT and consumption taxes as well as the directive for all taxes in general is the “simultane-ous audit”, better known under the term “multilateral control”. It allows circumstances to be clarified in direct consultation between tax administration staff of other Member States.

19 multilateral controls were processed simultaneously in 2015. Seven of them were begun with Austrian involvement, and 6 of these initiated by Austria. Two multilateral controls were com-pleted in the elapsed year. One of these dealt with VAT fraud and did not lead to additional tax revenue in Austria, but forced one company to discontinue its operations while a second com-pany was liquidated. Additional taxes worth 434 million Euros in total were levied in the other participating Member States.

The second option for direct information exchange is the dispatch of auditors. This option was made use of six times during 2015 at the initiative of Member States. All of these cases concerned the correction of transfer prices. In two of these cases alone, a total tax assessment basis of around 28 million Euros was returned to Austria compared to the original correction claims by the respective Member States.

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To ensure uniform enforcement of the law, one of the main responsibilities of the Tax and Customs Administration is the timely and correct determination, levy and collection of taxes and other duties.

The measurement of cycle times guarantees prompt and timely action in regard to determination as well as levy and collection of taxes.

Internal controls and accompanying quality assurance measu-res simultaneously ensure the correctness of all transactions. For example, a total of 8,819 quality assurance measures were conducted in 2015.

Objective IIITimely and CorrectLevy of Taxes and Duties


Optimisation of receivables management for targeted reduction of tax arrears, especially through timely and adequate usage of existing instruments like arrears analysis, intensification of safeguarding measures, and cooperation across teams and agencies Continuous development of quality and knowledge

management, especially through application of the process map and implementation of quality circles Optimisation of the internal control system Timely execution of the basic determination for agricul-

ture and forestry

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1. Reduction of Tax Arrears

In 2015, we were once again able to slightly reduce the volu-me payable, enforceable and processable tax arrears. Although the levied tax volume increases every year, the nationwide introduction of solvency checks, the intensification of training measures, and the increased use of available

Enforceable Tax Arrears (in millions of EUR)

2012

1.650

1.700

1.750

1.800

1.850

1.550

1.600

2012 2013 2014 2015

1,735

1,822

1,6701,644

2013

2014

2015

Tax revenues (UG 16) (in billions of EUR)

2012

65,0

70,0

75,0

80,0

85,0

55,0

60,0

2012 2013 2014 2015

73.276.4

78.5

82.4

2013

2014

2015

50,0

instruments like arrears analysis allowed the volume of enfor-ceable tax arrears to be reduced to 1.64 billion Euros. At the end of 2015, this value was thus 1.6 percent lower than the value for the previous year.

Tax revenues 2012 2013 2014 2015(selection, in millions of Euros)

Income and property taxes 35,683.2 38,737.9 39,988.5 42,796.8

of which wage tax 24,524.1 24,597.1 25,942.3 27,272.4

Consumption and transfer taxes 36,691.5 36,856.8 37,953.6 38,900.1

of which VAT 24,602.3 24,866.7 25,471.5 26,013.2

Federal tax revenuePublic dues (UG 16) 73,153.10 76,370.40 78,502.8 82,427.1

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2. Continuous Development of Quality Management

The quality of performed work plays an important role for the Tax and Customs Administration. In order to achieve the best possible quality, new instruments were rolled out to all tax and customs offices in the country as part of the continuous development of our quality management system. This means that two new tools with more individual responsibility are now available to our offices in addition to the already successfully implemented previous quality assurance measures.

On the one hand, the process map helps to plan the use of target-oriented quality assurance measures. Work processes carrying risks are identified through analysis and evaluation of the tasks and process descriptions, and the need for deve-lopment and implementation of quality assurance measures is derived from the results.

On the other hand, quality circles are used to promote a continuous process of improvement within each organisational unit. The goal of these quality circles is to increase individual responsibility in the respective areas, resulting in independent development of suggestions for improvement.

3. Internal Control System

The internal control system (ICS) of the Tax and Customs Administration consists of organisational measures and controls regarding compliance with standards, clearance boundaries and further framework conditions serving the prevention of manipulation and malversation. In order to protect our emplo-yees, it is important for our work processes to be transparent and traceable.

Combining measures of the internal control system with quality assurance measures provides the advantage that besides process-oriented monitoring, more complex circumstances and situations are also evaluated by appropriate experts. Thus in 2015, topical and cross-team ICS audits were performed at the tax offices in addition to the regular cross-checks.

4. Basic Determination for Agriculture and Forestry

The basic determination of assessed values for the agriculture and forestry sectors once again required great efforts from the assessment staff. The most important part of the determination process was the verification of data on economic unity according to existing records. The data from the land title register and the tax returns frequently did not fully match up, however, necessi-tating further investigations. In order to achieve a quick but ne-vertheless legally correct settlement of these records, an appro-priate knowledge network was established. New assessments were performed for around 306,000 properties in 2015 and the corresponding notices sent. This means that about 56 percent of the total of 550,000 economic units were newly assessed in 2015, with the remaining assessments to follow in 2016.

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Objective IVProtection of Society and Economy

Anti-fraud measures, the enforcement of competition laws to assure free movement of goods, and control duties for the protection of humans, animals, plants, the environment and cultural assets are further responsibilities of the Austrian Tax and Customs Administration.

In the field of species conservation, elephant tusks, giant clams, handbags made of snake leather, and ivory were seized in 2015. Illegal pharmaceuticals, on the other hand, cause not only great damage to the health of humans, but also to the economy. The Austrian Tax and Customs Administration therefore intensively pursues any illegal activity by organised criminals.

Besides control measures, however, the information and educa-tion of consumers is equally important. The Federal Ministry of Finance has therefore been successfully distributing infor-mation about the dangers of product piracy as well as on safe purchasing via the Internet.


General-prevention-oriented nationwide control mea sures as financial policing authority in the areas of tax supervision and regulatory policy Targeted measures against the violation of prohibitions

and limitations within the authority of the Customs Administration Promotion of effective anti-fraud measures, for instance

through optimisation of cooperation within the Tax and Customs Administration as well as with other agencies

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1. Internet Trade in Counterfeit Products

Anti-CounterfeitingIn 2015, Austrian customs officers seized pirated products from 2,771 shipments. The value of the 44,832 seized products totalled more than 10.7 million Euros as measured on the original product prices. The financial volume of product piracy seizures was thus nearly doubled in comparison with 2014, an increase mostly attributable to Internet trade with counterfeit goods. The anonymity of the Internet combined with the ease of operating across national borders and creating copies of official web stores have made the Internet the most important distribution channel for counterfeit products. Counterfeiters also advertise this channel aggressively, particularly in social networks and above all on Facebook. Goods ordered via the Internet are imported in small shipments by mail or courier service. In 2015, a total of 2,693 such shipments with counter-feit goods ordered online were seized.

Pharmaceutical CrimeAs usual, Austria participated in the international fight against pharmaceutical crime on the Internet in 2015, joining the In-terpol operation “Pangea”. During the action week, the Austrian Customs Administration focussed on preventing the import of illegal and counterfeit pharmaceuticals ordered online and ship-ped by mail. Nearly 1,500 illegal potency pills were thus seized. A further focal point for the customs officers was the checking of travellers arriving at the Vienna Airport, since illegal phar-maceuticals are frequently imported via this channel. These checks resulted in the seizure of more than 500 illegal medi-cations (antibiotics and medications against stomach trouble). Illegal and counterfeit pharmaceuticals are usually ordered via the Internet. They can pose huge health risks as they are ma-nufactured under uncontrolled and untraceable circumstances and do not comply with required quality standards.

2. Detection Dogs

The four-legged officers of the detection dog section of the Austrian Customs Administration once again provided an impressive display of their abilities in 2015. They searched for drugs, cash and protected species, and located almost 1.5 million cigarettes and 256 kg of narcotics – among other items.

With their empathic training methods and substantial know-ledge, our detection dog handlers are considered experts in their field throughout Europe. In 2015, two detection dogs and their handlers were awarded the Rochus medal for their exceptional performance.

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3. Measures against Social Fraud

Social fraud, especially through bogus companies in the con-struction industry, causes significant tax and social security losses every year. Not only the federal budget and social secu-rity system suffer from this distortion of competition, however; compliant companies do as well. A particular phenomenon of social fraud are the so-called bogus companies established for systematically evading wage taxes and social security contribu-tions. For this purpose, new companies are founded or existing companies that hitherto had not been acting illegally are taken over or used. They serve as vehicles for worker registration and accounting, with actual workers as well as persons without actual jobs are registered with the social security system, the Construction Worker Vacation and Severance Pay Fund, or the Tax Administration. The Social Fraud Prevention Law is desig-ned to promote the prevention and persecution of social fraud.

The kick-off-event for the implementation project of the Social Fraud Prevention Law took place at the Federal Ministry of Finance in 2015.

The project’s goals are to install the social fraud database stipulated by the new law, define the required official identifi-cation of bogus companies including their publication on the Internet, and integrate all other information and cooperation duties into a workflow.

4. Support during the Refugee Crisis

Coping with the refugee crisis was a transnational challenge in 2015, and the Austrian Tax and Customs Administration contributed significantly to this endeavour. Towards the end of the year, several state police departments were suppor-ted by members of the Financial Police and Customs staffs. For example, 49 Financial Police staff assisted with the initial questioning and administrative registration of asylum seekers. In addition, twelve operative control teams from the Customs Administration cooperated with the state police departments with the goal of intensive controlling of the national borders and main traffic routes with high levels of human trafficking.

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Objective VEmployee Orientation

The Austrian Tax and Customs Administration is a responsible and attractive employer. Internal development and the estab-lishment of a modern working environment have been inherent elements of our management efforts for years. Family-oriented personnel policy featuring measures like flexible work time models, teleworking and Career-Compass-Leave are characte-ristic of the Tax and Customs Administration. In 2015, the tax and customs offices of the Central region received an award for being a family-friendly employer.


Implementation of measures based on the results of the employee survey Assuring requirement-based personnel use Promotion of optimal cooperation throughout the entire

organisation Promotion of measures for equal treatment of men and

women Supporting workplace health promotion

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1. Education and Training

The Tax and Customs Administration offers its employees a comprehensive multi-stage education scheme including everything from apprenticeships as tax assistants over basic and functional education and vocational training up to the Tax Management bachelor and master programmes. The extensive educational offering addresses all employees of the ministry to ensure that its development as a knowledge-based organisati-on is optimally supported.

The basic training conveys fundamental and overview know-ledge and forms the basis for employment in one of the administrative sections of taxes, customs or general service. The functional education deepens the knowledge gained in the basic education with a targeted combination of practical and theoretical courses. Lifelong learning and constant updating of active knowledge are necessary to remain up-to-date and ensure the productive efficiency of the Tax and Customs Administration.

Investment into the professional and personal competences of public service employees is one of the foundations for a successful relationship between citizens and the administration. In 2015, the Federal Finance Academy offered 260 topics in more than 800 courses that were attended by around 14,000 persons.

2. Talent Management

During the year 2015, implementation of the “Talent Ma-nagement” concept was completed in all tax and customs offices and all nationwide departments. The concept offers all employees professional orientation and is the basis for targeted professional development. For example, the nominations for junior management programmes were made within the frame-work of the Talent Management concept. In addition, various demand-oriented mobility measures and potential analyses were conducted in co-ordination with the affected executive employees.

Conceptually, the focus for 2015 was placed on linking the Talent Management with different personnel management to-pics. For example, the mid-term personnel placement planning was connected with the Talent Management concept, with the results of the latter being integrated into all internal job adver-tisement processes. This way, several employees were able to advance their careers in 2015 on the foundation of the Talent Management concept.

3. Junior Management Programmes

Executive employees play a central role: It is their respon-sibility to build trust within their team, support and direct employees appropriately, delegate sensibly, evaluate results, etc. In order to optimally support executive employees in the fulfilment of their tasks, the Administration as employer offers a variety of measures reaching from qualification programmes for potential managers over seminars for existing executives to coaching and mentoring.

In the spring of 2015, for example, interest in participating in support and development programmes for potential team leaders was surveyed within the framework of the Talent Ma-nagement concept. The nominated employees then underwent a selection process for the programme.

In November, two Support and Development Programmes (SDP) and one Management Development Programme (MDP) began for a total of more than 40 motivated employees from all of Austria. The programme offers the unique opportunity to observe the function of an executive employee in all its facets.

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4. Measures Resulting from the Employee Survey

Based on the results reported by the employee survey 2014, the implementation workshops of the various Tax and Customs Administration departments and agencies began in February 2015. Their goal was to define three to five areas of action, thereby allowing improvement measures in the different organisational units to be initiated.

Core topics for nationwide implementation throughout the entire Tax and Customs Administration were also developed – e.g. executive staff development and knowledge management.

In the course of the survey, 56 percent of Tax and Customs Administration staff made use of the opportunity to evaluate the mental strain of their working environment and filled in the corresponding ORGFit questionnaire. With the help of this ad-

ditional questionnaire, the four impact areas task requirements and activities, social and organisational climate, work processes and organisation, and working environment are assessed. Like in all other areas, each department and agency received an anonymised evaluation down to the team level, enabling it to conduct team-specific workshops with the goal of developing measures to reduce stress. These sets of measures are subse-quently included in the safety and health documentation.

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Objective VIOrganisational Development

The measures of organisational development are designed to ensure the requirements for an innovative, impact-oriented and efficient organisation that is capable of properly fulfilling its tasks and adapting to changing demands in the future. In 2015, for example, the joint audit of wage-dependent taxes was restructured by the Tax and Customs Administration in order to increase its autonomy and efficiency.


Increasing security in the Tax and Customs Adminis- tration, especially in regard to customer contacts Continued development of competences in regard

to timely quality assurance, expansion of knowledge management, available resources, organisation- spanning cooperation, etc. Continued development of customer management Increasing energy efficiency

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1. Customer Service at the Infocentre

New Infocentre Opening HoursThe goal of the Austrian Tax and Customs Administration is to provide demand-oriented service to its customers. To this end, the project “New Opening Hours” was launched in Upper Austria in 2014. Differing opening times due to regional cir-cumstances were successfully piloted in the project, and from 2 November 2015, new opening hours have been in effect at all Austrian tax offices. Changes in the field of telephony were also necessary.

Tax offices in cities with more than 100,000 inhabitants are now open longer than offices in smaller cities. Although Kla-genfurt is still slightly below the threshold, it is already treated as a large city. The opening hours of customs offices co-located in tax office buildings (= Financial Centres) were harmonised with those of the corresponding tax offices. Separate summer opening hours apply during the months of July and August.

Reorganisation of TelephonyThe new nationwide telephone numbers allow the around 4 million calls per year to be more efficiently handled in our Info-centres while also providing better accessibility to our custo-mers. Since 2 November 2015, the telephone information ser-vice of the tax offices has been reachable under the nationwide telephone numbers +43 (0) 50 233 233 for private individuals and +43 (0) 50 233 333 for businesses. The numbers of the other Tax Administration agencies like customs offices and the Audit Unit for Large Traders were also changed.

2. Concentration of the Joint Audit ofWage-dependent Taxes

Within the tax offices, the joint audit of wage-dependent taxes was previously assigned to the business assessment and audit teams. In the course of the reorganisation of the Financial Centre Wien Mitte in 2013, an exception was already made for the Vienna region in that the respective auditors were concen-trated in separate teams in two tax offices.

Opening Hours andTelephone Numbers

Thursday

Opening hours

Friday

Monday

Tuesday

Wednesday

all other locationsWien, Graz, Linz, Salzburg,Innsbruck and Klagenfurt

07:30 – 15:30

Summer Opening hours (nationwide) July, August: 07:30 to 12:00

07:30 – 12:00

07:30 – 15:30

07:30 – 12:00

07:30 – 12:00

07:30 – 12:00

07:30 – 12:00

07:30 – 17:00

07:30 – 12:00

07:30 – 15:30

New Telephone Numbers Nationalwide, Monday to Thursday from 07:30 to 15:30 and Friday from 07:30 to 12:00

Private individuals

Businesses

Form order number

050 233 233

050 233 333

050 233 710

Information on Opening HoursInformation on the opening hours of the tax and customs offices and on reachability by telephone can be found on www.bmf.gv.at > Offices.

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As a result of the experience with this change and a recommen-dation by the Austrian Court of Audit, the model is now being implemented throughout Austria.

A project was launched in April 2015 to prepare and implement the location of these auditors at the tax offices with extended scope of activity according to § 15 para. 1 Tax Administration Organisation Law 2010, and at the tax office Lilienfeld St. Pölten and the tax office Bruck Eisenstadt Oberwart for the Eastern region. From 1 January 2016, there will thus be ten centres for joint audits of wage-dependent taxes in Austria with a total 250 auditors in 21 audit teams.

3. Modernisation of Locations

Infrastructure measures were also implemented throughout the regions in 2015 to provide our employees with modern and up-to-date working environments.

Financial Centre InnsbruckThe Financial Centre Innsbruck project was launched in 2014 and consists of two phases. In the first project phase, the office and meeting rooms in the entire building were equipped with LED lighting, and most also with acoustic ceilings, in the course of space consolidation. Simultaneously, efficient space management allowed room for around 80 employees of the Innsbruck customs office to be created. Since November 2015, all employees of the Tax and Customs Administration, the Federal Finance Court and the Federal Bookkeeping Agency at Innsbruck are now co-located at a single address: Innrain 32.

The second project phase will take place in the first half of 2016. In this phase, the sanitary installations in the entire building will be renovated and full handicapped access will be implemented. For the latter purpose, a new elevator will be installed near the main entrance. The project is being executed without interrupting normal operations or restricting customer traffic at the site.

Financial Centre KlagenfurtOctober 2015 also saw the initiation of a project to rent and settle in a new building for the Financial Centre Klagenfurt. The Klagenfurt tax and customs offices as well as the teams of the nationwide departments Large Trader Audits, Tax Investigation, Financial Police, the Tax Office for Duties, Transfer Taxes and Gambling, and the Tax and Customs Co-ordination were to be settled at a new joint location.

The goal was to achieve better efficiency and benefit from organisational and infrastructural synergies through a single location solution. The implementation of the project and the relocation of all employees in the affected organisational units is scheduled for May 2017. The following other projects were completed in 2015:

Wiener Neustadt: Completion of building renovation Bruck an der Leitha: Completion of traffic control spots Vienna, Erdberg: Completion of rooms for operational

training

4. Energy and Environment Management

The topic of sustainability is of the utmost importance for the Tax and Customs Administration. Within the monitoring cycles of the certifications ISO 14.001 Environment Management (for central management) and ISO 50.001 Energy Management (for the entire Ministry), the conformity of the integrated manage-ment system with applicable norms as well as its suitability and efficacy for the organisation of the Federal Ministry of Finance were confirmed. Within the framework of these monitoring evaluations, the central management and the locations Baden and Villach were audited. The recommendations provided by these audits will be integrated into the environmental pro-gramme for 2016 and will thus become part of our continuous efforts towards improvement. Our certificates were confirmed; they continue to reflect our intense commitment to sustainabi-lity and environmental protection.

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InternationalCooperation

Effective anti-fraud measures are not just a national, but an in-ternational concern, and the demand for international coopera-tion in this field is therefore continually increasing. Cooperation between countries and the exchange of information on tax and customs issues between EU Member States were naturally a focus of the Austrian Tax and Customs Administration’s efforts in 2015.

In addition, experts from the Tax and Customs Administration are also active in various projects by international organisations like the Organisation for Economic Cooperation and Develop-ment (OECD) or the World Customs Organisation (WCO). Among other activities, cooperation in the framework of the JITSIC network was increased.

The JITSIC network (Joint International Task Force for Sharing Intelligence and Collaboration) connects national tax adminis-trations from 36 countries around the world that are commit-ted to dealing with tax evasion in more effective and efficient ways. The project provides a platform allowing its members to cooperate actively within the applicable legal framework and to exchange their experiences, resources and expertise. The information exchanged through the JITSIC network includes general and specific information about compliance behaviour of taxpayers as well as information on the topic of anti-fraud activities.

1. “Mini One Stop Shop” for EU VAT Assessment

On 1 January 2015, EU-wide regulations on the location of telecommunication, broadcasting and television services as well as other services provided electronically to non-business customers within the EU came into force. Simultaneously, a single contact point for these services was established in order to minimise resulting compliance costs for businesses. This means that traders no longer need to register in every indivi-dual EU Member State. Instead, there is a single contact point for their tax registration and administration as well as for their tax declaration that applies to all Member States. This concept is known as “Mini One Stop Shop” (MOSS).

Access to the MOSS portal is provided via FinanzOnline. Using the appropriate application, any business located in Austria that provides corresponding services in the EU area can register, submit a VAT declaration for revenues in the EU other Member States, and ultimately pay the assessed taxes. Forwarding of the declarations and associated payments to the corresponding EU Member State occurs automatically.

The Mini One Stop Shop was implemented successfully and with great acceptance by businesses in Austria. Around 12,000 businesses across Europe have registered. With around 700 registrations, Austria is in fourth place behind Germany, Great Britain and the Netherlands. The total revenues of the decla-rations submitted via MOSS in Austria in 2015 was around 85 million Euros, of which around 17 million Euros are taxes. The total revenue made by foreign businesses with Austrian consu-mers and registered via MOSS was around 326 million Euros, of which around 65 million Euros were taxes.

2. Automatic Exchange of Information

The tax administrations throughout the EU have agreed to cooperate more closely in order to be able to rightfully and properly levy taxes on their tax subjects. The most important piece of legislation in this regard is the Directive 2011/16/EU on cooperation by the administrations in the area of taxation.

Effective 1 January 2015, this directive stipulates the automatic exchange of information on the following categories of income and capital:

Income from employment Administrative or management board income Life insurance products not included in other European

Union legislation on information exchange or other comparable measures Retirement pay and pensions Ownership of real property and income generated therefrom

In addition, various countries and territories – including Austria – have agreed to apply the OECD standard for the automatic exchange of information about financial accounts starting in 2017, respectively in 2018 in exceptional cases.

3. Exchange of Experience with Neighbouring Tax and Customs Administrations

The experts of the Austrian Tax Administration are internati-onally recognized and actively support the administrations of various other countries. Visits by foreign delegations, twinning projects to support foreign tax and customs administrations, and working visits and workshops within the framework of the programmes Fiscalis 2020 and Customs 2020 round of the broad spectrum of international cooperation.

Slovenian Tax AdministrationCooperation and information exchange with staff of Slovenian tax administration via mutual annual visits has a long tradition. In May 2015, for example, a delegation of the Klagenfurt tax office visited the Kranj tax office, and in November 2015 the management of the Kranj tax office came to Klagenfurt. Topics broached by the Slovenian staff included the consolidation of tax and customs administrations, while their Austrian colle-agues presented information on the system of taxing income from agriculture and forestry with a special focus on the basic determination of assessed values in agriculture and forestry, as well as information on the taxation of Slovenian construction businesses for construction work in Austria.

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Czech Tax AdministrationContinuing the cooperation with the Czech tax administration, a delegation from the tax administration for the region of Sou-thern Moravia visited Vienna at the invitation of the regional manager of the Eastern region. The topics addressed during this working visit included the organisational development of the Czech tax administration as well as increased anti-fraud efforts, multilateral controls and the tax reform. Concrete action plans for trans-border anti-fraud activities and the improvement of cooperation through the nomination of contact persons in the respective tax offices were discussed. The goal of this intensified cooperation is to increase the success of transnational anti-fraud measures.

Neighbouring Customs AdministrationsThe annual trilateral meeting of the customs administrations of Germany, Austria and Switzerland took place in Vienna in 2015. Among the topics discussed were the introduction of a general customs authority in Germany, reorganisation measu-res in the Swiss customs administration, and the problems in connection with the introduction of the new EU Customs Code. Further intensive cooperation was agreed for various areas like training courses, internal revision or concrete fraud cases. The extremely productive meeting will be held in Switzerland in the coming year.

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Social Responsibility

It is the declared goal of the Tax and Customs Administration to ensure an economic order and climate that provide a solid foundation for social cooperation together with all stakehol-ders. The Tax and Customs Administration contributes to assuring a fair competitive environment and prevent disho-nest conduct. Neutrality of taxation and equal treatment are important principles; citizens are advised during the fulfilment of their tax obligations.

In addition, the Tax and Customs Administration is aware of its social responsibility and strives to be an example of proper conduct. We aim to achieve a lasting impact, for instance, by educating of young citizens and supporting athletes.

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1. Initiatives for Tax Compliance

The basic thrust of the principle of tax compliance calls for a cooperative relationship between the tax administration and the citizens who fulfil their tax obligations, as well as for effective measures vis-à-vis those who do not. The latter is achieved through continuous monitoring and control in conjunction with effective anti-fraud measures.

The Tax and Customs Administration has implemented de-dicated measures for targeted assistance and education of entrepreneurs at the beginning of their business activities, e.g. inaugural visits or first business year assistance. Entrepreneurs who are expected to display tax dishonesty are intensively monitored, allowing appropriate steps to be taken quickly if needed.

2. Investing into the Future: Girls’ Day 2015

Besides visiting schools, the Tax and Customs Administration also informs young participants at the annual Girls’ Day about the various tasks and activities of the individual organisatio-nal units as well as about job and career opportunities. The Girls’ Day at the end of April 2015 provided 14 young women with the opportunity to cast a glance behind the scenes of the customs office Eisenstadt/Vienna Airport. They were offered a diverse programme including topics like training and operative use of police dogs (with a demonstration of a dog at work on a baggage belt) or species conservation and customs regu-lations for travellers (with a display of seized objects like sea horses and giant clams). Besides the overview of the tasks and duties of customs officers at the airport, the structure of a customs office was explained and information on topics like tax and customs revenue was provided. The young women also showed great interest in the electronically provided information on the Tax and Customs Administration, along with the Finance Ministry website and mobile app.

3. Sports Promotion

Sports promotion has a long tradition at the Ministry of Finance. Since 1952, promising young talents in competitive alpine and Nordic sports have been supported on their way to the European and World stages. Athletes are given sufficient time for training and competitions while simultaneously being educated in the Customs Administration and thereby prepared for a later function in the customs service (as per the motto “Career after the career”). The possibility of being accepted into the financial service after ending their sporting career supports the Austrian Skiing Federation in its endeavour to maintain its world-class status as well as the athletes them-selves.

The highlight of the year 2015 was the gold medal for Chris-toph Nösig, Eva-Maria Brem and Philipp Schörghofer in the team event of the Alpine Skiing World Championships in Vail/Beaver Creek, USA. Besides the alpine and Nordic skiing teams, the Ministry of Finance has also been supporting disabled sports since 2008. Two of the most successful members of the paraskiing team at the Ministry of Finance in 2015 were Markus Salcher and Roman Rabl. At the Paraskiing World Champion-ships in Panorama, Canada, the pair were able to win a total of four silver medals. Roman Rabl and Thomas Grochar also secured the coveted title of Euro-Cup Overall Winner at the Euro-Cup finals in Sella Nevea, Italy.

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Outlook

The work of the Austrian Tax and Customs Administration will continue to be strategically realigned following the motto “simple, effective, electronic”. The primary focus of this deve-lopment is on adapting to constantly changing customer needs and digital challenges.

Automation of the general assessment, simple legisprudence and better inclusion of our customers in the design of pro-cesses will be at the centre of our interest. Several new legal regulations will also come into force in 2016.

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1. Tax Reform 2015/2016

The year 2016 is distinguished by the implementation of the tax reform 2015/2016 and its reciprocal financing measures. Important goals of the tax reform are simplification, tax reliefs and the promotion of economic growth. A new tariff scheme will disburden the Austrian tax payers by a total volume of around 5.2 billion Euros starting on 1 January 2016.

Anti-fraud measures play a significant role in the reciprocal financing of the tax reform. They are supported with new instruments and legal regulations like the Capital Inflow and Outflow Law or the introduction of the obligation to have a cash register and provide receipts. The introduction of a central bank account register and the possibility of account inspection are further supporting measures.

Individual Recording, Cash Register and Receipt Provi-sion ObligationThe obligation to keep individual records, have a cash regis-ter and provide receipts, along with the technical safeguards against manipulation, contributes to the enforcement of tax fairness. Previously, cash payments up to an annual revenue of 150,000 Euros could be “recorded” by a simple cashing-up. From 1 January 2016 on, businesses with a yearly revenue of at least 15,000 Euros, of which at least 7,500 Euros are cash revenues, are obligated to individually record their cash reve-nues with an electronic record-keeping system. Independently of this obligation, the business must also provide a receipt for each received cash payment. Correspondingly, this means that the customer now has the obligation to accept the receipt and retain it until he or she has left the business premises.

From 2017 on, the cash register must be safeguarded against manipulation by technical security measures. This new com-prehensive obligation to record revenues in specific industries is expected to produce additional tax revenues of around 900 million Euros per year.

Enforcement of the Account Register and Account Inspection LawThe introduction of an account register as per international example is designed to serve the principles of thrift, economy and serviceability during criminal proceedings, administrative fiscal criminal proceedings and the levy of federal duties. The changes to existing banking law provide the Tax and Customs Administration with access to information that is normally pro-tected by bank secrecy. In the framework of a project for the implementation of the Account Register and Account Inspec-

Calculate Your Personal Disburdenment Due to the Tax ReformThe disburdenment calculator at www.bmf.gv.at > Berechnungsprogramme > Entlastungsrechner can be used to quickly and easily calculate personal savings due to the tax reform online.

Additional InformationenComprehensive information related to the obligation for indi-vidual recording, cash registers and receipt provision can be found under www.bmf.gv.at > Steuern > Für Selbständige und Unternehmen > Registrierkassen

tion Law as well as the Capital Outflow Reporting Law, legal and organisational questions will be discussed and the techni-cal requirements for the corresponding electronic information and data processing systems defined.

The goal of these banking law changes is to ensure the equa-bility of taxation. The alignment with existing European and international standards will allow untaxed revenues to be more easily discovered and the withdrawal of untaxed capital to be prevented in future.

2. New Customs Code of the European Union

The implementation of the new European Union Customs Code, which will come into force on 1 May 2016, poses a significant challenge for the Tax and Customs Administration. The legal changes create new requirements and framework conditions for the successful fulfilment of the duties of our 1,200 customs employees.

In order to optimally prepare and support our staff during this transition, the customs offices, the federal specialist depart-ment and the responsible department at the Federal Ministry of Finance jointly developed a multi-stage training concept. Based on an EU e-learning programme co-developed by Austria, basic seminars conveying general knowledge as well as special semi-nars for experts were developed and conducted at all customs offices.

New harmonised and simplified processes should provide relief for customs administrations as well as businesses in gene-ral. This will hopefully lead to an increase in competitiveness throughout the EU, creating jobs and simultaneously increasing tax revenues.

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3. Organisational Development

Evaluation of Customs StructuresThe introduction of the EU Customs Code as well as changes in national and international framework conditions pose consider-able challenges for the Austrian Customs Administration. An analysis of the requirements in terms of structure and proces-ses is therefore necessary, and an appropriate project to evaluate the structures of the Customs Administration will be laun-ched in early 2016.

All areas of the Customs Administration, beginning with the customs offices and reaching up to the tax and customs coor-dination department and the Federal Ministry of Finance, will be analysed. All evaluation steps will occur in full coordination with the affected personnel and management levels. Const-ructive cooperation will yield a result determining the future direction of development for the Customs Administration in terms of structures and processes.

Tax Office MapThere are currently 40 tax offices with a total of 80 locations in Austria. Most tax offices have one, two or three locations and between 150 and 200 employees. A new project plans to develop a concept for reorganising the tax offices and optimi-sing their locations under consideration of demographic and economic developments, efficient personnel management and geographically appropriate responsibilities.

The first project phase aims to assess the current state of the tax offices, analyse them using internal and external parame-ters, and deliberate strategic issues. The subsequent phases will establish a target state under consideration of the existing framework conditions, estimate the impact of possible changes and develop a suitable timeframe for their potential implemen-tation.

4. Simplifications for Citizens

Customer Service 4.0 – Self-service Online StrategyCustomer service requirements have been increasing continu-ally over the past years, not least due to changing expectations and framework conditions. To maintain our ability to provide effective customer-oriented service during the coming years, appropriate adaptations are necessary. This applies in particu-lar to FinanzOnline and other self-service offerings, which will need to be developed continuously under involvement of the affected customers. For those citizens who do not wish to use or cannot use the self-service offerings, our other service of-ferings (e.g. information by telephone) will also be continually revised and adapted to increasing requirements.

Automatic General AssessmentCurrently, wage earners must submit a so-called general assessment (previously: annual settlement) if a tax credit is to be expected due to employment for less than the entire year or the claiming of certain special expenses. From the assessment year 2016 on, this will occur automatically if existing records allow the assumption that only wage income has been earned and all necessary information is available. The first application-free general assessments will be performed during the summer of 2017 (for the assessment year 2016) so long as no tax de-claration has been submitted. From the assessment year 2017 onward, certain expenses (donations, church contributions and expenses under the voluntary insurance extension programme) will be directly forwarded to the Tax Administration and taken into consideration for the general assessment. This means that from this point on, even more citizens will receive application-free tax credits.

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Note on Job AdvertisementsCurrent advertisements for jobs at the Austrian Tax and Customs Administration are published via the Austrian Federal Job Exchange. Further information can be found on our website www.bmf.gv.at > Jobs & Karriere.

5. New Employees

The Austrian Tax and Customs Administration is growing again. Following the hiring freeze of the past years, 1,500 new emplo-yees will be hired until 2019. This means that not only every retired or otherwise lost employee will be replaced, but the payroll will be expanded by around 500 additional employees in the Business Audit, Financial Criminal Proceedings and Tax and Customs Investigations departments. The greatest challenges

in this regard will be recruiting, integration, and training of the new staff members as well as knowledge transfer.

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Numbers are the foundation of the world of taxes and customs. This section therefore provides various interesting internal data including performance indices and more. It is intended to provide an overview of the various fields of activity of the Tax and Customs Administration.

Facts and Figuresin Comparison

Tax/Customs Revenues 2012 2013 2014 2015in Millions of Euros

Value added tax (VAT) incl. import VAT 24,602.3 24,866.7 25,471.5 26,013.2

Wage tax 24,524.1 24,597.1 25,942.3 27,272.4

Income tax 2,602.0 3,119.9 3,383.9 3,617.3

Corporation tax 5,326.6 6,018.0 5,906.1 6,320.4

Capital yields tax 2,511.5 2,589.9 2,769.5 3,863.1

Customs duties 224.7 214.3 243.0 261.9

Alcohol and other excise duties 320.5 323.7 372.5 327.9

Excise duties on mineral oil 4,181.4 4,165.5 4,135.0 4,201.1

Excise duties on tobacco 1,620.8 1,662.1 1,713.2 1,776.3

Family allowance payments 3,135.7 3,162.8 3,127.1 3,379.9

Budget (preliminary) 2012 2013 2014 2015in Millions of Euros

Personnel expenses 498.05 514.83 526.09 545.84

Material expenses 100.46 92.20 93.39 93.18

Audit Unit for Large Traders 2012 2013 2014 2015

Business audits and special VAT audits 3,720 3,290 3,133 3,030

Additional revenue in millions of Euros 1,243.91 690.23 847.03 902.17

Audits of VAT foreigners 455 417 347 318

Additional revenue in millions of Euros 29.37 126.21 27.55 118.98

Other audit measures 732 828 1,088 1,093


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Financial Police 2012 2013 2014 2015

Examined businesses 30,035 36,467 33,610 29,513

Examined employees 58,069 73,599 70,428 58,047

of which illegal employees 10,026 11,310 13,143 11,961

Number of examinations of games of chance 762 661 602 1.075

Tax Investigation Unit 2012 2013 2014 2015

Audits and enforcement measures 139 136 150 152


Tax Office for Duties, Transfer Taxes and 2012 2013 2014 2015Gambling

Audits 529 532 585 478

Additional revenue 58.38 91.57 57.85 136.74

Customs Offices 2012 2013 2014 2015

Traffic of Goods

Declarations in millions of cases 4.01 4.05 4.04 4.08

Controls (declaration cases) 171,986 188,192 170,780 162,275

Audits and Controls

Completed audits 1,145 1,132 1,027 1,102


Controls (customs surveillance) 5,893 5,514 5,388 5,891

Mobile controls (operations) 2,753 2,870 2,729 2,706

Excise Duties

Declarations (incl. distillation of alcohol) 69,055 57,943 59,234 55,441

Controls (supervision) 8,411 7,963 8,150 7,390

Travellers

Controls (travellers) 290,366 291,532 257,647 230,900

Tax refunds (U34) in millions of cases 1.51 1.72 1.90 2.23

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Tax Offices 2012 2013 2014 2015

General Assessment

FON quota of employee tax assessments (L1) 57% 60% 62% 65%

Processing time for employee tax assessment (receipt to notification)

in calendar days 19 17 22 24

Processing time for family assistance payments (receipt to notification)

in calendar days 17 20 23 25

Processed employee tax assessments (L1) in millions of cases 3.63 3.69 3.73 3.78

Processed requests and evaluations of family assistance payments 579,648 574,909 586,770 598,947

Safeguarding of Revenue

Tax debts with issued debt notifications in millions of Euros 1,735 1,822 1,670 1,644

Total tax debt in millions of Euros 7,272 7,674 7,653 7,908

FinanzOnline

Number of participants in millions of persons 2.81 3.07 3.32 3.98

Business Assessment and Auditing

FON quota of business assessments 84% 85% 86% 87%

Processing time for business assessments (receipt to notification) in calendar days 20 19 20 21

Completed tax returns in millions of cases 1.99 2.04 2.08 2.08

Business audits and special VAT audits 27,124 27,595 26,656 29,252


Other audit measures (incl. inaugural visits) 43,424 42,074 38,936 26,682


Joint audits of wage-dependent taxes 12,058 11,594 11,341 11,798


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ImprintEditor, owner and publisher: Bundesministerium für Finanzen, Johannesgasse 5, 1010 WienResponsible for the contents: BMF, IV/A - Management der Steuer- und ZollverwaltungPhotos: BMF/Arnd Oetting, colourbox.deLayout: Druckerei des BMF Wien Februar 2017www.bmf.gv.at

- gedruckt nach der Richtlinie „Druckerzeugnisse“ des Österreichischen Umweltzeichens,Druckerei des Bundesministeriums für Finanzen, UW-Nr. 836

the austrian tax and customs administration annual report 2015 · 2020. 4. 29. · value added tax...

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