22 Amendments of Jeppe KOFOD related to 2016/0010(CNS)
Amendment 12 #
Proposal for a directive
Recital 2
Recital 2
(2) As Multi National Enterprise (MNE) Groups are active in different countries, they have the possibility of engaging in aggressive tax planning practices that are not available for domestic companies. When MNEs do so, purely domestic companies, normally small and medium- sized enterprises (SMEs) may be particularly affected as their tax burden is higher than that of MNE Groupsy pay an effective rate of tax that is much closer to statutory rates than MNEs, resulting in distortions to, and malfunctions of, the internal market. On the other hand, all Member States may suffer revenue losses and there is the risk of competition to attract MNE Groups by offering them further tax benefits. There is therefore a problem for the proper functioning of the Internal Market.
Amendment 26 #
Proposal for a directive
Recital 4
Recital 4
(4) Increased transparency towards tax authorities could have the effect of giving MNE Groups an incentive to abandon certain practices and pay their fair share of tax in the country where profits are made. It would also increase the 'peer pressure' between Member States and would focus the attention of financial markets on the fiscal accountability of MNEs. Enhancing transparency for MNE Groups is therefore an essential part of tackling base erosion and profit shifting.
Amendment 31 #
Proposal for a directive
Recital 4 b (new)
Recital 4 b (new)
(4b) When extending the automatic exchange of information at Union and global levels, due regard should be had to the European Parliament report on the proposal for a directive of the European Parliament and of the Council amending Directive 2007/36/EC as regards the encouragement of long-term shareholder engagement and Directive 2013/34/EU as regards certain elements of the corporate governance statement.
Amendment 32 #
Proposal for a directive
Recital 4 c (new)
Recital 4 c (new)
(4c) Due regard should also be had to the European Parliament resolution of 25 November 2015 on tax rulings and other measures similar in nature or effect.
Amendment 33 #
Proposal for a directive
Recital 4 d (new)
Recital 4 d (new)
(4d) When extending the automatic exchange of information at Union and global levels, due regard should also be had to the European Parliament resolution of 16 December 2015 with recommendations to the Commission on bringing transparency, coordination and convergence to corporate tax policies in the Union.
Amendment 38 #
Proposal for a directive
Recital 6
Recital 6
(6) In the country-by-country report, MNEs Groups should provide annually and for each tax jurisdiction in which they do business the amount of revenue, profit before income tax and income tax paid and accrued, but also public subsidies received, the value of assets and annual cost of maintaining them, and sales and purchases. MNE Groups should also report number of their employees, stated capital, retained earnings and tangible assets in each tax jurisdiction. Finally, MNE Groups should identify each entity within the group doing business in a particular tax jurisdiction and should provide an indication of the business activities each entity engages in.
Amendment 39 #
Proposal for a directive
Recital 7
Recital 7
(7) In order to enhance the efficient use of public resources and reduce the administrative burden for MNE Groups, the reporting obligation should only apply to MNE Groups with annual consolidated group revenue exceeding a certain amountEUR 40 million, in line with the definition of a large undertaking in Directive 2013/34/EU of the European Parliament and of the Council on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, and consistent with the proposed country-by-country reporting in the revision of Directive 2007/36/EC. The Directive should ensure that the same information is collected and made available to tax administrations in a timely manner throughout the EU.
Amendment 47 #
Proposal for a directive
Recital 9 a (new)
Recital 9 a (new)
(9a) Member States should ensure that they maintain or increase the level of human, technical and financial resources dedicated to the automatic exchange of information and data processing within tax administrations.
Amendment 54 #
Proposal for a directive
Recital 12
Recital 12
(12) TIn the absence of a Union definition of permanent establishment, the mandatory automatic exchange of country- by-country reports between Member States should in each case include the communication of a defined set of basic information that would be accessible to thoseall Member States in which, on the basis of the information in the country- by-country report, one or more entities of the MNE Group are either resident for tax purposes, or are subject to tax with respect to the business carried out through a permanent establishment of an MNE Group.
Amendment 63 #
Proposal for a directive
Recital 14 a (new)
Recital 14 a (new)
(14a) In the event that a Member State determines that another Member State persistently fails to automatically provide country-by-country reports, it should in the first instance consult that Member State and, if that does not lead to resolution of the problem, it should report that Member State to the Commission and an appropriate penalty should be imposed.
Amendment 68 #
Proposal for a directive
Recital 15 a (new)
Recital 15 a (new)
(15a) This Directive is a crucial step in going beyond the OECD BEPS Action Plan, as recalled by the European Parliament in its recommendations to the Commission in order to promote transparency, coordination and convergence to corporate tax policies in the Union. In particular, it is to be considered as the first move towards the implementation of a public country-by- country reporting for MNE Groups, such as the European Parliament has referred to on several occasions, through its reports on Directive 2007/36/EC, the report of the TAXE special committee and the European Parliament’s resolution of 16 December 2015 with recommendations to the Commission on bringing transparency, coordination and convergence to corporate tax policies in the Union.
Amendment 71 #
Proposal for a directive
Recital 18
Recital 18
(18) The scope of mandatory exchange of information should therefore be extended to include the automatic exchange of information of the country-by-country report. In order to enhance transparency for citizens, the Commission should publish the country-by-country reports, based on the information contained in the centralised register of country-by-country reports. In doing so, the Commission should comply with the provisions of this Directive on confidentiality.
Amendment 94 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2011/16/EU
Article 8aa – paragraph 2
Article 8aa – paragraph 2
2. The competent authority of a Member State where the Country-by-Country Report was received pursuant to paragraph 1 shall, by means of automatic exchange, communicate the report to any otherll Member State in which, on the basis of the information in the country-by-country report, one or more Constituent Entities of the MNE Group of the Reporting Entity are either resident for tax purposes, or are subject to tax with respect to the business carried out through a permanent establishment within the deadline laid down in paragraph 4s. The competent authority of the Member State must communicate the country-by-country report to the Commission, which is responsible for the centralised register of country-by-country reports, available to its competent services.
Amendment 96 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2011/16/EU
Article 8aa – paragraph 2 a new
Article 8aa – paragraph 2 a new
2a. The competent authority of a Member State to which the country-by-country report was sent pursuant to paragraph 1 shall, within 24 months after the end of the reporting fiscal year, communicate the report to any state belonging to the category of least developed countries (as defined by the United Nations), in which, on the basis of information contained in the statement by country, one or more constituent entities of multinational enterprises are resident for tax purposes, or are subject to tax with respect to the business carried out through a permanent establishment.
Amendment 98 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2011/16/EU
Article 8aa – paragraph 3 – point a
Article 8aa – paragraph 3 – point a
(a) aggregate information relating to the amount of revenue, profit (loss) before income tax, income tax paid, income tax accrued, stated capital, accumulated earnings, number of employees, and tangible assets other than cash or cash equivalents with regard to each jurisdiction in which the MNE Group operates, public subsidies received, the value of assets and annual cost of maintaining them, and sales and purchases;
Amendment 99 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2011/16/UE
Article 8aa – paragraph 3 – point b a (new)
Article 8aa – paragraph 3 – point b a (new)
(ba) the future European tax identification number (TIN) referred to in the Commission's 2012 Action Plan to strengthen the fight against fraud and tax evasion.
Amendment 103 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
4a. In order to enhance transparency for citizens, the Commission shall publish the country-by-country reports, based on the information contained in the centralised register of country-by-country reports. In doing so, the Commission shall comply with the provisions of Article 23a on confidentiality.
Amendment 104 #
Proposal for a directive
Article 1 – paragraph 1 – point 2 a (new)
Article 1 – paragraph 1 – point 2 a (new)
Directive 2011/16/UE
Article 17 – paragraph 4
Article 17 – paragraph 4
(2a) Article 17(4) is deleted;
Amendment 133 #
Proposal for a directive
Annex – Annex III – Section I – paragraph 4
Annex – Annex III – Section I – paragraph 4
4. "Excluded MNE Group" means, with respect to any Fiscal Year of the Group, a Group having total consolidated group revenue of less than EUR 750 000 000 or an amount in local currency approximately equivalent to EUR 750 000 000 as of January 2015 during the Fiscal Year immediately preceding the Reporting Fiscal Year as reflected in its Consolidated Financial Statements for such preceding Fiscwhich does not qualify as a large undertaking as defined in Article 3(4) of Directive 2013/34/EU of the European Parliament and of the Council, meaning an undertaking which on its balance sheet dates exceeds at least two of the three following thresholds: (a) balance sheet total: EUR 20 000 000; (b) net turnover: EUR 40 000 000; (c) average number of employees during the financial Yyear: 250.
Amendment 138 #
Proposal for a directive
Annex – Annex III – Section II – paragraph 1 – point b – point i
Annex – Annex III – Section II – paragraph 1 – point b – point i
Amendment 139 #
Proposal for a directive
Annex – Annex III – Section II – paragraph 1 – subparagraph 2
Annex – Annex III – Section II – paragraph 1 – subparagraph 2
Where there are more than one Constituent Entities of the same MNE Group that are resident for tax purposes in the Union and one or more of the conditions set out in point (b) apply, the MNE Group mayhas to designate one of such Constituent Entities to file the country-by-country report conforming to the requirements of Article 8aa(1) with respect to any Reporting Fiscal Year within the deadline specified in Article 8aa(1) and to notify the Member State that the filing is intended to satisfy the filing requirement of all the Constituent Entities of such MNE Group that are resident for tax purposes in the Union. That Member State shall, pursuant to Article 8aa(2), communicate the country-by- country report received to any otherll Member State in which, on the basis of the information in the country-by-country Report, one or more Constituent Entities of the MNE Group of the Reporting Entity are either resident for tax purposes, or are subject to tax with respect to the business carried out through a permanent establishments.
Amendment 141 #
Proposal for a directive
Annex – Annex III – Section II – paragraph 2
Annex – Annex III – Section II – paragraph 2