Activities of Eleftherios SYNADINOS related to 2016/0107(COD)
Plenary speeches (1)
Disclosure of income tax information by certain undertakings and branches (debate) EL
Amendments (34)
Amendment 31 #
Proposal for a directive
Recital 1
Recital 1
(1) In recent years, the challenge posed by corporate income tax avoidance and aggressive tax planning has increased considerably and has become a major focus of concern within the Union and globally. The European Council in its conclusions of 18 December 2014 acknowledged the urgent need to advance efforts in the fight against tax avoidance both at global and Union level. The Commission in its communications entitled ‘Commission Work Programme 2016 - No time for business as usual’16 and ‘Commission Work Programme 2015 - A New Start’17 identified as a priority the need to move to a system whereby the country in which profits are generated is also the country of taxation. The Commission also identified as a priority the need to respond to our societies’ call for fairness and tax transparency. _________________ 16 COM(2015) 610 final of 27 October 2015. 17 COM(2014) 910 final of 16 December 2014.
Amendment 34 #
Proposal for a directive
Recital 6
Recital 6
(6) The public should be able to scrutinise all the activities of a group when the group has certain establishments and interests within the Union. For groups which carry out activities within the Union only through subsidiary undertakings or branches, subsidiaries and branches should publish and make accessible the report of the ultimate parent undertaking. However for reasons of proportionality and effectiveness, the obligation to publish and make accessible the report should be limited to medium-sized or large subsidiaries established or with a strong continuous presence in the Union, or branches of a comparable size opened and operating in a Member State. The scope of Directive 2013/34/EU should therefore be extended accordingly to branches opened in a Member State by an undertaking which is established outside the Union.
Amendment 37 #
Proposal for a directive
Recital 7
Recital 7
(7) In order to avoid double or multiple reporting for the banking sector, ultimate parent undertakings which are subject to Directive 2013/36/EU of the European Parliament and of the Council21 and which include in their report prepared in accordance with Article 89 of Directive 2013/36/EU all its activities and all the activities of its affiliated undertakings included in the consolidated financial statements, including activities not subject to the provisions of Chapter 2 of Title 1 of Part Three of Regulation (EU) No 575/2013 of the European Parliament and of the Council22 , should be exempted from the reporting requirements set out in this Directive. _________________ 21 Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338). 22 Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1).
Amendment 38 #
Proposal for a directive
Recital 8
Recital 8
(8) The comprehensive report on income tax information should provide information concerning all the activities of an undertaking or of all the affiliated undertakings of a group controlled by an ultimate parent undertaking. The information should be based on the reporting specifications of BEPS’ Action 13 and should be limited to what is necessary to enable effective public scrutiny, in order to ensure that disclosure does not give rise to disproportionate risks or any unfair disadvantages. The report should also include a brief description of the nature of the activities. Such description might be based on the categorisation provided for in table 2 of the Annex III of Chapter V of the OECD “Transfer Pricing Guidelines on Documentation”. The report should include an overall narrative providing explanations in case of material discrepancies at group level between the amounts of taxes accrued and the amounts of taxes paid, taking into account and in comparison with corresponding amounts concerning previous financial years.
Amendment 39 #
Proposal for a directive
Recital 9
Recital 9
(9) In order to ensure a level of detail that enables citizens to better assess and scrutinize the contribution of multinational undertakings to tax and welfare in each Member State, the information should be broken down by Member State as well as Member States' constituent countries and states. Moreover, information concerning the operations of multinational enterprises should also be shown with a high level of detail as regards non-cooperative tax jurisdictions or certain tax jurisdictions which pose particular challenges. For all other third country operations, the information should be giveit should be possible to provide the information in an aggregate number.
Amendment 43 #
Proposal for a directive
Recital 10
Recital 10
(10) In order to strengthen responsibility vis-á-vis third parties and to ensure appropriate governance, the members of the administrative, management and supervisory bodies of the ultimate parent undertaking which is established within the Union and which has the obligation to draw up, publish and make accessible the report on income tax information, should be collectively responsible for ensuring the compliance with these reporting obligations. Given that members of the administrative, management and supervisory bodies of the subsidiaries which are established within the Union and which are controlled by an ultimate parent undertaking established outside the Union or the person(s) in charge of carrying out the disclosures formalities for the branch may have limited knowledge of the content of the report on income tax information prepared by the ultimate parent undertaking, their legal responsibility to publish and make accessible the report on income tax information should be limitedlie with those in positions of authority as per the internal hierarchical structures applicable by custom or the organizational chart.
Amendment 44 #
Proposal for a directive
Recital 11
Recital 11
(11) To ensure that all finalized cases of non- compliance are disclosed to the public, statutory auditor(s) or audit firm(s) should checkfirst establish whether the report on income tax information has been submitted and presented in accordance with the requirements of this Directive and duly made accessible on the relevant undertaking’s website or on the website of an affiliated undertaking.
Amendment 45 #
Proposal for a directive
Recital 12
Recital 12
(12) This Directive aims to enhance transparency and the public scrutiny on's capability to scrutinise all the activities of a group ordinarily present or established in the Union based on data related to corporate income tax by adapting the existing legal framework concerning the obligations imposed on companies and firms in respect of the publication of reports, for the protection of the interests of members and others, within the meaning of Article 50(2)(g) TFEU. As the Court of Justice held, in particular, in Case C-97/96 Verband deutscher Daihatsu-Händler23 , Article 50(2)(g) TFEU refers to the need to protect the interests of "others" generally, without distinguishing or excluding any categories falling within the ambit of that term. Moreover, the objective of attaining freedom of establishment, which is assigned in very broad terms to the institutions by Article 50(1) TFEU, cannot be circumscribed by the provisions of Article 50(2) TFEU. Given that this Directive does not concern the harmonisation of taxes but onlyis strictly limited to obligations to publish reports on income tax information only, Article 50(1) TFEU constitutes the appropriate legal basis. _________________ 23 Judgement of the Court of Justice of 4 December 1997, C-97/96 Verband deutscher Daihatsu-Händler ECLI:EU:C:1997:581
Amendment 46 #
Proposal for a directive
Recital 13
Recital 13
(13) In order to determine non- cooperative tax jurisdictions and certain tax jurisdictions for which a high level of detail should be shown, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of drawing up a common Union list of these tax jurisdictions. This list should be drawn up on the basis of certain criteria, identified on the basis of Annex 1 of the Communication from the Commission to the European Parliament and Council on an External Strategy for Effective Taxation (COM(2016) 24 final). It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making as approved by the European Parliament, the Council and the Commission and pending formal signature. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.
Amendment 47 #
Proposal for a directive
Recital 14
Recital 14
(14) Since the objective of this Directive cannot be sufficiently achieved by the Member States alone but can rather, by reason of its effect, be betterprocedurally normalized and more effectively achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Directive does not go beyond what is necessary in order to achieve that objective.
Amendment 49 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48b – paragraph 1 – subparagraph 1
Article 48b – paragraph 1 – subparagraph 1
Member States shall require ultimate parent undertakings governed by their national laws and having a consolidated net turnover exceeding EUR 7250 000 000 as well as undertakings governed by their national laws that are not affiliated undertakings and having a net turnover exceeding EUR 7250 000 000 to draw up and publish a report on income tax information on an annual basis.
Amendment 51 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48b – paragraph 1 – subparagraph 2
Article 48b – paragraph 1 – subparagraph 2
The report on income tax information shall be made accessible to the public in a comprehensive manner and appropriate format for an average reader on the website of the undertaking on the date of its publication.
Amendment 52 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48b – paragraph 3 – subparagraph 1
Article 48b – paragraph 3 – subparagraph 1
Member States shall require the medium- sized and large subsidiary undertakings referred to in Article 3(3) and (4) which are governed by their national laws and controlled by an ultimate parent undertaking which has a consolidated net turnover exceeding EUR 7250 000 000 and which is not governed by the law of a Member State, to publish the report on income tax information of that ultimate parent undertaking on an annual basis.
Amendment 53 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48b – paragraph 3 – subparagraph 2
Article 48b – paragraph 3 – subparagraph 2
The report on income tax information shall be made accessible to the public on the date of its publication in a comprehensive manner and appropriate format for an average reader on the website of the subsidiary undertaking or on the website of an affiliated undertaking.
Amendment 54 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48b – paragraph 4 – subparagraph 1
Article 48b – paragraph 4 – subparagraph 1
Member States shall duly require branches which are opened in their territories by an undertaking which is not governed by the law of a Member State to publish on an annual basis the report onappropriately and fully publish on an annual and binding basis the disclosing report on relevant income tax information of the ultimate parent undertaking referred to in point (a) of paragraph 5 of this Article.
Amendment 55 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48b – paragraph 4 – subparagraph 2
Article 48b – paragraph 4 – subparagraph 2
The report on income tax information shall be made accessible to the public oin the date of its publicationa comprehensive manner and appropriate format for an average reader on the website of the branch or on the website of an affiliated undertaking on the date of its publication .
Amendment 56 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48b – paragraph 5 – point a
Article 48b – paragraph 5 – point a
(a) the undertaking which opened the branch is either an affiliated undertaking of a group which is controlled by an ultimate parent undertaking not governed by the law of a Member State and which has a consolidated net turnover exceeding EUR 7250 000 000 or an undertaking that is not an affiliated and which has a net turnover exceeding EUR 7250 000 000;
Amendment 57 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48b – paragraph 6
Article 48b – paragraph 6
6. Member States shall not apply the rules set out in paragraphs 3 and 4 of this Article where a report on income tax information drawn up in accordance with Article 48c is otherwise made accessible to the public in the required standard and an appropriate manner on the website of the ultimate parent undertaking not governed by the law of a Member State within a reasonable period of time, which shall not exceed 126 months after the balance sheet date and where the report identifies the name and registered office of the single subsidiary undertaking or the single branch ordinarily governed by the law of a Member State which has published the report in accordance with Article 48d(1).
Amendment 58 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48b – paragraph 7
Article 48b – paragraph 7
7. Member State shall duly require subsidiaries or branches not strictly subject to the narrow provisions of paragraphs 3 and 4 to appropriately publish and makefully and accessible thy disclose on an annual and binding basis the respective report on income tax information where such subsidiaries or branches have been established for the purpose of avoiding the reporting requirements set out in this Chapter.
Amendment 59 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48c – paragraph 2 – introductory sentence
Article 48c – paragraph 2 – introductory sentence
2. The information referred to in paragraph 1 shall comprise at least the following:
Amendment 60 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48c – paragraph 2 – point a
Article 48c – paragraph 2 – point a
(a) a brief descrip, relevant, descriptive and factual illustration of the nature of all the activities;
Amendment 61 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48c – paragraph 2 – point b
Article 48c – paragraph 2 – point b
(b) the number of employeesfull-time and part- time employees, including those on fixed- term contracts, on a traineeship or research contract, or on probation period;
Amendment 62 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48c – paragraph 2 – point c
Article 48c – paragraph 2 – point c
(c) the amount of the net turnover in the currency or currencies used as a medium for the respective transactions or other actions, which includes the turnover made with related parties;
Amendment 63 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48c – paragraph 2 – point d
Article 48c – paragraph 2 – point d
(d) the amount of profit or loss in the currency of the Member State in reference before income tax;
Amendment 64 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48c – paragraph 2 – point e
Article 48c – paragraph 2 – point e
(e) the amount of income tax accrued (current year) in the reference currency used by the Member State, which is the current tax expense recognised on taxable profits or losses of the financial year by undertakings and branches resident for tax purposes in the relevant tax jurisdiction;
Amendment 65 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48c – paragraph 2 – point f
Article 48c – paragraph 2 – point f
(f) the amount of income tax paid in the currency in use by the respective sovereign Member State, which is the amount of income tax paid during the relevant financial year by undertakings and branches resident for tax purposes in the relevant tax jurisdiction; and
Amendment 66 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48c – paragraph 2 – point g
Article 48c – paragraph 2 – point g
(g) the amount of accumulated earnings in the currency of choice, either EUR or the currency used by the respective Member State or broken down over several currencies depending on the undertaken transactions and other actions and the respective current account(s) balance sheet.
Amendment 67 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48c – paragraph 3 – subparagraph 2
Article 48c – paragraph 3 – subparagraph 2
The report shall present the information referred to in paragraph 2 separately for each Member State. Where a Member State comprises several tax jurisdictions, the information shall be combined at Member State levelbroken down over all tax jurisdictions where the undertaking maintains presence or is ordinarily established to the same effect. The information shall be combined at Member State level if there is no difference on liabilities and obligations resulting from the different jurisdictions and the jurisdictions do not utilise or apply different fiscal policies and tax rates.
Amendment 68 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48c – paragraph 5
Article 48c – paragraph 5
5. The report on income tax information shall be published and made accessible on the website in at least one of the official languages of the Member State in which subsidiaries or branches of the undertaking are established or operate for the purposes of this Directive, which is also an official and working language of the Union.
Amendment 69 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48c – paragraph 6
Article 48c – paragraph 6
6. The currency used in the report on income tax information shall be the currency in which the consolidated financial statements are presented. Member States shall not require or as indicated in thise report to be published in a different currency than the currency used in the financial statementsing requirements of this Directive.
Amendment 70 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48f
Article 48f
Member States shall ensure that, where the financial statements of an affiliated undertaking are audited by one or more statutory auditor(s) or audit firm(s) pursuant to Article 34(1), the statutory auditor(s) or audit firm(s) also check whether the report on income tax information has been provided and made accessible in accordance with Articles 48b, 48c and 48d. The statutory auditor(s) or audit firm(s) shall indicate in the audit report if the report on income tax information has not been provided or made accessible in the expected standard and in accordance with those Articles.
Amendment 71 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48g – paragraph 1 – point 1
Article 48g – paragraph 1 – point 1
(1) Transparency and exchange of information, including information exchange on request and Automatic Exchange of Informatand provision of financial account information on request;
Amendment 72 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48g – paragraph 1 – point 2
Article 48g – paragraph 1 – point 2
(2) Fair, non-aggressive and non- abusive tax competition;
Amendment 73 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 48i – subparagraph 2
Article 48i – subparagraph 2
The report shall be submitted to the European Parliament and to the Council, to the Council and to the European Anti-Fraud Office by [Publications Office- set the date = five years after the transposition date of this Directive].