Activities of Miguel VIEGAS related to 2018/2121(INI)
Plenary speeches (1)
Report on financial crimes, tax evasion and tax avoidance (debate) PT
Amendments (149)
Amendment 10 #
Motion for a resolution
Citation 8 a (new)
Citation 8 a (new)
- having regard to P8_TA- PROV(2018)0475, European Parliament resolution of 29 November 2018 on the cum-ex scandal: financial crime and loopholes in the current legal framework (2018/2900(RSP))
Amendment 18 #
Motion for a resolution
Citation 18 a (new)
Citation 18 a (new)
- having regard to P8_TA(2016)0453 European Parliament resolution of 24 November 2016 on towards a definitive VAT system and fighting VAT fraud(2016/2033(INI))
Amendment 42 #
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1 a. Stresses that capitalistic globalisation and the free movement of capital created the perfect conditions for the design of base erosion and profit shifting schemes and, at the same time, enshrined a structural bias in policymaking to the benefit of capital owners and multinational enterprises (MNEs), which has served to promote divergences and asymmetries between countries and social classes; emphasises, furthermore, that the free movement of capital, the deregulation and liberalisation of the financial and banking system, and the increasing tax competition among Member States – all promoted by EU institutions and legislation with the support of the European right wing and social democracy –are at the root of the rise of tax evasion and tax avoidance schemes and scandals;
Amendment 44 #
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
(1a) Points out that tax fraud, tax evasion and aggressive tax planning are the direct consequence of the entire process of liberalising economies, given the privatisation and deregulation of the financial system and the free movement of capital. Therefore, public control of the financial system and the movement of capital should be a fundamental part of the fight against this scourge.
Amendment 46 #
Motion for a resolution
Paragraph 1 b (new)
Paragraph 1 b (new)
1 b. Notes that the lowering of wealth taxes, which prioritize the wellbeing of the most privileged casts of the society, can lead to social unrest, as has been the case in the recent episodes in France, as the rest of the society which does not benefit from such tax cuts, but is more and more affected by the reduction of the welfare state, is bound to feel abandoned and neglected by its governing State1a _________________ 1a See comments by Piketty of 9 December 2018; URL: https://www.lemonde.fr/idees/article/2018/ 12/08/thomas-piketty-gilets-jaunes-et- justice-fiscale_5394443_3232.html
Amendment 55 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. WelcomNotes the fact that during its current term the Commission has put forward 22 legislative proposals aimed at closing some of the loopholes, improving theallegedly to fight against financial crimes and aggressive tax planning, and enhancing tax collection efficiency and tax fairness; calls for the swift adoption of initiatives that have not yet been finalised andbut which have had in origin sufficient loopholes, or thresholds so high so as not to affect the current level of tax evasion and continue legalising avoidance; calls for careful monitoring of their implementation to ensure efficiency and proper enforcement, in order to keep pace with the versatility of tax fraud, tax evasion and aggressive tax planning;
Amendment 62 #
Motion for a resolution
Paragraph 3 a (new)
Paragraph 3 a (new)
3 a. Recalls the observation of the European Parliament in the interim report on MFF noting that effective measures against corruption and tax evasion by multinationals and the wealthiest individuals would make it possible to return to the Member States’ budgets an amount estimated by the Commission at one trillion euros per year, and that in this field there has been a serious lack of action by the European Union1a; _________________ 1a Par. 49 of theInterim report on the Multiannual Financial Framework 2021- 2027 adopted inPlenary
Amendment 79 #
Motion for a resolution
Paragraph 4 a (new)
Paragraph 4 a (new)
4 a. Deplores the fact that the Council has not yet made any progress to enter into negotiations with the Parliament on the proposal for CBCR; notes however that Member States have already started implementation of OECD BEPS Action 13 on Country-by-Country Report, and DAC4; calls for the Commission to request information collected from the Member States under CBCR for quantitative impact assessments;
Amendment 95 #
Motion for a resolution
Subheading 1.3
Subheading 1.3
Tax fraud, tax evasion and aggressive tax planning (ATP)tax avoidance
Amendment 99 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Recalls that the fight against tax evasion and fraud tackles illegal acts, whereas the fight against tax avoidance addresses situations that are a priori within the limits of the law but against its spirit;– unless deemed illegal by the tax authorities or, ultimately, by the courts1a– but against its spirit. _________________ 1a 1] ‘Member States' capacity to fight tax crimes, Ex-post impact assessment’, Elodie Thirion and Amandine Scherrer, European Parliamentary Research Service, July 2017
Amendment 106 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Recalls that ATP describes the setting of a tax design aimed at reducing tax liability by using the technicalities of a tax system or of mismatchesarbitrating between two or more tax systems that go against the spirit of the law; that such acts, in the same way as tax avoidance, could be deemed illegal by tax authorities or by the courts
Amendment 110 #
Motion for a resolution
Paragraph 10 a (new)
Paragraph 10 a (new)
10 a. Understands then that there is no practical difference between tax avoidance, tax planning and aggressive tax planning; and that tax planning can also be considered systemic tax avoidance3a _________________ 3a Jarass, L. and Obermair, G.M. (2015) What an Individual EU Country Can Do Unilaterally to Counteract BEPS. Reprinted from Tax Notes Int’l, August 24, 2015, p. 697
Amendment 117 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Calls on the Commission and the Council to propose and adopt a comprehensive definition of aggressive tax planning indicators, building on both the hallmarks identified in the fifth review of the Directive on administrative cooperation (DAC6)26 after being strengthened in order to require the mandatory disclosure of dividend arbitrage schemes and all information on capital gains, including the granting of dividend and capital gains tax refunds1a and the Commission’s relevant studies and recommendations27 ; calls on Member States to use those indicators as a basis to repeal all harmful tax practices deriving from existing tax loopholes; _________________ 1a P8_TA-PROV(2018)0475. European Parliament resolution of 29 November 2018 on thecum-ex scandal: financial crime and loopholes in the current legal framework(2018/2900(RSP)) 26 Council Directive (EU) 2018/822 of 25 May 2018 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements, OJ L 139, 5.6.2018, p. 1. 27 https://ec.europa.eu/taxation_customs/sites/ taxation/files/resources/documents/taxation /gen_info/economic_analysis/tax_papers/ta xation_paper_61.pdfand https://ec.europa.eu/taxation_customs/sites/ taxation/files/tax_policies_survey_2017.pd f
Amendment 124 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Stresses the similarity between corporate tax payers and high-net-worth individuals in the use of corporate structures and similar structures such as trusts and offshore locations for the purpose of ATPtax evasion and tax avoidance; recalls the role of intermediarieenablers and promoters in setting up such schemes;
Amendment 132 #
Motion for a resolution
Paragraph 13 a (new)
Paragraph 13 a (new)
13 a. Regrets that 7 EU Member States have been identified for their tax avoidance by the European Commission in the European Semester, namely, Ireland, The Netherlands, Cyprus, Malta, Belgium, Hungary and Luxembourg, and that little measures have been taken by such Member States to modify their legislation in order to make it less attractive for tax evasion and avoidance;
Amendment 134 #
Motion for a resolution
Paragraph 13 b (new)
Paragraph 13 b (new)
13 b. Notes that company restructures can be observed in the macro-economic data of Ireland from 2014-2017, particularly in the first quarter of 2015; notes that major changes occurred in Ireland’s GNP, GDP, exports, imports, investment, external debt and more; regrets that despite the relocation of sales income and intellectual property to Ireland, there was no observable corresponding increase in corporation tax received by Irish Revenue1a _________________ 1a Brehm Christensen, M.; Clancy, E. (2018) ‘Exposed: Apple’s delicious tax deals, Is Ireland Helping Apple Pay less than 1% in the EU?’; GUE/NGL; June 2018.
Amendment 135 #
Motion for a resolution
Paragraph 13 b (new)
Paragraph 13 b (new)
13 b. Regrets that even when in Ireland, the capital allowance for depreciation of intangible assets has been lowered from a rate of 100% to 80% from 2017, this reduction was not applied to the intangible assets brought onshore from 2015-2016, which could still benefit from the 100% rate1a _________________ 1a Brehm Christensen, M.; Clancy, E. (2018) ‘Exposed: Apple’s delicious tax deals, Is Ireland Helping Apple Pay less than 1% in the EU?’; GUE/NGL; June 2018.
Amendment 136 #
Motion for a resolution
Paragraph 13 b (new)
Paragraph 13 b (new)
13 b. Calls on the Commission to list the EU jurisdictions identified for providing opportunities for aggressive tax planning as tax havens and prepare a proposal on deterrent actions to be applied against such Member States;
Amendment 137 #
Motion for a resolution
Paragraph 13 c (new)
Paragraph 13 c (new)
13 c. Deplores that the Irish government introduced the 100% rate on capital allowances for intellectual property (IP) following a recommendation made by the American Chamber of Commerce in Ireland in 20141a _________________ 1a Brehm Christensen, M.; Clancy, E. (2018) ‘Exposed: Apple’s delicious tax deals, Is Ireland Helping Apple Pay less than 1% in the EU?’; GUE/NGL; June 2018.
Amendment 138 #
Motion for a resolution
Paragraph 13 c (new)
Paragraph 13 c (new)
13 c. Regrets that the Irish government introduced the 100% rate on capital allowances for intellectual property (IP) following a recommendation made by the American Chamber of Commerce in Ireland in 20141a _________________ 1a Brehm Christensen, M.; Clancy, E. (2018) ‘Exposed: Apple’s delicious tax deals, Is Ireland Helping Apple Pay less than 1% in the EU?’; GUE/NGL; June 2018.
Amendment 146 #
Motion for a resolution
Paragraph 14 a (new)
Paragraph 14 a (new)
14 a. Notes however, that self-regulation cannot be the answer to tackling tax fraud, tax evasion and avoidance; which can only be fought with adequate legislation, transparency, intra and inter institutional cooperation, inter- jurisdictional cooperation,and sufficient personnel and technical equipment employed by tax administrations
Amendment 172 #
Motion for a resolution
Paragraph 16 a (new)
Paragraph 16 a (new)
16 a. Notes however, that any debate concerning minimum taxation should make reference to minimum effective taxation, measured by the total income taxes paid by a corporation over its total profits, including in this measurement tax breaks to the base (that is, the income on which taxes are charged), as effective rates can often be much lower, and in many cases half, of the statutory rate;
Amendment 178 #
Motion for a resolution
Paragraph 16 c (new)
Paragraph 16 c (new)
16 c. Notes that a debate that does not consider effective taxation risks ending in lowering statutory rates even more and increasing tax competition;
Amendment 184 #
Motion for a resolution
Paragraph 17 a (new)
Paragraph 17 a (new)
17 a. Notes that taxing all earnings without deduction for interest and license fee payments in and by the source country could and should be at the center of any measures against tax avoidance1a _________________ 1a Jarass, L. and Obermair, G.M. (2015) What an Individual EU Country Can Do Unilaterally to Counteract BEPS. Reprinted from Tax Notes Int’l, August 24, 2015, p. 697
Amendment 185 #
Motion for a resolution
Paragraph 17 b (new)
Paragraph 17 b (new)
17 b. Notes that any individual EU country can unilaterally enforce both withholding taxes and conditioned limitations on deductions, as comprehensive taxation at the source, including earnings paid for interest, license fees, and the like, is by no means ruled out by the relevant EU directive1a _________________ 1a Jarass, L. and Obermair, G.M. (2015) What an Individual EU Country Can Do Unilaterally to Counteract BEPS. Reprinted from Tax Notes Int’l, August 24, 2015, p. 697
Amendment 186 #
Motion for a resolution
Paragraph 17 c (new)
Paragraph 17 c (new)
17 c. Notes that many countries have introduced withholding taxes, in particular for interest and license fee payments to related parties outside the EU. However, existing tax treaties considerably reduce the withholding tax rate1a _________________ 1a Jarass, L. and Obermair, G.M. (2015) ‘What an Individual EU Country Can Do Unilaterally to Counteract BEPS’, Reprinted from Tax Notes Int’l, August 24, 2015, p. 697; and Hearson M. (2018) ‘The European Union’s Tax Treaties with Developing Countries– Leading By Example?’, September 2018.
Amendment 187 #
Motion for a resolution
Paragraph 17 d (new)
Paragraph 17 d (new)
17 d. Regrets, that within the EU, no withholding taxes are levied on payments between related parties even when the other party is not effectively subject to tax on the income deriving from those payments in that other Member State. Notes however, that recital 3 of the interest and royalty directive1a clearly states that “It is necessary to ensure that interest and royalty payments are subject to tax once in a Member State”. Therefore, the EU directive on interest and royalty payments does not forbid source taxation of all earnings produced by an enterprise, whether declared as profit or transferred to another enterprise domestic or abroad as payment for interest or license fees2a _________________ 1a COUNCIL DIRECTIVE2003/49/EC of 3 June 2003 on a common system of taxation applicable to interest and royalty payments made between associated companies of different Member States 2a Jarass, L. and Obermair, G.M. (2015) What an Individual EU Country Can Do Unilaterally to Counteract BEPS. Reprinted from Tax Notes Int’l, August 24, 2015, p. 697
Amendment 188 #
Motion for a resolution
Paragraph 17 e (new)
Paragraph 17 e (new)
17 e. Encourages EU Member States to apply withholding taxes to payments within and outside the EU in order to ensure that interests and royalty payments are subject to tax once in a Member State; and to make the necessary re-negotiations of their tax treaties in order to allow for withholding taxes to be applied at source1a _________________ 1a Jarass, L. and Obermair, G.M. (2015) What an Individual EU Country Can Do Unilaterally to Counteract BEPS. Reprinted from Tax Notes Int’l, August 24, 2015, p. 697
Amendment 194 #
Motion for a resolution
Paragraph 19
Paragraph 19
19. Notes that the G20/OECD 15-point BEPS action plan is being implemented and monitored and further discussions are taking place, in a broader context than just the initial participating countries, through the Inclusive Framework; calls on Member States to support a reform of both the mandate and the functioning of the Inclusive Framework to ensure that remaining tax loopholes and unsolved tax questions such as the allocation of taxing rights among countries are covered by the current international framework to combat BEPS practices;
Amendment 217 #
Motion for a resolution
Paragraph 22 a (new)
Paragraph 22 a (new)
22 a. Calls on the Commission to review ATAD I in order to eliminate the 2 alternatives for implementing CFC rules and leave only the stronger, most efficient one in Article 7(2)(a): to tax interest, royalties and other relevant types of income of all low-tax foreign subsidiaries, as the second option (to tax income of low-tax subsidiaries arising from non- genuine arrangements which have been put in place for the essential purpose of obtaining a tax advantage)is very weak and open to abuse, because it only protects against profit-shifting out of the home country and requires the tax authority to analyse many individual transactions of low-tax subsidiaries;
Amendment 233 #
Motion for a resolution
Paragraph 26
Paragraph 26
26. Recalls its concerns relating to the use of transfer prices in ATP and consequently recalls the need for adequate action and improvement of the transfer pricing framework to address the issue; stresses the need to ensure that they reflect the economic reality, provide certainty, clarity and fairness for Member States and for companies operating within the Union, and reduce the risk of misuse of the rules for profit-shifting purposes, taking into account the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administration 2010;to ensure that taxable earnings reflect the economic reality, and reduce the risk of misuse of the rules for profit-shifting purposes.
Amendment 235 #
Motion for a resolution
Paragraph 26 a (new)
Paragraph 26 a (new)
26 a. Notes that as has been highlighted repeatedly by numerous experts and publications, the use of the ‘independent entity concept’ or ‘arm’s length principle’ recommended by the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations of 1979, 1995, 2010 and 2017, is at the core of the problem of tax evasion, tax avoidance and double non-taxation;
Amendment 238 #
Motion for a resolution
Paragraph 27
Paragraph 27
27. Emphasises that the EU actions aimed at addressing BEPS and ATPtax avoidance have equipped tax authorities with an updatedinsufficient toolbox to ensure fair tax collection; stresses that tax authorities should be responsible for making effective use of the tools without imposing an additional burden on responsible taxpayers, particularly SMEs and to tackle tax avoidance from multinational companies; stresses that tax authorities should be cautious not to end up imposing an additional burden on SMEs, when incapable of taxing multinational companies ;
Amendment 248 #
Motion for a resolution
Subheading 2.2
Subheading 2.2
Strengthening EU actions to fight against corporate aggressive tax planning (ATP)tax avoidance and supplementing BEPS action plan
Amendment 251 #
Motion for a resolution
Subheading 2.2.1
Subheading 2.2.1
Scrutinising Member States’ tax systems and overall tax environment – ATPtax avoidance within the EU (European Semester)
Amendment 291 #
Motion for a resolution
Paragraph 33 a (new)
Paragraph 33 a (new)
33 a. Notes that CCCTB impact assessments have been carried out on the basis of incomplete data at a time when tax administrations will soon have access to more precise and complete information following the Member States’ implementation of country-by-country reporting, and that going ahead without proper analysis would be deeply irresponsible; calls on the European Commission to conduct a new impact assessment based on high-quality data which would allow for a more informed decision to be made between different possible apportionment formulas;1a _________________ 1a ‘Assessing the impact of the CC(C)TB: European tax base shifts under a range of policy scenarios’; a GUE/NGL Study by Alex Cobham, Petr Janský, Chris Jones and Yama Temouri (Tax Justice Network); November 2017;
Amendment 297 #
Motion for a resolution
Paragraph 33 c (new)
Paragraph 33 c (new)
33 c. As already stressed by the PANA recommendations, implementing the CCCTB at EU level runs the risk of creating a situation in which current losses from Member States to the rest of world could be locked in, as could the exploitation of the rest of the world by some Member States; notes that an EU- only approach could eliminate the incentives to shift profit within the EU, but open the door to further incentives and opportunities to shift profit out of the EU1a _________________ 1a European Parliament recommendation of 13 December 2017 to the Council and the Commission following the inquiry into money laundering, tax avoidance and tax evasion (Texts adopted, P8_TA- (2017)0491).
Amendment 307 #
Motion for a resolution
Paragraph 34 a (new)
Paragraph 34 a (new)
34 a. Notes that digitalisation affects the whole economy with many firms using multi-channel models; thus, instead of creating special regimes for digital businesses, international tax rules should be reformed, based on a principle of neutrality between different business models, both digital and non-digital, and regardless of the extent or form of digitalisation, including multi-channel models, recognising the economic reality businesses operate in today;
Amendment 319 #
Motion for a resolution
Paragraph 35 a (new)
Paragraph 35 a (new)
35 a. Notes that changing the definition of permanent establishment to make it more aligned with that of the UN model tax convention in a way that also includes digital significant presence, would be the optimal solution to tackle problems not only affecting the digital market but rather the digitalization of the economy and the earnings created in jurisdictions where companies do not have any physical presence;
Amendment 369 #
Motion for a resolution
Paragraph 44 a (new)
Paragraph 44 a (new)
44a. Calls for DAC6 hallmarks to be strengthened in order to require the mandatory disclosure of dividend arbitrage schemes and all information on capital gains, including the granting of dividend and capital gains tax refunds1a _________________ 1a P8_TA-PROV(2018)0475. European Parliament resolution of 29 November 2018 on the cum-ex scandal: financial crime and loopholes in the current legal framework(2018/2900(RSP))
Amendment 402 #
Motion for a resolution
Paragraph 45
Paragraph 45
45. Stresses that the proposal for public CBCR was submitted to the co-legislators just after the Panama papers scandal on 12 April 2016, and that Parliament adopted its position on it on 4 July 2017; recalls that the latter called for an enlargement of the scope of reporting and protection of commercially sensitive information; deplores the lack of progress and cooperation from the Council since 2016; urges for progress to be made in the Council so that it enters into negotiations with Parliament;
Amendment 404 #
Motion for a resolution
Paragraph 45 a (new)
Paragraph 45 a (new)
45a. Recalls the position of the European Parliament in the PANA recommendations when it called for ambitious public country-by-country reporting (CbCR) in order to enhance tax transparency and the public scrutiny of multinational enterprises (MNEs) as this would allow the wider public to have access to information about the profits made, subsidies received and the taxes paid by MNEs in the jurisdictions where they operate; urges the Council to reach a common agreement in order to adopt a public CbCR, one of the key measures for achieving greater transparency in relation to companies’ tax information for all citizens; 1a _________________ 1a European Parliament recommendation of 13 December 2017 to the Council and the Commission following the inquiry into money laundering, tax avoidance and tax evasion(Texts adopted, P8_TA- (2017)0491).
Amendment 411 #
Motion for a resolution
Paragraph 46 a (new)
Paragraph 46 a (new)
46a. Notes that tax competition, with its detrimental effects, is not only allowed but encouraged by the European Commission, excluding only ‘special deals’ which are treated as State Aid, in an attempt to attract foreign investment even when the effectiveness of this strategy has been greatly questioned1a; _________________ 1a ICRICT, 'Four ways to tackle international tax competition', December 2016
Amendment 426 #
Motion for a resolution
Paragraph 49 a (new)
Paragraph 49 a (new)
49a. Is concerned with the fact that the Commission ruled that double-non taxation achieved by McDonald’s stemmed from a mismatch between Luxembourg and US tax laws and the Luxembourg-United States double taxation treaty, a mismatch from which McDonald’s profited by arbitrating between such jurisdictions; and that such tax avoidance is enabled by the current legal framework in the EU to a point that the only means found effective by the European Commission to tackle it is through State Aid rules, something which has proved not to be possible in the case of McDonald’s;
Amendment 432 #
Motion for a resolution
Paragraph 51
Paragraph 51
51. Reiterates its calls for guidelines clarifying what constitutes tax-related State aid and ‘appropriate’ transfer pricing, with a view to removing legal uncertainties for both compliant taxpayers and tax administrations, and providing a framework for Member States’ tax practices accordingly;
Amendment 435 #
Motion for a resolution
Paragraph 51 a (new)
Paragraph 51 a (new)
51a. Regrets the fact that the current framework for tackling profit shifting between related parties through transfer pricing is based on the ‘arm’s length’ principle, a principle that grants a higher regard to the contractual arrangement among related parties than to the economic reality of the transactions taking place between one party and another one subject to it; deplores that the generalization of the ‘arm’s length principle’ has resulted in the ‘legalization’ of tax avoidance through transfer pricing; notes that in this context, the only effective solution within the European Union to tackle the tax evasion and tax avoidance of multinational companies has been through the identification of abuses to State aid rules;
Amendment 438 #
Motion for a resolution
Paragraph 51 b (new)
Paragraph 51 b (new)
51b. Deplores that Apple’s new European tax structure remains shrouded in secrecy, partially due to a lack of financial transparency in Ireland and Jersey; and that most of its financial information remains secret globally1a _________________ 1a Brehm Christensen, M.; Clancy, E. (2018) ‘Exposed: Apple’s delicious tax deals, Is Ireland Helping Apple Pay less than 1% in the EU?’; GUE/NGL; June 2018.
Amendment 439 #
Motion for a resolution
Paragraph 51 c (new)
Paragraph 51 c (new)
51c. Deplores that with the assistance of the Irish government, Apple has successfully created a structure that has allowed it to gain a tax write-off against almost all of its non-US sales profits; calls on the Commission to further investigate Apple’s case in the context of State Aid rules;
Amendment 440 #
Motion for a resolution
Paragraph 51 d (new)
Paragraph 51 d (new)
51d. Notes that the law governing the use of capital allowances for IP is not subject to Ireland’s transfer pricing legislation, but it includes a prohibition from being used for tax avoidance purposes; deplores that Apple is potentially breaking Irish law by its restructure and it exploitation of the capital allowance regime for tax purposes; notes that if the same legal reasoning used in the European Commission’s state aid ruling on Apple and Ireland is applied, Apple is in breach of Irish tax law, and owes Irish Revenue at least 2.5 billion additional euros in unpaid tax annually from the period 2015-2017;1a _________________ 1a Brehm Christensen, M.; Clancy, E. (2018) ‘Exposed: Apple’s delicious tax deals, Is Ireland Helping Apple Pay less than 1% in the EU?’; GUE/NGL; June 2018.
Amendment 453 #
Motion for a resolution
Paragraph 53 a (new)
Paragraph 53 a (new)
53a. Regrets however that the banning of letterbox companies in Latvia cannot be used to ban letterbox companies resident in EU Member States, as that would be considered discriminatory in the current EU legislative framework1a;calls for the European Commission to propose changes in the current legislation that would enable to ban letterbox companies even if resident in EU Member States; _________________ 1a TAX3 Delegation to Riga (Latvia), 30- 31 August 2018, MISSION REPORT
Amendment 462 #
Motion for a resolution
Paragraph 54
Paragraph 54
54. Highlights that the high level of inward and outward foreign direct investment as a percentage of GDP in seven Member States (Belgium, Cyprus, Hungary, Ireland, Luxembourg, Malta, and the Netherlands) can only be partially explained by real economic activities taking place in these Member States;40and therefore is a clear indicator of tax avoidance opportunities granted by such Member States; _________________ 40 Kiendl Kristo I. and Thirion E., An overview of shell companies in the European Union, EPRS, European Parliament, October 2018, p.23.
Amendment 470 #
Motion for a resolution
Paragraph 55 a (new)
Paragraph 55 a (new)
55a. Recalls that the European Parliament has called on the Commission to assess the role of Special Purpose Vehicles (SPVs) and Special Purpose Entities (SPEs) revealed by the cum-ex papers and, where appropriate, to propose limiting the use of these instruments1a;calls on the European Commission to assess the role of the special purpose entities holding foreign direct investment in Malta, Luxembourg and the Netherlands; _________________ 1a P8_TA- (2018)0475European Parliament resolution of 29 November 2018 on the cum-ex scandal: financial crime and loopholes in the current legal framework (2018/2900(RSP))
Amendment 474 #
Motion for a resolution
Paragraph 56
Paragraph 56
56. Notes that economic indicators such as an unusually high level of foreign direct investment, as well as foreign direct investment held by special purpose entities are ATPtax avoidance indicators42 ; _________________ 42 IHS, Aggressive tax planning indicators, prepared for the European Commission, DG TAXUD Taxation papers, Working paper No 71, October 2017.
Amendment 481 #
Motion for a resolution
Paragraph 57
Paragraph 57
57. Notes that the ATAD anti-abuse rules (artificial arrangements) cover letterbox companies, and that the CCTB and CCCTB would ensure that the income is attributed to where the real economic activity takes place;
Amendment 488 #
Motion for a resolution
Paragraph 58 a (new)
Paragraph 58 a (new)
58a. Deplores that shell companies associated with anonymity, circumvention of the Posting of Workers Directive and treaty abuse, can generate serious risks of tax avoidance, tax evasion, money laundering and abuse of social rights; and that such abuses have an impact in the rise of inequalities and decreased trust in public institutions1a _________________ 1a Kiendl Kristo I. and Thirion E., An overview of shell companies in the European Union, EPRS, European Parliament, October 2018.
Amendment 491 #
Motion for a resolution
Paragraph 59 a (new)
Paragraph 59 a (new)
59a. Notes that abusive conversions, mergers or divisions constituting artificial arrangements or social dumping, but also reducing fiscal obligations or undercutting social rights of employees are therefore to be avoided in order to respect Treaty principles;1a _________________ 1a OPINION of the Committee on Economic and Monetary Affairs for the Committee on Legal Affairs on the proposal for a directive of the European Parliament and of the Council amending Directive (EU) 2017/1132 as regards cross-border conversions, mergers and divisions (COM(2018)0241 – C8 0167/2018 –2018/0114(COD))
Amendment 493 #
Motion for a resolution
Paragraph 59 b (new)
Paragraph 59 b (new)
59b. Notes that cross-border conversions should be conditioned to the company moving its registered office together with its head office in order to carry out a substantial part of its economic activity in the Member State of destination1a _________________ 1a OPINION of the Committee on Economic and Monetary Affairs for the Committee on Legal Affairs on the proposal for a directive of the European Parliament and of the Council amending Directive (EU) 2017/1132 as regards cross-border conversions, mergers and divisions (COM(2018)0241 – C8 0167/2018 –2018/0114(COD))
Amendment 494 #
Motion for a resolution
Paragraph 59 c (new)
Paragraph 59 c (new)
59c. Calls for Member States to request that a set of financial information be published ahead of the execution of cross- border conversions, mergers or divisions; and for that financial information to be accompanied by public country by country reporting;
Amendment 569 #
Motion for a resolution
Paragraph 79 a (new)
Paragraph 79 a (new)
79a. Recalls that effective cross checks of the data held by tax authorities with data held by customs authorities are crucial to detect and eliminate VAT fraud linked to imports; and recalls on Member States and on the Commission to act in order to facilitate the flow of information between tax and customs authorities regarding imports under Customs Procedure 42, as recommended by the European Court of Auditors1a ;considering that experience has shown that administrative cooperation between tax authorities is suboptimal;1b _________________ 1a P8_TA(2016)0453European Parliament resolution of 24 November 2016 on towards a definitive VAT system and fighting VAT fraud (2016/2033(INI))[ 1b Study entitled ‘VAT fraud: Economic impact, challenges and policy issues’, European Parliament, Directorate- General for Internal Policies, Policy Department for Economic, Scientific and Quality of Life Policies, 15 October2018.
Amendment 570 #
Motion for a resolution
Paragraph 79 b (new)
Paragraph 79 b (new)
79b. Notes that among the most used crimes in VAT fraud, the one known as "Missing Trader fraud (MTIC fraud) or Carousel fraud" is the most widespread and most used; notes that a particularity of this fraud is that it is carried out, for the most part, by organized crime; notes that in recent years, this fraud has diversified to include online commerce; notes that the extension of this type of fraud to online commerce is partly due to the suboptimal cooperation between tax administrations1a;calls for EU Member States and the European Commission to keep on developing swift cooperation between tax administrations; _________________ 1a Study entitled ‘VAT fraud: Economic impact, challenges and policy issues’, European Parliament, Directorate- General for Internal Policies, Policy Department for Economic, Scientific and Quality of Life Policies, 15 October2018.
Amendment 571 #
Motion for a resolution
Paragraph 79 c (new)
Paragraph 79 c (new)
79 c. Notes that the extension of e- commerce is posing an important challenge for the economic and fiscal authorities, to whom, this type of economic transactions, poses enormous difficulties, e.g. absence of registration, VAT declarations well below the real value of the declared transactions, ghost transactions for criminal purposes, fraudulent use of customer data; notes that national legislations continue to present enormous deficiencies in the control of e-commerce; notes that the improvement of cooperation between administrations and a more efficient use of the resources available at European level can help to reduce the impact of this type of crime and its consequences, as well as the improvement of European legislation;
Amendment 572 #
Motion for a resolution
Paragraph 79 d (new)
Paragraph 79 d (new)
79d. Notes that the "reverse charge mechanism" should be used only and exclusively in exceptional cases, and that the Commission and the Council should encourage countries to use existing resources more effectively; notes that at present, a group of bodies and institutions such as Eurofisc, OLAF, Europol or EPPO (European Public Prosecutor Office) provide a panel of options with a very high potential to combat VAT fraud;
Amendment 576 #
Motion for a resolution
Paragraph 80 a (new)
Paragraph 80 a (new)
80a. Deplores that VAT fraud in the European Union reaches colossal magnitudes: approximately 150 billion euros in 2017; notes that the figure hide, however, huge differences between countries, from percentages of fraud of minor importance (less than 2%); to countries with fraud indicators of around 30%;1a _________________ 1a European Parliament; VAT Fraud, economic impact, challenges and policy issues. October2018.
Amendment 579 #
Motion for a resolution
Paragraph 80 b (new)
Paragraph 80 b (new)
80b. Notes that the preservation of VAT fraud has, in addition to the negative economic effects, perverse consequences for inadequate social commitment with the payment of taxes and with a view to improving tax justice;
Amendment 580 #
Motion for a resolution
Paragraph 80 c (new)
Paragraph 80 c (new)
80c. Regrets that tax fraud has become a crime whose effects are to be managed, rather than a crime to be suppressed; calls on the Commission and the EU Member States to have policy design as a guiding principle, and for such policy design to be driven by efficiency considerations; notes that when efficiency is focused only in the enforcement, but not in the policy design, the credibility of the tax system is undermined, representing a serious risk to the rule of law1a _________________ 1a De la Feria, Rita (2018) ‘Tax Fraud and the Rule of Law’; WP18/02; Oxford University Centre for Business Taxation; January 2018.
Amendment 604 #
Motion for a resolution
Paragraph 84 a (new)
Paragraph 84 a (new)
84a. Notes that corporation and wealth taxes play a crucial role in reducing inequality through redistribution within the tax system and in providing revenues to fund social provisions and social transfers;
Amendment 606 #
Motion for a resolution
Paragraph 84 b (new)
Paragraph 84 b (new)
84b. Calls on the Member States to eliminate gender gaps in wealth across the EU in terms of financial assets, property ownership, business assets, insurance entitlements, pension savings and stock options1a; notes that the reduction in capital gains and property taxes primarily benefits men, as they are more likely to control such resources1b; _________________ 1a Action Aid. Making tax work for women’s rights 1b Institute of Development Studies (2016). Redistributing Unpaid Care Work – Why Tax Matters for Women’s Rights. Policy Briefing. Issue 109.
Amendment 607 #
Motion for a resolution
Paragraph 84 c (new)
Paragraph 84 c (new)
84c. Deplores the fact that, overall, the contribution of wealth-based taxes to overall tax revenues has remained rather limited, at 5.8 % of overall tax revenues in the EU-15 and4.3 % in the EU-281a; _________________ 1a European Parliament Policy Department C, Gender equality and taxation in the European Union, 2017.
Amendment 608 #
Motion for a resolution
Paragraph 84 d (new)
Paragraph 84 d (new)
84d. Deplores the fact that the share of taxes on capital has shown a declining trend since 2002 as a consequence, inter alia, of the general tendency of no longer applying the regular personal income tax schedule to capital incomes, but rather taxing them at relatively moderate flat rates, observable in many Member States1a _________________ 1a European Parliament Policy Department C, Gender equality and taxation in the European Union, 2017.
Amendment 681 #
Motion for a resolution
Paragraph 93
Paragraph 93
93. Urges the Commission to finalise its study on CBI and RBI schemes in the Union; urges the Commission to examine whether, and, if so, which of these schemes posed a threat to EU legislation; in particular AMLD and ATAD;
Amendment 699 #
Motion for a resolution
Paragraph 100 a (new)
Paragraph 100 a (new)
Amendment 713 #
Motion for a resolution
Paragraph 103
Paragraph 103
103. RecCalls the need to use amnesties with extreme caution in order not tofor Member States to refrain from using tax amnesties as they encourage tax avoiders to wait for the next amnesty; calls on the Member States which enact tax amnesties to always require the beneficiary to explain the source of funds previously omitted;
Amendment 714 #
Motion for a resolution
Paragraph 103 a (new)
Paragraph 103 a (new)
103 a. Recalls the European Parliament’s position in the PANA recommendation whereby it called on the Member States to identify and stop all use of any form of tax amnesties that could lead to money laundering and tax evasion or that could prevent national authorities from using the data provided to pursue financial crime investigations1a _________________ 1a European Parliament recommendation of 13 December 2017 to the Council and the Commission following the inquiry into money laundering, tax avoidance and tax evasion (Texts adopted, P8_TA- (2017)0491).
Amendment 717 #
Motion for a resolution
Paragraph 103 b (new)
Paragraph 103 b (new)
103 b. Regrets the fact that EU Member States have prioritized short-term revenue benefits over the elimination of tax fraud by providing tax amnesties;1a _________________ 1a De la Feria, Rita (2018) ‘Tax Fraud and the Rule of Law’; WP18/02; Oxford University Centre for Business Taxation; January 2018.
Amendment 718 #
Motion for a resolution
Paragraph 103 c (new)
Paragraph 103 c (new)
103 c. Notes that tax amnesties allow tax fraudsters to voluntarily repay all or parts of unpaid taxes without being subject to criminal prosecutions or full penalties; regrets that tax amnesties have become popular in the last few years in the context of the financial crisis1a and the austerity policies; _________________ 1a De la Feria, Rita (2018) ‘Tax Fraud and the Rule of Law’; WP18/02; Oxford University Centre for Business Taxation; January 2018.
Amendment 719 #
Motion for a resolution
Paragraph 103 d (new)
Paragraph 103 d (new)
103 d. Notes that tax amnesties are very negative they affect the most affluent sectors of society and extend the idea that having many resources guarantees impunity and makes it easy to circumvent legality; calls for Member States to stop tax amnesties and that economic and penal sanctions against the fraudsters be increased;
Amendment 731 #
Motion for a resolution
Paragraph 107
Paragraph 107
107. Stresses that money laundering can assume various forms, and that the money laundered can have its origin in various illicit activities ranging from terrorismdifferent types of crimes such as corruption, weapon and human trafficking and drug dealing to tax evasion and fraud; notes with concern that the proceeds from criminal activity in the EU are estimated to amount to EUR 110 billion per year64 , corresponding to 1 % of the Union’s total GDP; highlights that the Commission estimates that in some Member States up to 70 % of money laundering cases have a cross-border dimension65 ; further notes that the scale of money laundering is estimated by the UN66 to be the equivalent of between 2 to 5 % of global GDP, or around EUR 715 billion and 1.87 trillion a year; _________________ 64 From illegal markets to legitimate businesses: the portfolio of organised crime in Europe, Final report of Project OCP – Organised Crime Portfolio, March 2015. 65 http://www.europarl.europa.eu/news/en/pre ss-room/20171211IPR90024/new-eu-wide- penalties-for-money-laundering; Commission proposal of 21 December 2016 for a directive of the European Parliament and of the Council on countering money laundering by criminal law (COM(2016)0826. 66 UNODC - https://www.unodc.org/unodc/en/money- laundering/globalization.html
Amendment 732 #
Motion for a resolution
Paragraph 107 a (new)
Paragraph 107 a (new)
107 a. Calls on the Commission and the Member States to report on the effects money laundering on women’s rights, as money laundering impacts on gender inequality by concealing the origin of assets obtained via human trafficking, in which women and girls amount to 70%of the victims, as reported by FATF1a,UNODC2a,among others; _________________ 1a FATF (2011) Money Laundering Risks Arising from Trafficking in Human Beings and Smuggling of Migrants. Seehttp://www.fatf- gafi.org/media/fatf/documents/reports/Tra fficking%20in%20Human%20Beings%20 and%20Smuggling%20of%20Migrants.pd f 2a See UNODC’s reports on Trafficking in Persons.
Amendment 760 #
Motion for a resolution
Paragraph 112 a (new)
Paragraph 112 a (new)
112 a. Is concerned with the reliance of the AMLD on self-regulation by obliged entities; and notes that this is a matter of concern as all leaks so far have exposed the role of banks, lawyers, traders, insurance companies, and other enablers and promoters, as accomplices in money laundering cases;
Amendment 779 #
Motion for a resolution
Paragraph 116 a (new)
Paragraph 116 a (new)
116 a. Regrets that no action were taken by EU institutions in relation to the ABLV Bank, in advance of those by the US Fin CEN; is concerned by what seems to be acknowledged by experts in this matter which observe that US standards are much stricter than European ones, that even when EU banks manage to apply EU rules, they are not sufficiently capable of applying US rules, and that the EU system seems to be guaranteed by the US one 1a _________________ 1a TAX3 Delegation to Riga (Latvia), 30- 31 August 2018, MISSION REPORT
Amendment 792 #
Motion for a resolution
Paragraph 117 a (new)
Paragraph 117 a (new)
117 a. Calls on the Commission to take into consideration the recommendations of the EPRS study on ‘Offshore activities and money laundering: recent findings and challenges’ from 20171a,and consider that in order to reach a harmonized anti- money laundering policy in Europe, it needs to be noted that European countries are too different to all comply in the same way, and therefore different groups of countries within the EU should be targeted differently and some be trained and supported by other Member States; _________________ 1a http://www.europarl.europa.eu/RegData/e tudes/STUD/2017/595371/IPOL_STU(201 7)595371_EN.pdf
Amendment 798 #
Motion for a resolution
Paragraph 117 b (new)
Paragraph 117 b (new)
117 b. Calls on the Commission to assess the way in which derivatives can be used for money laundering, as ‘mirror trading’ can allow brokers to create multiple trades where it can conveniently locate washed funds1a; calls on the Commission to investigate whether this has been the case in the exposed cum-ex and cum-cum scandals; _________________ 1a EPRS (2017) ‘Offshore activities and money laundering: recent findings and challenges’. See http://www.europarl.europa.eu/RegData/e tudes/STUD/2017/595371/IPOL_STU(201 7)595371_EN.pdf
Amendment 824 #
Motion for a resolution
Paragraph 125 a (new)
Paragraph 125 a (new)
125 a. Recalls the request made by the European Parliament resolution of 29 November 2018 on the cum-ex scandal, on ESMA and EBA to assess potential threats to the integrity of financial markets and to national budgets; to establish the nature and magnitude of actors in these schemes; to assess whether there were breaches of either national or Union law; to assess the actions taken by financial supervisors in Member States; and to make appropriate recommendations for reform and for action to the competent authorities concerned;
Amendment 861 #
Motion for a resolution
Paragraph 129 a (new)
Paragraph 129 a (new)
129 a. Calls for the Commission to report on the status quo and improvements in EU Member States FIUs in relation to dissemination, exchange and processing of information, following the PANA Recommendations and the mapping report carried out by the EU FIUs Platform 1a _________________ 1a European Parliament recommendation of 13 December 2017 to the Council and the Commission following the inquiry into money laundering, tax avoidance and tax evasion (Texts adopted, P8_TA- (2017)0491).
Amendment 880 #
Motion for a resolution
Paragraph 133 a (new)
Paragraph 133 a (new)
Amendment 923 #
141. Recalls that EU AML legislation requires Member States to lay down sanctions for breaches of anti-money laundering rules against banks and intermediaries that are knowingly, wilfully and systematically involved in illegal tax or money laundering schemes; stresses that these sanctions must be effective, proportionate and dissuasive;
Amendment 931 #
Motion for a resolution
Paragraph 143 a (new)
Paragraph 143 a (new)
143 a. Recalls the position of the European Parliament in the PANA recommendations regarding the application of sanctions to enablers and promoters involved in illegal, harmful proven to have facilitated illegal, harmful or wrongful corporate tax arrangements; that the sanctions should be targeted towards the companies themselves as well as the management-level employees and board members responsible for the schemes; calling for the stringent application of effective sanctions on banks, providing for the suspension or withdrawal of the banking licence of financial institutions that are proven to be involved in promoting or enabling money laundering, tax evasion or aggressive tax planning; and encouraging Member States to ensure that the fines and pecuniary sanctions imposed on tax evaders and intermediaries are not tax- base deductible; 1a _________________ 1a European Parliament recommendation of 13 December 2017 to the Council and the Commission following the inquiry into money laundering, tax avoidance and tax evasion (Texts adopted, P8_TA- (2017)0491).
Amendment 934 #
Motion for a resolution
Subheading 5.7 a (new)
Subheading 5.7 a (new)
An EU anti-money laundering list of high-risk third countries
Amendment 937 #
Motion for a resolution
Paragraph 145 a (new)
Paragraph 145 a (new)
145 a. Notes that EU Member States are not treated in the same way as third countries, when they should be according to the Financial Action Task Force, and that this represents a problem when aiming at having common standards in respect of AML; calls for Member States to be peer reviewed in the same way third countries are in FATF; calls the Commission, as a founding member in 1989 of the Financial Action Task Force, to be peer reviewed by FATF as well1a _________________ 1a TAX3 PUBLIC HEARING“RELATIONS WITH SWITZERLAND IN TAX MATTERS AND THE FIGHT AGAINST MONEYLAUNDERING” held on October 1, 2018.
Amendment 938 #
Motion for a resolution
Paragraph 145 b (new)
Paragraph 145 b (new)
Amendment 952 #
Motion for a resolution
Paragraph 149 a (new)
Paragraph 149 a (new)
149 a. Notes that two FATCA Intergovernmental Agreements (IGAs) were developed to help FATCA fit with international laws: an IGA Model 1 by which foreign financial institutions report relevant information to their home authorities, which then passes this on to the US IRS, and an IGA Model 2 by which foreign financial institutions do not report to their home governments but directly to the IRS; notes that under Model 1 there are 2 versions, one of which is reciprocal and is the most common one; deplores that reciprocity is highly unbalanced with the US getting far more information from overseas than foreign governments; deplores that even in the best scenario of a reciprocal FATCA, the information compiled by the US institutions is full of loopholes, as it allows for senior managers to be registered if there is no person owning more than 25% of the bank's corporate client1a; calls on the EU Member States, to ensure that they are receiving reliable information when they get into a reciprocal FATCA with the US; _________________ 1a https://financialsecrecyindex.com/PDF/U SA.pdf
Amendment 955 #
Motion for a resolution
Paragraph 149 b (new)
Paragraph 149 b (new)
149 b. Calls on the Commission and EU Member States to demand that the US enters into the CRS instead of following with the exchange of information under FATCA;
Amendment 962 #
Motion for a resolution
Paragraph 150 a (new)
Paragraph 150 a (new)
150 a. Considers that tax havens, tax evasion and tax avoidance have been contributing to the rise in inequalities, by depriving countries of the revenue needed to provide public, quality and free education and healthcare services, social security, and affordable housing and transportation, and to build essential infrastructure for achieving social development and economic growth;
Amendment 968 #
Motion for a resolution
Paragraph 151
Paragraph 151
151. WelcomNotes the adoption by the Council of the first EU list on 5 December 2017 and the ongoing monitoring of the commitments made by third countries; notes that the list has been updated several times on the basis of the assessment of those commitments; underlines that this assessment is based on criteria deriving from a technical scoreboard and that Parliament had no legal involvement in this process; calls in this context on the Commission and the Council to inform Parliament in detail ahead of any proposed change to the list; calls on the Council to publish a regular progress report regarding black- and grey-listed jurisdictions as part of the regular update from the CoC Group to the Council;
Amendment 969 #
Motion for a resolution
Paragraph 151 a (new)
Paragraph 151 a (new)
151 a. Regrets that given that 2 out of the 3 criteria used by the Council refer to the OECD, the blacklist process seems more an extortive means of getting developing countries to implement standards that they have not participated in setting; than a serious effort to tackle tax evasion and tax avoidance;
Amendment 979 #
Motion for a resolution
Paragraph 152 a (new)
Paragraph 152 a (new)
152 a. Calls on the Council to provide clear information on the specific criteria used to clear 20jurisdictions from the 92 that were originally assessed, as at the moment only the names of such jurisdictions1a and the letters of comfort are available, but those do not allow for a clear understanding on why jurisdictions that are such relevant trade partners of the EU, such as the US who was identified to have a lack of transparency and preferential Corporate Income Tax regimes, were so rapidly cleared and not listed; _________________ 1a Council of the EU.2018, June 8. Code of Conduct Group (Business Taxation): Report to the Council/Endorsement. 9637/18
Amendment 993 #
Motion for a resolution
Paragraph 154 a (new)
Paragraph 154 a (new)
154 a. Is concerned with the fact that even when Switzerland does repeal its non-compliant tax regimes, it may create new ones -as noted by some organizations and experts-, and that in that case the Council would still remove Switzerland from the grey list of non-cooperative tax jurisdictions1a;calls for the Council to re- consider their assessment on Switzerland and on any other third country that could be having a similar legislative change; _________________ 1a TAX3 PUBLIC HEARING“RELATIONS WITH SWITZERLAND IN TAX MATTERS AND THE FIGHT AGAINST MONEY LAUNDERING” held on October 1, 2018; and TAX3 Exchange of views with Fabrizia Lapecorella, Chair of the Code of Conduct Group on Business Taxation, held on October 10,2018.
Amendment 995 #
Motion for a resolution
Paragraph 154 b (new)
Paragraph 154 b (new)
154 b. Notes that as of December 2018 there are only 5 countries remaining in the list; is concerned by what seems to soon end up in an empty listing process similar to that of the OECD which resulted in only Trinidad and Tobago remaining in the list; calls for the European Commission and the Council of the European Union to work on a more serious, and objective methodology,which does not rely in commitments but rather on an assessment of the effects of effectively implemented legislation;
Amendment 999 #
Motion for a resolution
Paragraph 154 c (new)
Paragraph 154 c (new)
154 c. Recalls the European Parliament’s position on the EU list of non-cooperative tax jurisdictions regretting that the EU list of non-cooperative tax jurisdictions approved and published by the Council focuses only on jurisdictions outside the EU, omitting countries within the EU that have played a systematic role in promoting and enabling harmful tax practices and that do not meet the fair taxation criterion1a;and calls for the Commission and the Council to come up with an EU list of EU tax havens; _________________ 1a European Parliament recommendation of 13 December 2017 to the Council and the Commission following the inquiry into money laundering, tax avoidance and tax evasion (Texts adopted, P8_TA- (2017)0491).
Amendment 1003 #
Motion for a resolution
Paragraph 154 d (new)
Paragraph 154 d (new)
154 d. Points out that for the EU to hold a leading role in the global fight against tax evasion, aggressive tax planning and money laundering, it would be important for the European Commission to get its own house in order by ensuring that those with a commercial or vested interest in promoting tax avoidance and tax evasion should not have a role in guiding or advising the EU’s policy-making on tax avoidance and tax evasion;
Amendment 1013 #
Motion for a resolution
Paragraph 156 a (new)
Paragraph 156 a (new)
156 a. Recalls the position of the European Parliament in the interim report on MFF, urging for a genuine fight against tax evasion and avoidance, with the introduction of dissuasive sanctions, for offshore territories and for the enablers or promoters of such activities, particularly and as a first step those operating on the European mainland; believes that Member States should cooperate by establishing a coordinated system for monitoring capital movements in order to fight taxevasion, tax avoidance and money laundering; 1a _________________ 1a Par. 48 of the Interim report on the Multiannual Financial Framework 2021- 2027 adopted in Plenary
Amendment 1024 #
Motion for a resolution
Paragraph 158 a (new)
Paragraph 158 a (new)
158 a. Regrets that the current OECD tax committee cannot be nor is sufficiently inclusive, as it is not the United Nations; the OECD is integrated only by 34 countries that tend to be industrialized ones, is not democratically governed and its decisions on recommendations are not guided by democratic rules
Amendment 1026 #
Motion for a resolution
Paragraph 158 b (new)
Paragraph 158 b (new)
158 b. Regrets that the G20/OECDBEPS Action Plan did not intend nor did it resulted in addressing the problem of source and residence taxation which is at the core of the base erosion problem;
Amendment 1027 #
Motion for a resolution
Paragraph 158 c (new)
Paragraph 158 c (new)
158 c. Underlines that given its lack of representation and of democratic governance, the OECD is not the place to discuss the allocation of taxing rights among industrialized and developing countries;
Amendment 1028 #
Motion for a resolution
Paragraph 158 d (new)
Paragraph 158 d (new)
158 d. Calls on Member States to support the creation of a global body within the UN framework, well-equipped and with sufficient additional resources to ensure that all countries can participate on an equal footing in the formulation and reform of global tax policies1a, and for such body to address unsolved tax questions such as the allocation of taxing rights among countries; _________________ 1a European Parliament resolution of 6 July 2016 on tax rulings and other measures similar in nature or effect (Texts adopted, P8_TA(2016)0310); and European Parliament recommendation of 13 December 2017 to the Council and the Commission following the inquiry into money laundering, tax avoidance and tax evasion (Texts adopted,P8_TA- (2017)0491).
Amendment 1031 #
Motion for a resolution
Paragraph 159 a (new)
Paragraph 159 a (new)
159 a. Acknowledges that the G77and China have also called in 2017 for the UN Committee of Experts on International Cooperation in Tax Matters to be upgraded to an intergovernmental UN Global Tax Body;
Amendment 1034 #
Motion for a resolution
Paragraph 159 b (new)
Paragraph 159 b (new)
159 b. Calls for Member States to revise their positions regarding the creation of a global tax body within the UN in order to incorporate this global call to their agendas
Amendment 1035 #
Motion for a resolution
Paragraph 159 c (new)
Paragraph 159 c (new)
159 c. Regrets that the G20/OECD’s inclusive framework is stopping a discussion on international taxation that should take place in the context of the United Nations; calls on Member States to support a reform of the United Nations tax committee to turn it into a UN tax body; and ensure that the such body has sufficient resources to ensure all countries can participate on an equal footing;
Amendment 1048 #
Motion for a resolution
Paragraph 161 a (new)
Paragraph 161 a (new)
161 a. Believes that such support can take different forms, but that care should be taken not to impose models thought for tackling the problems of the North, which are convenient for the economic circumstances of the North, into the South; believes that the best cooperation for the South can most generally come from the South, from developing countries that have similar problems and similar economic circumstances; calls for the EU institutions to respect South-South cooperation;
Amendment 1058 #
Motion for a resolution
Paragraph 164
Paragraph 164
Amendment 1079 #
Motion for a resolution
Paragraph 168 a (new)
Paragraph 168 a (new)
Amendment 1080 #
Motion for a resolution
Paragraph 168 b (new)
Paragraph 168 b (new)
168 b. Calls for the Commission to strive for a greater degree of specification of the AML/CFT and tax-related requirements in its free trade and association agreements;1a _________________ 1a Ioannides, I., Douma, W. T., Güven, O., Jancic, D., Pantaleo, L., van der Velde, S., de Vries, F. (2016). The inclusion of financial services in EU free trade and association agreements: Effects on money laundering, tax evasion and avoidance; EPRS.
Amendment 1081 #
Motion for a resolution
Paragraph 168 c (new)
Paragraph 168 c (new)
168 c. Calls for the Commission to ensure that all free trade and association agreements contain provisions on tax cooperation and that such provisions guarantee cooperation at the bilateral level in addition to any regional or international instruments or arrangements; 1a _________________ 1a Ioannides, I., Douma, W. T., Güven, O., Jancic, D., Pantaleo, L., van der Velde, S., de Vries, F. (2016). The inclusion of financial services in EU free trade and association agreements: Effects on money laundering, tax evasion and avoidance; EPRS.
Amendment 1082 #
Motion for a resolution
Paragraph 168 d (new)
Paragraph 168 d (new)
168 d. Calls on the Commission to include in its free trade and association agreements provisions aimed at combating mispricing and misinvoicing of internationally traded goods and services;1a _________________ 1a Ioannides, I., Douma, W. T., Güven, O., Jancic, D., Pantaleo, L., van der Velde, S., de Vries, F. (2016). The inclusion of financial services in EU free trade and association agreements: Effects on money laundering, tax evasion and avoidance; EPRS.
Amendment 1083 #
Motion for a resolution
Paragraph 168 e (new)
Paragraph 168 e (new)
168 e. Calls on the Commission to include in its free trade and association agreements provisions on public country by country reporting of corporate tax, the establishment of public registers of beneficial owners, and the establishment of public commercial registers; 1a _________________ 1a Ioannides, I., Douma, W. T., Güven, O., Jancic, D., Pantaleo, L., van der Velde, S., de Vries, F. (2016). The inclusion of financial services in EU free trade and association agreements: Effects on money laundering, tax evasion and avoidance; EPRS.
Amendment 1084 #
Motion for a resolution
Paragraph 168 f (new)
Paragraph 168 f (new)
Amendment 1085 #
Motion for a resolution
Paragraph 168 g (new)
Paragraph 168 g (new)
168 g. Calls on the Commission to pursue a strategy of imposing a measure of conditionality during trade negotiations, where structural weaknesses in rule of law enforcement – mainly due to corruption, organised crime and shadow economy – undermine the EU’s trade goals and the trading partner’s legislative and administrative endeavours in combating money laundering and tax evasion; 1a _________________ 1a [1][1] Ioannides, I., Douma, W. T., Güven, O., Jancic, D., Pantaleo, L., van der Velde, S., de Vries, F. (2016). The inclusion of financial services in EU free trade and association agreements: Effects on money laundering, tax evasion and avoidance; EPRS.
Amendment 1101 #
Motion for a resolution
Paragraph 171 a (new)
Paragraph 171 a (new)
171 a. Notes that developing countries need tax revenue, not least from the profits of multinational companies, to achieve their development goals; yet the taxation of most of those profits is regulated by a global network of bilateral tax treaties; notes that more than half of these treaties, and 40 percent of those with developing countries, have an EU Member State as signatory;1a _________________ 1a Martin Hearson(2018) ‘The European Union’s tax treaties with developing countries. Leading by example?’; GUE/NGL; September 2018.
Amendment 1104 #
Motion for a resolution
Paragraph 171 b (new)
Paragraph 171 b (new)
171 b. Recalls that the European Parliament has resolved that the “global network of tax treaties…often impedes developing countries from taxing profits generated in their territory”1aand that “when negotiating tax treaties, the European Union and its Member States should comply with the principle of policy coherence for development;2a _________________ 1a Tax rulings and other measures similar in nature or effect (TAXE 2) 2a European Parliament resolution of 8 July 2015 on tax avoidance and tax evasion as challenges forgovernance, social protection and development in developing countries(2015/2058(INI)). URL:http://www.europarl.europa.eu/sides /getDoc.do?type=TA&reference=P8-TA- 2015-0265 uage=EN˚=A8-2015-0184
Amendment 1105 #
Motion for a resolution
Paragraph 171 c (new)
Paragraph 171 c (new)
171 c. Notes that the European Economic and Social Committee has recommended that “when negotiating double tax agreements with developing countries, EU Member States take more account of the needs of developing countries”1a _________________ 1a European Economic and Social Committee. EU development partnerships and the challenge posed by international tax agreements. REX/487.https://www.eesc.europa.eu/en/o ur-work/opinions-information- reports/opinions/eu-development- partnerships-and-challenge-posed- international-tax-agreements
Amendment 1106 #
Motion for a resolution
Paragraph 171 d (new)
Paragraph 171 d (new)
171 d. Notes that tax treaties place too much emphasis on the taxing rights of the countries of residence of multinational companies, imposing too many restrictions on the countries that are the source of those companies’ income, often developing countries; 1a _________________ 1a Martin Hearson (2018) ‘The European Union’s tax treaties with developing countries. Leading by example?’; GUE/NGL; September 2018.
Amendment 1107 #
Motion for a resolution
Paragraph 171 e (new)
Paragraph 171 e (new)
171 e. Regrets that on average, the treaties developing countries have concluded with EU Member States impose more restrictions on their source taxing rights than their treaties with other countries, even other OECD members; notes that EU Member States’ treaties with developing countries more closely resemble the OECD model convention, which is not designed with developing countries in mind, than the UN model, which is; notes that a study of 172 treaties signed between EU Member States and developing countries noted that the average EU treaty leaves intact 40% of its developing country signatories’ taxing rights;1a _________________ 1a Martin Hearson(2018) ‘The European Union’s tax treaties with developing countries. Leading by example?’; GUE/NGL; September 2018.
Amendment 1108 #
Motion for a resolution
Paragraph 171 f (new)
Paragraph 171 f (new)
171 f. Calls on EU Member States and the European Commission to conduct spillover analyses incorporating reviews of EU Member States’ double taxation treaties, based on the principle of policy coherence for development and taking into account the recommendations of the European Parliament and the EESC;1a _________________ 1a Martin Hearson(2018) ‘The European Union’s tax treaties with developing countries. Leading by example?’; GUE/NGL; September 2018.
Amendment 1109 #
Motion for a resolution
Paragraph 171 g (new)
Paragraph 171 g (new)
171 g. Calls on EU Member States to undertake a rolling plan of renegotiations with a focus on progressively increasing the source taxation rights permitted by EU Member States’ treaties; calls on such renegotiations to introduce development- friendly measures such as anti-treaty shopping.1a _________________ 1a Martin Hearson (2018) ‘The European Union’s tax treaties with developing countries. Leading by example?’; GUE/NGL; September 2018.
Amendment 1110 #
Motion for a resolution
Paragraph 171 h (new)
Paragraph 171 h (new)
171 h. Calls on EU Member States and the European Commission to formulate and publish an EU Model Tax Convention for Development Policy Coherence, setting out source-based provisions that EU Member States are willing to offer to developing countries as a starting point for negotiations, not in return for sacrifices on their part; 1a _________________ 1a Martin Hearson(2018) ‘The European Union’s tax treaties with developing countries. Leading by example?’; GUE/NGL; September 2018.
Amendment 1120 #
Motion for a resolution
Paragraph 175 a (new)
Paragraph 175 a (new)
175 a. Recalls relevant Member States to make use of the opportunity afforded by their direct relations with the countries concerned to take the necessary steps in order to put pressure on their overseas countries and territories (OCTs) and outermost regions that do not respect international standards pertaining to tax cooperation, transparency and anti- money laundering; takes the view that the EU transparency and due diligence requirements should be effectively enforced in these territories;1a _________________ 1a PANA recommendations adopted on December 13, 2018.
Amendment 1126 #
Motion for a resolution
Subheading 7
Subheading 7
Amendment 1127 #
Motion for a resolution
Paragraph 177
Paragraph 177
177. Welcomes the broad definition of both ‘intermediary’ and regrets the incompleteness of the ‘reportable cross- border arrangement’ in the recently adopted DAC683 ; _________________ 83 OJ L 139, 5.6.2018, p. 1. OJ L 139, 5.6.2018, p. 1.
Amendment 1135 #
Motion for a resolution
Paragraph 177 a (new)
Paragraph 177 a (new)
177 a. Urges the Commission, Member States and all EU bodies to refer to “enablers” or “promoters” as opposed to "intermediaries", which disguises the agency of the facilitators and promoters of tax avoidance schemes; notes that Ireland has already classified them as “promoters” in legislation (eg, Mandatory Disclosure of Certain Transactions Regulation 2011);
Amendment 1136 #
Motion for a resolution
Paragraph 177 b (new)
Paragraph 177 b (new)
177 b. Recalls that the EU’s existing definition of control required to create a group of companies should be applied to accountancy firms that are members of a network of firms associated by legally enforceable contractual arrangements that provide for the sharing of a name or marketing, professional standards, clients, support services, finance or professional indemnity insurance arrangements, as anticipated by Directive2013/34/EU on annual financial statements1a; and calls for the European Commission to present a proposal for professional networks subject to these arrangements to be required to file full country-by-country reports, adapted to meet the particular needs of the sector, on public record;2a _________________ 2a Murphy, R.; Stausholm, S.N. (2017) ‘The Big Four, a study of opacity’; GUE/NGL, July 2017. 1a European Parliament recommendation of 13 December 2017 to the Council and the Commission following the inquiry into money laundering, tax avoidance and tax evasion (Texts adopted, P8_TA- (2017)0491).
Amendment 1137 #
Motion for a resolution
Paragraph 177 c (new)
Paragraph 177 c (new)
177 c. Calls for the Commission to present a proposal whereby the networks of professional service firms (e.g. accountancy firms, tax and legal advisors) to be required to apply for a single license to provide audit, taxation services or legal advice of any sort in the Member States, and that all abusive tax schemes promoted by the firm that have an impact on the tax revenue of a Member State be reported, whether sold in or outside the EU by a network member; 1a _________________ 1a Murphy, R.; Stausholm, S.N. (2017) ‘The Big Four, a study of opacity’; GUE/NGL, July 2017.
Amendment 1138 #
Motion for a resolution
Paragraph 177 d (new)
Paragraph 177 d (new)
177 d. Calls on the Commission to present a proposal for all audit firms to be required to be entirely separate from those selling any other service;
Amendment 1139 #
Motion for a resolution
Paragraph 177 e (new)
Paragraph 177 e (new)
177 e. Calls on the European Commission and member states to recognise that there is an inherent conflict of interest between the commercial interests of the tax avoidance industry and the public mandate of the EU to minimise tax avoidance;
Amendment 1140 #
Motion for a resolution
Paragraph 177 f (new)
Paragraph 177 f (new)
177 f. Stresses that this conflict of interest can come in several forms, including via public procurement contracts that require the provision of paid advice on these issues; the provision of informal or unpaid advice via official advisory and expert groups; and via the revolving door;
Amendment 1141 #
Motion for a resolution
Paragraph 177 g (new)
Paragraph 177 g (new)
177 g. Notes that in the same way as has been done by the World Health Organisation (WHO) to reduce the effects of the lobbying powers of the Tabaco industry in health policies, measures can be implemented in national, EU and international institutions to protect fiscal policies from commercial and other vested interests of the accountancy industry;
Amendment 1142 #
Motion for a resolution
Paragraph 177 h (new)
Paragraph 177 h (new)
177 h. Calls on the European Commission and member states to put in place a firewall to ensure that those with a commercial or vested interest in promoting tax avoidance and tax evasion should not have arole in advising the EU and member states on action to tackle tax avoidance and tax evasion. Elements of this firewall should include restrictions on the membership of advisory and expert groups, and on the awarding of public contracts for tax-related studies and impact assessments; restrictions on lobbying on tax avoidance and tax evasion; revolving door regulations; and full lobby transparency;
Amendment 1177 #
Motion for a resolution
Paragraph 182 a (new)
Paragraph 182 a (new)
182 a. Deplores that even when in the area of financial services, the added value of sectorial whistleblower protection was already acknowledged by the Union legislator, and measures for the protection of whistleblowers were introduced in a significant number of legislative instruments in this area1a,a number of high profile cases involving European financial institutions have proven that protection of whistleblowers within such financial institutionsstill remains unsatisfactory and that fears of reprisals from both employers and authorities still prevents whistleblowers from coming forward within formation on breaches of law;2a _________________ 1a Communication of 8.12.2010 "Reinforcing sanctioning regimes in the financial services sector".[ 2a A8-0398/2018. Report on the proposal for a directive of the European Parliamentand of the Council on the protection of persons reporting on breaches of Union law (COM(2018)0218 – C8 0159/2018 – 2018/0106(COD))
Amendment 1181 #
Motion for a resolution
Paragraph 183 a (new)
Paragraph 183 a (new)
183 a. Notes that it has been proven that keeping a reporting person’s identity confidential is an essential element in avoiding backsliding and self-censorship. The duty of confidentiality should, therefore, only be waived in exceptional circumstances in which disclosure of information relating to the reporting person’s personal data is a necessary and proportionate obligation required under Union or national law in the context of subsequent investigations or judicial proceedings or to safeguard the freedoms of others including the right of defence of the concerned person, and in each case subject to appropriate safeguards under such laws. Appropriate sanctions should be provided for in the event of breaches of the duty of confidentiality concerning the reporting person’s identity; 1a _________________ 1a A8-0398/2018. Report on the proposal for a directive of the European Parliament and of the Council on the protection of persons reporting on breaches of Union law (COM(2018)0218 – C8 0159/2018 – 2018/0106(COD))
Amendment 1183 #
Motion for a resolution
Paragraph 183 b (new)
Paragraph 183 b (new)
183 b. Notes that even when appropriate channels should be allowed for internal reporting, experts have noted that internal reporting should not be mandatory and that ultimately a whistleblower must have the right to be able to report externally1a _________________ 1a TAX3 Public hearing “Combatting money laundering in the EU banking sector”, Panel I: Danske Bank and money laundering allegations.
Amendment 1184 #
Motion for a resolution
Paragraph 183 c (new)
Paragraph 183 c (new)
183 c. Notes that in addition to guarding the confidentiality of the identity of whistleblowers as it is essential for the protection of the reporting person, anonymous reporting should be further protected against the generalised threats and the attacks that aim to discredit the anonymously reporting person, by those offended;
Amendment 1205 #
Motion for a resolution
Paragraph 188 a (new)
Paragraph 188 a (new)
188 a. Deplores that Swiss libel laws are used to silence critics in Switzerland and worldwide because the burden of proof lays on the defendant not the plaintiff; that this not only affects journalists and whistle-blowers, but also reporting entities in the European Union and obliged persons under the beneficial owner register; as in case of having the obligation of reporting a beneficial owner which is Swiss, then the reporting person may end up being sued in Switzerland for libel and slander, being such criminal offences;1a _________________ 1a TAX3 Public hearing “Relations with Switzerland in tax matters and the fight against money laundering”, October 1, 2018.
Amendment 1209 #
Motion for a resolution
Paragraph 188 b (new)
Paragraph 188 b (new)
188 b. Calls on EU Member States and the Commission not to recognise the Swiss and British libel laws because they are used for libel tourism if in an EU Member States it were not possible to sue a journalist or a whistleblower;1a _________________ 1a TAX3 Public hearing “Relations with Switzerland in tax matters and the fight against money laundering”, October 1, 2018.
Amendment 1211 #
Motion for a resolution
Paragraph 188 c (new)
Paragraph 188 c (new)
188 c. Notes that money laundering, tax evasion and avoidance often involve highly complex international corporate and financial arrangements, which are likely to be within the remit of differing jurisdictions; and recalls the need for provisions to be taken for a unified point of contact for whistleblowers1a _________________ 1a A8-0398/2018. Report on the proposal for a directive of the European Parliament and of the Council on the protection of persons reporting on breaches of Union law (COM(2018)0218 – C8 0159/2018 – 2018/0106(COD))
Amendment 1212 #
Motion for a resolution
Paragraph 189
Paragraph 189
189. Welcomes the work done by the Platform for Tax Good Governance; notes that the mandate of the Platform applies until 16 June 2019; calls for it to be extended or renewed to ensure that civil society concerns and expertise are heard by Member States and the Commission; but considers that intermediaries with a commercial interest in tax avoidance should no longer be members; encourages the Commission to broaden the scope of the experts invited to the Expert Group on Money Laundering and Terrorist Financing (EGMLTF) to include experts from the private sector (business and NGOs) so long as they do not have a commercial interest in these issues;;
Amendment 1217 #
Motion for a resolution
Paragraph 192
Paragraph 192
192. NotDeplores that, despite requests to the Council, no relevant documents have been made available to the TAX3 Committee; calls into question, therefore, the political will of the Council to enhance transparency and cooperation in the fight against money laundering, tax fraud, tax evasion and aggressive tax planning or to comply with the TEU and the principle of sincere cooperation;
Amendment 1242 #
Motion for a resolution
Subheading 9.5 a (new)
Subheading 9.5 a (new)
Regrets that even when TAXE, TAX2 and PANA committees have managed to make valuable contributions to the legislative discussions, they have not gone in-depth enough to reveal anything new that had not already been said by the media or by the civil society, partly due to the limitations of the powers granted to European Parliament’s special and inquiry committees.
Amendment 1252 #
Motion for a resolution
Paragraph 204
Paragraph 204
Amendment 1258 #
Motion for a resolution
Paragraph 205
Paragraph 205
Amendment 1276 #
Motion for a resolution
Paragraph 206
Paragraph 206
206. Stresses that all scenarios should be envisaged and not only shifting from unanimity to qualified majority voting through a passerelle clause; calls on the Commission to issue its proposal before ththe unanimity rule ensures that the smaller Member States are able to defend themselves and is the most reliable guarantee that we will have proposals that are bend of its current mandate, early 2019;eficial for all and not just for some.