11 Amendments of Gilles BOYER related to 2023/0321(CNS)
Amendment 79 #
Proposal for a directive
Recital 2
Recital 2
(2) The existence of 27 different corporate income tax systems in the Union gives rise to complexity in tax compliance and, leads to unfair competition for businesses, can allow for cross-border aggressive tax planning, as well as double taxation and double non-taxation. That has become more evident as globalisation and digitalisation of the economy have significantly altered the perception of land borders and business models. As governments have tried to adapt to that new reality, a fragmented response among Member States has led to further distortions in the internal market. The various legal frameworks inevitably lead to different tax administration practices across the Member States as well. This often entails long procedures characterised by unpredictability and inconsistency along with high compliance costs. Because this complexity can hinder businesses’ expansion in the single market, with further negative impacts on innovation, competitiveness and jobs, companies need a workable single tax framework for developing their commercial activity across the single market.
Amendment 84 #
Proposal for a directive
Recital 3
Recital 3
(3) Albeit different in their design, the fundamental features of corporate income tax systems are similar as they lay down rules aiming towards the same objective, i.e., to arrive at a taxable base for businesses. In this vein, to support the proper functioning of the internal market, the corporate tax environment in the Union should be shaped in accordance with the principle that companies pay their fair share of tax in the jurisdiction(s) where their profits are generated. Therefore, it would be important for businesses which operate on the internal market that Member States introduce a common legal framework to harmonise the fundamental features of corporate income tax systems with a view to simplifying tax rules and ensuring a fair competition.
Amendment 121 #
Proposal for a directive
Recital 12
Recital 12
(12) To achieve the key objective of creating a simplified corporate tax framework, the preliminary tax results for each group member should be aggregated into one single common tax base, in order to subsequently allocate this base to eligible group members. The tax adjustments to the financial statements would produce preliminary tax results for each group member. These results would then be aggregated, which would allow for cross-border loss relief between BEFIT group members, and subsequently, the aggregated tax base would be allocated to group members based on a transition allocation rule until Pillar One of the OECD agreement on corporate taxation enters into force in all Member States; this wshould pave the way towards a permanent mechanism. That permanent mechanism could be bas in accordance with profit allocation rules defined oin a formulary apportionmentthe OECD Pillar One Multilateral Convention and would render the need for intra-BEFIT group transactions to be consistent with the arm’s length principle redundant. It wshould have the advantage of usinguse morest recent country-by-country reporting (‘CbCR’) data and the information gathered during the transition period. This will also allow for a more thorough assessment of the impact that the implementation of theconsistent approach between BEFIT and the OECD two- pillar approach is expected to have on national tax bases and the BEFIT group tax basand therefore reduce tax compliance costs for companies. In this way, it would still become possible to materialise the key objective of tax neutrality in the internal market, which would reduce instances of double and over-taxation and enhance tax certainty with the aim of reducing the number of tax disputes.
Amendment 146 #
Proposal for a directive
Recital 19
Recital 19
(19) To optimise the benefits of having a common legal framework for computing the corporate tax base in the internal market, the application of the rules should be optional for groups, including SME groups, who earn annual combined revenues of less than EUR 750 000 000 as long as they prepare consolidated financial statements and have a taxable presence in the Union. By keeping the application of the rules open to groups of a smaller size, more groups with cross-border structures and activities may benefit from the simplification that the common framework offers. Companies choosing to be covered by this Directive should easily benefit from Member States' and the European Commission's technical assistance to comply with the new rules and therefore foster their cross-border activities.
Amendment 152 #
Proposal for a directive
Recital 26 a (new)
Recital 26 a (new)
(26a) This Directive is also relevant from an EU own resources perspective, as set out in the 2021 Communication on the next generation of own resources for the Union budget. A BEFIT-based own resource should link the financing of the EU budget to the benefits enjoyed by companies operating in the Single Market and create a strong and stable resource over time. Under a BEFIT-based own resource, Member States should transfer part of their corporate income tax revenues to the EU budget.
Amendment 273 #
Proposal for a directive
Article 45 – paragraph 1 – subparagraph 1
Article 45 – paragraph 1 – subparagraph 1
For each fiscal year between 1 July 2028 and 30 June 2035 at the luntil the Multilateral Convention to implement amount A of Pillar One of the OECD agreement enters into force in all EU Member Statest (the ‘transition period’), the BEFIT tax base shall be allocated to the BEFIT group members in accordance with the baseline allocation percentage.
Amendment 291 #
Proposal for a directive
Article 45 – paragraph 2 – subparagraph 3 – point 1 (new)
Article 45 – paragraph 2 – subparagraph 3 – point 1 (new)
(1) Once the Multilateral Convention implementing amount A of Pillar One of the OECD agreement enters into force in all EU Member States, the BEFIT tax base should be allocated to the BEFIT group members in each tax year in accordance with the profit allocation rules defined in the Multilateral Convention on Pillar one.
Amendment 351 #
Proposal for a directive
Article 57 – paragraph 4 a (new)
Article 57 – paragraph 4 a (new)
4a. BEFIT teams should use all the existing procedures and arrangements offered by the Directive on Administration Cooperation (DAC) to ensure an efficient cooperation and exchange of information between national tax administrations.
Amendment 373 #
Proposal for a directive
Article 77 – paragraph 1
Article 77 – paragraph 1
1. Five years after this Directive starts to apply, the Commission shall examine and evaluate its functioning and report to the European Parliament and the Council to that effect. The report shall, where appropriate, be accompanied by a proposal to amend this Directive. That review shall in particular include an assessment of the impact of the allocation of the tax base on Member States’ revenues, of the evolution of the compliance costs for companies covered by the Directive, as well as whether the scope of the Directive should be extended to those companies meeting the criteria laid down in article 2 paragraph 1 point (b) and (c) but who do not fulfil the conditions laid down in paragraph 1 point (a) regarding the current threshold of EUR 750 000 000.
Amendment 378 #
Proposal for a directive
Article 77 – paragraph 2
Article 77 – paragraph 2
2. Member States shall communicate to the Commission relevant information for the evaluation of the Directive in accordance with paragraph 3, including aggregated data on BEFIT group members which are resident for tax purposes in their jurisdiction and permanent establishments thereof operating in their jurisdiction, in order to properly assess the impact of the transition allocation rule and of Directive (EU) 2022/2523 as well as assessing the situation regardingarticulation with Pillar One of the Statement on a Two- Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy agreed by the OECD/G20 Inclusive Framework on BEPS on 8 October 2021.
Amendment 386 #
Proposal for a directive
Article 78 a (new)
Article 78 a (new)
Article 78a Revenue potential In line with the legally binding roadmap of 2020 on own resources1a and the 2021 European Commission’s communication “An adjusted package for the next generation of own resources”, part of the fiscal revenues generated by the new rules laid down in this Directive shall be allocated to the general budget of the Union. 1a Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources.