Activities of Claude GRUFFAT related to 2023/0320(CNS)
Shadow reports (1)
REPORT on the proposal for a Council directive establishing a Head Office Tax system for micro, small and medium sized enterprises, and amending Directive 2011/16/EU
Amendments (13)
Amendment 55 #
Proposal for a directive
Recital 7
Recital 7
(7) The proposal aims to provide significant procedural simplification, thus a one-stop-shop should be put in place, whereby the tax filing, tax assessments and the collection of the tax due by the permanent establishment(s) would be dealt with through a single tax authority (‘filing authority’), i.e. the tax authority in the Member State of the head office. In full respect of Member States’ sovereignty in tax matters, audits, appeals and dispute resolution procedures would primarily be kept domestic and in accordance with the procedural rules of the respective Member State. To support the functioning of a one- stop-shop, it would be critical to provide for joint audits, which create an obligation to the Member State of the head office to cooperate if the tax authority of the permanent establishment requests an audit covering the computation of the taxable result of its taxpayer. In that sense, if the head office Member State conducts an audit at its own initiative, it shall invite the host Member State to carry out such audit jointly.
Amendment 58 #
Proposal for a directive
Recital 7 a (new)
Recital 7 a (new)
(7 a) To avoid a too large of a burden on the head office tax authority in applying the rules the proposal ensures that the head office Member State should be entitled to retain 15% of the collected tax corresponding to the tax liability of the permanent establishment(s) or subsidiary(ies) in the host Member State.
Amendment 65 #
Proposal for a directive
Article 1 – paragraph 1
Article 1 – paragraph 1
This Directive lays down rules for computing the taxable result of permanent establishments and subsidiaries of SMEs which fulfil the criteria set out in Article 2(1) (“Head Office Taxation” rules). (This Amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.)
Amendment 68 #
Proposal for a directive
Article 2 – paragraph 1 – point e
Article 2 – paragraph 1 – point e
(e) they operate in other Member States exclusively through one or more permanent establishments; or up to two subsidiaries; (This Amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.)
Amendment 73 #
Proposal for a directive
Article 3 – paragraph 1 – point 1 a (new)
Article 3 – paragraph 1 – point 1 a (new)
(1 a) ‘subsidiary’ means an undertaking in another Member States which is wholly-owned and controlled by the head office of an SME;
Amendment 74 #
Proposal for a directive
Article 3 – paragraph 1 – point 2
Article 3 – paragraph 1 – point 2
(2) ‘head office’ means an SME, as referred to in Article 2(1), which operates in (an)other Member State(s) exclusively through one or more permanent establishment or up to two subsidiaries;
Amendment 81 #
Proposal for a directive
Article 4 – paragraph 1 – point b
Article 4 – paragraph 1 – point b
(b) it has been resident for tax purposes in the head office Member State during the last twofive fiscal years;
Amendment 92 #
Proposal for a directive
Article 6 – paragraph 1
Article 6 – paragraph 1
1. The head office which opts to apply the head office taxation rules to its permanent establishment(s) shall notify its choice to the filing authority, together with the name of the host Member State(s). The notification shall be made at least three months before the end of the fiscal year preceding the fiscal year in which that SME wishes to start applying the head office taxation rules. For the establishment of its first permanent establishment or subsidiary in another Member State, an SME may apply the head office taxation rules from the year in which the permanent establishment or subsidiary is established, without having to notify the filing authority three months before the end of the previous tax year.
Amendment 94 #
Proposal for a directive
Article 6 – paragraph 2
Article 6 – paragraph 2
2. The filing authority shall verify whether the eligibility requirements set out in Article 4 are met and shall inform the head office of its findings within two months of the notification referred to in paragraph 1. The filing authority shall obtain confirmation from the host Member State that the establishment in the host Member State constitutes a permanent establishment for treaty purposes.
Amendment 155 #
Proposal for a directive
Article 12 a (new)
Article 12 a (new)
Article 12a Retention of collected tax by head office Member State Concerning the tax liability to be transferred to the host Member State in accordance with article 12, the head office Member State shall be entitled to retain 15% of the collected tax corresponding to the tax liability of the permanent establishment(s) or subsidiary(ies) to compensate for the administrative burden incurred.
Amendment 157 #
Proposal for a directive
Article 13 – paragraph 2
Article 13 – paragraph 2
2. The tax authority of the host Member State may request that an audit be carried out jointly with the filing authority covering the computation of the taxable result of the permanent establishment in accordance with the head office taxation rules, the attribution of profits to the permanent establishment and/or the applicable tax rate. Joint audits shall be conducted in accordance with Council Directive 2011/16/EU18 . Notwithstanding the provisions in the aforementioned Directive, the requested competent authority shall accept such request by the authorities of the host Member State. If an audit is carried out at the initative of the head office member state, the head office Member State shall invite the host Member State to carry out such audit jointly. _________________ 18 Council Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation and repealing Directive 77/799/EEC (OJ L 64, 11.3.2011, p. 1)
Amendment 170 #
Proposal for a directive
Article 19 – paragraph 2
Article 19 – 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 regarding the number of eligible SMEs compared to SMEs that opted in, their turnover and compliance costs relative to turnover; data on the number of SMEs that expanded cross- border by setting up a permanent establishment and the number of SMEs that disqualified due to creating a subsidiary, or the compliance costs for SMEs that apply the option.
Amendment 172 #
Proposal for a directive
Article 19 – paragraph 2 a (new)
Article 19 – paragraph 2 a (new)
2 a. The Commission shall evaluate potential legal hurdles in applying this directive such as the lack of a common and harmonised definition of permanent establishments in the EU.