64 Amendments of Olle SCHMIDT related to 2013/0045(CNS)

Olle SCHMIDT, Nils TORVALDS, Ramon TREMOSA i BALCELLS

Draft legislative resolution
Paragraph 1 b (new)

(1b) Calls on the Commission to analyse and to propose the introduction of an EU wide VAT on financial services or Financial Activity Tax.

2013/04/30
Committee: ECON

Olle SCHMIDT, Nils TORVALDS, Philippe DE BACKER, Wolf KLINZ

Proposal for a directive
Recital 1 a (new)

(1a) Prior to the introduction of an FTT the Commission shall demonstrate that enhanced cooperation will not undermine the internal market or economic, social and territorial cohesion. It shall also demonstrate that it does not constitute a barrier to or discrimination in trade between Member States, nor distort competition between them. The Commission shall present a new robust analysis and impact assessment, of the consequences the proposal for a common FTT both on participating and non participating countries as well as on the Single Market as a whole.

2013/04/30
Committee: ECON

Proposal for a directive
Recital 1 b (new)

(1b) It is important to emphasize that non- participating Member States' interests should be taken into account after the this Directive on enhanced cooperation has been implemented since the introduction of the tax will effect the single market as a whole. A tax with a narrower tax base would reduce the negative effects of the tax.

2013/04/30
Committee: ECON

Olle SCHMIDT

Proposal for a directive
Recital 1 c (new)

(1 c) The revenues from the FTT should not be used as own resources for the EU since not all Member States are participating. To allocate tax revenue levied under FTT to the Union budget as genuine own resource would imply that non-participating Member States and third countries would contribute to the participating Member States Union membership fees. Such an approach is inappropriate.

2013/04/30
Committee: ECON

Olle SCHMIDT, Nils TORVALDS, Sharon BOWLES

Proposal for a directive
Recital 2 a (new)

(2a) According to the difference in scope between the initial Commission proposal for a common FTT and existing national financial transaction tax regimes this enhanced cooperation in regard to FTT may not be regarded as furthering the Union's objectives, protecting its interests and reinforcing its integration process within the meaning of Article 20 TEU.

2013/04/30
Committee: ECON

Proposal for a directive
Recital 2 b (new)

(2b) The extraterritorial aspects of enhanced cooperation have not been fully considered sufficiently to ensure that it will respect the rights, competences and obligations of the non-participating Member States. Therefore the Commission shall closely monitor the implementation of an FTT adopted under enhanced cooperation with regard to articles 326 and 327 of the Treaty and report annually to the Council and European Parliament on any adverse affects this has in respect of those provisions.

2013/04/30
Committee: ECON

Olle SCHMIDT, Nils TORVALDS, Sharon BOWLES, Philippe DE BACKER

Proposal for a directive
Recital 3 a (new)

(3a) Any harmonisation of FTTs amongst participating Member States must not result in extra-territorial taxation infringing on the potential tax base for other non participating EU countries.

2013/04/30
Committee: ECON

Proposal for a directive
Recital 4

(4) The improvement of the operation of the internal market, in particular the avoidance of distortions between the participating Member States requires that a FTT applies to a broadly determined range of financial institutions and transactions, to trade in a wide range of financial instruments, including structured products, both in the organised markets and ‘over-the-counter’, as well as to the conclusion of all derivative contracts and to material modifications of the operations concerned.deleted

2013/04/30
Committee: ECON

Ramon TREMOSA i BALCELLS, Izaskun BILBAO BARANDICA, Olle SCHMIDT, Nils TORVALDS

Proposal for a directive
Recital 4 a (new)

(4a) The FTT should only be levied on financial transactions on fully liquid markets to avoid dramatic market distortions and damaging already fragile markets. Transactions for the account of another person, or undertaken as fulfilment of market making activities shall be out of the scope of a FTT, as should the hedging of risks arising from market making. Without such exemptions the tax would have a deeply damaging effect on liquidity in financial markets, with negative implications for the cost of funding for real economy.

2013/04/30
Committee: ECON

Proposal for a directive
Recital 6 a (new)

(6a) Transactions on public debt from EU Member States should not be included in the scope of the tax

2013/04/30
Committee: ECON

Proposal for a directive
Recital 9

(9) The provisions of Council Directive 2008/7/EC of 12 February 2008 concerning indirect taxes on the raising of capital28 continue to be fully applicable. Article 5(1)(e) and (2) of that Directive is relevant to the area covered by this Directive and prohibits, subject to Article 6(1)(a) of that Directive, the imposition of any tax whatsoever on the transactions referred to in its provisions. Transactions in respect of which Directive 2008/7/EC prohibits or could prohibit the imposition of taxes should therefore not be subject to FTT. Independently from the extent to which Directive 2008/7/EC prohibits taxation of the issuance of shares and units collective investment undertakings, considerations of tax neutrality require a single treatment of issuances and redemptions by all these undertakings~~. The redemption of shares and units thus issued are however not in the nature of a primary market transaction and should thus be taxable~~.

2013/04/30
Committee: ECON

Proposal for a directive
Recital 10

(10) The chargeability and taxable amount should ~~be harmonised so as to avoid~~not distort~~ions in~~ the internal market.

2013/04/30
Committee: ECON

Proposal for a directive
Recital 11 a (new)

(11a) The participating Member States should take responsibility for establishing mechanisms to ensure that financial institutions in non-participating member states, and in third countries, adequately compensate tax authorities in participating Member States for the costs incurred in ensuring and verifying payment due by those overseas financial institutions.

2013/04/30
Committee: ECON

Proposal for a directive
Recital 15

(15) Because of the high mobility of financial transactions and in order to help mitigating potential tax avoidance, the FTT should be applied on the basis of the residence principle. To further minimise the risk of relocation of transactions, while maintaining a single reference to ‘establishment’ for ease of application, this principle should be supplemented by elements of the issuance principle. Thus, for transactions in certain financial instruments, the persons involved should be considered established in the participating Member State in which the instrument has been issued.

2013/04/30
Committee: ECON

Proposal for a directive
Recital 15 a (new)

(15a) The FTT should not be levied on parties to the transaction that is not located within a participating Member State. This is to respect the sovereignty of the jurisdiction of non-participating Member States and third countries. Fundamental principles of international taxation limit a states right to taxation to its own jurisdiction. Every infringement on this fundamental principle may lead to undesirable counter measures from affected jurisdictions. Accordingly, FTT should only be levied on Financial Institutions within the territory of a participating Member State.

2013/04/30
Committee: ECON

Olle SCHMIDT, Nils TORVALDS, Philippe DE BACKER, Sharon BOWLES, Wolf KLINZ, Ramon TREMOSA i BALCELLS

Proposal for a directive
Recital 15 b (new)

(15b) The residence principle should not be complemented by the "transfer of legal title principle" in this Directive.

2013/04/30
Committee: ECON

Olle SCHMIDT, Nils TORVALDS, Philippe DE BACKER, Sharon BOWLES, Wolf KLINZ

Proposal for a directive
Recital 16

(16) The minimum tax rates should be set at a level sufficiently high for the harmonisation objective of a common FTT to be achieved. At the same time, they have to be low enough so that delocalisation risks are minimised as well as increases in the cost of funding for business. The tax rate should not in any way reduce the value of pension rights.

2013/04/30
Committee: ECON

Proposal for a directive
Recital 19 a (new)

(19a) The Commission should establish an expert working group (FTT Committee) comprising representatives from all Member States in the EU, the European Commission, the ECB and ESMA to assess the effective implementation of this Directive and the effects of the single markets as a whole. The FTT Committee should make full use of Union law, if appropriate, in the field of taxation and financial services regulation and of the instruments for cooperation on tax matters established by the OECD and the Council of Europe.

2013/04/30
Committee: ECON

Olle SCHMIDT, Nils TORVALDS, Philippe DE BACKER, Wolf KLINZ, Ramon TREMOSA i BALCELLS

Proposal for a directive
Article 1 – paragraph 2 b (new)

(2b) In accordance with the principle of Article 2(3) for the Council Decision of 29 September 2000 on the system of the European Communities' own resources and the savings tax directive, Member States collecting tax on behalf of a participating Member State shall be entitled to retain 25% of the revenues from any FTT for costs incurred.

2013/04/30
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point 2 – point b

(b) the transfer between entities of a group of the right to dispose of a financial instrument as owner and any equivalent operation implying the transfer of the risk associated with the financial instrument, in cases not subject to point (a);deleted

2013/04/30
Committee: ECON

Olle SCHMIDT, Nils TORVALDS, Ramon TREMOSA i BALCELLS

Proposal for a directive
Article 2 – paragraph 1 – point 2 – point e

~~(e) a repurchase agreement, a reverse repurchase agreement, a securities lending and borrowing agreement;~~deleted

2013/04/30
Committee: ECON

Olle SCHMIDT, Nils TORVALDS, Ramon TREMOSA i BALCELLS

Proposal for a directive
Article 2 – paragraph 1 – point 5

~~(5) ‘Repurchase agreement’ and ‘reverse repurchase agreement’ means an agreement as defined in Article 3(1)(m) of Directive 2006/49/EC of the European Parliament and of the Council;~~deleted

2013/04/30
Committee: ECON

Olle SCHMIDT, Nils TORVALDS, Philippe DE BACKER, Sharon BOWLES, Ramon TREMOSA i BALCELLS

Proposal for a directive
Article 2 – paragraph 1 – point 7 a (new)

(7a) 'market maker' means a market maker as defined in article 4 of Directive [MiFID], a person who holds himself out on the financial markets on a continuous basis as being willing to deal on own account by buying and selling financial instruments against his proprietary capital;

2013/04/30
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point 7 b (new)

(7b) 'SME growth market' means a MTF that is registered as an SME growth market in accordance with Article 2 and registered in accordance with Article 35 of Directive [MiFID];

2013/04/30
Committee: ECON

Olle SCHMIDT, Nils TORVALDS, Philippe DE BACKER, Sharon BOWLES, Ramon TREMOSA i BALCELLS

Proposal for a directive
Article 2 – paragraph 1 – point 7 c (new)

(7 c) 'SME, small and medium-sized enterprises' means a company that has an average market capitalisation of less than EUR 200 000 000 in accordance with Article 4 (12) in Regulation No.../...[MiFID];

2013/04/30
Committee: ECON

Olle SCHMIDT, Nils TORVALDS, Philippe DE BACKER, Sharon BOWLES, Wolf KLINZ

Proposal for a directive
Article 2 – paragraph 1 – point 8 – point e

(e) an undertaking for collective investments in transferable securities (UCITS) as defined in Article 1(2) of Directive 2009/65/EC of the European Parliament and of the Council and a management company as defined in Article 2(1)(b) of Directive 2009/65/EC;deleted

2013/04/30
Committee: ECON

Olle SCHMIDT, Nils TORVALDS, Philippe DE BACKER, Sharon BOWLES, Wolf KLINZ, Ramon TREMOSA i BALCELLS

Proposal for a directive
Article 2 – paragraph 1 – point 8 – point f

(f) a pension fund or an institution for occupational retirement provision as defined in Article 6(a) of Directive 2003/41/EC of the European Parliament and of the Council , an investment manager of such fund or institution;deleted

2013/04/30
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point 8 – point g

(g) an alternative investment fund (AIF) and an alternative investment fund manager (AIFM) as defined in Article 4 of Directive 2011/61/EU of the European Parliament and of the Council except where the leverage of the AIF complies with the requirement set out in Article 51(3) of Directive 2009/65/EC;

2013/04/30
Committee: ECON

Ramon TREMOSA i BALCELLS, Izaskun BILBAO BARANDICA, Olle SCHMIDT, Nils TORVALDS

Proposal for a directive
Article 2 – paragraph 1 – point 8 – point j

(j) any other undertaking, institution, body or person carrying out one or more of the following activities, in case the average annual value of its financial transactions constitutes more than fifty per cent of its overall average net annual turnover, as referred to in Article 28 of Council Directive 78/660/EEC: (i) activities referred to in points 1, 2, 3 and 6 of Annex I to Directive 2006/48/EC; ii) trading for own account or for account or in the name of customers with respect to any financial instrument; (iii) acquisition of holdings in undertakings; (iv) participation in or issuance of financial instruments; (v) the provision of services related to activities referred to in point (iv);deleted

2013/04/30
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point 12 a (new)

(12a) 'Public debt' means debt titles issued by any of the levels of administration of a participating Member State.

2013/04/30
Committee: ECON

Olle SCHMIDT, Nils TORVALDS, Sharon BOWLES

Proposal for a directive
Article 3 – paragraph 1

1. This Directive shall apply to ~~all~~ financial transactions, on the condition that at least one party to the transaction is established in the territory of a participating Member State and that a financial institution established in the territory of a participating Member State is party to the transaction, acting either for its own account or for the account of another person, or is acting in the name of a party to the transactioninstitutions as defined in this Directive, established in the territory of a participating Member State, entering into transactions in instruments that are admitted to trading or traded on a Regulated Market, MTF or OTF and issued in participating Member States for which there is a liquid market, as defined in accordance with Regulation [..../...MIFIR]. This Directive shall not apply where the financial institution is acting as a market maker in relation to a client request, or hedging risks associated with fulfilling that role.

2013/04/30
Committee: ECON

Olle SCHMIDT, Nils TORVALDS, Sharon BOWLES, Philippe DE BACKER, Ramon TREMOSA i BALCELLS

Proposal for a directive
Article 3 – paragraph 2 – point c a (new)

(ca) SME growth markets;

2013/04/30
Committee: ECON

Olle SCHMIDT, Nils TORVALDS, Philippe DE BACKER, Ramon TREMOSA i BALCELLS

Proposal for a directive
Article 3 – paragraph 2 – point c b (new)

(cb) Small and medium-sized enterprises;

2013/04/30
Committee: ECON

Olle SCHMIDT, Nils TORVALDS, Philippe DE BACKER, Sharon BOWLES, Wolf KLINZ, Ramon TREMOSA i BALCELLS

Proposal for a directive
Article 3 – paragraph 2 – point c c (new)

(c c) a pension fund or an institution for occupational retirement provision as defined in Article 6(a) of Directive 2003/41/EC of the European Parliament and of the Council36 , an investment manager of such fund or institution;

2013/04/30
Committee: ECON

Olle SCHMIDT, Nils TORVALDS, Philippe DE BACKER, Sharon BOWLES, Wolf KLINZ

Proposal for a directive
Article 3 – paragraph 2 – point c d (new)

(cd) an undertaking for collective investments in transferable securities (UCITS) as defined in Article 1(2) of Directive 2009/65/EC of the European Parliament and of the Council35 and a management company as defined in Article 2(1)(b) of Directive 2009/65/EC;

2013/04/30
Committee: ECON

Proposal for a directive
Article 3 – paragraph 2 – point c e (new)

(ce) a branch or subsidiary of an institution established in a participating Member State pursuant to point (c) of Article 4 paragraph 1 but operating in a non participating Member State where it is not trading in an instrument issued in a participating Member State;

2013/04/30
Committee: ECON

Olle SCHMIDT, Philippe DE BACKER

Proposal for a directive
Article 3 – paragraph 2 – point c f (new)

(cf) Financial institutions acting as market makers or undertaking transactions associated with that activity including the hedging of risks resulting from that activity.

2013/04/30
Committee: ECON

Proposal for a directive
Article 3 – paragraph 2 – point c g (new)

(cg) A venture capital or social entrepreneurship fund that operate under the EU-wide passport as respectively defined by article 3 of the Regulation (EU) 345/2013 on European venture capital funds and by article 3 of the Regulation (EU) 346/2013 on social entrepreneurship funds;

2013/04/30
Committee: ECON

Ramon TREMOSA i BALCELLS, Izaskun BILBAO BARANDICA, Olle SCHMIDT, Nils TORVALDS

Proposal for a directive
Article 3 – paragraph 4 – point g a (new)

(ga) instruments issued in non- participating Member States.

2013/04/30
Committee: ECON

Proposal for a directive
Article 3 – paragraph 4 – point g a (new)

(ga) Transactions of public debt.

2013/04/30
Committee: ECON

Ramon TREMOSA i BALCELLS, Olle SCHMIDT, Nils TORVALDS

Proposal for a directive
Article 3 – paragraph 4 – point g b (new)

(gb) Intragroup transactions between entities of a consolidated group and entities of a network of decentralised banks under the condition that the respective financial instruments are owned by them and similar types of transactions comprising the transfer of the risk linked to the financial instrument;

2013/04/30
Committee: ECON

Proposal for a directive
Article 3 – paragraph 4 – point g b (new)

(gb) Transactions with any financial product issued by SMEs

2013/04/30
Committee: ECON

Olle SCHMIDT, Nils TORVALDS, Philippe DE BACKER, Ramon TREMOSA i BALCELLS

Proposal for a directive
Article 3 – paragraph 4 – point g c (new)

(g c) A reverse repurchase agreement, a repurchase agreement, a contractual agreement on securities lending and borrowing.

2013/04/30
Committee: ECON

Olle SCHMIDT, Nils TORVALDS, Ramon TREMOSA i BALCELLS

Proposal for a directive
Article 3 – paragraph 4 – point g d (new)

(gd) Currency and interest rate related derivatives as specified in MiFID Annex 1 Section C.

2013/04/30
Committee: ECON

Proposal for a directive
Article 3 – paragraph 4 – point g e (new)

(ge) primary market transactions referred to in Article 5(c) of Regulation (EC) No 1287/2006, including the activity of underwriting and subsequent allocation of financial instruments in the framework of their issue and the issue and redemption of shares and units of undertakings for collective investments in transferable securities (UCITS) as defined in Article 1(2) of Directive 2009/65/EC of the European Parliament and the Council22 and alternative investment funds (AIF) as defined in Article 4(1)(a) of Directive 2011/61/EU of the European Parliament and the Council;

2013/04/30
Committee: ECON

Proposal for a directive
Article 3 – paragraph 4 – point g f (new)

(gf) transactions in relation to market making activities.

2013/04/30
Committee: ECON

Proposal for a directive
Article 3 – paragraph 4 – point g g (new)

(gg) bonds and transactions in financial instruments related to hedging or market making activities in bond markets.

2013/04/30
Committee: ECON

Proposal for a directive
Article 3 – paragraph 4 – point g h (new)

(g h) derivatives transactions which result from market making activity or related hedging or are objectively measureable as reducing risks directly relating to commercial activity or treasury financing specified in accordance with Regulation [.../...EMIR].

2013/04/30
Committee: ECON

Proposal for a directive
Article 4 – paragraph 1 – point f

(f) it is party, acting either for its own account or for the account of another person, or is acting in the name of a party to the transaction, to a financial transaction with another financial institution established in that Member State pursuant to points (a), (b), (c), (d) or (e), or with a party established in the territory of that Member State and which is not a financial institution;deleted

2013/04/30
Committee: ECON

Proposal for a directive
Article 4 – paragraph 1 – point g

(g) it is party, acting either for its own account or for the account of another person, or is acting in the name of a party to the transaction, to a financial transaction in a structured product or one of the financial instruments referred to in Section C of Annex I of Directive 2004/39/EC issued within the territory of that Member State~~, with the exception of instruments referred to in points (4) to (10) of that Section which are not traded on an organised platform~~.

2013/04/30
Committee: ECON

Proposal for a directive
Article 4 – paragraph 2 – point c

(c) it is party to a financial transaction in a structured product or one of the financial instruments referred to Section C of Annex I to Directive 2004/39/EC issued within the territory of that Member State, with the exception of instruments referred to in points (4) to (10) of that Section which are not traded on an organised platform.deleted

2013/04/30
Committee: ECON

Ramon TREMOSA i BALCELLS, Olle SCHMIDT

Proposal for a directive
Article 7 – paragraph 1

In the case of financial transactions referred to in point 2(c) of Article 2(1) and, in respect of derivative contracts, in points 2(a), 2(b) and 2(d) of Article 2(1), the taxable amount of the FTT shall be the ~~notional amount~~economic value referred to in the derivatives contract at the time of the financial transaction.

2013/04/30
Committee: ECON

Proposal for a directive
Article 7 – paragraph 1

In the case of financial transactions referred to in point 2(c) of Article 2(1) and, in respect of derivative contracts, in points 2(a), 2(b) and 2(d) of Article 2(1), the taxable amount of the FTT shall be the ~~notional amount~~economic value referred to in the derivatives contract at the time of the financial transaction.

2013/04/30
Committee: ECON

Proposal for a directive
Article 9 – paragraph 2 – subparagraph 2 – point a

(a) 0.01% in respect of the financial transactions referred to in Article 6;

2013/04/30
Committee: ECON

Proposal for a directive
Article 9 – paragraph 2 – subparagraph 2 – point b

(b) 0.001% in respect of financial transactions referred to in Article 7.

2013/04/30
Committee: ECON

Proposal for a directive
Article 10 – paragraph 1 – subparagraph 1 – point a

(a) it is party to the transaction, acting ~~either~~ for its own account ~~or for the account of another person~~;

2013/04/30
Committee: ECON

Proposal for a directive
Article 10 – paragraph 1 – subparagraph 1 – point b

~~(b) it is acting in the name of a party to the transaction;~~deleted

2013/04/30
Committee: ECON

Proposal for a directive
Article 10 – paragraph 3

3. Where the tax due has not been paid within the time limit set out in Article 11(5), each party to a transaction, including persons other than financial institutions shall be jointly and severally liable for the payment of the tax due by a financial institution on account of that transaction.deleted

2013/04/30
Committee: ECON

Olle SCHMIDT, Nils TORVALDS, Philippe DE BACKER, Sharon BOWLES, Wolf KLINZ, Ramon TREMOSA i BALCELLS

Proposal for a directive
Article 11 – paragraph 6 b (new)

(6b) The participating Member States shall establish mechanisms to ensure that financial institutions in non-participating member states, and in third countries, adequately compensate tax authorities in participating Member States for the costs incurred in ensuring and verifying payment due by those overseas financial institutions.

2013/04/30
Committee: ECON

Proposal for a directive
Article 15 a (new)

Article 15 a Establishment of the FTT Committee 1. The Commission shall establish an expert working group (the FTT Committee) comprising representatives from all EU Member States, the Commission, the ECB, and ESMA to assist participating Member States in the effective implementation of this Directive and prevent tax fraud, evasion and avoidance and to preserve the integrity of the Single market. 2. The FTT Committee shall assess the effective implementation of this Directive, assess the effects on the single market, for participating and non participating Member States, and detect avoidance schemes including abusive arrangements as defined in Article 14 in order to propose countermeasures, where appropriate, making full use of Union law in the field of taxation and financial services regulation and of the instruments for cooperation on tax matters established by international organisations including the OECD and the Council of Europe.

2013/04/30
Committee: ECON