Activities of Marco VALLI related to 2016/0336(CNS)
Shadow reports (1)
REPORT on the proposal for a Council directive on a Common Consolidated Corporate Tax Base (CCCTB) PDF (1 MB) DOC (141 KB)
Amendments (20)
Amendment 41 #
Proposal for a directive
Recital 1
Recital 1
(1) Companies which seek to do business across frontiers within the Union encounter serious obstacles and market distortions owing to the existence and interaction of 28 disparate corporate tax systems. Furthermore, tax planning structures have become ever-more sophisticatedaggressive, complex and harmful over time, as they develop across various jurisdictions and effectively take advantage of the technicalities of a tax system or of mismatches between two or more tax systems for the purpose of reducing the tax liability of companies. Although those situations highlight shortcomings that are completely different in nature, they both create obstacles whichand distortions which grant multinational companies an unfair competitive advantage over small and medium enterprises and impede the proper functioning of the internal market. Action to rectify these problems should therefore address both these types of market deficiencies.
Amendment 74 #
Proposal for a directive
Recital 4
Recital 4
(4) Considering the need to act swiftly in order to ensure a proper functioning of the internal market by making it, on the one hand, friendlier to trade and investment and, on the other hand, more resilient to tax avoidance schemes, it is necessary to divide the ambitious CCCTB initiative into two separate proposals. At a first stage, rules on a common corporate tax base should be agreed, before addressing, at a second stage, the issue of consolidationcrucial to achieve an ambitious CCCTB with full consolidation; to this end the two separate proposals should move in parallel and be implemented at the same time.
Amendment 109 #
Proposal for a directive
Recital 10
Recital 10
(10) The formula apportionment for the consolidated tax base should comprise three equally weighted factors, namely labour, assets and sales by destination. Those equally weighted factors should reflect a balanced approach to distributing taxable profits amongst the relevant Member States and should ensure that profits are taxed where they are actually earned. Labour and assets should therefore be allocated to the Member State where the labour is performed or the assets are located, and would thereby give appropriate weight to the interests of the Member State of origin, whilst sales should be allocated to the Member State of destination of the goods or services, including digital services. To account for differences in the levels of wages across the Union and thus allow for a fair distribution of the consolidated tax base, the labour factor should comprise both payroll and the number of employees (i.e. each item counting for half). The asset factor, on the other hand, should comprise all fixed tangible assets, but not intangible and financial assets because of their mobile nature and the resulting risk that the rules of this Directive could be circumvented. Where, due to exceptional circumstances, the outcome of the apportionment does not fairly represent the extent of business activity, a safeguard clause should provide for an alternative method of income allocation.
Amendment 115 #
Proposal for a directive
Recital 12
Recital 12
(12) To optimise the benefits of having a single set of corporate tax rules across the EU for determining the consolidated tax base of groups, groups should be able to deal with a single tax administration ('principal tax authority'). As a matter of principle, that principal tax authority should be based in the Member State where the parent company of the group is resident for tax purposes or where the group's highest tier of management within the EU is located ('principal taxpayer'). It is essential in this context to lay down common procedural rules for the administration of the system.
Amendment 134 #
Proposal for a directive
Recital 20 a (new)
Recital 20 a (new)
(20a) In order to achieve a full and consistent consolidation and prevent new opportunities for arbitrage arising from accounting inconsistencies between Member States, it is necessary to adopt clear, consistent and objective criteria for calculating the consolidated tax base; to this effect, the Commission should propose the necessary adjustments to the relevant provisions of this Directive concerning the definition and calculation of the consolidated tax base.
Amendment 147 #
Proposal for a directive
Article 2 – paragraph 1 – point c
Article 2 – paragraph 1 – point c
(c) it belongs to a consolidated group for financial accounting purposes with a total consolidated group revenue that exceeded EUR 750 000 000 during the financial year preceding the relevant financial year;
Amendment 148 #
Proposal for a directive
Article 2 – paragraph 2 – subparagraph 1
Article 2 – paragraph 2 – subparagraph 1
This Directive shall also apply to a company that is established under the laws of a third country in respect of its permanent or digital business establishments situated in one or more Member States, and in respect of the revenues generated from operations and business activity carried out in one or more Member States, where the company meets the conditions laid down in points (b) to (d) of paragraph 1.
Amendment 154 #
Proposal for a directive
Article 3 – paragraph 1 – point 11 – point d a (new)
Article 3 – paragraph 1 – point 11 – point d a (new)
(da) an entity where the group's highest tier of management related to the operations and business activity within the EU is located;
Amendment 165 #
Proposal for a directive
Article 4 – paragraph 1
Article 4 – paragraph 1
1. A company that has its registered office, place of incorporation or place of effective management in a Member State and is not, under the terms of an agreement concluded by that Member State with a third country, regarded as tax resident in that third country shall be considered resident in that Member State for tax purposes.
Amendment 168 #
Proposal for a directive
Article 4 – paragraph 5
Article 4 – paragraph 5
5. A non-resident taxpayer shall be subject to corporate tax on all income from an activity carried on through a permanent establishment in a Member State or through an entity located in a Member State that can be considered the place of effective management of the group's business within the EU, meaning the place where key management and commercial decisions related to the operations inside the EU are implemented.
Amendment 190 #
Proposal for a directive
Article 9 – paragraph 2
Article 9 – paragraph 2
2. Groups shall apply a consistent and adequately documented method for recording intra-group transactions. Groups may change the method only for valid commercial reasons and only at the beginning of a tax yearAll such transactions shall be eliminated from the tax base as a result of the consolidation required by this Directive.
Amendment 269 #
Proposal for a directive
Article 69 – paragraph 2
Article 69 – paragraph 2
2. Where paragraph 1 applies, the exceeding borrowing costs and EBITDA shall be calculated at the level of the group and comprise the results of all group members. The amount of EUR 3 000 000 referred to in, in line with Article 13 of Directive 2016/xx/EU shall be increased to 5 000 000.
Amendment 271 #
Proposal for a directive
Article 71
Article 71
Amendment 276 #
Proposal for a directive
Article 72 – paragraph 1
Article 72 – paragraph 1
For the purposes of this Directive, the reference to the statutoryeffective corporate tax rate that the taxpayer would have been subject to in the first subparagraph of Article 53(1) of Directive 2016/xx/EU shall not apply and shall be replaced by the average statutoryeffective corporate tax rate applicable amongst all Member States instead.
Amendment 279 #
Proposal for a directive
Article 73 – paragraph 1
Article 73 – paragraph 1
For the purposes of this Directive, the scope of controlled foreign company legislation under Article 59 of Directive 2016/xx/EU shall be limited to relations between group members and entities that are resident for tax purposes, or trust, partnership and permanent establishments that are situated, in a third country.
Amendment 285 #
Proposal for a directive
Article 79 – paragraph 1
Article 79 – paragraph 1
The Commission shall, fivone years after the entry into force of this Directive, review its application and report to the European Parliament and the Council on the operation of this Directive. The report shall in particular include an analysis of the impact of the mechanism set up in Chapter VIII of this Directive on the apportionment of the tax bases between the Member States.
Amendment 288 #
Proposal for a directive
Article 79 – paragraph 1 a (new)
Article 79 – paragraph 1 a (new)
The report by the Commission shall be accompanied by a legislative proposal to revise the provisions of this Directive concerning the definition and the method to calculate the consolidated tax base, in order to ensure a full consolidation. Such consolidated tax base shall in particular be based on one consistent set of accounting rules and be related to the group members adjusted cash flows.
Amendment 289 #
Proposal for a directive
Article 79 – paragraph 1 b (new)
Article 79 – paragraph 1 b (new)
Within 6 months after the adoption of this Directive, the Commission shall present a legislative proposal for a minimum effective tax rate at the European level, based on a comparative analysis of national effective tax rates.
Amendment 291 #
Proposal for a directive
Article 80 – paragraph 1 – subparagraph 1
Article 80 – paragraph 1 – subparagraph 1
Member States shall adopt and publish, by 31st December 202018 at the latest, the laws, regulations and administrative provisions necessary to comply with this Directive. They shall forthwith communicate to the Commission the text of those provisions.
Amendment 297 #
Proposal for a directive
Article 80 – paragraph 1 – subparagraph 2
Article 80 – paragraph 1 – subparagraph 2
They shall apply those provisions from 1st January 20219.