11 Amendments of Molly SCOTT CATO related to 2016/0010(CNS)
Amendment 22 #
Proposal for a directive
Recital 3
Recital 3
(3) Union tax authorities need comprehensive and relevant information on MNE Groups regarding their structure, transfer pricing policy and internal transactions in and outside the EU. That information will enable the tax authorities to react to harmful tax practices through changes in the legislation or adequate risk assessments and tax audits, and to identify whether companies have engaged in practices that have the effect of artificially shifting substantial amounts of income into tax-advantaged environments. The foregoing does not negate the importance of greater transparency towards citizens of the Union and the need for MNEs to make publicly available a set of financial information about their economic activities, subsidiaries, employees, profits made and taxes paid on a country-by- country basis.
Amendment 41 #
Proposal for a directive
Recital 7
Recital 7
(7) In order to enhance the efficient use of public resources and reduce thenot to impose an administrative burden for MNE Groupon SMEs, the reporting obligation should only apply to MNE Groups with annual consolidated group revenue exceeding a certain amountdefined as large groups under Article 3(7) of Directive 2013/34/EU. The Directive should ensure that the same information is collected and made available to tax administrations in a timely manner throughout the EU.
Amendment 43 #
Proposal for a directive
Recital 8
Recital 8
(8) To ensure the proper functioning of the Internal Market, the EU has to provide for fair competition between EU MNE Groups and non-EU MNE Groups for which one or several of their entities are located in the EU. Both of them should therefore be subject to the reporting obligation and to penalties in the event of non-reporting. The reporting obligation and its accompanying penalties should apply as from 1 January 2016.
Amendment 45 #
Proposal for a directive
Recital 9
Recital 9
(9) Member States should lay down rules on penalties applicable to infringements of national provisions adopted pursuant to this Directive and should ensure that those penalties are effective, proportionate and dissuasive and that they are implemented. Member States should consider the application of a withholding tax on financial institutions in the event that third countries do not comply with the international standard of automatic exchange of information and do not provide relevant information to Member States' tax authorities.
Amendment 75 #
Proposal for a directive
Recital 19
Recital 19
(19) This Directive respects the fundamental rights and observes the principles recognised in particular by the Charter of Fundamental Rights of the European Union. The information exchanged under this Directive does not lead to the disclosure of a commercial, industrial or professional secret or of a commercial process, or of information the disclosure of which would be contrary to public policy.
Amendment 92 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2011/16/EU
Article 8aa – paragraph 1
Article 8aa – paragraph 1
1. Each Member State shall take the necessary measures to require the Ultimate Parent Entity of an MNE Group that is resident for tax purposes in its territory, or any oin the case of secondary reporting, ther Reporting Entity in accordance with Section II of Annex IIIwith the largest annual turnover in the Union, to file a country- by-country report with respect to its Reporting Fiscal Year within 12 months after the last day of the Reporting Fiscal Year of the MNE Group in accordance with Section II of Annex III.
Amendment 127 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 a (new)
Article 1 – paragraph 1 – point 5 a (new)
Directive 2011/16/EU
Article 24 – paragraph 2 a (new)
Article 24 – paragraph 2 a (new)
(5a) In Article 24, the following paragraph is inserted: ‘2a. Competent authorities may communicate information referred to in Article 8aa on a non-reciprocal basis to third countries not having the capacity to exchange information and receiving capacity building to strengthen their tax administrations. Such communication may be done during a transitional period, while ensuring the security and confidentiality of information transmitted.’
Amendment 128 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 b (new)
Article 1 – paragraph 1 – point 5 b (new)
Directive 2011/16/EU
Article 24 – paragraph 2 b (new)
Article 24 – paragraph 2 b (new)
(5b) In Article 24, the following paragraph is inserted: ‘2b. In the event that third countries' competent authorities do not comply with their obligation to communicate relevant information to Member States, Member States shall withhold a 30% tax on all Union-sourced payments to financial institutions of those third countries.’
Amendment 130 #
Proposal for a directive
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Directive 2011/16/EU
Article 25a
Article 25a
Member States shall lay down the rules on penalties, especially financial ones, applicable to infringements of national provisions adopted pursuant to this Directive and concerning Article 8aa, and shall take all measures necessary to ensure that they are implemented. The penalties provided for shall be effective, proportionate and dissuasive. Member States shall also lay down rules on penalties applicable to infringements of automatic exchange of information by other Member States. Member States shall by 31 December 2016 notify the Commission of those rules and of those measures and shall notify it without delay of any subsequent amendment affecting them.
Amendment 135 #
Proposal for a directive
Annex – Annex III – Section I – paragraph 4
Annex – Annex III – Section I – paragraph 4
4. "Excluded MNE Group" means, with respect to any Fiscal Year of the Group, a Group thaving total consolidated group revenue of less thant has not exceeded the limits of at least two of the three following thresholds: (a) balance sheet total: EUR 7520 000 000 or an amount in local currency approximately equivalent to EUR 750 000 000 as of January 2015 during; (b) net turnover: EUR 40 000 000; (c) average number of employees during the financial year: 250; as of January 2015 during the Reporting Fiscal Year or the Fiscal Year immediately preceding the Reporting Fiscal Year as reflected in its Consolidated Financial Statements for such preceding Fiscal Year.
Amendment 140 #
Proposal for a directive
Annex – Annex III – Section II – paragraph 1 – subparagraph 2
Annex – Annex III – Section II – paragraph 1 – subparagraph 2
Where there are more than one Constituent Entities of the same MNE Group that are resident for tax purposes in the Union and one or more of the conditions set out in point (b) apply, the MNE Group may designate one of such Constituent Entities, preferably the one with the highest turnover, to file the country-by-country report conforming to the requirements of Article 8aa(1) with respect to any Reporting Fiscal Year within the deadline specified in Article 8aa(1) and to notify the Member State that the filing is intended to satisfy the filing requirement of all the Constituent Entities of such MNE Group that are resident for tax purposes in the Union. That Member State shall, pursuant to Article 8aa(2), communicate the country-by- country report received to any other Member State in which, on the basis of the information in the country-by- country Report, one or more Constituent Entities of the MNE Group of the Reporting Entity are either resident for tax purposes, or are subject to tax with respect to the business carried out through a permanent establishment.