Activities of Ernest URTASUN related to 2016/0107(COD)
Shadow reports (1)
RECOMMENDATION FOR SECOND READING on the Council position at first reading with a view to the adoption of a directive of the European Parliament and of the Council amending Directive 2013/34/EU as regards disclosure of income tax information by certain undertakings and branches
Amendments (34)
Amendment 50 #
Proposal for a directive
Recital 2 a (new)
Recital 2 a (new)
Amendment 51 #
Proposal for a directive
Recital 2 b (new)
Recital 2 b (new)
(2b) Country-by-country reporting will also have a positive impact on employees' rights to information and consultation as foreseen in Directive 2002/14/EC and, by increasing knowledge on companies’ activities, on the quality of engaged dialogue within companies.
Amendment 79 #
Proposal for a directive
Recital 6
Recital 6
(6) The public should be able to scrutinise all the activities of a group when the group has certain establishments within the Union. Groups with establishments within the Union should support the European Union principles of tax good governance. For groups which carry out activities within the Union only through subsidiary undertakings or branches, subsidiaries and branches should publish and make accessible the report of the ultimate parent undertaking. However for reasons of proportionality and effectiveness, the obligation to publish and make accessible the report should be limited to medium-sized or large subsidiaries established in the Union, or branches of a comparable size opened in a Member State. The scope of Directive 2013/34/EU should therefore be extended accordingly to branches opened in a Member State by an undertaking which is established outside the Union.
Amendment 80 #
Proposal for a directive
Recital 6 a (new)
Recital 6 a (new)
(6a) Multinational companies are operating worldwide and their strategies and behaviours have significant impacts on developing countries. Country-by- country reporting will therefore allow citizens and public authorities from those countries to monitor those companies’ activities. It will also provide the EU with some important information to increase consistency between internal policies and development policy.
Amendment 81 #
Proposal for a directive
Recital 7
Recital 7
(7) In order to avoid double reporting for the banking sector, uUltimate parent undertakings which are subject to Directive 2013/36/EU of the European Parliament and of the Council21 and which include in their report prepared in accordance with Article 89 of Directive 2013/36/EU all its activities and all the activities of its affiliated undertakings included in the consolidated financial statements, including activities not subject to the provisions of Chapter 2 of Title 1 of Part Three of Regulation (EU) No 575/2013 of the European Parliament and of the Council22, should be exempted from the reporting requirements set out in this Directivecomply with reporting obligations set out in Directive 2013/34/EU as amended if the list of information to be disclosed is more comprehensive than that provided for in Article 89 of Directive 2013/36/EU. __________________ 21 Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338). 22 Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1).
Amendment 89 #
Proposal for a directive
Recital 8
Recital 8
(8) The report on income tax information should provide information concerning all the activities of an undertaking or of all the affiliated undertakings of a group controlled by an ultimate parent undertaking. The information should be based on the reporting specifications of BEPS’ Action 13 and should be limited to what is necessary to enable effective public scrutiny, in order to ensure that disclosure does not give rise to disproportionate risks or disadvantages. The report should also include a brief description of the nature of the activities. Such description might be based on the categorisation provided for in table 2 of the Annex III of Chapter V of the OECD “Transfer Pricing Guidelines on Documentation”. The report should include an overall narrative providing explanations, including in case of material discrepancies at group level between the amounts of taxes accrued and the amounts of taxes paid, taking into account corresponding amounts concerning previous financial years.
Amendment 90 #
Proposal for a directive
Recital 9
Recital 9
(9) In order to ensure a level of detail that enables citizens to better assess the contribution of multinational undertakings to welfare in each Member State, the information should be broken down by Member State. Moreover, information concerning the operations of multinational enterprises should also be shown with a high level of detail as regards certain tax jurisdictions which pose particular challenges. For all other third country operations, the information should be given in an aggregate numberjurisdiction. Report on income tax information can only be meaningfully understood and used with disaggregated information for each jurisdiction.
Amendment 98 #
Proposal for a directive
Recital 10
Recital 10
(10) In order to strengthen responsibility vis-á-vis third parties and to ensure appropriate governance, the members of the administrative, management and supervisory bodies of the ultimate parent undertaking which is established within the Union and which has the obligation to draw up, publish and make accessible the report on income tax information, should be collectively responsible for ensuring the compliance with these reporting obligations. Given that mMembers of the administrative, management and supervisory bodies of the subsidiaries which are established within the Union and which are controlled by an ultimate parent undertaking established outside the Union or the person(s) in charge of carrying out the disclosures formalities for the branch may have limited knowledge of the content of the report on income tax information prepared by the ultimate parent undertaking, their responsibilitybut it is essential that they ensure they implement all necessary actions to publish and make accessible the report on income tax information should be limited.
Amendment 102 #
Proposal for a directive
Recital 11
Recital 11
(11) To ensure that cases of non- compliance are disclosed to the public, statutory auditor(s) or audit firm(s) should check whether the report on income tax information has been submitted and presented in accordance with the requirements of this Directive and, made accessible on the relevant undertaking’s website or on the website of an affiliated undertaking and that publicly-disclosed information is in line with the audited financial information by the undertaking.
Amendment 104 #
Proposal for a directive
Recital 13
Recital 13
Amendment 121 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 b – paragraph 1 – subparagraph 1
Chapter 10 a – Article 48 b – paragraph 1 – subparagraph 1
Member States shall require ultimate parent undertakings governed by their national laws and having a consolidated net turnover exceeding EUR 750 000 000 as well aslarge groups or undertakings as defined in Article 3 of this Directive, including ultimate parent undertakings governed by their national laws and undertakings governed by their national laws that are not affiliated undertakings and having a net turnover exceeding EUR 750 000 000 to draw up and publish a report on income tax information on an annual basis.
Amendment 131 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 b – paragraph 2
Chapter 10 a – Article 48 b – paragraph 2
2. Member States shall not apply the rules set out in paragraph 1 of this Articlfor public disclosure of information set out in this Directive to ultimate parent undertakings where such undertakings or their affiliated undertakings are subject to Article 89 of Directive 2013/36/EU oif the European Parliament and of the Council* and encomplist of information to be disclosed set out in this Directive is more comprehensive. In that casse, in a country-by-country report, information on all the activities of all the affiliated undertakings included in the consothe Commission shall submit a proposal for a legislative act to amend Article 89 of Directive 2013/36/EU in order to align the reporting oblidgated financial statement of those ultimate parent undertakingsions provided for in that Directive with those set out in this Directive.
Amendment 135 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 b – paragraph 3 – subparagraph 1
Chapter 10 a – Article 48 b – paragraph 3 – subparagraph 1
Member States shall require the medium- sized and large subsidiary undertakings referred to in Article 3(3) and (4) which are governed by their national laws and controlled by an ultimate parent undertaking which has a consolidated net turnover exceeding EUR 7540 000 000 and which is not governed by the law of a Member State, to publish the report on income tax information of that ultimate parent undertaking on an annual basis.
Amendment 156 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 b – paragraph 5 – point a
Chapter 10 a – Article 48 b – paragraph 5 – point a
(a) the undertaking which opened the branch is either an affiliated undertaking of a group which is controlled by an ultimate parent undertaking not governed by the law of a Member State and which has a consolidated net turnover exceeding EUR 7540 000 000 or an undertaking that is not an affiliated and which has a net turnover exceeding EUR 7540 000 000;
Amendment 161 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 b – paragraph 5 – point b
Chapter 10 a – Article 48 b – paragraph 5 – point b
(b) the ultimate parent undertaking referred to in point (a) does not have a medium-sized or large subsidiary undertaking as referred to in paragraph 3 already subject to the reporting obligations.
Amendment 162 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 b – paragraph 6
Chapter 10 a – Article 48 b – paragraph 6
6. Member States shallmay choose not to apply the rules set out in paragraphs 3 and 4 of this Article where an report on income tax information drawn up in accordance with Article 48c is made accessible to the public on the website of the ultimate parent undertaking not governed by the law of a Member State within a reasonable period of time, which shall not exceeding standards that correspond to the requirements laid down in Article 48b, 48c, 48d, 48e and 48f apply to an ultimate parent undertaking not governed by the law of a Member States, leading to a report on income tax information being made accessible to the public on the website of the ultimate parent undertaking within maximum 12 months after the balance sheet date and where the report identifiescontaining the name and registered office of the single subsidiary undertaking or the single branch governed by the law of a Member State which has published the report in accordance with Article 48d(1). In such a case, the European Commission shall first assess whether the non- European reporting obligations match the information required under this Directive before granting the Member States the possibility not to apply the rules set out in paragraphs 3 and 4. Such assessment shall be made public by the European Commission.
Amendment 170 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 c – paragraph 2 – point a
Chapter 10 a – Article 48 c – paragraph 2 – point a
(a) a list of the names of undertakings and a brief description of the nature of the activities as well as their country of tax registration;
Amendment 179 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 c – paragraph 2 – point b
Chapter 10 a – Article 48 c – paragraph 2 – point b
(b) the number of employees employed on a full-time equivalent basis;
Amendment 185 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 c – paragraph 2 – point b c (new)
Chapter 10 a – Article 48 c – paragraph 2 – point b c (new)
(bc) tangible assets other than cash or cash equivalents as well as the assets value, and annual cost of maintaining those assets;
Amendment 188 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 c – paragraph 2 – point b d (new)
Chapter 10 a – Article 48 c – paragraph 2 – point b d (new)
(bd) the volume of sales and purchases;
Amendment 190 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 c – paragraph 2 – point c
Chapter 10 a – Article 48 c – paragraph 2 – point c
(c) the amount of the net turnover, which includesing the turnover made with related and unrelated parties;
Amendment 196 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 c – paragraph 2 – point f a (new)
Chapter 10 a – Article 48 c – paragraph 2 – point f a (new)
(fa) stated capital;
Amendment 203 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 c – paragraph 2 – point g a (new)
Chapter 10 a – Article 48 c – paragraph 2 – point g a (new)
(ga) public subsidies received;
Amendment 206 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 c – paragraph 2 – point g b (new)
Chapter 10 a – Article 48 c – paragraph 2 – point g b (new)
(gb) whether undertakings, subsidiaries or branches benefit from a preferential tax treatment from a patent box or equivalent regimes;
Amendment 208 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 c – paragraph 3 – subparagraph 1
Chapter 10 a – Article 48 c – paragraph 3 – subparagraph 1
The report shall present the information referred to in paragraph 2 separately for each Member State. Where a Member State comprises several tax jurisdictions, the information shall be combined at Member State levelpublished for each tax jurisdictions.
Amendment 212 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 c – paragraph 3 – subparagraph 2
Chapter 10 a – Article 48 c – paragraph 3 – subparagraph 2
The report shall also present the information referred to in paragraph 2 of this Article separately for each tax jurisdiction which, at the end of the previous financial year, is listed in the common Union list of certain tax jurisdictions drawn up pursuant to Article 48g, unless the report explicitly confirms, subject to the responsibility referred to in Article 48e below, that the affiliated undertakings of a group governed by the laws of such tax jurisdiction do not engage directly in transactions with any affiliated undertaking of the same group governed by the laws of any Member Statenon- European tax jurisdiction on a disaggregated basis.
Amendment 216 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 c – paragraph 3 – subparagraph 3
Chapter 10 a – Article 48 c – paragraph 3 – subparagraph 3
Amendment 232 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 c – paragraph 4
Chapter 10 a – Article 48 c – paragraph 4
4. The report shall include at group level an overall narrative providing explanations, including on material discrepancies between the amounts disclosed pursuant to points (e) and (f) of paragraph 2, if any, taking into account if appropriate corresponding amounts concerning previous financial years.
Amendment 244 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 e – paragraph 1
Chapter 10 a – Article 48 e – paragraph 1
1. Member States shall ensure that the members of the administrative, management and supervisory bodies of the ultimate parent undertaking referred to in Article 48b(1), acting within the competences assigned to them under national law, have collectivare responsibilityle for ensuring that the report on income tax information is drawn up, published and made accessible in accordance with Articles 48b, 48c and 48d.
Amendment 245 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 e – paragraph 2
Chapter 10 a – Article 48 e – paragraph 2
2. Member States shall ensure that the members of the administrative, management and supervisory bodies of the subsidiary undertakings referred to in Article 48b(3) of this Directive and the person(s) designated to carry out the disclosure formalities provided for in Article 13 of Directive 89/666/EEC for the branch referred to in Article 48b(4) of this Directive, acting within the competences assigned to them by national law, have collective responsibility for ensuring that, to the best of their knowledge and ability, the report on income tax information is drawn up, published and made accessible in accordance with Articles 48b, 48c and 48d.
Amendment 248 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 f – paragraph 1
Chapter 10 a – Article 48 f – paragraph 1
Member States shall ensure that, where the financial statements of an affiliated undertaking are audited by one or more statutory auditor(s) or audit firm(s) pursuant to Article 34(1), the statutory auditor(s) or audit firm(s) also check whether the report on income tax information has been provided and made accessible in accordance with Articles 48b, 48c and 48d. The information referred to in Article 48c of this Directive shall be audited in accordance with Directive 2006/43/EC. The statutory auditor(s) or audit firm(s) shall indicate in the audit report if the report on income tax information has not been provided or made accessible in accordance with those Articles.
Amendment 250 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Chapter 10 a – Article 48 g
Chapter 10 a – Article 48 g
Amendment 266 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 49 – paragraphs 2, 3, 3a and 5
Article 49 – paragraphs 2, 3, 3a and 5
Amendment 270 #
Proposal for a directive
Article 1 – paragraph 1 – point 3 a (new)
Article 1 – paragraph 1 – point 3 a (new)
Directive 2013/34/EU
Article 51 – paragraph 1 a (new)
Article 51 – paragraph 1 a (new)