Activities of Hugues BAYET related to 2016/0011(CNS)
Plenary speeches (3)
Rules against certain tax avoidance practices (A8-0189/2016 - Hugues Bayet) FR
Rules against certain tax avoidance practices (debate) FR
Rules against certain tax avoidance practices (debate) FR
Reports (1)
REPORT on the proposal for a Council directive laying down rules against tax avoidance practices that directly affect the functioning of the internal market PDF (880 KB) DOC (492 KB)
Amendments (6)
Amendment 58 #
Proposal for a directive
Recital 4 a (new)
Recital 4 a (new)
(4a) It is essential to give tax authorities appropriate means to fight effectively against tax base erosion and profit shifting, and in doing so improve transparency in respect of the activities of large multinationals, in particular with regard to profits, tax paid on profits, subsidies received, tax rebates, number of employees and assets held.
Amendment 91 #
Proposal for a directive
Recital 10
Recital 10
(10) Controlled Foreign Company (CFC) rules have the effect of re-attributing the income of a low-taxed controlled subsidiary to its parent company. Then, the parent company becomes taxable to this attributed income in the State where it is resident for tax purposes. Depending on the policy priorities of that State, CFC rules may target an entire low-taxed subsidiary or be limited to income which has artificially been diverted to the subsidiary. It is desirable to address situations both in third countries and in the Union. To comply with the fundamental freedoms, the impact of the rules within the Union should be limited to arrangements which result in the artificial shifting of profits out of the Member State of the parent company towards the CFC. In this case, the amounts of income attributed to the parent company should be adjusted by reference to the arm’s length principle, so that the State of the parent company only taxes amounts of CFC income to the extent that they do not comply with this principle. CFC rules should exclude financial undertakings from their scope where those are tax resident in the Union, including permanent establishments of such undertakings situated in the Union. This is because the scope for a legitimate application of CFC rules within the Union should be limited to artificial situations without economic substance, which would imply that the heavily regulated financial and insurance sectors would be unlikely to be captured by those rules and improper tax practices such as captive reinsurance.
Amendment 178 #
Proposal for a directive
Article 6 – paragraph 1
Article 6 – paragraph 1
1. Member States shall not exempt a taxpayer from tax on foreign income which the taxpayer received as a profit distribution from an entity in a third country or in another Member State or as proceeds from the disposal of shares held in an entity in a third country or in another Member State or as income from a permanent establishment situated in a third country or in another Member State where the entity or the permanent establishment is subject, in the entity’s country of residence or the country in which the permanent establishment is situated, to a tax on profits at a statutoryn effective corporate tax rate lower than 40 percent of the statutory tax rate that would have been charged under the applicable corporate tax system in the Member State of the taxpayerof 25 percent. That rate shall be assessed on the basis of the profit before implementation of the operations introduced by these countries to reduce the tax base subject to the rate. That rate shall be revised each year in line with economic developments in world trade. In those circumstances, the taxpayer shall be subject to tax on the foreign income with a deduction of the tax paid in the third country from its tax liability in its state of residence for tax purposes. The deduction shall not exceed the amount of tax, as computed before the deduction, which is attributable to the income that may be taxed.
Amendment 194 #
Proposal for a directive
Article 7 – paragraph 3
Article 7 – paragraph 3
3. Where arrangements or a series thereof are ignored in accordance with paragraph 1, the tax liability shall be calculated by reference to economic substance in accordance with national lawArticle 2.
Amendment 204 #
Proposal for a directive
Article 8 – paragraph 1 – point b
Article 8 – paragraph 1 – point b
(b) under the general regime in the country of the entity, profits are subject to an effective corporate tax rate lower than 40 percent of the effective tax rate that would have been charged under the applicable corpoof 25 percent; that rate shall be assessed on the basis of the profit before implementation of the operations introduced by these countries to reduce the tax base subject to the rate; tax system in the Member State of the taxpayerhat rate shall be revised each year in line with economic developments in world trade;
Amendment 213 #
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 1
Article 8 – paragraph 2 – subparagraph 1
Member States shall not apply paragraph 1 where an entity is tax resident in a Member State or in a third country that is party to the EEA Agreement or in respect of a permanent establishment of a third country entity which is situated in a Member State, unless the establishment of the entity is wholly artificial or to the extent that the entity engages, in the course of its activity, in non-genuine arrangements which have been put in place for the essential purpose of obtaining a tax advantage. Furthermore, a company insurer may not reinsure through one of its own subsidiaries.