Activities of Cora van NIEUWENHUIZEN related to 2016/0011(CNS)
Plenary speeches (2)
Rules against certain tax avoidance practices (debate) NL
Rules against certain tax avoidance practices (debate) NL
Amendments (12)
Amendment 41 #
Draft legislative resolution
Paragraph 2 a (new)
Paragraph 2 a (new)
2a. Regrets that the Commission has not implemented a prior impact assessment on the consequences of the proposed Council Directive for the European business climate.
Amendment 46 #
Proposal for a directive
Recital 1
Recital 1
(1) The current political priorities in international taxation highlight the need for ensuring that tax is paid where profits and value are generated without hampering the business climate of Member States. It is thus imperative to restore trust in the fairness of tax systems and allow governments to effectively exercise their tax sovereignty. These new political objectives have been translated into concrete action recommendations in the context of the initiative against Base Erosion and Profit Shifting (BEPS) by the Organisation for Economic Cooperation and Development (OECD). In response to the need for fairer taxation, the Commission, in its Communication of 17 June 2015 sets out an Action Plan for Fair and Efficient Corporate Taxation in the European Union3 (the Action Plan). __________________ 3 Communication from the Commission to the European Parliament and the Council on a Fair and Efficient Corporate Tax System in the European Union: 5 Key Areas for Action COM(2015) 302 final of 17 June 2015.
Amendment 81 #
Proposal for a directive
Recital 8
Recital 8
(8) Given the inherent difficulties in giving credit relief for taxes paid abroad, States tend to increasingly exempt from taxation foreign income in the State of residence. The unintended negative effect of this approach is however that it encourages situations whereby untaxed or low-taxed income enters the internal market and then, circulates – in many cases, untaxed - within the Union, making use of available instruments within the Union law. Switch- over clauses are commonly used against such practices. It is therefore necessary to provide for a switch-over clause which is targeted against some types of foreign income that does not arise from active business, for example, profit distributions, proceeds from the disposal of shares and permanent establishment profits which are tax exempt in the Union and originate in third countries. This income should be taxable in the Union, if it has been taxed below a certain level in the third country. Considering that the switch-over clause does not require control over the low-taxed entity and therefore access to statutory accounts of the entity may be unavailable, the computation of the effective tax rate can be a very complicated exercise. Member States should therefore use the statutory tax rate when applying the switch-over clause. Member States that apply the switch-over clause should give a credit for the tax paid abroad, in order to prevent double taxation.
Amendment 92 #
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. As the proposed CFC rules are narrowly intertwined with the proposed switch-over clause, any overlap should be avoided.
Amendment 164 #
Proposal for a directive
Article 5 – paragraph 2 – subparagraph 1 a (new)
Article 5 – paragraph 2 – subparagraph 1 a (new)
With regards to the effective implementation of this Article, taxpayers shall be granted a transitional period of one year after the Directive's entry into force.
Amendment 181 #
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 that does not arise from active business which the taxpayer received as a profit distribution from an entity in a third country or as proceeds from the disposal of shares held in an entity in a third country or as income from a permanent establishment situated in a third country 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 statutory 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 taxpayer. 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 189 #
Proposal for a directive
Article 6 – paragraph 2 – subparagraph 1 a (new)
Article 6 – paragraph 2 – subparagraph 1 a (new)
This Article should only be applicable if a prior impact assessment has made clear that there will be no negative consequences for the business climate of Member States.
Amendment 193 #
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 the national law of the Member State in which the non-genuine arrangement has been made.
Amendment 201 #
Proposal for a directive
Article 8 – paragraph 1 – introductory part
Article 8 – paragraph 1 – introductory part
1. The tax base of a taxpayer shall include the non-distributed income that does not arise from active business of an entity where the following conditions are met:
Amendment 209 #
Proposal for a directive
Article 8 – paragraph 1 – point c
Article 8 – paragraph 1 – point c
Amendment 221 #
Proposal for a directive
Article 10 – paragraph 2 a (new)
Article 10 – paragraph 2 a (new)
This Article should only be applicable if a prior impact assessment has made clear that there will be no negative consequences for the business climate of Member States.
Amendment 237 #
Proposal for a directive
Article 11 a (new)
Article 11 a (new)
Article 11a Impact Assessment The Commission shall implement a proper impact assessment on all future tax proposals that may touch upon national tax sovereignty. The Commission shall then communicate the results of these assessments to the European Parliament and the Member States.