16 Amendments of Martin SCHIRDEWAN related to 2018/0072(CNS)
Amendment 21 #
(1) Rapid transformation of the global economy as a result of digitalisation is putting new pressures on corporate tax systems both at Union level and internationally, and calling into question the ability to establish where digital companies should pay their taxes and how much they should pay. Although the need to adapt corporate tax rules to the digitalisation of the economy is recognised at international level by bodies such as the G20, reaching an agreement at global level is likely to be challenging.
Amendment 23 #
Proposal for a directive
Recital 1 a (new)
Recital 1 a (new)
(1a) Notwithstanding the difficulties of reaching a global agreement, such an agreement should still be pursued with great effort. As called for in the European Parliament’s inquiry committee into money laundering, tax avoidance and tax evasion (PANA) and in its special committee on tax rulings and other measures similar in nature or effect (TAXE2), an empowered UN tax body should be installed to serve as the forum for debates and discussions on said agreement and other matters related to the international tax system.
Amendment 25 #
Proposal for a directive
Recital 1 b (new)
Recital 1 b (new)
(1b) Digitalisation affects the whole economy with many firms using multi- channel models; thus, instead of creating special regimes for digital businesses, international tax rules should be reformed, based on a principal of neutrality between different business models, both digital and non-digital, and regardless of the extent or form of digitalisation, including multi-channel models, recognising the economic reality businesses operate in today.
Amendment 26 #
Proposal for a directive
Recital 1 c (new)
Recital 1 c (new)
(1c) In particular, this means reforming the definition of a permanent establishment to be more in line with the concept of a permanent establishment as defined in the 2011 UN model tax convention.
Amendment 32 #
Proposal for a directive
Recital 2 a (new)
Recital 2 a (new)
(2a) Progress on the OECD level has been slow and results have been disappointing. Instead of at the OECD, discussions and debates on international tax matters should thus take place at UN level at an empowered UN tax body, ensuring the participation of all countries.
Amendment 40 #
Proposal for a directive
Recital 7
Recital 7
(7) To enable an enterprise's significant digital presence to be taxed in another jurisdiction in accordance with the domestic law of that jurisdiction, it is necessary to establish the principles of attributing profits to that significant digital presence. The rules should be built on the current principles for profit attribution and be based on a functional analysis of the functions performed, assets used and risks assumed by a significant digital presence in performing its economically significant activities through a digital interface. Information from the country-by-country reports and master files of companies should be used in addition to the functional analysis. The functional analysis should in any case be based on where economic activity takes place in reality as opposed to where it is contractually located. Particular attention should be paid to the fact that a significant part of the value of a digital business is created where the users are based and where the data related to the users is collected and processed as well as to where the digital services are provided. Since economically significant activities performed by a significant digital presence contribute in a unique manner to value creation in digital business models, the profit split method should normally be used for arriving at a fair allocation of profits to the significant digital presence. However, this should not prevent a taxpayer from using an alternative method in line with internationally accepted principles if the taxpayer can prove that, based on the outcome of the functional analysis, an alternative method in line with internationally accepted principles is more appropriate. It is also essential that the profit splitting factors bear a strong correlation with the creation of value.
Amendment 47 #
Proposal for a directive
Recital 8 a (new)
Recital 8 a (new)
(8a) With the view of increasing the resilience of the Union’s tax system further, the application of the ordinary legislative procedure (Article 114 TFEU) for legislation related to corporate income taxation should be considered.
Amendment 56 #
Proposal for a directive
Recital 10
Recital 10
(10) The Commission should evaluate the implementation of this Directive fivthree years after its entry into force and report to the European Parliament and the Council thereon. Member States should communicate to the Commission all information necessary for this evaluation. An advisory DigiTax Committee should be established to examine questions on the application of the Directive.
Amendment 66 #
Proposal for a directive
Article 3 – paragraph 1 – point 5 – paragraph 1 – point e a (new)
Article 3 – paragraph 1 – point 5 – paragraph 1 – point e a (new)
(ea) the sale of goods or services which are contracted online via a digital interface;
Amendment 67 #
Proposal for a directive
Article 3 – paragraph 1 – point 5 – paragraph 2
Article 3 – paragraph 1 – point 5 – paragraph 2
Digital services shall not include the services listed in Annex III or the sale of goods or other services which is facilitated by using the internet or an electronic network.
Amendment 87 #
Proposal for a directive
Article 5 – paragraph 2
Article 5 – paragraph 2
2. The profits attributable to or in respect of the significant digital presence shall be those that the digital presence would have earned if it had been a separate and independent enterprise performing the same or similar activities under the same or similar conditions, in particular in its dealings with other parts of the enterprise, taking into account the functions performed, assets used and risks assumed, through a digital interfacproportionate to the economic reality of the business activity in the corresponding Member State.
Amendment 89 #
Proposal for a directive
Article 5 – paragraph 3
Article 5 – paragraph 3
3. For the purposes of paragraph 2 the determination of profits attributable to or in respect of the significant digital presence shall be based on a functional analysis. In order to determine the functions of, and attribute the economic ownership of assets and risks to, the significant digital presence, the economically significant activities performed by such presence through a digital interface shall be taken into account. For this purpose, activities undertaken by the enterprise through a digital interface related to data or users shall be considered economically significant activities of the significant digital presence which attribute risks and the economic ownership of assets to such presence. For the purposes of the functional analysis, in determining the location of assets, risks and functions performed, the place of where the economic activity in relation to these factors takes place shall prevail over the location to which they are contractually assigned to.
Amendment 92 #
Proposal for a directive
Article 5 – paragraph 6
Article 5 – paragraph 6
6. In determining the attributable profits under paragraphs 1 to 4, taxpayers shall use the profit split method unless the taxpayer proves that an alternative method based on internationally accepted principles is more appropriate having regard to the results of the functional analysis. The splitting factors may include expenses incurred for research, development and marketing as well as the number of users and. The splitting factors shall include tangible assets, employee’s payroll, headcount, sales, data collected and users per Member State.
Amendment 103 #
Proposal for a directive
Article 6 – paragraph 1
Article 6 – paragraph 1
1. The Commission shall evaluate the implementation of this Directive fivthree years after its entry into force and report to the European Parliament and the Council thereon.
Amendment 113 #
Proposal for a directive
Article 7 – paragraph 2
Article 7 – paragraph 2
2. The DigiTax Committee shall consist of representatives of the Member States, Parliament and of the Commission. The chair of the Committee shall be a representative of the Commission. Secretarial services for the Committee shall be provided by the Commission.
Amendment 116 #
The DigiTax Committee shall draw up an annual report on its activities and findings and shall share this report with Parliament, Council and Commission.