Activities of Martin SCHIRDEWAN related to 2021/2010(INI)
Plenary speeches (1)
Digital taxation: OECD negotiations, tax residency of digital companies and a possible European Digital Tax (debate)
Shadow reports (1)
REPORT on digital taxation: OECD negotiations, tax residency of digital companies and a possible European Digital Tax
Amendments (23)
Amendment 3 #
Motion for a resolution
Citation 4
Citation 4
— having regard to the Commission proposals pending for adoption, in particular on the Common Corporate Tax Base (CCTB) , the Common Consolidated Corporate Tax Base (CCCTB)4 , and the digital taxation package5 , and public country-by- country reporting (CBCR) 5a , as well as Parliament’s positions on these proposals, 5b _________________ 4Proposal of 25 October 2016 for a Council Directive on a Common Corporate Tax Base (CCTB), COM(2016)0685 and of 25 October 2016 on a Common Consolidated Corporate Tax Base (CCCTB), COM(2016)0683. 5 The package consists of the Commission communication of 21 March 2018 entitled ‘Time to establish a modern, fair and efficient taxation standard for the digital economy’ (COM(2018)0146), the proposal of 21 March 2018 for a Council directive laying down rules relating to the corporate taxation of a significant digital presence (COM(2018)0147), the proposal of 21 March 2018 for a Council directive on the common system of a digital services tax on revenues resulting from the provision of certain digital services (COM(2018)0148) and the Commission recommendation of 21 March 2018 relating to the corporate taxation of a significant digital presence (C(2018)1650). 5aProposal for a directive of the European Parliament and of the Council of 12 April 2016 amending Directive 2013/34/EU as regards disclosure of income tax information by certain undertakings and branches (COM(2016)0198) 5bEuropean Parliament legislative resolution of 15 March 2018 on the proposal for a Council directive on a Common Consolidated Corporate Tax Base (CCCTB) (COM(2016)0683 – C8- 0471/2016 – 2016/0336(CNS)); European Parliament legislative resolution of 15 March 2018 on the proposal for a Council directive on a Common Corporate Tax Base (COM(2016)0685 – C8-0472/2016 – 2016/0337(CNS)); European Parliament resolution of 24 October 2019 on the state of play on the proposal for 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 (2016/0107(COD)), known as public country-by-country reporting (2019/2882(RSP))
Amendment 9 #
Motion for a resolution
Citation 12 a (new)
Citation 12 a (new)
— having regard for the option of negotiating a UN Tax Convention, as noted in the United Nations Financing for Development in the Era of COVID-19 and Beyond finance ministers’ discussion paper in September 2020 11a , _________________ 11aUnited Nations, Financing for Development in the Era of COVID-19 and Beyond, Menu of Options for the Considerations of Ministers of Finance Part II, September 2020, pp 123 – 123, https://www.un.org/sites/un2.un.org/files/ part_ii- _detailed_menu_of_options_financing_fo r_development_covid19.pdf
Amendment 10 #
Motion for a resolution
Citation 12 b (new)
Citation 12 b (new)
Amendment 11 #
Motion for a resolution
Citation 12 c (new)
Citation 12 c (new)
— having regard to the outcomes of various relevant meetings at the United Nations, including the 2015 Summit on Financing for Development in Addis Ababa 11b ,as well as the ongoing work of the United Nations Committee of Experts on International Cooperation in Tax Matters on Tax Consequences of the Digitalized Economy 11c _________________ 11bhttps://www.un.org/esa/ffd/wp- content/uploads/2015/08/AAAA_Outcome .pdf 11c https://www.un.org/development/desa/fina ncing/sites/www.un.org.development.desa. financing/files/2020- 10/CITCM%2021%20CRP.41_Digitalizati on%2010102020%20Final%20A.pdf
Amendment 24 #
Motion for a resolution
Recital C
Recital C
C. whereas the BEPS Action Plan succeeded in establishing a global consensus on many issues in order to fight tax evasion, aggressive tax planning and tax avoidance; whereas, however, there was no agreement on addressing the tax challenges arising from the digitalisation of the economy, which led to the adoption of the separate BEPS Action 1 – 2015 Final Report;
Amendment 26 #
Motion for a resolution
Recital E
Recital E
E. whereas the Commission put forward two proposals on the taxation of the digital economy in 2018, including a short-term solution introducing a digital services tax (DST), and a long-term solution defining a significant digital presence (SDP) as a nexus for corporate taxation which should replace the DST; whereas Parliament supported these proposals, but they were not adopted in the Council because Member States could not reach the unanimous agreement needed in the realm of taxation at EU level; whereas the Commission put forward a Proposal of 25 October 2016 for a Council Directive on a common consolidated corporate tax base (CCCTB) (COM(2016)0683); whereas the Commission put forward a proposal for 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 (2016/0107(COD));
Amendment 31 #
Motion for a resolution
Recital F
Recital F
F. whereas, in accordance with a mandate given by G20 Finance Ministers in March 2017 and following the adoption of a Programme of Work (PoW) in May 2019, the OECD/G20 Inclusive Framework on BEPS (IF), through its Task Force on the Digital Economy, has been working on a consensus-based global solution based on two pillars: Pillar One on the allocation of taxing rights through new profit allocation and nexus rules and Pillar Two on addressing the remaining BEPS issues and introducing measures to ensure a minimum level of tax;
Amendment 63 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Regrets the shortcomings of the international tax system, which is unfit for properly addressing the challenges of globalisation and digitalisation; welcomes recognition of the value of taxing multinational corporations on the basis of their global consolidated profits, with taxing rights being allocated between governments based on an agreed formula; recalls that the Commission proposal on a common consolidated corporate tax base (CCCTB) (COM(2016)0683) aims to introduce such a system within the EU; deplores the fact that the Member States were not able to agree on a joint approach regarding the C(C)CTB; calls for an international agreement aiming for a fair and effective tax system;
Amendment 68 #
Motion for a resolution
Paragraph 2 a (new)
Paragraph 2 a (new)
2 a. Regrets that the approaches outlined the Blueprints for Pillar One and Pillar Two would largely maintain the existing transfer pricing system; Regrets that the approach proposed by Pillar Two gives priority to residence country rules; Recalls the Parliament’s support for balance between source and residence country taxation rights 13a; _________________ 13aRecital 341, European Parliament resolution of 26 March 2019 on financial crimes, tax evasion and tax avoidance (2018/2121(INI)), https://www.europarl.europa.eu/doceo/doc ument/TA-8-2019-0240_EN.html
Amendment 69 #
Motion for a resolution
Paragraph 2 b (new)
Paragraph 2 b (new)
2 b. Notes that corporate tax avoidance is not limited to highly digitalised companies; regrets the focus on consumer facing businesses in the Pillar 1 proposal; Notes that this severely undermines the fairness and effectiveness of the proposed outcome 13b; _________________ 13bRecital 14, European Parliament resolution of 18 December 2019 on fair taxation in a digitalised and globalised economy: BEPS 2.0 (2019/2901(RSP))
Amendment 76 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Highlights the need to address the under-taxation of the digital economy, while ensuring a fair distribution of taxing rights among all countries where the economic activity and value creation of multinational digital companies takes place;
Amendment 91 #
4 a. Highlights that digitalisation affects the whole economy, and many firms use 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, but also regardless of the extent or form of digitalisation, including multi-channel models; adopting an approach to taxation of corporations which would treat them in accordance with the economic reality that they operate as global firms 13c; _________________ 13cBEPS Monitoring Group comment to the HM Treasury Consultation on CORPORATE TAX AND THE DIGITAL ECONOMY, of January 2018.
Amendment 96 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Welcomes the efforts in the G20/OECD IF to reach a global consensus on a multilateral reform of the international tax system to address the challenges of the digitalised economy; acknowledges the progress of discussions on the proposals at technical level, despite the delays caused by the COVID-19 pandemic, and calls for a swift agreement by mid-2021; highlights the value of the G20/OECD IF for guaranteeing multilateral solutions and finding support at the global and EU level;
Amendment 102 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Welcomes the fact that the two pillar approach suggested in the G20/OECD IF does not ring fence the digital economy but seeks a comprehensive solution to the new challenges of the digital economy; acknowledges that both pillars are complementary, and supports a holistic solution in which one pillar is not adopted without the other; considers that any minimum rate should be set at a fair and sufficient level to discourage profit shifting and prevent damaging tax competition; notes the Independent Commission for the Reform of International Corporate Taxation has recommended a rate of 25 per cent 13d ; _________________ 13dIndependent Commission for the Reform of International Corporate Taxation, INTERNATIONAL CORPORATE TAX REFORM: Towards a fair and comprehensive solution, 2019, https://static1.squarespace.com/static/5a0 c602bf43b5594845abb81/t/5d979e6dc5f7c b7b66842c49/1570217588721/ICRICT- INTERNATIONAL+CORPORATE+TAX +REFORM.pdf
Amendment 128 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8 a. Recognises that there are concerns that developing countries could not participate in the negotiations on an equal footing; calls for a major effort and political will in facilitating empowerment of all countries and a genuine inclusive mechanism indecision-making; Reiterates the Parliament’s support for the creation of an intergovernmental tax body within the framework of the UN, which should be well equipped and have sufficient resources and, where appropriate, enforcement powers, would ensure that all countries can participate on an equal footing in the formulation and reform of a global tax agenda 13e; _________________ 13eRecital 341, European Parliament resolution of 26 March 2019 on financial crimes, tax evasion and tax avoidance (2018/2121(INI)), https://www.europarl.europa.eu/doceo/doc ument/TA-8-2019-0240_EN.html
Amendment 129 #
Motion for a resolution
Paragraph 8 b (new)
Paragraph 8 b (new)
8 b. Welcomes the work of the United Nations Expert Committee on International Cooperation in Tax Matters to develop a new Article 12B for the UN Model Tax Convention on taxation of income from automated digital services, and calls on the UN, its Member States and the members of the committee to ensure that this work is completed before the end of the mandate of the current committee 13f; _________________ 13fUnited Nations Committee of Experts on International Cooperation in Tax Matters, Tax consequences of the digitalized economy – issues of relevance for developing countries, October 2020, https://www.un.org/development/desa/fina ncing/sites/www.un.org.development.desa. financing/files/2020- 10/CITCM%2021%20CRP.41_Digitalizati on%2010102020%20Final%20A.pdf
Amendment 139 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Regrets that the failure of the G20/OECD IF to find a solution in October 2020 will prolong the under-taxation of the digital economy; stresses that the COVID 19 pandemic has largely benefited digital businesses and accelerated the transition to a digital economy, thereby re-emphasising the need to reform the current tax system in order to ensure a fair contribution from the digital economy; recalls that digital businesses are among the group of companies that registered excess profits during the COVID-19 pandemic compared with previous years; highlights that governments need to collect unprecedented resources to recover from the COVID-19 crisis and the mobilisation of revenues from under-taxed sectors can contribute in avoiding austerity measures and cut of public services;
Amendment 157 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Insists therefore that, regardless of the progress of the negotiations at the G20/OECD IF, the EU should stand ready to roll out its own solutions for taxing the digital economy by the end of 2021; stresses the importance of ensuring that the outcome of the OECD/G20 IF negotiations does not prevent the EU and individual countries from taking more ambitious action; calls on the Commission to present proposals by June 2021, while anticipating their compatibility with the reform by the G20/OECD IF to be agreed on; stresses the need to create a level playing field for providers of traditional services and digital services in the EU by ensuring that the latter are taxed at an adequate rate; invites the Commission to consider in particular introducing a European Digital Services Tax as a necessary first step; the rate of the European Digital Service Tax should be set at 5%. It should apply to companies with total annual EU revenues above EUR 50 000 000. Taxable revenues should be those resulting from the provision of the following: (i) the placing on a digital interface of advertising targeted at users of that interface; (ii) the making available of multi-sided digital interfaces which allow users to find other users and to interact with them, and which may also facilitate the provision of underlying supplies of goods or services directly between users (sometimes referred to as "intermediation" services); (iii) the transmission of data collected about users and generated from such users' activities on digital interfaces (iv) the supply of digital content such as videos, audio or text; and (v) the sale of goods or services sold via a digital interface;
Amendment 165 #
Motion for a resolution
Paragraph 11 a (new)
Paragraph 11 a (new)
11 a. Calls on the Commission to include or develop an additional proposal for an European excess profit tax (EEPT) to collect revenues from businesses that profit from the Covid-19 crisis, while the economy as a whole is in a severe downturn, with a view to finance the extraordinary public expenditure incurred by member states and the EU in reaction to the crisis;
Amendment 176 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Understands that some Member States consider the taxation of digital economy an urgent issue and have therefore introduced digital services taxes at national level; recalls that these national measures should be phased out once aif an effective multilateral solution is found; calls on Member States to refrain from introducing national solutions unilaterally, as they create a risk of fragmentation of the single market; recalls that although taxation is primarily a Member State competence, they must exercise it in coherence with the common principles of EU law in order to ensure coherence between national frameworks, thereby allowing for fair competition and avoiding a negative impact on the overall coherence of EU taxation principles;
Amendment 200 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Regrets that the Council did not agree on any of the Commission’s related proposals, i.e. the digital services tax, the significant digital presence or the CCTB and CCCTB; calls on the Member States to reconsider their position on these proposals, in light of the unprecedented circumstances of the COVID-19 crisis, and to consider all options provided for by the Treaties if no unanimous agreement can be reached;
Amendment 220 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Calls for a stronger role for Parliament in legislative procedures in the area of taxation; the Parliament and the Council should have equal weight in the decision making process regarding EU tax policy initiatives; takes note of the Commission’s proposed roadmap to qualified majority voting in its communication entitled ‘Toward a more efficient and democratic decision-making in EU tax policy’;
Amendment 224 #
Motion for a resolution
Paragraph 15 a (new)
Paragraph 15 a (new)
15 a. Stresses the need for ensuring comprehensive and effective EU level public country by country reporting (CBCR) for all sectors; reiterates its urgent call on the Member States to break the deadlock within the Council and to conclude their first reading on the public CBCR proposal and to enter interinstitutional negotiations with Parliament in order to finalise the legislative process as soon as possible and to respect the principle of sincere cooperation as laid down in Article 4(3) of the Treaty on European Union (TEU) 13g; urgently calls on the Portuguese Presidency of the Council to seek a general approach and enter into interinstitutional negotiations with the European Parliament without delay; _________________ 13gEuropean Parliament, European Parliament resolution of 24 October 2019 on the state of play on the proposal for 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 (2016/0107(COD)), known as public country-by-country reporting (2019/2882(RSP)), https://www.europarl.europa.eu/doceo/doc ument/TA-9-2019-0048_EN.html