Activities of Martin SCHIRDEWAN related to 2021/2201(INI)
Shadow reports (1)
REPORT on the impact of new technologies on taxation: crypto and blockchain
Amendments (15)
Amendment 4 #
Motion for a resolution
Citation 10 a (new)
Citation 10 a (new)
— having regard to the speech of Mr. Fabio Panetta Member of the Executive Board of the ECB, at Columbia University. New York, 25 April 2022, “For a few cryptos more: the Wild West of crypto finance”,
Amendment 48 #
Motion for a resolution
Recital I
Recital I
I. whereas tax policy is a national competence, but strong cooperation between Member States is essential to respond to the challenges posed to the integrity of the single market, namely by the increasing the use of crypto-assets; whereas a framework of 27 significantly different approaches to crypto-assets taxation could lead to significant obstacles for the fulfilment of the objectives of the European digital single marketharmful tax competition and significant obstacles for efficient tax collection;
Amendment 49 #
Motion for a resolution
Recital J
Recital J
J. whereas the European Union and its single market must ensure an innovation- friendly environment for companies (namely small and medium-sized enterprises (SMEs) and start-ups) regarding new technologies in the area of financial services and crypto-assets; whereas this main goal requires a strong commitment from Member States with policies, namely on taxation, that ensure a stable, clear and certain legal framework for businesses to thrive and contribute to economic growth; whereas, finally, this effort requires strong commitment tothat it safeguards citizens’ rights, as taxpayers and consumers of financial services;
Amendment 55 #
Motion for a resolution
Recital J a (new)
Recital J a (new)
J a. Reminds that income paid in crypto-assets and gains made on them are, as a rule, taxable like any other income or gain and that crypto-assets held are liable for inclusion in the calculation of wealth taxes;
Amendment 59 #
Motion for a resolution
Recital J b (new)
Recital J b (new)
J b. whereas according to some simulations by the European Commission, the revenue potential of taxing capital gains on bitcoin across the EU in 2020 alone would have amounted to about €900 million, or 0.3% of the total tax revenue from property taxation in the EU;
Amendment 66 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Points out that adapting the IT capacities of tax authorities through new emerging technologies, such as potential distributed ledger technologies like blockchain or artificial intelligence, promises tomay foster intelligent, effective and efficient tax and administrative procedures, facilitate tax compliance by citizens and businesses, and increase the traceability and identification of taxable transactions in a globalised environment where cross- border transactions have increased;
Amendment 70 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Highlights the need to identify the best ways to use technology to strengthen the analytical capacity of tax administrations (through better data analysis), to standardise data to reduce administrative burdens on SMEs, to ensure that taxation better reflects the business environment in the digital age and at the same time guarantees high levels of data protection;
Amendment 90 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Considers that crypto-assets must be subject to fair, transparent and effective taxation, in order to guarantee fair competition between businesses in the area of financial services; understands that decisions on the taxation of crypto-assets lie with Member States, according to the Treaties; stands for an innovation- friendly environment in the digital single market, where entrepreneurs, SMEs and start-ups can thrive, generate growth, create jobs and contribute to economic recovery through tax revenueffective taxation taking into account their negative externalities where they exist, in order to guarantee fair competition between businesses in the area of financial services;
Amendment 93 #
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7 a. Is strongly concerned about the negative externalities of crypto-asset markets including financial stability risks, disproportionate levels of energy expenditure and pollution as well as illicit usages, given that the trade in crypto- assets does not perform any apparent social or economic function such as funding consumption or investment;
Amendment 96 #
Motion for a resolution
Paragraph 7 b (new)
Paragraph 7 b (new)
7 b. Calls on Member States and the Commission to assess different types of taxes on crypto-assets as instruments to mitigate the negative externalities arising from the trade with crypto-assets;
Amendment 97 #
Motion for a resolution
Paragraph 7 c (new)
Paragraph 7 c (new)
7 c. Notes that some crypto-assets pride themselves on a high level of anonymity and secrecy that are fundamentally at odds with the needs of modern tax authorities to carry out their job; stresses therefore that the legal and political pressure should be placed on the providers of these crypto-assets to change and engage with tax authorities and not the other way around;
Amendment 118 #
13. Calls on the Member States to consider the dimension of crypto-assets in their national tax reforms, and to consider implementing more effective systems that ensure less compliance costs and administrative burden, but that guarantee, at the same time, the fair, transparent and effective taxation of crypto-assets; underlines the role ofguarantee taxation of crypto-assets taking into account their additional negative externalities; warns against the creation of tax loopholes and the intensification of harmful tax competition by creating tax incentives and exemptions in promotingthe name of technological innovation and developmentveness;
Amendment 130 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Points out that the crypto-asset landscape is global and requires an international approach; understands, in this regard, the need to further negotiate international instruments on the matter; calls, in this regard for crypto-assets to be included within the scope of the Common Reporting Standard (CRS) developed by the OECD in 2014;
Amendment 131 #
Motion for a resolution
Paragraph 14 a (new)
Paragraph 14 a (new)
14 a. Is strongly concerned about the highly volatile and speculative nature of crypto-asset trading and the financial stability risks posed by crypto-asset markets; stresses that the Financial Stability Board warned that the “scale, structural vulnerabilities and increasing interconnectedness with the traditional financial system” may turn into a “threat to global financial stability”1a;calls on the Commission to present a proposal for the implementation of a Financial Transaction Tax on crypto-asset transactions within the Union to address financial stability risks; _________________ 1a Financial Stability Board, “Assessment of the Risks to Financial Stability from Crypto-Assets”, 16 February 2022, p. 1, https://www.fsb.org/2022/02/assessment- of-risks-to-financial-stability-from-crypto- assets/
Amendment 135 #
Motion for a resolution
Paragraph 14 b (new)
Paragraph 14 b (new)
14 b. Is strongly concerned about the extreme levels of energy expenditure and pollution arising from the use of crypto- assets; warns that the network of the market leader Bitcoin “consumes about 0.36 percent of the world’s electricity - comparable to the consumption of Belgium or Chile”2a; calls on Member States to consider the implementation of a “green tax” on crypto-assets to mitigate the ecological impact; calls on the Commission to present a proposal for an EU-wide framework for a “green tax” on crypto-assets; _________________ 2a International Monetary Fund, “Global Financial Stability Report: COVID-19, Crypto, and Climate: Navigating Challenging Transitions”, Oct 2021, p. 53, https://www.imf.org/en/Publications/GFS R/Issues/2021/10/12/global-financial- stability-report-october-2021