10 Amendments of Caroline NAGTEGAAL related to 2021/0434(CNS)
Amendment 31 #
Proposal for a directive
Recital 1
Recital 1
(1) Ensuring fair and effective taxation in the internal market and tackling tax avoidance and evasion remain high political priorities in the Union. While recent years saw important progress in this area, especially with the adoption of Council Directive 2016/116410 concerning anti-tax avoidance and the expansion of scope of Council Directive 2011/16/EU11 on administrative cooperation in the field of taxation, further measures are necessary to tackle specifically identified practices of tax avoidance and evasion including through the misuse of shell entities, which are not fully captured by the existing legal framework of the Union. In this regard, the Pandora Papers’ revelations reported on the creation of shell companies with the purpose of moving money between bank accounts, avoiding taxes and carrying out financial crimes, including money laundering, and circumventing EU sanctions for Russian oligarchs. In particular, multinational groups often create undertakings with no minimal substance, to lower their overall tax liability, including by shifting profits away from certain high-tax Member States in which they carry out economic activity and create value for their business. This proposal complements the progress achieved in corporate transparency through requirements concerning beneficial ownership information introduced by the anti-money laundering framework, which address situations where undertakings are created to conceal true ownership, whether of the undertakings themselves or of the assets they manage and own, such as real estate or property of high value. __________________ 10 Council Directive (EU) 2016/1164 of 12 July 2016 laying down rules against tax avoidance practices that directly affect the functioning of the internal market (OJ L 193, 19.7.2016, p. 1). 11 Council Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation and repealing Directive 77/799/EEC (OJ L 64, 11.3.2011, p. 1).
Amendment 43 #
Proposal for a directive
Recital 4 a (new)
Recital 4 a (new)
(4a) To ensure the effective implementation of the Directive, the rules must be proportional to avoid excessive administrative burden on companies with legitimate activities, especially SMEs, while avoiding that shell-entities fall through the cracks; the quality and completeness of data are therefore essential in order to reap the greatest benefits from this Directive.
Amendment 44 #
Proposal for a directive
Recital 4 b (new)
Recital 4 b (new)
(4b) Given the increased flow of reported-information this Directive will generate in addition to the data currently transmitted by companies, Member States should ensure that national tax administrations have the capabilities to process that information in the most efficient way.
Amendment 66 #
Proposal for a directive
Recital 13 a (new)
Recital 13 a (new)
(13a) The European Commission and Member States should make sure that these tax consequences are articulated in a consistent manner in relation to existing bilateral tax conventions concluded between Member States and third countries.
Amendment 70 #
Proposal for a directive
Recital 15
Recital 15
(15) Directive 2011/16/EU should therefore be amended accordingly. Considering that the Directive 2011/16/EU on Administrative Cooperation (DAC) laid down the rules and procedures for cooperation between Member States on the exchange of information between tax administrations of the Member States, notably the automatic exchange of information on income and assets, this Directive should therefore be amended accordingly allowing Member States to automatically exchange the information received in the framework of this Directive.
Amendment 96 #
Proposal for a directive
Article 6 – paragraph 1 – point c – introductory part
Article 6 – paragraph 1 – point c – introductory part
(c) in the preceding two tax years, the undertaking outsourced to a third party the administration of day-to-day operations and the decision- making on significant functions.
Amendment 105 #
Proposal for a directive
Article 6 – paragraph 2 – point b
Article 6 – paragraph 2 – point b
Amendment 112 #
Proposal for a directive
Article 6 – paragraph 2 – point e
Article 6 – paragraph 2 – point e
Amendment 171 #
Proposal for a directive
Article 12 – paragraph 1 a (new)
Article 12 – paragraph 1 a (new)
In cooperation with Member States, the Commission shall ensure that those tax consequences are well articulated in relation to existing bilateral tax conventions with third countries so that they receive the information on the presumed shell-companies.
Amendment 184 #
Proposal for a directive
Article 14 – paragraph 2
Article 14 – paragraph 2
Member States shall ensure that those penalties include an administrative pecuniary sanction of at least 5% of the undertaking’s turnover or assets in the relevant tax year, if the undertaking that is required to report pursuant to Article 6 does not comply with such requirement for a tax year within the prescribed deadline or makes a false declaration in the tax return under Article 7.