10 Amendments of Olivier CHASTEL related to 2022/0154(CNS)
Amendment 27 #
Proposal for a directive
Recital 3 a (new)
Recital 3 a (new)
(3 a) In order to further develop the European Capital Markets Union, this proposal should aim at diversifying funding sources for European companies, with a particular focus on SMEs; therefore, it should avoid creating new costs and barriers to access financing for those companies that do not have easy access to capital markets; thus, limiting the deductability of their interest costs could hamper investment across Europe and should be limited.
Amendment 29 #
Proposal for a directive
Recital 3 b (new)
Recital 3 b (new)
(3 b) The Directive should take into account the challenges related to the sustainability of Member States’ public finances in the short term and therefore, avoid leading to substantial losses in Member States’ revenues.
Amendment 38 #
Proposal for a directive
Recital 6
Recital 6
(6) In order to avoid a misuse of the deduction of the allowance on equity, it is necessary to lay down specific anti-tax avoidance rules. Such rules should target, in particular, schemes put in place to circumvent the conditions on which an equity increase qualifies for an allowance under this Directive, for instance, through the intra-group transfer of participations in associated enterprises. Such rules should also target schemes put in place to claim an allowance in the absence of any equity increase at group level. For example, intra- group debt financing or contributions in cash could be used for these purposes. Specific anti-tax avoidance rules should also prevent schemes from being put in place to claim that an increase in equity, and the corresponding allowance, is higher than it actually is, for example, through an increase in loan financing receivables or overvaluation of assets. Moreover, the general anti-tax abuse rule in Article 6 of Council Directive (EU) 2016/116415 applies against abusive acts which are not covered by the specific anti-tax avoidance framework of this Directive. Member States should also make sure the measures taken in the framework of this Directive are compliant with the Code of Conduct Group on Business Taxation. _________________ 15 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).
Amendment 43 #
Proposal for a directive
Recital 7
Recital 7
(7) To effectively address the tax- related debt-equity bias in a manner sustainable for the Union’s public finances, an allowance for equity financing should be accompanied by a limitation on the deductibility of debt financing costs, except for micro, small and medium-sized enterprises. An interest limitation rule should therefore limit the deductibility of exceeding borrowing costs and apply independently from the allowance. Given the different objectives between such a rule and the existing anti-tax avoidance rule on interest limitation of Article 4 of Directive (EU) 2016/1164, both rules should be maintained. Taxpayers should first calculate the deductibility of exceeding borrowing costs under this Directive and then under ATAD. In the event that the latter results in a lower amount of deductible exceeding borrowing costs, the taxpayer should deduct this lower amount and carry forward or back any difference between the two amounts in accordance with Article 4 of ATAD. This provision should be consistent with Directive 2016/1164 so that it does not hamper EU’s attractiveness to investors, or adds any complexity for companies.
Amendment 46 #
Proposal for a directive
Recital 9
Recital 9
(9) In order to evaluate the effectiveness of this Directive, the Commission should prepare and publish an evaluation report on the basis of the information provided by Member States and of other available data. The Commission’s report should be published and, if appropriate, accompanied by a review with a view to increasing the effectiveness of this Directive and by a legislative proposal amending this Directive.
Amendment 48 #
Proposal for a directive
Recital 9
Recital 9
(9) In order to evaluate the effectiveness of this Directive, as well as its impact on SMEs and on tax revenues in Member States, the Commission should prepare and publish an evaluation report on the basis of the information provided by Member States and of other available data.
Amendment 87 #
Proposal for a directive
Article 5 – paragraph 3 a (new)
Article 5 – paragraph 3 a (new)
3 a. When implementing this Directive, Member States shall make sure the measures adopted are compliant with the guidance provided by the Code of Conduct Group (Business Taxation) on notional interest deduction regimes.
Amendment 92 #
Proposal for a directive
Article 6 – paragraph 1
Article 6 – paragraph 1
1. Member States shall ensure that a taxpayer, except for micro, small and medium-sized enterprises as defined in the Commission’s recommendation of 6 May 2003, is able to deduct from its taxable base for corporate income tax purposes exceeding borrowing costs as defined in Article 1, point (2), of Council Directive (EU) 2016/116435 up to an amount (a) corresponding to 85% of such costs incurred during the tax period. If such amount is higher than the amount (b) determined in accordance with Article 4 of Directive (EU) 2016/1164, Member States shall ensure that the taxpayer be entitled to deduct only the lower of the two amounts in the tax period. The difference between the two amounts (a) and (b) shall be carried forward or back in accordance with Article 4 of Directive (EU) 2016/1164. _________________ 35 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).
Amendment 98 #
Proposal for a directive
Article 8 – title
Article 8 – title
Reports and review
Amendment 100 #
Proposal for a directive
Article 8 – paragraph 1
Article 8 – paragraph 1
1. By 31 December 2027, the Commission shall present a report to the European Parliament and to the Council on the implementation of this Directive. The report shall review and assess the impact of this Directive on SME’s access to financing and on tax revenues in Member States, and whether there is a need to amend this Directive. Where appropriate, the report shall be accompanied by a review with a view to increasing the effectiveness of this Directive and a legislative proposal amending this Directive.