11 Amendments of Martin HLAVÁČEK related to 2023/0321(CNS)
Amendment 84 #
Proposal for a directive
Recital 3
Recital 3
(3) Albeit different in their design, the fundamental features of corporate income tax systems are similar as they lay down rules aiming towards the same objective, i.e., to arrive at a taxable base for businesses. In this vein, to support the proper functioning of the internal market, the corporate tax environment in the Union should be shaped in accordance with the principle that companies pay their fair share of tax in the jurisdiction(s) where their profits are generated. Therefore, it would be important for businesses which operate on the internal market that Member States introduce a common legal framework to harmonise the fundamental features of corporate income tax systems with a view to simplifying tax rules and ensuring a fair competition.
Amendment 121 #
Proposal for a directive
Recital 12
Recital 12
(12) To achieve the key objective of creating a simplified corporate tax framework, the preliminary tax results for each group member should be aggregated into one single common tax base, in order to subsequently allocate this base to eligible group members. The tax adjustments to the financial statements would produce preliminary tax results for each group member. These results would then be aggregated, which would allow for cross-border loss relief between BEFIT group members, and subsequently, the aggregated tax base would be allocated to group members based on a transition allocation rule until Pillar One of the OECD agreement on corporate taxation enters into force in all Member States; this wshould pave the way towards a permanent mechanism. That permanent mechanism could be bas in accordance with profit allocation rules defined oin a formulary apportionmentthe OECD Pillar One Multilateral Convention and would render the need for intra-BEFIT group transactions to be consistent with the arm’s length principle redundant. It wshould have the advantage of usinguse morest recent country-by-country reporting (‘CbCR’) data and the information gathered during the transition period. This will also allow for a more thorough assessment of the impact that the implementation of theconsistent approach between BEFIT and the OECD two- pillar approach is expected to have on national tax bases and the BEFIT group tax basand therefore reduce tax compliance costs for companies. In this way, it would still become possible to materialise the key objective of tax neutrality in the internal market, which would reduce instances of double and over-taxation and enhance tax certainty with the aim of reducing the number of tax disputes.
Amendment 146 #
Proposal for a directive
Recital 19
Recital 19
(19) To optimise the benefits of having a common legal framework for computing the corporate tax base in the internal market, the application of the rules should be optional for groups, including SME groups, who earn annual combined revenues of less than EUR 750 000 000 as long as they prepare consolidated financial statements and have a taxable presence in the Union. By keeping the application of the rules open to groups of a smaller size, more groups with cross-border structures and activities may benefit from the simplification that the common framework offers. Companies choosing to be covered by this Directive should easily benefit from Member States' and the European Commission's technical assistance to comply with the new rules and therefore foster their cross-border activities.
Amendment 157 #
Proposal for a directive
Article 2 – paragraph 1 – introductory part
Article 2 – paragraph 1 – introductory part
1. This Directive appliesA Member State may decide to apply this Directive to companies resident for tax purposes in athat Member State, including their permanent establishments located in other Member States, and to permanent establishments located in Member States of entities resident for tax purposes in a third country (‘third-country entities’), which comply with the following criteria:
Amendment 192 #
Proposal for a directive
Article 7 – paragraph 4
Article 7 – paragraph 4
Amendment 273 #
Proposal for a directive
Article 45 – paragraph 1 – subparagraph 1
Article 45 – paragraph 1 – subparagraph 1
For each fiscal year between 1 July 2028 and 30 June 2035 at the luntil the Multilateral Convention to implement amount A of Pillar One of the OECD agreement enters into force in all EU Member Statest (the ‘transition period’), the BEFIT tax base shall be allocated to the BEFIT group members in accordance with the baseline allocation percentage.
Amendment 291 #
Proposal for a directive
Article 45 – paragraph 2 – subparagraph 3 – point 1 (new)
Article 45 – paragraph 2 – subparagraph 3 – point 1 (new)
(1) Once the Multilateral Convention implementing amount A of Pillar One of the OECD agreement enters into force in all EU Member States, the BEFIT tax base should be allocated to the BEFIT group members in each tax year in accordance with the profit allocation rules defined in the Multilateral Convention on Pillar one.
Amendment 351 #
Proposal for a directive
Article 57 – paragraph 4 a (new)
Article 57 – paragraph 4 a (new)
4a. BEFIT teams should use all the existing procedures and arrangements offered by the Directive on Administration Cooperation (DAC) to ensure an efficient cooperation and exchange of information between national tax administrations.
Amendment 374 #
Proposal for a directive
Article 77 – paragraph 1
Article 77 – paragraph 1
1. Five years after this Directive starts to apply, the Commission shall examine and evaluate its functioning and report to the European Parliament and the Council to that effect. The report shall, where appropriate, be accompanied by a proposal to amend this Directive and to propose its mandatory application for the Member States.
Amendment 376 #
Proposal for a directive
Article 77 – paragraph 2
Article 77 – paragraph 2
2. Member States shall communicate to the Commission relevant information for the evaluation of the Directive in accordance with paragraph 3, including aggregated data on BEFIT group members which are resident for tax purposes in their jurisdiction and permanent establishments thereof operating in their jurisdiction, in order to properly assess - the impact of the transition allocation rule and of; - linkage with other legislative acts in the area of corporate taxation, namely Directive (EU) 2022/2523 as well as assessing the situation regarding Pillar One of the Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy agreed by the OECD/G20 Inclusive Framework on BEPS on 8 October 2021; - the impact on double tax treaties; - co-existence of two tax systems, at the national and EU level; - administrative burden for entrepreneurs and tax administrations resulting from application of Section 5 of Chapter II; - the impact of the allocation of the tax base on the Member States revenues.
Amendment 378 #
Proposal for a directive
Article 77 – paragraph 2
Article 77 – paragraph 2
2. Member States shall communicate to the Commission relevant information for the evaluation of the Directive in accordance with paragraph 3, including aggregated data on BEFIT group members which are resident for tax purposes in their jurisdiction and permanent establishments thereof operating in their jurisdiction, in order to properly assess the impact of the transition allocation rule and of Directive (EU) 2022/2523 as well as assessing the situation regardingarticulation with Pillar One of the Statement on a Two- Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy agreed by the OECD/G20 Inclusive Framework on BEPS on 8 October 2021.