Activities of Claude GRUFFAT related to 2021/0433(CNS)
Plenary speeches (1)
Minimum level of taxation for multinational groups (debate)
Shadow reports (1)
REPORT on the proposal for a Council directive on ensuring a global minimum level of taxation for multinational groups in the Union
Amendments (80)
Amendment 50 #
Proposal for a directive
Recital 2
Recital 2
(2) In a continued effort to put an end to tax practices of MNEs which allow them to shift profits to jurisdictions where they are subject to no or very low taxation, the OECD has further developed a set of international tax rules to ensure that MNEs pay a fair share of tax wherever they operate. This major reform aims to put a floor on competition over corporate income tax rates through the establishment of a global minimum level of taxation. By removing a substantial part of the advantages of shifting profits to jurisdictions with no or very low taxation, the global minimum tax reform will level the playing field for businesses worldwide, enabling businesses to be taxed where they have real economic activities and allow jurisdictions to better protect their tax bases.
Amendment 54 #
Proposal for a directive
Recital 3
Recital 3
(3) This political objective has been translated into the Global Anti-Base Erosion Model Rules (GloBE Model Rules) approved on 14 December 2021 by the OECD/G20 Inclusive Framework on BEPS to which Member States have committed. In the Council Conclusions of 7 December 20218 , 1a,the Council reiterated its firm support of the global minimum tax reform and committed to a swift implementation of the agreement by means of Union legislation under article 20 TEU, articles 115 or 116 TFEU. In this context, it is essential that Member States effectively implement their commitment to achieve a global minimum level of taxation. _________________ 81a Council Conclusions 14767/21 of 7 December 2021
Amendment 55 #
Proposal for a directive
Recital 3 a (new)
Recital 3 a (new)
(3 a) It is neither possible, nor indeed desirable, to enforce uniformity in the interpretation and application of the GloBE worldwide. Divergences are inevitable, and can and should be tolerated, as long as they do not detract from the effectiveness of the GloBE in achieving its intended outcomes. This applies in particular to the agreed minimum rate of15%. The average global statutory corporate tax rate is now 25%, and it remains higher in regions such as Africa and South America. The global average has declined steadily from a rate of 46% in 1980. The proposed minimum ETR of 15%,even if effectively implemented, will continue to provide a strong incentive for businesses to shift profits. The 15% rate now agreed should be regarded as the absolute floor, and not a ceiling. It is therefore that the Union is setting a higher rate.
Amendment 56 #
Proposal for a directive
Recital 4
Recital 4
(4) In a Union of closely integrated economies, it is crucial that the global minimum tax reform is implemented in a sufficiently coherent and coordinated fashion. Considering the scale, detail and technicalities of those new international tax rules, only a common Union framework would prevent a fragmentation of the internal market in the implementation of them. Moreover, a common framework, designed to be compatible with the fundamental freedoms guaranteed by the Treaty, would provide taxpayers with legal certainty when implementing the rules and provides the opportunity to apply the rules differently and more ambitiously within the EU.
Amendment 58 #
Proposal for a directive
Recital 5
Recital 5
(5) It is necessary to lay down rules in order to establish an efficient and coherent framework for the global minimum level of taxation at Union level. The framework creates a system of two interlocked rules, together referred to as the GloBE rules, through which an additional amount of tax called a top-up tax should be collected each time that the effective tax rate (ETR) of an MNE in a given jurisdiction is below the 1521 %. In such case, the jurisdiction is considered to be low-taxed. Those two rules are called the Income Inclusion Rule (IIR) and the Undertaxed Payment Rule (UTPR). Under this system, the parent entity of an MNE located in a Member State has the obligation to apply the IIR to its share of top-up tax relating to any entity of the group that is low-taxed, whether this is located within or outside the Union. The UTPR should act as a backstop to the IIR through a reallocation of any residual amount of top-up tax in cases where not the entire amount of top-up tax relating to low-taxed entities could be collected by parent entities through the application of the IIR.
Amendment 63 #
Proposal for a directive
Recital 6
Recital 6
(6) It is necessary to implement the GloBE Model Rules agreed by the Member States in a way that it remains as close as possiblecoherent to the global agreement. This Directive closegenerally follows the content and structure of the GloBE Model Rules but diverges in certain aspects, amongst others for the application of certain rules in the Union. To ensure compatibility with primary Union law, and more precisely with the freedom of establishment, the rules of this Directive should apply to entities resident in a Member State as well as non-resident entities of a parent entity located in that Member State. This Directive should also apply to very large-scale, purely domestic groups. In this way, the legal framework would be designed to avoid any risk of discrimination between cross-border and domestic situations. All entities, including the parent entity that applies the IIR, which are located in a Member State that is low- taxed, would be subject to the top-up tax. Equally, constituent entities of the same parent entity that are located in another Member State, which is low-taxed, would be subject to the top-up tax.
Amendment 66 #
Proposal for a directive
Recital 7
Recital 7
(7) While it is necessary tTo ensure that tax avoidance practices are discouraged, adverse impacts on smaller MNEs in the internal market should be avoided. For this purpose, this Directive should only applythis Directive allows Member States to apply the IIR to entities located in the Union that are members of MNE groups or large-scale domestic groups that meet the annual threshold of at least EUR 750 000 000 or lower of consolidated revenue. This threshold wMember States could be consistent withder to lower the threshold of existing international tax rules such as the country-by-country reporting rules9 to EUR 40 000 000 in view of the Directive 2013/34/EU. Entities within the scope of this Directive are referred to as constituent entities. Certain entities should be excluded from the scope based on their particular purpose and status. Excluded entities would be those that are not profit-driven and perform activities in the general interest and which are, for these reasons, not likely to be subject to tax in the Member State in which they are located. In order to protect those specific interests, it is necessary to exclude from the scope of the Directive governmental entities, international organisations, non-profit organisations and pension funds from the scope of this Directive. Investment funds and real estate investment vehicles should also be excluded from the scope when they are at the top of the ownership chain, since, for those so-called flow-through entities, the income earned is taxed at the level of the owners. _________________ 9 Council Directive (EU) 2016/881 of 25 May 2016 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation, OJ L 146/8 (3 Jun. 2016) [DAC 4].
Amendment 70 #
(12) The ETR of an MNE group in each jurisdiction where it carries out activities or of a large-scale domestic group should be compared to the agreed minimum tax rate of at least 215 % in order to determine whether the MNE group or large-scale domestic group is liable to pay a top-up tax and consequently should apply the IIR or the UTPR. The minimum tax rate of 15 % agreed by the OECD/G20 Inclusive Framework on BEPS reflects a balance amongst corporate tax rates worldwideis a minimum standard. Opting for a higher rate does not undermine the coherence of the Union’s legislation with the international agreement. In cases where the ETR of an MNE group falls below the minimum tax rate in a given jurisdiction, the top-up tax should be allocated to the entities in the MNE group that are liable to pay the tax in accordance with the application of the IIR and the UTPR, in order to comply with the globally agreed minimum effective rate of 15 at least 21%. In cases where the ETR of a large- scale domestic group falls below the minimum tax rate, the UPE at the top of the large- scale domestic group should apply the IIR in respect of its low-taxed constituent entities, in order to ensure that such group is liable to pay tax at an effective minimum rate of 15 %as defined by the relevant jurisdiction.
Amendment 75 #
Proposal for a directive
Recital 13
Recital 13
(13) In order to allow Member States to benefit from the top-up tax revenues collected on their low-taxed constituent entities located in their territory, Member States should be able to electhave the option to apply a domestic top-up tax system. Constituent entities of an MNE group that are located in a Member State which has elected to implement rules equivalcoherent to the IIR and the UTPR as designed in this directive in their own domestic tax system should pay the top-up tax to this Member State. While leaving Member States some flexibility in the technical implementation of the domestic top-up tax system, such system should ensure the minimum effective taxation of the qualifying income or loss of the constituent entities in the same, or in an equivalent manner, to the IIR and UTPR of this DirectiveGiven the risks of circumvention related to the effective collection of the domestic top-up tax, the Code of Conduct Group on Business Taxation should monitor its application carefully. The Commission should provide assistance in that regard.
Amendment 78 #
Proposal for a directive
Recital 14
Recital 14
(14) To ensure a proportionate approach, this exercise should take into consideration certain specific situations in which BEPS risks are reduced. Therefore, the Directive should includes a substance carve-out based on the costs associated with employees and the value of tangible assets in a givenfor jurisdiction. This would allow to address, to a certain extent, situations where an MNE group or a large-scale domestic group carries out economic activities which require material presence in a low-taxed jurisdiction as in such case BEPS practices would be unlikely to flourish. The specific case of MNE groups that are at the first stages of their international activity should also be considered in order not to discourage the development of cross-border activities for MNE groups that benefit from low taxation in their domestic jurisdiction where they are predominantly operating. Thus, the low- taxed domestic activities of such groups should be excluded from the application of the rules for a transitional period of five years, and provided that the MNE group does not have constituent entities in more than six other jurisdictions. In order to ensure equal treatment for large-scale domestic groups, the income from the activities of such groups should also be excluded for a transitional period of five yearstside of the Union. This to remain in coherence and respect the OECD/G20 Inclusive Framework agreement.
Amendment 81 #
Proposal for a directive
Recital 15
Recital 15
Amendment 84 #
Proposal for a directive
Recital 16
Recital 16
(16) In order to achieve a balance between the objectives of the global minimum tax reform and the administrative burden for tax administrations and taxpayers,To respect and in coherence with the OECD/G20 Inclusive Framework agreement this Directive should provides for a de minimis exclusion for MNE groups or large-scale domestic groups that have an average revenue of less than EUR 10 000 000 and an average qualifying income or loss of less than EUR 1 000 000 in a jurisdiction outside of the Union. Such MNE groups or large-scale domestic groups should not pay a top-up tax even if their ETR is below the minimum tax rate in that jurisdiction outside of the Union.
Amendment 86 #
Proposal for a directive
Recital 17
Recital 17
Amendment 88 #
Proposal for a directive
Recital 18
Recital 18
(18) For an efficient application of the system, it is crucial that procedures are coordinated at a group level. It will be necessary to operate a system ensuring the unobstructed flow of information within the MNE group and towards tax administrations where constituent entities are located. The primary responsibility of filing the information return should lie on the constituent entity itself. A waiver of such responsibility should however apply where the MNE group has designated another entity to file and share the information return. It could be either a local entity or an entity from another jurisdiction that has a competent authority agreement in place with the Member State of the constituent entity. In the first twelve- months after its entry into force, the Commission should review this Directive, via relevant delegated acts, in line with the agreement reached by the Inclusive Framework on filing requirements under the GloBE implementation framework. Considering the compliance adjustments that this system requires, groups that fall within the scope of this Directive for the first time should be granted a period of 18 months to comply with the information requirements.
Amendment 90 #
(19) Considering the benefits of transparency in the field of tax, it is encouraging that a significant amount of information will be filed with the tax authorities in all the participating jurisdictions. MNE groups within the scope of this Directive should be obliged to provide comprehensive and detailed information on their profits and effective tax rate in every jurisdiction where they have constituent entities. Such extensive reporting could be expected to increase transparency. More transparency in financial disclosure results in benefits for tax administration and more tax certainty for taxpayers. In that context, Council Directive 2011/16/EU2a will play a role in facilitating the implementation of this Directive and the future revision of Directive 2011/16/EU will be subject to an impact assessment to be carried out before 31 December 2022. _________________ 2a 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 91 #
Proposal for a directive
Recital 19 a (new)
Recital 19 a (new)
(19 a) The monitoring of potentially harmful and distortive measures that aim to compensate for the potential increase in corporate income tax should be ensured via an update of the state aid rules.
Amendment 92 #
Proposal for a directive
Recital 19 b (new)
Recital 19 b (new)
(19 b) The Code of Conduct Group should continuously monitor the development of the accounting standards and their application for minimum tax purposes. If necessary, it shall make proposals to adjust the profit determination rules.
Amendment 96 #
Proposal for a directive
Recital 20
Recital 20
(20) The effectiveness and fairness of the global minimum tax reform heavily relies on its worldwide implementation. It will thus be vital that all major trading partners of the Union apply either a qualified IIR or an equivalent set of rules on minimum taxation. In this context, and in support of legal certainty and efficiency of the global minimum tax rules, it is important to further delineate the conditions under which the rules implemented in a third country jurisdiction which will not transpose the minimum rules of the global agreement can be granted equivalence to a qualified IIR. To this end, this Directive should provide for an assessment, by the Commission, of the equivalence criteria based on certain parameters together with a listing of third country jurisdictions that meet the equivalence criteria. This list would be modified, through a delegated act, following any subsequent assessment of the legal framework implemented by a third country jurisdiction in its domestic law.
Amendment 97 #
Proposal for a directive
Recital 21 a (new)
Recital 21 a (new)
(21 a) The GloBE Model Rules are likely to be modified, , in particular the rules relating to safe harbours that aim to simplify filing requirements for constituent entities, for which this Directive should ensure the adequate safeguard for control. Therefore, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission to ensure this Directive remains aligned with the international commitments of Member States.
Amendment 100 #
Proposal for a directive
Recital 23
Recital 23
(23) The objective of this Directive, to create a common framework for a global minimum level of taxation within the Union on the basis of the common approach contained in the GloBE Model Rules, cannot sufficiently be achieved by each Member State acting alone. Independent action by Member States would further risk creating ao avoid fragmentation of the internal market. As it is critical to adopt solutions that function for the internal market as a whole, this objective can, by reason of the scale of the global minimum tax reform, be better achieved at Union level. The Union may therefore adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union.
Amendment 102 #
Proposal for a directive
Recital 23 a (new)
Recital 23 a (new)
(23 a) A review clause is introduced in this Directive in order to assess and reconsider certain exemptions and derogations, in particular regarding distribution tax systems and substance- based income exclusion, the relevance of the threshold for MNE Group and large- scale domestic firms in scope and the impact on tax revenues on developing countries. A review clause would be an opportunity to integrate further modification of the GloBE Model rules into EU law if necessary.
Amendment 108 #
Proposal for a directive
Article 2 – paragraph 1
Article 2 – paragraph 1
1. This Directive shall apply to constituent entities located in the Union that are members of an MNE group or a large-scale domestic group which has an annual revenue of EUR 750 000 000 or more in its consolidated financial statements in at least of the last fiscal year. Each Member State may apply an income inclusion rule in accordance with this Directive also two of the last four consecutive fiscal yearsMNE groups which have annual revenues above a nationally defined lower threshold if the ultimate parent entity is tax resident in this Member State. The same threshold shall then apply to large-scale domestic groups of this Member State.
Amendment 112 #
Proposal for a directive
Article 2 – paragraph 2
Article 2 – paragraph 2
2. Where one or more of the fourthe fiscal years referred to in paragraph 1 is longer or shorter than 12 months, the annual revenue referred to in that paragraph shall be adjusted proportionally for each of those fiscal years.
Amendment 113 #
Proposal for a directive
Article 2 – paragraph 3 – point a
Article 2 – paragraph 3 – point a
(a) a governmental entity, an international organisation, a non-profit organisation, a pension fund, an investment entity that is an ultimate parent entity and a real estate investment vehicle that is an ultimate parent entity; or;
Amendment 117 #
Proposal for a directive
Article 3 – paragraph 1 – point 12
Article 3 – paragraph 1 – point 12
(12) ‘minimum tax rate’ means fifteen at least twenty-one percent (215 %);
Amendment 123 #
Proposal for a directive
Article 3 – paragraph 1 – point 23 – point a
Article 3 – paragraph 1 – point 23 – point a
(a) provides for the determination of the excess profits of the constituent entities located in that jurisdiction in accordance with the rules laid down in this Directive and the application of the minimum tax rate to those excess profits for the jurisdiction and the constituent entities in accordance with the rules laid down in this Directive; and.
Amendment 124 #
Proposal for a directive
Article 3 – paragraph 1 – point 23 – point b
Article 3 – paragraph 1 – point 23 – point b
Amendment 127 #
Proposal for a directive
Article 3 – paragraph 1 – point 32
Article 3 – paragraph 1 – point 32
Amendment 133 #
Proposal for a directive
Article 3 – paragraph 1 – point 38 a (new)
Article 3 – paragraph 1 – point 38 a (new)
(38 a) The Commission may adopt implementing acts in accordance with Article 52 in order to laydown definitions of more concepts, or to modify any of the above definitions other than the one for the ‘minimum tax rate’, especially in the light of future refinements or clarification of the GloBE Model Rules.
Amendment 135 #
Proposal for a directive
Article 4 – paragraph 1 – introductory part
Article 4 – paragraph 1 – introductory part
1. A constituent entity other than a flow-through entity shall be deemed to be located in the jurisdiction where it is considered as resident for tax purposes based on its place of effective management, place of creation or similar criterianamely the place where key management and commercial decisions that are necessary for the conduct of business in that jurisdiction are taken, or similar criteria reflecting real economic activities.
Amendment 138 #
Proposal for a directive
Article 4 a (new)
Article 4 a (new)
Article 4 a Anti Avoidance Rules 1. For the purposes of calculating the top- up tax to be levied under the rules of this Directive, a Member State shall disregard an arrangement or a series of arrangements which, having been put in place for the essential purpose of obtaining a tax advantage that defeats the object or purpose of this Directive, are not genuine, having regard to all relevant facts and circumstances. An arrangement may comprise more than one step or part. 2. For the purposes of paragraph 1, an arrangement or a series thereof shall be regarded as non-genuine to the extent that they are not put in place for valid commercial reasons that reflect economic reality. 3. Arrangements or a series thereof that are disregarded in accordance with paragraph 1 shall be treated, for the purpose of calculating the tax base, by reference to their economic substance. 4. The Commission shall be empowered to adopt delegated acts in accordance with Article 52 in order to lay down more detailed rules against tax avoidance, especially in the light of future refinements of the GloBE Model Rules.
Amendment 141 #
Proposal for a directive
Article 10 – paragraph 2
Article 10 – paragraph 2
Amendment 142 #
Proposal for a directive
Article 10 – paragraph 3
Article 10 – paragraph 3
Amendment 144 #
Proposal for a directive
Article 10 – paragraph 4
Article 10 – paragraph 4
4. Member States that elect to apply a domestic top-up tax shall notify the Commission of this election within four months following the adoption of their national laws, regulations and administrative provisions necessary to comply with this Directive.
Amendment 147 #
Proposal for a directive
Article 13 – paragraph 8 a (new)
Article 13 – paragraph 8 a (new)
8 a. The Commission may, by means of implementing acts, further specify the meaning of the terms used in paragraphs 5 and 6. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 52a ;
Amendment 148 #
Proposal for a directive
Article 13 – paragraph 8 b (new)
Article 13 – paragraph 8 b (new)
Amendment 152 #
Proposal for a directive
Article 15 – paragraph 3
Article 15 – paragraph 3
Amendment 153 #
Proposal for a directive
Article 15 – paragraph 5
Article 15 – paragraph 5
5. Qualified refundable tax credits shall be treated as income for the computation of the qualifying income or loss of a constituent entity. Refundable tax credits that do not meet the definition of a qualified refundable tax credit as set out in Article 3, point (32)Refundable tax credits shall not be treated as income for the computation of the qualifying income or loss of a constituent entity.
Amendment 155 #
Proposal for a directive
Article 15 – paragraph 11 a (new)
Article 15 – paragraph 11 a (new)
11 a. The Commission may adopt delegated acts in accordance with Article 52 in order to modify any of the definitions of paragraph 1, or to amend any of the items for which adjustments are provided for under paragraphs 2, 3, 6, 7, 10 and 11, especially in the light of future refinements of the GloBE Model Rules.
Amendment 157 #
Proposal for a directive
Article 16
Article 16
Amendment 159 #
Proposal for a directive
Article 19 – paragraph 1 – point c
Article 19 – paragraph 1 – point c
(c) taxes imposed in lieu of a generally applicable corporate income tax, understood as alternatives to corporate income tax such as alternative minimum taxes; and
Amendment 160 #
Proposal for a directive
Article 19 – paragraph 1 – point d a (new)
Article 19 – paragraph 1 – point d a (new)
(d a) the top-up tax accrued by a constituent entity under a qualified domestic top-up tax.
Amendment 161 #
Proposal for a directive
Article 19 – paragraph 2 – point b
Article 19 – paragraph 2 – point b
Amendment 163 #
Proposal for a directive
Article 19 – paragraph 3 a (new)
Article 19 – paragraph 3 a (new)
3 a. The Commission may, by means of implementing acts, further specify the meaning of the terms used in paragraph 1. The implementing acts referred to in the first subparagraph shall be adopted in accordance with the examination procedure referred to in Article 52a.
Amendment 164 #
Proposal for a directive
Article 20 – paragraph 2 – point d
Article 20 – paragraph 2 – point d
Amendment 165 #
Proposal for a directive
Article 20 – paragraph 3 – point b
Article 20 – paragraph 3 – point b
(b) the amount of credit or refund in respect of a refundable tax credit that is not a qualified refundable tax credit that was not accrued as a reduction to the tax expense;
Amendment 166 #
Proposal for a directive
Article 20 – paragraph 3 – point c
Article 20 – paragraph 3 – point c
(c) the amount of covered taxes refunded or credited to a constituent entity that was not treated as an adjustment to tax expense, unless it relates to a qualified refundable tax credit ;
Amendment 171 #
Proposal for a directive
Article 21 – paragraph 8 – point c
Article 21 – paragraph 8 – point c
Amendment 173 #
Proposal for a directive
Article 21 – paragraph 8 – point e
Article 21 – paragraph 8 – point e
Amendment 174 #
Proposal for a directive
Article 21 – paragraph 8 a (new)
Article 21 – paragraph 8 a (new)
8 a. The Commission is empowered to adopt delegated acts in accordance with Article 52 to amend any of the items to which an exception accrual applies under paragraph 8, especially in the light of future refinements of the GloBE Model Rules.
Amendment 176 #
Proposal for a directive
Article 25 – paragraph 2 – subparagraph 2 – point a
Article 25 – paragraph 2 – subparagraph 2 – point a
(a) the qualifying income of the constituent entities is the sum of the qualifying income of all constituent entities located in the jurisdiction determined in accordance with Chapter III, taking into account, where applicable, the international shipping income exclusion in accordance with Article 16;
Amendment 178 #
Proposal for a directive
Article 26 – paragraph 3 – introductory part
Article 26 – paragraph 3 – introductory part
3. The jurisdictional top-up tax for a fiscal year shall be computed in accordance with the following formula: Jurisdictional top – up tax = (top up tax percentage x excess profit) + additional top – up tax
Amendment 179 #
Proposal for a directive
Article 26 – paragraph 3 – subparagraph 2 – point b
Article 26 – paragraph 3 – subparagraph 2 – point b
Amendment 181 #
Proposal for a directive
Article 27 – paragraph 1 – point a
Article 27 – paragraph 1 – point a
(a) ‘eligible employees’ means full- time or part-time employees of a constituent entity and independent contractors participating in the ordinary operating activities of the MNE group under the direction and control of the MNE Group;
Amendment 182 #
Proposal for a directive
Article 27 – paragraph 2
Article 27 – paragraph 2
2. Unless a non-European filing entity of an MNE group elects not to apply the substance- based income exclusion, the net qualifying income for a jurisdiction shall be reduced, for the purpose of calculating the top-up tax, by an amount equal to the sum of the payroll carve-out and the tangible asset carve-out for each constituent entity located in the jurisdiction.
Amendment 183 #
Proposal for a directive
Article 27 – paragraph 2 a (new)
Article 27 – paragraph 2 a (new)
2 a. The substance-based income exclusion does not apply for constituent entites in the European Union.
Amendment 185 #
Proposal for a directive
Article 27 – paragraph 3 – introductory part
Article 27 – paragraph 3 – introductory part
3. The payroll carve-out of a constituent entity located in a jurisdiction outside of the European Union shall be equal to 5 % of its eligible payroll costs of eligible employees who perform activities for the MNE group in such jurisdiction, with the exception of eligible payroll costs that are:
Amendment 186 #
Proposal for a directive
Article 27 – paragraph 3 – point a
Article 27 – paragraph 3 – point a
(a) capitalised and included in the eligible tangible asset carve-out base; and
Amendment 187 #
Proposal for a directive
Article 27 – paragraph 3 – point b
Article 27 – paragraph 3 – point b
Amendment 188 #
Proposal for a directive
Article 27 – paragraph 4 – point b
Article 27 – paragraph 4 – point b
Amendment 189 #
Proposal for a directive
Article 27 – paragraph 9 a (new)
Article 27 – paragraph 9 a (new)
9 a. The Commission may, by means of implementing acts, further specify the meaning of the terms used in paragraph 1. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 52a.
Amendment 191 #
Proposal for a directive
Article 29 – paragraph 1 – introductory part
Article 29 – paragraph 1 – introductory part
1. By way of derogation from Articles 25 to 28, at the election of the filing constituent entity, the top-up tax due for the constituent entities located in a jurisdiction outside of the European Union shall be equal to zero for a fiscal year if, for such fiscal year:
Amendment 193 #
Proposal for a directive
Article 31 – paragraph 4 – introductory part
Article 31 – paragraph 4 – introductory part
4. Where a single MNE group demerges into two or more groups (each a “demerged group”), the consolidated revenue threshold shall be deemed to be met by each demerged group under all circumstances for at least six years following the demerger and if it reports:
Amendment 194 #
Proposal for a directive
Article 35 – paragraph 1 – point c – introductory part
Article 35 – paragraph 1 – point c – introductory part
(c) ‘'dual-listed arrangement’ means an arrangement entered into by two or more ultimate parent entities of separate groups undefor which any one or more of the following apply :
Amendment 197 #
Proposal for a directive
Article 38 – paragraph 5
Article 38 – paragraph 5
5. The outstanding balance, if any, of the deemed distribution tax recapture account at the end of the fourththird fiscal year after such account was established, shall be treated as a reduction to the adjusted covered taxes in accordance with Article 28(1) for the fiscal year in which such account was established.
Amendment 199 #
Proposal for a directive
Article 42 – paragraph 7 a (new)
Article 42 – paragraph 7 a (new)
Amendment 201 #
Proposal for a directive
Article 42 – paragraph 7 b (new)
Article 42 – paragraph 7 b (new)
7 b. The Commissions hall by means of a delegated act, and if necessary a legislative proposal, propose the measures necessary to implement the filing obligations under this Directive and ensure the necessary exchange of information.
Amendment 202 #
1. The election referred to in Articles 2(3), 15(3), 15(6), 15(9), 40(4) and 41(5) shall be valid for a period of five years, starting from the year in which the election is made. The election shall be renewed automatically unless the filing constituent entity revokes the election at the end of the five-year period. A revocation of the election shall be valid for a period of five yearspermanent, starting from the year in which the revocaelection is made.
Amendment 203 #
Proposal for a directive
Article 44 – paragraph 1
Article 44 – paragraph 1
1. Member States shall lay down rules on penalties applicable to breaches of national rules adopted pursuant to this Directive, and shall take all necessary measures to ensure that they are effectively applied. The penalties provided for shall be effective, proportionate and dissuasive.
Amendment 207 #
Proposal for a directive
Article 44 – paragraph 2
Article 44 – paragraph 2
2. A constituent entity that does not comply with the requirement to file a top- up tax information return pursuant to Article 42 for a tax year within the prescribed deadline or makes a false declaration shall be charged an administrative pecuniary penalty amounting to 510 % of its turnover in the relevant fiscal year. This penalty shall only apply after the constituent entity has not provided the top-up tax information return pursuant to Article 42, following any reminder issued, within a period of 6 months.
Amendment 212 #
Proposal for a directive
Article 46
Article 46
Amendment 214 #
Proposal for a directive
Article 47
Article 47
Amendment 229 #
Proposal for a directive
Article 50
Article 50
Amendment 234 #
Proposal for a directive
Article 51 – paragraph 1 – point b
Article 51 – paragraph 1 – point b
(b) it establishes a minimum effective tax rate of at least 215 % below which a constituent entity is considered as low- taxed;
Amendment 237 #
Proposal for a directive
Article 52 – paragraph 2
Article 52 – paragraph 2
2. The power to adopt delegated acts referred to in Articles 51(3), 4a(4), 13(8b),15(11a), 21(8a), and 42(7b) shall be conferred on the Commission for an indeterminate period of time from the date of entry into force of this Directive.
Amendment 238 #
Proposal for a directive
Article 52 – paragraph 5
Article 52 – paragraph 5
5. A delegated act adopted pursuant to Article 51(3)paragraph 2 shall enter into force only if no objection has been expressed by the Council within a period of two months of notification of that act to the Council or if, before the expiry of that period, the Council has informed the Commission that it will not object. That period shall be extended by two months at the initiative of the Council.
Amendment 239 #
Proposal for a directive
Article 52 a (new)
Article 52 a (new)
Article 52 a Commitee Procedure 1. The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of Regulation (EU) No182/2011. 2. Where reference is made to this paragraph, Article5 of Regulation (EU) No 182/2011 shall apply.
Amendment 249 #
Proposal for a directive
Article 54 a (new)
Article 54 a (new)
Amendment 250 #
Proposal for a directive
Article 54 b (new)
Article 54 b (new)
Article 54 b Review 1. By [three years after the entry into force of this Directive], the Commission shall review the application of this Directive and report to the Council on its operation. The report shall address whether there is a need to amend this Directive in light of changes and developments in the international tax context, in particular regarding the implementation of the GloBE Model Rules outside the Union and the development of other, unilateral approaches towards minimum effective taxation of MNE groups. 2. The report shall assess the impact of the substance-based income exclusion provision, the implementation of the optional qualified domestic top-up tax and the treatment of distribution tax systems on the effectiveness of ensuring a minimum effective level of taxation. The report shall consider the impact of the Directive on the revenues of member states and low income countries and shall evaluate the impact of a threshold reduction for MNE Groups and large- scale domestic firms. Where appropriate, the report shall be accompanied by a legislative proposal.
Amendment 263 #
Proposal for a directive
Annex I
Annex I