BETA

89 Amendments of Miguel PORTAS related to 2011/0058(CNS)

Proposal for a directive
Recital 1

(1) Companies which seek to do business across frontiers within the Union encounter serious obstacles and market distortions owing to the existence of 27 diverse corporate tax systems. These obstacles and distortions impede the proper functioning of the internal market and foster tax competition and a race to the bottom. They create disincentives for investment in the Union and run counter to the priorities set in the Communication adopted by the Commission on 3 March 2010 entitled Europe 2020 – A strategy for smart, sustainable and inclusive growth. They also conflict with the requirements of a highly competitive social market economy.

2011/12/12
Committee: ECON

Proposal for a directive
Recital 5

(5) Since differences in rates of taxation do not ~~give rise to the same~~raise any obstacles, to the ~~system (the Common Consolidated Corpo~~functioning of the single market but allow and encouratge Ttax ~~Base (CCCTB)) need not affect the discretion of Member States regarding their national rate(s) of company taxation~~competition, it is necessary to initiate a process of harmonisation of tax rates that should start by setting lower and upper limits and culminate in a single rate at European Union level.

2011/12/12
Committee: ECON

Proposal for a directive
Recital 8

(8) Since ~~such a system is primarily designed to serve the needs of companies that operate across borders, it should be an optional scheme, accompanying the existing national corporate tax system~~it only makes sense to talk about tax harmonisation if it covers the whole of the European Union, it will have to be a mandatory scheme, applying to all Member States and companies.

2011/12/12
Committee: ECON

Proposal for a directive
Recital 11

(11) Income consisting in dividends, the proceeds from the disposal of shares held in a company outside the group and the profits of foreign permanent establishments should be exempt. In giving relief for double taxation most Member States exempt dividends and proceeds from the disposals of shares since it avoids the need of computing the taxpayer's entitlement to a credit for the tax paid abroad, in particular where such entitlement must take account of the corporation tax paid by the company distributing dividends. The exemption of income earned abroad meets the same need for simplicity.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Recital 12

(12) Income consisting in interest and royalty payments should be taxable, with credit for withholding tax paid on such payments. ~~Contrary to the case of dividends, there is no difficulty in computing such a credit.~~

2011/12/12
Committee: ECON

Proposal for a directive
Recital 15

(15) Taxpayers should be allowed to carry losses forward to the next year indefinitely, but no loss carry-back should be allowed. ~~Since carry- forward of losses is intended to ensure that a taxpayer pays tax on its real income, there is no reason to place a time limit on carry forward.~~ Loss carry back is relatively rare in the practice of the Member States, and leads to excessive complexity.

2011/12/12
Committee: ECON

Proposal for a directive
Recital 16

(16) Eligibility for consolidation (group membership) should be determined in accordance with a two-part test based on (i) (i) control (more than 50% of voting rights) and (ii) ~~ownership (more than 75% of equity) or~~ rights to profits (more than 750% of rights giving entitlement to profit). Such a test ensures a high level of economic integration between group members, as indicated by a relation of control and a high level of participation. The two thresholds should be met throughout the tax year; otherwise, the company should leave the group immediately. There should also be a nine-month minimum requirement for group membership.

2011/12/12
Committee: ECON

Proposal for a directive
Recital 21

(21) The formula for apportioning the consolidated tax base should comprise three equally weighted factors (labour, assets and sales). The labour factor should be computed on the basis of payroll ~~and the number of employees (each item counting for half)~~. The asset factor should consist of all fixed tangible assets. Intangibles and financial assets should be excluded from the formula due to their mobile nature and the risks of circumventing the system. The use of these factors gives appropriate weight to the interests of the Member State of origin. Finally, sales should be taken into account in order to ensure fair participation of the Member State of destination. Those factors and weightings should ensure that profits are taxed where they are earned. As an exception to the general principle, where the outcome of the apportionment does not fairly represent the extent of business activity, a safeguard clause provides for an alternative method.

2011/12/12
Committee: ECON

Proposal for a directive
Article 4 – paragraph 1 – point 1

(1) 'taxpayer' means a company to which ~~has opted to apply,~~ the system provided for by this Directive applies;

2011/12/12
Committee: ECON

Proposal for a directive
Article 4 – paragraph 1 – point 3

(3) 'non-taxpayer' means a company to which ~~is ineligible to opt or has not opted to apply~~ the system provided for by this Directive does not apply;

2011/12/12
Committee: ECON

Proposal for a directive
Chapter 3 – title

~~OPTING FOR~~SCOPE OF THE SYSTEM PROVIDED FOR BY THIS DIRECTIVE

2011/12/12
Committee: ECON

Proposal for a directive
Article 6 – title

~~Opting~~Application

2011/12/12
Committee: ECON

Proposal for a directive
Article 6 – paragraph 1

1. ~~A company to which this Directive appl~~This Directive, under the conditions provided for therein, shall apply compulsorily to companies which isare resident for tax purposes in a Member State ~~may opt for the system provided for by this Directive under the conditions provided for therein~~and which meet the requirements laid down in Article 2(1).

2011/12/12
Committee: ECON

Proposal for a directive
Article 6 – paragraph 2

2. ~~A company to which this Directive appl~~This Directive, under the conditions provided for therein, shall apply to companies which isare not resident for tax purposes in a Member State ~~may opt for the system provided for by this Directive under the conditions laid down therein in respect of a~~and which meet the requirements laid down in Article 2(2) in respect of the application of the system to all permanent establishments maintained by it in a Member States.

2011/12/12
Committee: ECON

Proposal for a directive
Article 6 – paragraph 6

6. A company resident in a Member State ~~which opts for the system provided for by this Directive~~ shall be subject to corporate tax under that system on all income derived from any source, whether inside or outside its Member State of residence.

2011/12/12
Committee: ECON

Proposal for a directive
Article 6 – paragraph 7

7. A company resident in a third country ~~which opts for the system provided for by this Directive~~ shall be subject to corporate tax under that system on all income from an activity carried on through a permanent establishment in a Member State.

2011/12/12
Committee: ECON

Proposal for a directive
Article 11 – paragraph 1 – point c

~~c) received profit distributions;~~deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 11 – paragraph 1 – point d

d~~) proceeds from a disposal of shares;~~eleted

2011/12/12
Committee: ECON

Proposal for a directive
Chapter 8 – title

PROVISIONS ON THE ENTRY INTO ~~AND EXIT FROM~~FORCE OF THE SYSTEM PROVIDED FOR BY THIS DIRECTIVE

2011/12/12
Committee: ECON

Proposal for a directive
Article 44 – paragraph 1

~~When a taxpayer opts to apply the system provided for by this Directive, a~~All assets and liabilities shall be recognised at their value as calculated according to national tax rules immediately prior to the date on which it begins to apply the system, unless otherwise stated in this Directive.

2011/12/12
Committee: ECON

Proposal for a directive
Article 46 – paragraph 1

Revenues and expenses which pursuant to Article 24(2) and (3) are considered to have accrued or been incurred before the ~~taxpayer opted into~~entry into force of the system provided for by this Directive but were not yet included in the tax base under the national corporate tax law previously applicable to the taxpayer shall be added to or deducted from the tax base, as the case may be, in accordance with the timing rules of national law.

2011/12/12
Committee: ECON

Proposal for a directive
Article 46 – paragraph 2

Revenues which were taxed under national corporate tax law before the ~~taxpayer opted into~~entry into force of the system in an amount higher than that which would have been included in the tax base under Article 24(2) shall be deducted from the tax base.

2011/12/12
Committee: ECON

Proposal for a directive
Article 47 – paragraph 1

1. Provisions, pension provisions and bad- debt deductions provided for in Articles 25, 26 and 27 shall be deductible only to the extent that they arise from activities or transactions carried out after the ~~taxpayer opted into~~entry into force of the system provided for by this Directive.

2011/12/12
Committee: ECON

Proposal for a directive
Article 47 – paragraph 2

2. Expenses incurred in relation to activities or transactions carried out before the ~~taxpayer opted into~~entry into force of the system but for which no deduction had been made shall be deductible.

2011/12/12
Committee: ECON

Proposal for a directive
Article 47 – paragraph 3

3. Amounts already deducted prior to ~~opting into~~the entry into force of the system may not be deducted again.

2011/12/12
Committee: ECON

Proposal for a directive
Article 48 – title

~~Pre-entry losses~~Losses prior to the entry into force of the system

2011/12/12
Committee: ECON

Proposal for a directive
Article 48 – paragraph 1

Where a taxpayer incurred losses before ~~opting into~~the entry into force of the system provided for by this Directive which could be carried forward under the applicable national law but had not yet been set off against taxable profits, those losses may be deducted from the tax base to the extent provided for under that national law.

2011/12/12
Committee: ECON

Proposal for a directive
Article 49

General rule for opting-out of the system When a taxpayer leaves the system provided for by this Directive, its assets and liabilities shall be recognised at their value as calculated according to the rules of the system, unless otherwise stated in this Directive.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 49 – paragraph 1

When a taxpayer leaves the system provided for by this Directive, its assets and liabilities shall be recognised at their value as calculated according to the rules of the system, unless otherwise stated in this Directive.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 50

Fixed assets depreciated in a pool When a taxpayer leaves the system provided for by this Directive, its asset pool under the system provided for by this Directive shall be recognised, for the purpose of the national tax rules subsequently applicable, as one asset pool which shall be depreciated on the declining balance method at an annual rate of 25%.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 50 – paragraph 1

When a taxpayer leaves the system provided for by this Directive, its asset pool under the system provided for by this Directive shall be recognised, for the purpose of the national tax rules subsequently applicable, as one asset pool which shall be depreciated on the declining balance method at an annual rate of 25%.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 51

Long-term contracts on leaving the system After the taxpayer leaves the system, revenues and expenses arising from long- term contracts shall be treated in accordance with the national corporate tax law subsequently applicable. However, revenues and expenses already taken into account for tax purposes in the system provided for by this Directive shall not be taken into account again.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 51 – paragraph 1

After the taxpayer leaves the system, revenues and expenses arising from long- term contracts shall be treated in accordance with the national corporate tax law subsequently applicable. However, revenues and expenses already taken into account for tax purposes in the system provided for by this Directive shall not be taken into account again.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 52

Provisions and deductions on leaving the system After the taxpayer leaves the system provided for by this Directive, expenses which have already been deducted in accordance with Articles 25 to 27 may not be deducted again.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 53

Losses on leaving the system Losses incurred by the taxpayer which have not yet been set off against taxable profits under the rules of the system provided for by this Directive shall be carried forward in accordance with national corporate tax law.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 53 – paragraph 1

Losses incurred by the taxpayer which have not yet been set off against taxable profits under the rules of the system provided for by this Directive shall be carried forward in accordance with national corporate tax law.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 54 – paragraph 1 – introductory part

1. Qualifying subsidiaries shall be all immediate and lower-tier subsidiaries in which the parent company holds ~~the following rights:~~more than 50% of the voting rights and of the rights giving entitlement to profit.

2011/12/12
Committee: ECON

Proposal for a directive
Article 54 – paragraph 1 – point a

~~a) a right to exercise more than 50% of the voting rights;~~deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 54 – paragraph 1 – point b

~~b) an ownership right amounting to more than 75% of the company’s capital or more than 75% of the rights giving entitlement to profit.~~deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 54 – paragraph 2 – point b

b) entitlement to profit ~~and ownership of capital~~ shall be calculated by multiplying the interests held in intermediate subsidiaries at each tier. OAll ownership rights ~~amounting to 75% or less~~ held directly or indirectly by the parent company, including rights in companies resident in a third country, shall also be taken into account in the calculation.

2011/12/12
Committee: ECON

Proposal for a directive
Article 57 – paragraph 2

2. When the consolidated tax base is negative, the loss shall be carried forward ~~and be set off against~~to the following year and be deducted from the next positive consolidated tax base. When the consolidated tax base is positive, it shall be shared in accordance with Articles 86 to 102.

2011/12/12
Committee: ECON

Proposal for a directive
Article 57 – paragraph 2 a (new)

2a. When the negative consolidated tax base corresponds to the taxpayer's first tax year, it may be carried forward to the following three years, being deducted from the respective positive tax bases, where they exist. When the negative consolidated tax base corresponds to the taxpayer's second tax year, it may be carried forward to the following two years, being deducted from the respective positive tax bases, where they exist.

2011/12/12
Committee: ECON

Proposal for a directive
Article 58 – paragraph 2

2. Notwithstanding paragraph 1, a taxpayer shall become a member of a group on the date when the thresholds of Article 54 ~~are~~is reached. The thresholds must be met for at least nine consecutive months, failing which a taxpayer shall be treated as if it had never having become a member of the group.

2011/12/12
Committee: ECON

Proposal for a directive
Article 66 – paragraph 1 – point a

a) if the taxpayer remains ~~in the system provided for by this Directive but~~ outside a group, the losses shall be carried forward and be set off according to Article 43;

2011/12/12
Committee: ECON

Proposal for a directive
Article 66 – paragraph 1 – point c

c) if the taxpayer leaves the system, the losses shall be carried forward and be set off according to the national corporate tax law which becomes applicable, as if those losses had arisen while the taxpayer was subject to that law.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 68 – paragraph 1

Where a taxpayer which is the economic owner of one or more self-generated intangible assets leaves the group, an amount equal to the costs incurred in respect of those assets for research, development, marketing and advertising in the previous five years shall be added to the consolidated tax base of the remaining group members. The amount added shall not, however, exceed the value of the assets on the departure of the taxpayer from the group. Those costs shall be attributed to the leaving taxpayer and shall be treated in accordance with ~~national corporate tax law which becomes applicable to the taxpayer or, if it remains in the system provided for by this Directive,~~ the rules of this Directive.

2011/12/12
Committee: ECON

Proposal for a directive
Article 72 – paragraph 1

Without prejudice to Article 75, revenue which is exempt from taxation under Article 11~~(c), (d) or~~ (e) may be taken into account in determining the tax rate applicable to a taxpayer.

2011/12/12
Committee: ECON

Proposal for a directive
Article 73 – paragraph 1 – introductory part

Article 11~~(c), (d) or~~ (e) shall not apply where the entity which made the profit distributions, the entity the shares in which are disposed of or the permanent establishment were subject, in the entity’s country of residence or the country in which the permanent establishment is situated, to one of the following:

2011/12/12
Committee: ECON

Proposal for a directive
Article 73 – paragraph 1 – point a

(a) a tax on profits, under the general regime in that third country, at a statutory corporate tax rate lower than 420% ~~of the average statutory corporate tax rate applicable in the Member States~~;

2011/12/12
Committee: ECON

Proposal for a directive
Article 73 – paragraph 2

The average statutory corporate tax rate applicable in the Member States shall be published by the Commission annually. It shall be calculated as an arithmetic average. For the purpose of this Article and Articles 81 and 82, amendments to the rate shall first apply to taxpayers in their tax year starting after the amendment.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 75

Disallowance of exempt share disposals Where, as a result of a disposal of shares, a taxpayer leaves the group and that taxpayer has within the current or previous tax years acquired in an intra- group transaction one or more fixed assets other than assets depreciated in a pool, an amount corresponding to those assets shall be excluded from the exemption unless it is demonstrated that the intra-group transactions were carried out for valid commercial reasons. The amount excluded from exemption shall be the market value of the asset or assets when transferred less the value for tax purposes of the assets or the costs referred to in Article 20 relating to fixed assets not subject to depreciation. When the beneficial owner of the shares disposed of is a non-resident taxpayer or a non-taxpayer, the market value of the asset or assets when transferred less the value for tax purposes shall be deemed to have been received by the taxpayer that held the assets prior to the intra-group transaction referred to in the first paragraph.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 75 – paragraph 1

Where, as a result of a disposal of shares, a taxpayer leaves the group and that taxpayer has within the current or previous tax years acquired in an intra- group transaction one or more fixed assets other than assets depreciated in a pool, an amount corresponding to those assets shall be excluded from the exemption unless it is demonstrated that the intra-group transactions were carried out for valid commercial reasons.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 75 – paragraph 2

The amount excluded from exemption shall be the market value of the asset or assets when transferred less the value for tax purposes of the assets or the costs referred to in Article 20 relating to fixed assets not subject to depreciation.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 75 – paragraph 3

When the beneficial owner of the shares disposed of is a non-resident taxpayer or a non-taxpayer, the market value of the asset or assets when transferred less the value for tax purposes shall be deemed to have been received by the taxpayer that held the assets prior to the intra-group transaction referred to in the first paragraph.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 76 – paragraph 1

1. Where a taxpayer derives income which has been taxed in another Member State or in a third country, other than income which is exempt under Article 11~~(c), (d) or~~ (e), a deduction from the tax liability of that taxpayer shall be allowed.

2011/12/12
Committee: ECON

Proposal for a directive
Article 76 – paragraph 4

4. In calculating the deduction, the amount of the income shall be decreased by related deductible expenses, which shall be deemed to be 20.5% thereof unless the taxpayer proves otherwise.

2011/12/12
Committee: ECON

Proposal for a directive
Article 76 – paragraph 5

5. The deduction for the tax liability in a third country may not exceed the final corporate tax liability of a taxpayer~~, unless an agreement concluded between the Member State of its residence and a third country states otherwise~~.

2011/12/12
Committee: ECON

Proposal for a directive
Article 81 – paragraph 1 – point a

(a) a tax on profits is provided for, under the general regime in theat third country, at a statutory corporate tax rate lower than 420% ~~of the average statutory corporate tax rate applicable in the Member States~~;

2011/12/12
Committee: ECON

Proposal for a directive
Article 82 – paragraph 1 – point b

(b) under the general regime in the third country, profits are taxable at a statutory corporate tax rate lower than 420% ~~of the average statutory corporate tax rate applicable in the Member States~~, or the entity is subject to a special regime that allows for a substantially lower level of taxation than that of the general regime;

2011/12/12
Committee: ECON

Proposal for a directive
Article 83 – paragraph 1

1. The income to be included in the tax base shall be calculated according to the rules of Articles 9 to 15. Losses of the foreign entity shall not be included in the tax base but shall be carried forward to the next tax year and taken into account when applying Article 82 in the subsequent years.

2011/12/12
Committee: ECON

Proposal for a directive
Article 83 – paragraph 4

4. Where the foreign entity subsequently distributes profits to the taxpayer, the amounts of income previously included in the tax base pursuant to Article 82 shall be deducted from the tax base when calculating the taxpayer’s liability to tax on the distributed income.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 86 – paragraph 1 – introductory part

1. The consolidated tax base shall be shared between the group members in each tax year on the basis of a formula for apportionment. In determining the apportioned share of a group member A, the formula shall take the following form, giving equal weight to the factors of sales, labour and assets: Apportioned share A = [1/3(A sales/group sales)+1/3(A payroll/group payroll)+1/3 (A assets/group assets)]*consolidated tax base

2011/12/12
Committee: ECON

Proposal for a directive
Article 90 – paragraph 1

1. The labour factor shall consist~~, as to one half,~~ of the total amount of the payroll of a group member as its numerator and the total amount of the payroll of the group as its ~~denominator, and as to the other half, of the number of employees of a group member as its numerator and the number of employees of the group as its~~ denominator. Where an individual employee is included in the labour factor of a group member, the amount of payroll relating to that employee shall also be allocated to the labour factor of that group member.

2011/12/12
Committee: ECON

Proposal for a directive
Article 90 – paragraph 2

~~2. The number of employees shall be measured at the end of the tax year.~~deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 91 – paragraph 1

1. EThe payroll relating to employees shall be included in the labour factor of the group member from which they receive remuneration.

2011/12/12
Committee: ECON

Proposal for a directive
Article 91 – paragraph 2 – subparagraph 1

Notwithstanding paragraph 1, where employees physically exercise their employment under the control and responsibility of a group member other than that from which they receive remuneration, ~~those employees and~~ the amount of payroll relating to them shall be included in the labour factor of the former.

2011/12/12
Committee: ECON

Proposal for a directive
Article 91 – paragraph 2 – subparagraph 2 – point b

(b) the payroll relating to such employees represents at least 5% of the ~~overall number of employees~~total amount of payroll of the group member from which they receive remuneration.

2011/12/12
Committee: ECON

Proposal for a directive
Article 91 a (new)

Article 91a – Limits applying to statutory corporate tax rates Statutory corporate tax rates under general regimes shall be between 25% and 35% in all Member States.

2011/12/12
Committee: ECON

Proposal for a directive
Article 104

Notice to opt 1. A single taxpayer shall opt for the system provided for by this Directive by giving notice to the competent authority of the Member State in which it is resident or, in respect of a permanent establishment of a non-resident taxpayer, that establishment is situated. In the case of a group, the principal taxpayer shall give notice, on behalf of the group, to the principal tax authority. Such notice shall be given at least three months before the beginning of the tax year in which the taxpayer or the group wishes to begin applying the system. 2. The notice to opt shall cover all group members. However, shipping companies subject to a special taxation regime may be excluded from the group. 3. The principal tax authority shall transmit the notice to opt immediately to the competent authorities of all Member States in which group members are resident or established. Those authorities may submit to the principal tax authority, within one month of the transmission, their views and any relevant information on the validity and scope of the notice to opt.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 104 – paragraph 1 – subparagraph 1

A single taxpayer shall opt for the system provided for by this Directive by giving notice to the competent authority of the Member State in which it is resident or, in respect of a permanent establishment of a non-resident taxpayer, that establishment is situated. In the case of a group, the principal taxpayer shall give notice, on behalf of the group, to the principal tax authority.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 104 – paragraph 1 – subparagraph 2

~~Such notice shall be given at least three months before the beginning of the tax year in which the taxpayer or the group wishes to begin applying the system.~~deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 104 – paragraph 2

~~2. The notice to opt shall cover all group members. However, shipping companies subject to a special taxation regime may be excluded from the group.~~deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 104 – paragraph 3

3. The principal tax authority shall transmit the notice to opt immediately to the competent authorities of all Member States in which group members are resident or established. Those authorities may submit to the principal tax authority, within one month of the transmission, their views and any relevant information on the validity and scope of the notice to opt.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 105

Term of a Group 1. When the notice to opt has been accepted, a single taxpayer or a group, as the case may be, shall apply the system provided for by this Directive for five tax years. Following the expiry of that initial term, the single taxpayer or the group shall continue to apply the system for successive terms of three tax years unless it gives notice of termination. A notice of termination may be given by a taxpayer to its competent authority or, in the case of a group, by the principal taxpayer to the principal tax authority in the three months preceding the end of the initial term or of a subsequent term. 2. Where a taxpayer or a non-taxpayer joins a group, the term of the group shall not be affected. Where a group joins another group or two or more groups merge, the enlarged group shall continue to apply the system until the later of the expiry dates of the terms of the groups, unless exceptional circumstances make it more appropriate to apply a shorter period. 3. Where a taxpayer leaves a group or a group terminates, the taxpayer or taxpayers shall continue to apply the system for the remainder of the current term of the group.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 105 – paragraph 1

1. When the notice to opt has been accepted, a single taxpayer or a group, as the case may be, shall apply the system provided for by this Directive for five tax years. Following the expiry of that initial term, the single taxpayer or the group shall continue to apply the system for successive terms of three tax years unless it gives notice of termination. A notice of termination may be given by a taxpayer to its competent authority or, in the case of a group, by the principal taxpayer to the principal tax authority in the three months preceding the end of the initial term or of a subsequent term.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 105 – paragraph 2

2. Where a taxpayer or a non-taxpayer joins a group, the term of the group shall not be affected. Where a group joins another group or two or more groups merge, the enlarged group shall continue to apply the system until the later of the expiry dates of the terms of the groups, unless exceptional circumstances make it more appropriate to apply a shorter period.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 105 – paragraph 3

~~3. Where a taxpayer leaves a group or a group terminates, the taxpayer or taxpayers shall continue to apply the system for the remainder of the current term of the group.~~deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 106

Information in the notice to opt The following information shall be included in the notice to opt: (a) the identification of the taxpayer or of the members of the group; (b) in respect of a group, proof of fulfilment of the criteria laid down in Articles 54 and 55; (c) identification of any associated enterprises as referred to in Articles 78; (d) the legal form, statutory seat and place of effective management of the taxpayers; (e) the tax year to be applied. The Commission may adopt an act establishing a standard form of the notice to opt. That implementing act shall be adopted in accordance with the examination procedure referred to in Article 131(2).deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 106 – paragraph 1

The following information shall be included in the notice to opt: (a) the identification of the taxpayer or of the members of the group; (b) in respect of a group, proof of fulfilment of the criteria laid down in Articles 54 and 55; (c) identification of any associated enterprises as referred to in Articles 78; (d) the legal form, statutory seat and place of effective management of the taxpayers; (e) the tax year to be applied.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 106 – paragraph 1 – point a

~~(a) the identification of the taxpayer or of the members of the group;~~deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 106 – paragraph 1 – point b

~~(b) in respect of a group, proof of fulfilment of the criteria laid down in Articles 54 and 55;~~deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 106 – paragraph 1 – point c

~~(c) identification of any associated enterprises as referred to in Articles 78;~~deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 106 – paragraph 1 – point d

~~(d) the legal form, statutory seat and place of effective management of the taxpayers;~~deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 106 – paragraph 1 – point e

~~(e) the tax year to be appli~~deleted.

2011/12/12
Committee: ECON

Proposal for a directive
Article 106 – paragraph 2

~~The Commission may adopt an act establishing a standard form of the notice to opt. That implementing act shall be adopted in accordance with the examination procedure referred to in Article 131(2).~~deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 107

Control of the notice to opt 1. The competent authority to which the notice to opt is validly submitted shall examine whether, on the basis of the information contained in the notice, the group fulfils the requirements of this Directive. Unless the notice is rejected within three months of its receipt, it shall be deemed to have been accepted. 2. Provided that the taxpayer has fully disclosed all relevant information in accordance with Article 106, any subsequent determination that the disclosed list of group members is incorrect shall not invalidate the notice to opt. The notice shall be corrected, and all other necessary measures shall be taken, from the beginning of the tax year when the discovery is made. Where there has not been full disclosure, the principal tax authority, in agreement with the other competent authorities concerned, may invalidate the original notice to opt.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 107 – paragraph 1

1. The competent authority to which the notice to opt is validly submitted shall examine whether, on the basis of the information contained in the notice, the group fulfils the requirements of this Directive. Unless the notice is rejected within three months of its receipt, it shall be deemed to have been accepted.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 107 – paragraph 2

2. Provided that the taxpayer has fully disclosed all relevant information in accordance with Article 106, any subsequent determination that the disclosed list of group members is incorrect shall not invalidate the notice to opt. The notice shall be corrected, and all other necessary measures shall be taken, from the beginning of the tax year when the discovery is made. Where there has not been full disclosure, the principal tax authority, in agreement with the other competent authorities concerned, may invalidate the original notice to opt.deleted

2011/12/12
Committee: ECON

Proposal for a directive
Article 133 – paragraph 1

The Commission shall, five years after the entry into force of this Directive, review its application and report to the Council on the operation of this Directive. The report shall in particular include an analysis of the impact of the mechanism set up in Chapter XVI of this Directive and the national rates applied on the distribution of the tax bases between the Member States.

2011/12/12
Committee: ECON