1 Amendments of Othmar KARAS related to 2016/0336(CNS)
Amendment 49 #
Proposal for a directive
Recital 2
Recital 2
(2) 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. It is thereforeThat principle should also apply to new and innovative business models in the digital era. It should therefore be ensured that companies that generate profits in a Member State in which they do not have a physical establishment but do have a digital presence are treated in the same way as companies having a physical establishment in the country concerned. Accordingly, the concept of ‘digital establishment’ should be defined where there is a significant digital presence, and the Common Consolidated Corporate Tax Base (CCCTB) should also include digital activities. It is necessary to provide for mechanisms that discourage companies from taking advantage of mismatches amongst national tax systems in order to lower their tax liability. It is equally important to also stimulate growth and economic development in the internal market by facilitating cross-border trade and corporate investment. To this end, it is necessary to eliminate both double taxation and double non-taxation risks in the Union through eradicating disparities in the interaction of national corporate tax systems. At the same time, companies need an easily workable tax and legal framework for developing their commercial activity and expanding it across borders in the Union. In that context, remaining cases of discrimination should also be removed.