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Activities of José GUSMÃO related to 2022/0154(CNS)

Shadow reports (1)

REPORT on the proposal for a Council directive on laying down rules on a debt-equity bias reduction allowance and on limiting the deductibility of interest for corporate income tax purposes
2023/12/04
Committee: ECON
Dossiers: 2022/0154(CNS)
Documents: PDF(225 KB) DOC(93 KB)
Authors: [{'name': 'Luděk NIEDERMAYER', 'mepid': 124701}]

Amendments (15)

Amendment 16 #
Proposal for a directive
Recital 1
(1) Promoting a fair and sustainable business environment, including through targeted tax measures that incentivise investment and growth, is a high political priority of the Union. To support sustainable and long-term corporate financing, the tax system should minimise unintended distortions of business decisions, for example towards debt rather than equity financing. While the Commission’s Capital Markets Union 2020 Action Plan14 includes important actions to support such financing, for example Action 4 - Encouraging more long-term and equity financing from institutional investors, targeted tax measures should be adopted in order to enhance such actions. Such measures should take into account fiscal sustainability considerations. _________________ 14 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions ‘A Capital Markets Union for people and businesses-new action plan’, COM(2020) 590 final (https://eur- lex.europa.eu/resource.html?uri=cellar:6 1042990-fe46-11ea-b44f- 01aa75ed71a1.0001.02/DOC_1&format= PDF)deleted
2023/01/19
Committee: ECON
Amendment 19 #
Proposal for a directive
Recital 1 a (new)
(1 a) Whereas the burden of the promotion of capital markets should not be bared by governmental budget.
2023/01/19
Committee: ECON
Amendment 28 #
Proposal for a directive
Recital 3 a (new)
(3 a) Whereas tax avoidance and evasion have a transformative nature and creating new tax benefits increase the risk of potential new forms of harmful tax practices; whereas additional corporate tax benefits decrease the revenues of Member States and pressure public services.
2023/01/19
Committee: ECON
Amendment 41 #
Proposal for a directive
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. 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.
2023/01/19
Committee: ECON
Amendment 55 #
Proposal for a directive
Article 3 – paragraph 1 – point 5 a (new)
(5 a) a 'large undertaking' means all undertakings which exceed the threshold for large undertakings, as laid down in in Article 3(4) of Directive 2013/34/EU;
2023/01/19
Committee: ECON
Amendment 57 #
Proposal for a directive
Article 3 – paragraph 1 – point 5 b (new)
(5 b) a 'large group' means all groups which exceed the threshold for large groups, as laid down in in Article 3(7) of Directive 2013/34/EU;
2023/01/19
Committee: ECON
Amendment 61 #
Proposal for a directive
Article 4 – paragraph 1 – subparagraph 1
An allowance on equity shall be deductible, for 105 consecutive tax periods, from the taxable base of a taxpayer for corporate income tax purposes up to 3015% of the taxpayer's earnings before interest, tax, depreciation and amortisation (“EBITDA ”) or up to EUR 140 000, whichever amount is lower in the tax period.
2023/01/19
Committee: ECON
Amendment 67 #
Proposal for a directive
Article 4 – paragraph 1 – subparagraph 2
If the deductible allowance on equity, in accordance with the first subparagraph, is higher than the taxpayer’s net taxable income in a tax period, Member States shall ensure that the taxpayer may carry forward, without time limitationfor a maximum of 2 tax periods, the excess of allowance on equity to the following periods.
2023/01/19
Committee: ECON
Amendment 69 #
Proposal for a directive
Article 4 – paragraph 1 – subparagraph 3
Member States shall ensure that the taxpayers may carry forward, for a maximum of 5 tax periods, the part of the allowance on equity which exceeds 30% of EBITDA in a tax period.deleted
2023/01/19
Committee: ECON
Amendment 76 #
Proposal for a directive
Article 4 – paragraph 2 – subparagraph 2
The allowance on equity shall be equal to the base of the allowance multiplied by the 10-year risk-free interest rate for the relevant currency and increased by a risk premium of 1% or, where the taxpayer is an SME, a risk premium of 1.5%.
2023/01/19
Committee: ECON
Amendment 79 #
Proposal for a directive
Article 4 – paragraph 2 – subparagraph 3
For the purposes of the second subparagraph of this paragraph, the 10- year risk-free interest rate for the relevant currency shall be the risk-free interest rate with a maturity of 10 years for the relevant currency, as laid down in the implementing acts adopted pursuant to Article 77e(2) of Directive 2009/138/EC for the reference date of 31 December of the year preceding the relevant tax period.deleted
2023/01/19
Committee: ECON
Amendment 83 #
Proposal for a directive
Article 4 – paragraph 4
4. The Commission shall be empowered to adopt delegated acts in accordance with Article 9 amending paragraph 2 of this Article by modifying the rate of the risk premium, where any of the following two conditions is met: (a) the 10-year risk-free interest rate as referred to in paragraph 2 of this Article varies by more than two percentage points with regard to at least three Union currencies compared to the tax period in which the most recent delegated act modifying the risk premium, or, where there is no such delegated act, this Directive started to apply; or (b) zero or negative growth of the gross domestic product of the EU area in at least two successive quarters; and (c) the relevant data, reports and statistics, including those provided by Member States, conclude that the EU average of the financing conditions of debt for taxpayers in scope of this directive has more than doubled or halved since the last determination of the risk premium established in paragraph 2. The percentage of increase or decrease of the risk premium shall take into account the changes in the financing conditions mentioned under point (c) of the first subparagraph other than changes in the risk-free interest rate for the EU as laid down in the implementing acts adopted pursuant to Article 77e(2) of Directive 2009/138/EC, and in any case shall not begreater than the percentage of increase or decrease of the financing conditions mentioned under point (c) of the first subparagraph.
2023/01/19
Committee: ECON
Amendment 84 #
Proposal for a directive
Article 4 – paragraph 4 a (new)
4 a. The provisions of this Article shall not apply to large undertakings and large groups.
2023/01/19
Committee: ECON
Amendment 89 #
Proposal for a directive
Article 6 – paragraph 1
1. Member States shall ensure that a taxpayer 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 850% 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).
2023/01/19
Committee: ECON
Amendment 108 #
Proposal for a directive
Article 11 – paragraph 2
2. Member States may defer the application of the provisions of this Directive to taxpayers that on [1 January 2024] benefit from an allowance on equity under national law for a period up to 10 years and in no case for a period longer than the duration of the benefit under national law.deleted
2023/01/19
Committee: ECON