107 Amendments of Louis MICHEL related to 2018/2121(INI)
Amendment 25 #
Motion for a resolution
Citation 23 a (new)
Citation 23 a (new)
- having regard to the report by the High Level Panel on Illicit Financial Flows from Africa, jointly commissioned by the AU/ECA Conference of Ministers of Finance, Planning and Economic Development,
Amendment 36 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Recalls that current international and national tax rules were mostly conceived in the early 20th century; asserts that there is an urgent need for reform of the rules, so that international, EU and national tax systems are fit for the new economic, social and technologic challenges of the 21st century; notes the broad understanding that current tax systems are not equipped to keep up with these developments and ensure that all market participants pay fair taxes; stresses the need to draw up legislative proposals at global level by establishing inclusive strategies;
Amendment 52 #
Motion for a resolution
Paragraph 2 a (new)
Paragraph 2 a (new)
2 a. Recalls the analysis of the reports from these previous Special Committees and calls for the implementation of the recommendations outlined1a; _________________ 1a http://www.europarl.europa.eu/sides/getD oc.do?pubRef=-//EP//TEXT+TA+P8-TA- 2015- 0408+0+DOC+XML+V0//EN uage=EN, http://www.europarl.europa.eu/sides/getD oc.do?pubRef=-//EP//TEXT+TA+P8-TA- 2016- 0310+0+DOC+XML+V0//EN uage=EN, http://www.europarl.europa.eu/sides/getD oc.do?pubRef=-//EP//TEXT+TA+P8-TA- 2017- 0491+0+DOC+XML+V0//EN uage=EN
Amendment 64 #
Motion for a resolution
Paragraph 3 a (new)
Paragraph 3 a (new)
3 a. Underlines however that much remains to be done in this field and urgent further action is required by the Commission and the Council in order to ensure that the required amount of tax contributions are paid to public budgets, as expected by the Europe’s citizens;
Amendment 66 #
Motion for a resolution
Paragraph 3 a (new)
Paragraph 3 a (new)
3a. Stresses the need to maintain the balance between combating unfair competition due to potentially aggressive planning and the ability to engage in business honestly;
Amendment 69 #
Motion for a resolution
Paragraph 3 c (new)
Paragraph 3 c (new)
3 c. Considers that open and transparent tax competition where Member States and regions compete in offering better conditions for doing business can contribute to stimulating entrepreneurship, for the benefit of both citizens and companies; stresses however that tax competition that deprives Member States of appropriate generating revenues is not fair; considers that in order to end unfair tax competition developed by some Member States, the EU needs to adopt a broad strategy whereby the EU supports, with relevant policies, those Member States to move from their current detrimental tax systems to a tax system compatible with the EU legal framework and the spirit of the EU treaties;
Amendment 71 #
Motion for a resolution
Paragraph 3 d (new)
Paragraph 3 d (new)
3 d. Supports the use of digital tools; is aware however that the use of smart technologies is giving rise to new types of digital tax fraud such as fraudulent e- filings of tax returns across territories, use of software programs to automatically skim cash from electronic cash registers or point of sale systems (“zapping”) or the growing usage of third-party payroll processors enabling fraudsters to channel off legitimate taxes; calls therefore on the EU institutions and Member States to adopt a comprehensive, transformative and dynamic strategy with a long-term vision, roadmap and multifaceted solutions involving people, processes and technology;
Amendment 82 #
Motion for a resolution
Paragraph 6
Paragraph 6
Amendment 87 #
Motion for a resolution
Paragraph 6 a (new)
Paragraph 6 a (new)
6 a. Calls on the Council and Member States to prioritise projects, notably with the support of the Fiscalis programme, aimed at quantifying the magnitude of tax avoidance in order to better address the current tax gap; stresses that the European Parliament has adopted1a an increase of the Fiscalis programme (EUR 300 million (2018 prices) or 339 million (current prices) as well as the ECON committee; _________________ 1a in the Multiannual Financial Framework 2021-2027 – Parliament’s position with a view to an agreement and the REPORT of 4 December 2018 on the proposal for a regulation of the European Parliament and of the Council establishing the ‘Fiscalis’ programme for cooperation in the field of taxation
Amendment 108 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Recalls that ATP describes the setting of a tax design aimed at reducing tax liability by using the technicalities or deficiencies of a tax system or of, mismatches between two or more tax systems that go against the spirit of the law;
Amendment 118 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Calls on the Commission and the Council to propose and adopt a comprehensive and specific definition of aggressive tax planning indicators, building on both the hallmarks identified in the fifth review of the Directive on administrative cooperation (DAC6)26 and the Commission’s relevant studies and recommendations27; stresses that these clear indicators may be based, where necessary, on internationally agreed standards; calls on Member States to use those indicators as a basis to repeal all harmful tax practices deriving from existing tax loopholes; _________________ 26 Council Directive (EU) 2018/822 of 25 May 2018 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements, OJ L 139, 5.6.2018, p. 1. 27 https://ec.europa.eu/taxation_customs/sites/ taxation/files/resources/documents/taxation /gen_info/economic_analysis/tax_papers/ta xation_paper_61.pdf and https://ec.europa.eu/taxation_customs/sites/ taxation/files/tax_policies_survey_2017.pd f
Amendment 130 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Welcomes the Commission’s assessment and inclusion of ATP indicators in its 2018 European Semester country reports; calls for suchthis assessment to become a regular feature done repeatedly in order to ensure a level playing field in the EU internal market, as well as the greater stability of public revenue in the long run;
Amendment 193 #
Motion for a resolution
Paragraph 18
Paragraph 18
18. Acknowledges that the G20/OECD-led Base Erosion and Profit Shifting (BEPS) project led by the G20/OECD in 2012 was meant to tackle in a coordinated manner the causes and circumstances creating BEPS practices, by improving the coherence of tax rules across borders, reinforcing substance requirements and enhancing transparency and certainty;
Amendment 202 #
Motion for a resolution
Paragraph 20
Paragraph 20
20. Points out that some countries have recently adopted unilateral countermeasures against harmful tax practices (such as the UK’s Diverted Profits Tax and the Global Intangible Low- Taxed Income (GILTI) provisions of the US tax reform) to ensure that the foreign income of MNEs is duly taxed at a minimum effective tax rate in the parent’s country of residence; calls for an EU assessment of these measures; calls for the establishment of a minimum rate of corporation tax in order to limit tax competition between Member States;
Amendment 209 #
Motion for a resolution
Paragraph 21
Paragraph 21
21. Welcomes the adoption by the EU of ATAD I and ATAD II; takesCouncil Directive (EU) 2016/1164 of 12 July 2016 laying down rules against tax avoidance practices that directly affect the functioning of the internal market and Council Directive (EU) 2017/952 of 29 May 2017 amending Directive (EU) 2016/1164 as regards hybrid mismatches with third countries; notes that they providese directives provide more fiscal justice by establishing a minimum level of protection against corporate tax avoidance throughout the EU, while and ensuring a fairer and more stable environment for businesses, from both demand and supply perspectives; welcomes the provisions on hybrid mismatches to prevent double non-taxation in order to eliminate existing mismatches and refrain from creating further mismatches, between Member States and with third countries;
Amendment 213 #
Motion for a resolution
Paragraph 22
Paragraph 22
22. Welcomes the provisions on Controlled Foreign Corporation (CFC) included in ATAD I to ensure that profits made by related companies parked in low or no-tax countries are effectively taxed; acknowledges that they prevent the absence or diversity of national CFC rules within the Union from distorting the functioning of the internal market beyond situations of wholly artificial arrangements as called for repeatedly by Parliament; deplores the coexistence of two approaches to implement CFC rules in ATAD I and calls on Member States to implement only the simpler and most efficient CFC rules as in ATAD I Article 7(2)(a); points out that the second and third actions of the BEPS action plan also aim to neutralise the effects of hybrid structures and interest deductibility; calls on Member States to incorporate into their legislation the measures recommended by the BEPS plan which are beyond the scope of the EU;
Amendment 216 #
Motion for a resolution
Paragraph 22
Paragraph 22
22. Welcomes the provisions on Controlled Foreign Corporation (CFC) included in ATAD I to ensure that profits made by related companies parked in low or no-tax countries are effectively taxed; acknowledges that theys called for repeatedly by Parliament, these provisions prevent the absence or diversity of national CFC rules within the Union from distorting the functioning of the internal market beyond situations of wholly artificial arrangements as called for repeatedly by Parliament; deplores the coexistence of two approaches to implement CFC rules in ATAD I and calls on Member States to implement only the simpler and most efficient CFC rules as in ATAD I Article 7(2)(a);
Amendment 234 #
Motion for a resolution
Paragraph 26
Paragraph 26
26. Recalls its concerns relating to the use of transfer prices in ATP and consequently recalls the need for adequate action and improvement of the transfer pricingrelevant regulatory framework to address the issue; stresses the need to ensure that they reflect the economic reality, provide certainty, clarity and fairness for Member States and for companies operating within the Union, and reduce the risk of misuse of the rules for profit-shifting purposes, taking into account the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administration 2010;
Amendment 236 #
Motion for a resolution
Paragraph 27
Paragraph 27
27. Emphasises that the EU actions aimed at addressing BEPS and ATP have equipped tax authorities with an updated toolbox to ensure fair tax collection in which everyone makes a fair contribution; stresses that tax authorities should be responsible for making effective use of the tools without imposing an additional burden on responsible taxpayers, particularly SMEs;
Amendment 242 #
Motion for a resolution
Paragraph 28
Paragraph 28
28. Recognises that the new flow of information to tax authorities following the adoption of ATAD I and DAC4 creates the need for adequate resources to ensure the most efficient use of such information and to effectively reduce the current tax gapImplores Member States to provide their tax authorities with the necessary resources to ensure the most efficient use of such information and to effectively reduce the current tax gap, given the new flow of information to tax authorities following the adoption of ATAD I and DAC4; considers that sufficient budgetary resources should also be provided at the EU level;
Amendment 249 #
Motion for a resolution
Subheading 2.2 a (new)
Subheading 2.2 a (new)
Points out that the aim of the BEPS plan is to propose international solutions to enable national authorities to combat the grey area of tax avoidance;
Amendment 255 #
Motion for a resolution
Paragraph 29
Paragraph 29
29. Welcomes the fact thatinclusion of Member States’ tax systems and overall tax environment have become part ofwithin the European Semester in line with Parliament’s call to that effect29 ; welcomes the studies and data drawn up by the Commission30 that allow situations that provide economic ATP indicators to be better addressed, and give a clear indication of the exposure to tax planning as well as furnishing a rich data base for all Member States on the phenomenon; _________________ 29 European Parliament resolution of 25 November 2015 on tax rulings and other measures similar in nature or effect, OJ C 366, 27.10.2017, p. 51, paragraph 96. 30 Referred to above. The studies provide an overview of Member States’ exposure to ATP structures affecting their tax base (erosion or increase), although there is no stand-alone indicator of the phenomenon, a set of indicators seen as a ‘body of evidence’ nevertheless exists.
Amendment 265 #
Motion for a resolution
Paragraph 32
Paragraph 32
32. Calls on the Commission to issue a proposal aimed at repealing patent boxes, and calls on Member States to favour non- harmful and, if appropriate, direct support for R&D; reiterates, in the meantime, its call to ensure that current patent boxes establish a genuine link to economic activity, such as expenditure tests, and that they do not distort competition; welcomes the improved definition of R&D costs in the common corporate tax base (CCTB) proposal;
Amendment 266 #
Motion for a resolution
Paragraph 32
Paragraph 32
32. Calls on the Commission to issue a proposal aimed at repealing patent boxes, and calls on Member States to favour non- harmful and, if appropriate, direct support for R&Don their territory for R&D expenditure relating to those patents; reiterates, in the meantime, its call to ensure that current patent boxes establish a genuine link to economic activity, such as expenditure tests, and that they do not distort competition; welcomes the improved definition of R&D costs in the common corporate tax base (CCTB) proposal;
Amendment 285 #
Motion for a resolution
Paragraph 33
Paragraph 33
33. Welcomes the re-launch of the CCCTB project in a two-step approach, with the Commission’s adoption of interconnected proposals on CCTB andrelating firstly to the implementation of the CCTB and secondly to the establishment of the CCCTB; calls on the Council to swiftly adopt them, taking into consideration Parliament’s opinion that already includes the concept of virtual permanent establishment that would close the remaining loopholes allowing tax avoidance to take place and level the playing field in light of digitalisation; points out that the CCCTB combats aggressive tax planning by requiring large groups within the EU to comply with its rules; it makes the use of transfer pricing obsolete and, thanks to its anti-abuse clauses, makes it possible to combat transfers to third countries;
Amendment 294 #
Motion for a resolution
Paragraph 33 b (new)
Paragraph 33 b (new)
33 b. Welcomes the improved definition of R&D costs in the common corporate tax base (CCTB) proposal;
Amendment 303 #
Motion for a resolution
Paragraph 34
Paragraph 34
34. Notes that the phenomenon of digitalisation has created a new situation in the market, whereby digital and digitalised companies are able to take advantage of local markets without having a physical, and therefore taxable, presence in that market, creating a non-level playing fieldcompetitive distortions and putting traditional companies at a disadvantage; notes that digital businesses models in the EU face a lower effective average tax burden than traditional business models31 ; _________________ 31 As evidenced in the impact assessment of 21 March 2018 accompanying the digital tax package (SWD(2018)0081), according to which on average, digitalised businesses face an effective tax rate of only 9.5 %, compared to 23.2 % for traditional business models.
Amendment 305 #
Motion for a resolution
Paragraph 34
Paragraph 34
34. NoteHighlights that the phenomenon of digitalisation has created a new situation in the market, whereby digital and digitalised companies are able to take advantage of local markets without having a physical, and therefore taxable, presence in that market, creating a non-level playing field and putting traditional companies at a disadvantage; notes that digital businesses models in the EU face a lower effective average tax burden than traditional business models31 ; _________________ 31 As evidenced in the impact assessment of 21 March 2018 accompanying the digital tax package (SWD(2018)0081), according to which on average, digitalised businesses face an effective tax rate of only 9.5 %, compared to 23.2 % for traditional business models.
Amendment 310 #
Motion for a resolution
Paragraph 34 a (new)
Paragraph 34 a (new)
(34a) Takes the view that digital taxation should not be restricted to the digital giants, but should be considered within a global framework of combating the tax evasion of all multinationals, inclusively and in all sectors, including the energy sector;
Amendment 314 #
Motion for a resolution
Paragraph 35
Paragraph 35
35. Welcomes the digital tax package adopted by the Commission on 21 March 2018; calls on the Council toNotes that the Commission has recognised the need to discuss the concept of a digital tax; calls on the Council to take careful note of the discussion and to actively advance a global solution on G20, OECD and UN-level based on the taxation of profits; swiftly adopt these proposals, taking into account Parliament’s opinion on them;
Amendment 331 #
Motion for a resolution
Paragraph 36
Paragraph 36
36. UnderstandBelieves that the so-called interim solution is not optimal; believes that it will help speed up the search for a better solution atmuch needed, given the speed and scope of digital development, as it will provide an important contribution to the comprehensive global level solution, while levelling the playing field in local markets to some extent;
Amendment 332 #
Motion for a resolution
Paragraph 36
Paragraph 36
36. Understands that the so-called interim solution is not optimal; believes that it will help speed up the search for a better solutiondebate until such time as taxation of the digital economy has been established at global level, while levelling the playing field in local markets to some extent;
Amendment 343 #
Motion for a resolution
Paragraph 37
Paragraph 37
37. Stresses that since June 2014 the DAC has been amended fourive times;
Amendment 349 #
Motion for a resolution
Paragraph 39
Paragraph 39
39. Reiterates, furthermore, its call to ensure simultaneous tax audits of persons of common or complementary interests (including parent companies and their subsidiaries), and its call to further enhance tax cooperation between Member States through an obligation to answer group requests on tax matters; points out that the right to remain silent in dealings with tax authorities does not apply to a purely administrative investigation and that cooperation is mandatory1 a; _________________ 1a ECtHR, judgment of 16 June 2015 (No 787/14), van Weerelt v Netherlands.
Amendment 352 #
Motion for a resolution
Paragraph 40
Paragraph 40
40. Emphasises that not only information exchanges between, but also the sharing of best practices among tax authorities contribute to more efficient tax collection; calls on Member States to give priority to the sharing of best practices among tax authorities; points out that information processing is equally essential when combating fraud and cross-border tax evasion;
Amendment 356 #
Motion for a resolution
Paragraph 41
Paragraph 41
41. Calls on the Commission to swiftly assess the implementation of DAC4 and whether national tax administrations effectively access country-by-country information held by another Member State; similarly, asks the Commission to assess how DAC4 relates to Action 13 of the G20/BEPS action plan on exchange of country-by- country information;
Amendment 359 #
Motion for a resolution
Paragraph 42
Paragraph 42
42. Welcomes the automatic exchange of financial account information based on the global standard which has been developed by the OECD with Andorra, Liechtenstein, Monaco, San Marino and Switzerland; believes that the reporting obligation imposed by the OECD in 2015 on the largest multinationals has to cover all multinationals, including those operating in the energy sector; calls on the Commission and the Member States to upgrade the Treaty provisions so as to match the DAC as amended;
Amendment 365 #
Motion for a resolution
Paragraph 43 a (new)
Paragraph 43 a (new)
43a. Notes that the form in which the information is provided between national tax authorities is key when such information coming from a Member States may be introduced as evidence in a judicial proceeding in another Member State; considers that the continuation of the progressive building-up of a common language and understanding in tax related matters is key for a more efficient EU framework as well as its enforcement; believes that it should encompass, inter alia, the type of information transmitted and its form, the automaticity of its transmission and the potential exemption to that principle, common IT tools;
Amendment 371 #
Motion for a resolution
Paragraph 44 a (new)
Paragraph 44 a (new)
44a. Underlines that national authorities play a key role in the supervision of financial and fiscal activities in the Member States; considers therefore that it should be established whether national competent authorities have duly fulfilled their supervision tasks in the framework of the cum-ex scandal; asks the Commission to assess whether certain financial techniques used in the cum-ex scandal, such as short-selling might have a disruptive impact on the financial markets; stresses that, should their negative effect on financial markets be proven that they should be banned or at least limited; requests the European Securities and Markets Authority and the European Banking Authority to conduct an inquiry into dividend arbitrage trading schemes such as cum-ex in order to assess potential threats to the integrity of financial markets and to national budgets; to establish the nature and magnitude of actors in these schemes; to assess whether there were breaches of either national or Union law; to assess the actions taken by financial supervisors in Member States; and to make appropriate recommendations for reform and for action to the competent authorities concerned;
Amendment 418 #
Motion for a resolution
Paragraph 48 a (new)
Paragraph 48 a (new)
48a. Recognises the Commission’s success in enforcing competition rules in the areas of antitrust, cartels, mergers and state aid; recognizes the Commission’s contribution towards promoting international cooperation in competition issues and contribution to the principle of tax fairness;
Amendment 429 #
Motion for a resolution
Paragraph 50
Paragraph 50
50. Is concerned by the magnitude of tax unpaid for all Member States over long periods39; recalls that the aim of the recovery of unlawful aid (and interest) is to restore the position to the status quo, and that calculating the exact amount of aid to be repaid is part of the implementation obligation incumbent on the national authorities; calls on the Commission to assess possible countermeasures, including fines, to prevent Member States from offering selective favourable tax treatment which(tax rulings), since this constitutes State aid and is non- compliant with EU rules; calls on the Commission to consider whether sums recovered could be earmarked for cross-border regions; _________________ 39 As in the case of the decision of 30 August 2016 (SA.38373) on State aid implemented by Ireland to Apple. The tax rulings in question were issued by Ireland on 29 January 1991 and 23 May 2007.
Amendment 483 #
Motion for a resolution
Paragraph 57 a (new)
Paragraph 57 a (new)
57a. Notes that there is no yet a single definition of letterbox companies; calls therefore for a single European definition of letterbox companies;
Amendment 507 #
Motion for a resolution
Paragraph 62
Paragraph 62
62. Calls for additional statistics to estimate the VAT gap; stresses that there is nocalls for a common approach to be developed for data collection and sharing within the EU;
Amendment 508 #
62. Calls for additional statistics to estimate the VAT gap; and stresses that there is noe need for a common approach to data collection and sharing within the EU;
Amendment 514 #
Motion for a resolution
Paragraph 64 a (new)
Paragraph 64 a (new)
64a. Is of the opinion that the participation of all Member States in Eurofisc shall be mandatory and conditional for receiving EU funds; echoes the preoccupation of the European Court of Auditors on VAT reimbursement in Cohesion spending1a and on the EU Anti-Fraud Programme1b; _________________ 1a ECA, Rapid case review, VAT reimbursement in Cohesion - an error- prone and, sub-optimal use of EU funds, November 2018 1b ECA Opinion No 9/2018 concerning the proposal for a Regulation of the European Parliament and of the Council establishing the EU Anti-Fraud Programme.
Amendment 525 #
Motion for a resolution
Paragraph 68
Paragraph 68
68. Welcomes the definitive VAT system proposals adopted on 4 October 201745 and 24 May 201846; welcomes in particular the Commission’s proposal to apply the destination principle to taxation, which means that VAT would be paid in the country of the customerMember State of the final consumer, the customer, at the rate charged in that country; _________________ 45 COM(2017)0569, COM(2017)0568 and COM(2017)0567. 46 COM/2018/329. COM/2018/329.
Amendment 545 #
Motion for a resolution
Paragraph 71
Paragraph 71
71. Welcomes the opening of infringement procedures by the Commission on 8 March 2018 against Cyprus, Greece and Malta to ensure that they stop offering unlawful favourable tax treatment for private yachts, facilitated by national rules that are legal under domestic law, but not in accordance with Union law, and which distorts competition in the maritime sector;
Amendment 550 #
Motion for a resolution
Paragraph 72
Paragraph 72
72. Calls on the Commission and Eurofisc to rapidly conclude their investigations on the Isle of Man’s VAT collection practices on private yachts and aircraft, as revealed by the Paradise papers; and, if necessary, to open infringement procedures;
Amendment 551 #
Motion for a resolution
Paragraph 72 a (new)
Paragraph 72 a (new)
72a. Takes note of the letter of formal notice sent on 8 November 2018 to the United Kingdom concerning the Isle of Man’s abusive practices regarding aircraft deliveries and leasing; maintains that compliance with tax justice implies that every individual or business should pay the right amount of VAT on such products; notes that infringement procedures have been initiated; welcomes the fact that the Commission’s programme to combat tax evasion has been strengthened where yachts and aircraft are concerned;
Amendment 553 #
74. Welcomes the adoption of the Protection of Financial Interests (PIF) Directive53, which clarifies the issues of cross-border cooperation and mutual legal assistance between Member States, Eurojust, Europol, the European Public Prosecutor’s Office (EPPO) and the Commission in tackling VAT fraud (OLAF); _________________ 53 Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union’s financial interests by means of criminal law, OJ L 198, 28.7.2017, p. 29, in particular Articles 3 and 15 thereof.
Amendment 554 #
Motion for a resolution
Paragraph 74 a (new)
Paragraph 74 a (new)
74a. Welcomes the Commission proposal to reform OLAF; calls for account to be taken of the opinion delivered on 28 November 2018 in which the Court of Auditors recommends that OLAF investigations should be reviewed by the Court of Justice in order to ascertain that procedural safeguards are being observed; calls for more thoroughgoing reform to enhance of effectiveness of OLAF investigations, proceeding on the basis of a study summarising the problems encountered by OLAF (operating deadlines, recovery of funds, etc.);
Amendment 559 #
Motion for a resolution
Paragraph 76
Paragraph 76
76. Calls on the EPPO to begin operating as soon as possible and by 2022 at the latest; calls for exemplary sanctions to be pronounced; considers that anyone engaged in an organised VAT fraud scheme should be severely sanctioned in order to avoid a perception of impunityin 2020; calls for a coherent, effective, and fair penalty system to be put in place with a view to establishing dissuasive, clear, and proportionate sanctions; considers that anyone engaged in an organised VAT fraud scheme should be severely sanctioned in order to avoid a perception of impunity; calls for an office of European financial prosecutor to be established, not least for the purpose of combating terrorism and money laundering;
Amendment 578 #
Motion for a resolution
Paragraph 80 a (new)
Paragraph 80 a (new)
80a. Believes that a large majority of European citizens expect clear European and national legislation that enables those who do not pay the tax which they are due to pay to be identified, sanctioned and for the missing tax to be recuperated in a timely manner;
Amendment 585 #
Motion for a resolution
Paragraph 81 a (new)
Paragraph 81 a (new)
81a. Draws attention to the obligation under Article 8(2) of the European Convention on Human Rights (ECHR) to observe privacy laws at all times;
Amendment 600 #
Motion for a resolution
Paragraph 84
Paragraph 84
84. Deplores the fact that some Member States have created tax regimes allowing non-nationals to obtain income tax benefits, hereby undermining other Member States’ tax base and fostering harmful policies which discriminate against their own citizens; calls on the Member States to establish a model for society based on financial and tax solidarity, as well as on cooperation, with a view to combating tax fraud by, for example, imposing dissuasive, clear, and proportionate penalties when fiscal oversight by the proper authorities is impeded;
Amendment 616 #
Motion for a resolution
Paragraph 85
Paragraph 85
85. Observes that a majority of Member States have adopted citizenship by investment (CBI) or residency by investment (RBI) schemes57, generally known as visa or investor programmes, by which citizenship or residence is granted to non-EU citizens in exchange for financial investment; observes that these programmes do not necessarily require applicants to spend time on the territory in which the investment is made, thus making it easier to enter the Schengen area without a passport; _________________ 57 18 Member States have some form of RBI scheme in place, including four Member States that operate CBI schemes in addition to RBI schemes: Bulgaria, Cyprus, Malta, Romania. 10 Member States have no such schemes: Austria, Belgium, Denmark, Finland, Germany, Hungary, Poland, Slovakia, Slovenia and Sweden. Source: study entitled ‘Citizenship by investment (CBI) and residency by investment (RBI) schemes in the EU‘, EPRS, October 2018, PE: 627.128; ISBN: 978-92-846-3375-3.
Amendment 634 #
Motion for a resolution
Paragraph 87
Paragraph 87
87. Stresses that CBI and RBI schemes carry significant risks, includingsuch as a devaluation of EU citizenship, and new form of competition within the EU, the potential for corruption, money laundering and tax evasion, and the security risks which that entails; reiterates its concern that citizenship or residence could be granted through these schemes without proper or indeed any customer due diligence (CDD) having been carried out; notes that several formal investigations into corruption and money laundering have been launched at national and EU level directly related to CBI and RBI schemes; underlines that, at the same time, the economic sustainability and viability of the investments provided through these schemes remain uncertain;
Amendment 654 #
Motion for a resolution
Paragraph 90
Paragraph 90
90. Is concerned that according to the OECD, CBI and RBI schemes could be misused to undermine the common reporting standard (CRS) due diligence procedures, leading to inaccurate or incomplete reporting under the CRS, in particular when not all jurisdictions of tax residence are disclosed to the financial institution; notes that in the OECD’s view, the visa schemes which are potentially high-risk for the integrity of the CRS are those that give a taxpayer access to a low personal income tax rate of less than 10 % on offshore financial assets, and do not require a significant physical presence of at least 90 days in the jurisdiction offering the golden visa scheme; is concerned that Malta and Cyprus in particular have schemes59 among those that potentially pose a high risk to the integrity of CRS; _________________ 59 The Cypriot Citizenship by Investment: Scheme for Naturalisation of Investors by Exception, the Cypriot Residence by Investment, the Maltese Individual Investor Programme, and the Maltese Residence and Visa programme.
Amendment 665 #
Motion for a resolution
Paragraph 91
Paragraph 91
Amendment 668 #
Motion for a resolution
Paragraph 92
Paragraph 92
92. Calls on Member States to prevent conflicts of interest linked to CBI and RBI schemes, which might arise when private firms which assisted the government in the design, management and promotion of these schemes, also advised and supported individuals by screening them for suitability and filing their applications for citizenship or residence; emphasizes that customer due diligence (CDD) cannot be outsourced to these private companies since it must be assumed that a conflict of interest prevents them from choosing eligible over solvent candidates;
Amendment 687 #
Motion for a resolution
Paragraph 95 a (new)
Paragraph 95 a (new)
95a. Stresses that free zones must not be used to achieve the same effects as tax havens;
Amendment 695 #
Motion for a resolution
Paragraph 97
Paragraph 97
97. Notes that, apart from secure storage, the motivations for the use of free ports include a high degree of secrecy and the deferral of import duties and indirect taxes such as VAT or user tax; provided that the goods leave the free zone for the benefit of a Member State; notes that if this is not the case, if the goods leave the EU, VAT does not have to be paid; this can be a source of tax evasion;
Amendment 701 #
Motion for a resolution
Paragraph 102
Paragraph 102
102. Calls on the Commission to table a legislative proposal to ensure the automatic exchange of information between the relevant authorities, including tax and customs authorities, on beneficial ownership and transactions taking place in free ports, customs warehouses or SEZs, and to include a traceability obligation;
Amendment 729 #
Motion for a resolution
Paragraph 107
Paragraph 107
107. Stresses that money laundering can assume various forms, and that the money laundered can have its origin in various illicit activities ranging from terrorism to tax evasion and fraud; notes with concern that the proceeds from criminal activity in the EU are estimated to amount to EUR 110 billion per year64 , corresponding to 1 % of the Union’s total GDP; highlights that the Commission estimates that in some Member States up to 70 % of money laundering cases have a cross-border dimension65 ; further notes that the scale of money laundering is estimated by the UN66 to be the equivalent of between 2 to 5 % of global GDP, or around EUR 715 billion and 1.87 trillion a year; whereas a more coordinated approach to tackling financing of terrorism, which includes closer collaboration between private and public-sector authorities in the area of information sharing, would help improve these figures; _________________ 64 From illegal markets to legitimate businesses: the portfolio of organised crime in Europe, Final report of Project OCP – Organised Crime Portfolio, March 2015. 65 http://www.europarl.europa.eu/news/en/pre ss-room/20171211IPR90024/new-eu-wide- penalties-for-money-laundering; Commission proposal of 21 December 2016 for a directive of the European Parliament and of the Council on countering money laundering by criminal law (COM(2016)0826. 66 UNODC - https://www.unodc.org/unodc/en/money- laundering/globalization.html
Amendment 743 #
Motion for a resolution
Paragraph 109
Paragraph 109
109. Deplores the fact that a large number of Member States have failed to fully or partially transpose AMLD4 into their domestic legislation within the set deadline, and that for this reason, infringement procedures have had to be opened by the Commission against them, including referrals before the Court of Justice of the European Union67 ; calls on these Member States to swiftly remedy this situation; remindurges Member States ofto fulfil their legal obligation to respect the deadline of 10 January 2020 for the transposition of AMLD5 into their domestic legislation; _________________ 67 On 19 July 2018, the Commission referred Greece and Romania to the Court of Justice of the European Union for failing to transpose the fourth Anti-Money Laundering Directive into their national law. Ireland had transposed only a very limited part of the rules and was also referred to the Court of Justice.
Amendment 745 #
Motion for a resolution
Paragraph 110
Paragraph 110
110. Recalls the crucial importance of CDD as part of the know-your-customer (KYC) obligation which consists of obliged entities having to properly identify their customers and the source of their funds as well as the ultimate beneficial owners of the assets, including the immobilisation of anonymous accounts; calls on the private sector to take an active role and to be at the front line of defence in combatting financing of terrorism and prevention of terrorist activity, where possible;
Amendment 757 #
Motion for a resolution
Paragraph 112
Paragraph 112
112. Recalls that KYC and CDD continues throughout the business relationship, and that customers’ ’transactions have to be monitored for suspicious or unusual activities; recalls, in this context, the obligation for obliged entities to promptly inform national FIUs, on their own initiative, of transactions suspected of ML, associate predicate offences or terrorist financing; calls on public and private stakeholders to develop closer working relationships and to exchange best practices in how to combat financing of terrorism and how to mitigate against future incidences of ML inside the EU;
Amendment 793 #
Motion for a resolution
Paragraph 117 a (new)
Paragraph 117 a (new)
Amendment 811 #
Motion for a resolution
Paragraph 122 a (new)
Paragraph 122 a (new)
122 a. Calls for increased scrutiny and continuous supervision of the members of management boards and shareholders of credit institutions, investment firms and insurers in the EU, and stresses in particular the difficulty of revoking banking licences or equivalent specific authorisations;
Amendment 816 #
Motion for a resolution
Paragraph 124
Paragraph 124
124. Stresses that ESAs, and in particular the EBA, must urgently should be provided with sufficient resource capacity to carry out their oversight functions and improve AML supervision in order to respond to the expectations of Europe’s tax payers; points out that according to the PANA report the EBA has only 0.8 of an employee in charge of this issue;
Amendment 836 #
Motion for a resolution
Paragraph 126 a (new)
Paragraph 126 a (new)
126 a. Calls on Member States to establish information sharing arrangements between public authorities, law enforcement and specific private sector stakeholders, such as data providers and credit institutions, who hold relevant financial information relating to financing of terrorism;
Amendment 851 #
Motion for a resolution
Paragraph 128
Paragraph 128
128. Points out that the non- standardisation of suspicious transaction report formats among Member States and with respect to the different obliged entities leads to difficulties in the processing and exchange of information between FIUs; calls on the Commission to explore mechanisms to set upset up an EU benchmarking system as a tool to standardised the reporting formats for obliged entities in order to facilitate theand enhance the processing and exchangeing of information between FIUs in cases with a cross-border dimension;
Amendment 855 #
Motion for a resolution
Paragraph 129
Paragraph 129
129. Encourages the competent authorities and FIUs to engage with financial institutions and other obliged entities to enhance suspicious activity reporting, ensuring that FIUs receive more useful, focused and complete information to properly perform their duties, while at the same time ensuring compliance with the General Data Protection Regulationch could include better information exchange between both the private and public sector, while at the same time ensuring compliance with the General Data Protection Regulation; calls on the European Data Protect Board(EDPB) to provide further clarification to market operators processing personal data as part of their due diligence obligations so as to enable them to comply with the EU’s General Data Protection Regulation (GDPR);
Amendment 871 #
Motion for a resolution
Paragraph 131 a (new)
Paragraph 131 a (new)
131 a. Calls for the harmonisation of CDD at EU level, in particular, enhanced checks and systematic reporting shall be carried by obliged entities when performing CDD relating to business relationships or transactions involving countries identified by the EU Commission as ‘high-risk third countries’; calls for provisions to be made for penalties in the event of negligence or conflict of interests in cases of outsourcing;
Amendment 899 #
Motion for a resolution
Paragraph 138
Paragraph 138
138. Underlines the positive potential of new distributed ledger technologies, such as blockchain technology; notes at the same time the increasing abuse of new payment and transfer methods based on these technologies to launder criminal proceeds or to commit other financial crimes; acknowledges the need to monitor technological developments to ensure that legislation addresses in an effective manner the abuse of new technologies and anonymity, which facilitates criminal activity; calls for close cooperation with Europol and Interpol;
Amendment 927 #
Motion for a resolution
Paragraph 141
Paragraph 141
141. Recalls that EU AML legislation requires Member States to lay down sanctions for breaches of anti-money laundering rules; stresses that these sanctions must be clear, effective, proportionate and dissuasive;
Amendment 930 #
Motion for a resolution
Paragraph 143 a (new)
Paragraph 143 a (new)
143 a. Regrets that, concerning third countries, sanctions are not always applied or sufficiently deterrent in relevant cases; deplores the fact, in this context, that Member States, in spite of the recommendations put forward by the PANA committee, continue to oppose the imposition by the EU of sanctions on third countries whose tax systems are regarded as damaging to the Union; considers that, concerning the European Union, the Commission shall forward, every two years, to the European Parliament and the Council a report on national practices as regards the imposition of administrative and criminal penalties on legal and natural persons found guilty of fraud and financial crimes with a view to analyse whether different national regimes lead to regulatory arbitrage, whether they have a deterrent effect and are appropriate, taking into account the nature of the infractions and the good faith or not of the taxpayer; the Commission should accompany this report with proposals where relevant;
Amendment 958 #
Motion for a resolution
Paragraph 150
Paragraph 150
150. Recalls the importance of a common credible EU list of non- cooperative non-EU jurisdictions for tax purposes (hereinafter ‘EU list’) based on comprehensive, transparent, robust, objectively verifiable and commonly accepted criteria that is regularly updated;
Amendment 963 #
Motion for a resolution
Paragraph 151
Paragraph 151
151. Welcomes the adoption by the Council of the first EU list on 5 December 2017 and the ongoing monitoring of the commitments made by third countries; notes that the list has been updated several times on the basis of the assessment of those commitments; underlines that this assessment is based on criteria deriving from a technical scoreboard and that Parliament had no legal involvement in this process; calls in this context on the Commission and the Council to inform Parliament in detail ahead of any proposed change to the list; calls on the Council to publish a regular progress report regarding black- and grey-listed jurisdictions as part of the regular update from the CoC Group to the Council; wonders whether a common list of non-cooperating EU Member States and territories should be drawn up;
Amendment 989 #
Motion for a resolution
Paragraph 154
Paragraph 154
154. Calls, in the specific case of Switzerland (currently on the grey list), for which no precise deadline is envisaged due to a previous agreement between Switzerland and the EU, for the country to be put on Annex I by the end of 2019, provided that, following the proper escalation process, Switzerland does not repeal its non-compliant tax regimes, which allow unequal treatment of foreign and domestic income as well as tax benefits for certain types of companies, by then;
Amendment 1023 #
Motion for a resolution
Paragraph 158
Paragraph 158
158. Reiterates its call for the EU to have a leading role in the global fight against tax evasion, aggressive tax planning and money laundering, in particular through Commission initiatives in all related international forums; calls on the EU and Member States to prepare themselves ex ante in order to express a concerted position in those fora;
Amendment 1039 #
Motion for a resolution
Paragraph 160
Paragraph 160
160. Calls for a global summit on remaining necessary global tax reforms in order to enhance international cooperation and put pressure on all countries, in particular their offshore financial centres, to comply with transparency and fair taxation standards; calls for the Commission to take the initiative for such a summit and for the summit to allow for the establishment of the abovementioned global tax body;
Amendment 1046 #
Motion for a resolution
Paragraph 161
Paragraph 161
161. Believes that supporting developing countries in combating tax avoidance, tax evasion and aggressive tax planning, as well as corruption and secrecy that facilitate illicit financial flows, is of the utmost importance for strengthening policy coherence for development in the EU and improving developing countries’ tax capacities and domestic resource mobilisation; notes that each year tax avoidance accounts for more than the total figure for aid to developing countries; stresses that the least developed countries (LDCs) are not equipped with a suitable legal and fiscal framework, nor sufficient resources to be effective in combating illicit financial flows; notes that the latter are not, under these conditions, in a position to benefit fully from developments set up by the OECD;
Amendment 1047 #
Motion for a resolution
Paragraph 161 a (new)
Paragraph 161 a (new)
161a. States that harmful trade activities by multinationals, criminal activities (drug trafficking, people trafficking, illegal trade in arms, smuggling, corruption, misappropriation by officials), embezzlement, manipulation of transfer pricing, offshore banking services, use of tax havens, and natural resources are the primary sources of illicit financial flows; considers that only an alliance at global level supported by the United Nations, the World Bank, the IMF and the OECD will be able to fight these practices;
Amendment 1051 #
Motion for a resolution
Paragraph 161 b (new)
Paragraph 161 b (new)
161b. Calls on the Union to support fully the fight against use of natural resources to finance conflicts; asks States party to abide by their commitments under the Kimberley Process Certification Scheme and the EU Regulation on Conflict Minerals, particularly regarding the establishment of efficient domestic controls over the production of, and trade in, natural resources and the measures accompanying the EU Regulation on responsible sourcing of minerals; calls for the adoption of mandatory worldwide rules;
Amendment 1052 #
Motion for a resolution
Paragraph 161 c (new)
Paragraph 161 c (new)
161c. Calls for support for the developing countries, and in particular the African countries within sub-regional economic unions or the African Union (AU), in standardising transfer pricing documentation across the African continent as the Joint Transfer Pricing Forum is doing;
Amendment 1053 #
Motion for a resolution
Paragraph 162
Paragraph 162
162. Recalls the need to take into account the specific legal features and vulnerabilities of developing countries, in particular in the context of automatic exchange of information, namely in terms of the transition period and their need for support in their capacity-buildingnational and regional capacity-building, particularly in regard to developing countries' customs authorities, police forces, central banks, the banking system and financial data services, and in improving tax transparency through the automatic exchange of information, publication of financial data on a country-by-country or project-by-project basis, disclosure of real profits and information on trade contracts signed by their governments, and through the recommendations of a financial action group; stresses the importance of strengthening Afripol-Interpol cooperation and transfer of experience;
Amendment 1054 #
Motion for a resolution
Paragraph 162 a (new)
Paragraph 162 a (new)
162 a. Acknowledges that tax havens also exist in developing countries and that their political leadership actively pursues such policies;
Amendment 1055 #
Motion for a resolution
Paragraph 163
Paragraph 163
163. Notes that closer work with sub- regional and regional organisations is needed, in particular with the African Union (AU) in order to combat illegal financial flows and corruption in the private and public sectors; highlights the importance of developing countries participating at global level in work being carried out in, for example, the G8, the G20 and the OECD; reiterates the need for a coherent and comprehensive framework summarising initiatives launched and carried out in the various international fora;
Amendment 1056 #
Motion for a resolution
Paragraph 163 a (new)
Paragraph 163 a (new)
163a. Welcomes the Commission's proposal to improve the traceability of all works of art more than 250 years old by equipping them with an identity card and creating a licencing system for imports to the EU; calls with reference to the fight against terrorism financing for these measures to come into force as soon as possible;
Amendment 1059 #
Motion for a resolution
Paragraph 164
Paragraph 164
164. Welcomes the participation on an equal footing of all countries involved in the Inclusive Framework, which brings together over 115 countries and jurisdictions to collaborate on the implementation of the OECD/G20 BEPS Package; states that the BEPS plan was designed to accommodate the interests of OECD countries and not the developing countries, that BEPS constitutes a real risk for developing countries given that the budget revenue of these countries is based primarily on corporate tax and the global presence of international companies, and that the developing countries do not have sufficient capacity to implement the BEPS plan rules; calls for capacity building in the developing countries to address this problem; calls on the Member States to support a reform of both the mandate and functioning of the Inclusive Framework to ensure that developing countries’ interests are taken into consideration;
Amendment 1063 #
Motion for a resolution
Paragraph 165
Paragraph 165
165. Recalls that public development aid targeting poverty reduction should be directed to a greater extent towards the implementation of an appropriate regulatory framework and the bolstering of tax administrations and institutions responsible for fighting illicit financial flows; calls for this aid to be provided in the form of technical expertise in relation to resource management, financial information and anti-corruption rules; calls for this aid to also favour regional and sub- regional cooperation against tax fraud, tax evasion, aggressive tax planning and money laundering; stresses that this aid should include support to civil society and media in developing countries to ensure public scrutiny over domestic tax policies;
Amendment 1065 #
Motion for a resolution
Paragraph 166 a (new)
Paragraph 166 a (new)
166a. Stresses, with regard to improvements in the business climate, investment certainty, better tax governance and transparency, that a programme for improving online access to legal information about business laws in the OHADA area needs to be set up and a study on the legal interoperability of civil and common law launched in order to establish common rules in continental Africa with a view to forming a large free trade area;
Amendment 1071 #
Motion for a resolution
Paragraph 167 a (new)
Paragraph 167 a (new)
167a. Points to the role of the ACP-EU Joint Parliamentary Assembly in the promotion of political dialogue, in particular as regards the exchange of best practices, good governance, including tax governance, and the fight against terrorism, money laundering, human trafficking and any other kind of trafficking;
Amendment 1075 #
Motion for a resolution
Paragraph 167 b (new)
Paragraph 167 b (new)
167b. Calls on the Commission to include provisions on the fight against tax avoidance, tax evasion and money laundering in the future agreement on the ACP-EU Partnership after the Cotonou Agreement expires in February 2020;
Amendment 1076 #
Motion for a resolution
Paragraph 167 c (new)
Paragraph 167 c (new)
167c. Calls for a study to be carried out into the cost-benefit analysis of tax incentives, in an effort to make it possible to attract investors without encouraging illegal financial flows;
Amendment 1090 #
Motion for a resolution
Paragraph 170 a (new)
Paragraph 170 a (new)
170a. Stresses that the withdrawal of the United Kingdom from the EU on 29 March 2019 will enable it to regain its tax sovereignty; hopes that this freedom will not encourage fiscal dumping, particularly in regard to corporate tax;
Amendment 1091 #
Motion for a resolution
Paragraph 170 a (new)
Paragraph 170 a (new)
170 a. Calls for the Union negotiators to include the issues of, inter alia, financial crimes, tax evasion, tax avoidance, aggressive tax planning and corporate taxation rates when negotiating the details of the future relationship between the EU and the United Kingdom;
Amendment 1113 #
Motion for a resolution
Paragraph 172 a (new)
Paragraph 172 a (new)
172a. Calls, against a background of global tax competition, for uniform rules at EU level to be drawn up, this being far more effective than the voluntary use of BEPS measures; calls for conventions preventing double taxation to be implemented multilaterally instead of adapting each treaty individually as this takes too long and is inefficient;
Amendment 1121 #
Motion for a resolution
Paragraph 175 a (new)
Paragraph 175 a (new)
175a. Takes the view that a transparency and due diligence requirement should apply to these territories;
Amendment 1143 #
Motion for a resolution
Paragraph 178
Paragraph 178
178. Draws attention to the risks of conflicts of interest stemming from the provision of legal advice, tax advice and auditing services within the same accountancy firm; stresses, therefore, the importance of transparent indication of what services are provided to a particular client and clear separation between these services; stresses too the importance of lawyer-client confidentiality and legal professional privilege as a mainstay of the rule of law;
Amendment 1147 #
Motion for a resolution
Paragraph 178 a (new)
Paragraph 178 a (new)
178a. Calls on Member States to consider the introduction of mandatory tax reporting for all tax and financial intermediaries referred to in Action 12 of the BEPS plan who, in the course of their professional activities, become aware of the existence of abusive or aggressive transactions, devices or structures;
Amendment 1157 #
Motion for a resolution
Paragraph 179
Paragraph 179
179. Reiterates that financial institutions, advisors and other intermediaries that knowingly, systematically and repeatedly facilitate, engage or participate in money laundering or tax evasion activities should face clear, effective, proportional and dissuasive penalties at EU and Member State level, and, where applicable, be restricted from operating in the single market;
Amendment 1163 #
Motion for a resolution
Paragraph 180
Paragraph 180
180. Believes that the protection of whistle-blowers is of major importance to ensure that unlawful activities and abuse of law are prevented or do not prosper; according to fundamental right to freedom of expression and information; Recognises that whistle-blowers play a crucial role in the fight against corruption and other serious crimes or illegal activities and in the protection of the EU's financial interests; stresses that whistle- blowers are often a crucial source for investigative journalism and should therefore be protected against any form of harassment and retaliation; believes that it is necessary to protect the confidentiality of investigative journalism’s sources, including whistle- blowers, if the role of investigative journalism as a watchdog in democratic society is to be safeguarded;
Amendment 1164 #
Motion for a resolution
Paragraph 180
Paragraph 180
180. Believes that the protection of whistle-blowers is of major importance for both the private and the public sector to ensure that unlawful activities and abuse of law are prevented or do not prosper; stresses that whistle-blowers are often a crucial source for investigative journalism and should therefore be protected against any form of harassment and retaliation; believes that it is necessary to protect the confidentiality of investigative journalism’s sources, including whistle- blowers, if the role of investigative journalism as a watchdog in democratic society is to be safeguarded;
Amendment 1168 #
Motion for a resolution
Paragraph 180 a (new)
Paragraph 180 a (new)
180 a. Welcomes the proposal for a Directive of the European Parliament and of the Council on the protection of persons reporting on breaches of Union law.
Amendment 1176 #
Motion for a resolution
Paragraph 181 a (new)
Paragraph 181 a (new)
181 a. Highlights that the safeguarding of confidentiality and anonymity contributes to the creation of more effective channels for reporting fraud, corruption or other serious infringements.