74 Amendments of Eva JOLY related to 2016/0336(CNS)
Amendment 37 #
Proposal for a directive
Recital 1
Recital 1
(1) Companies which seek to do business across frontiers within the Union encounter serious obstacles and market distortions owing to the existence and interaction of 28 disparate corporate tax systems. Furthermore, tax planning structures have become ever-more sophisticated over time, as they develop across various jurisdictions and effectively take advantage of the technicalities of a tax system or of mismatches between two or more tax systems for the purpose of reducing the tax liability of companies. Although those situations highlight shortcomings that are completely different in nature, they both create obstacles which impede the proper functioning of the internal market and create distortion between large companies and small and medium enterprises. Action to rectify these problems should therefore address both these types of market deficiencies. If this proposal does not result in an agreement eliminating the distortion in question, the European Commission should issue a new proposal based on Article116 of the Treaty on the Functioning of the European Union, whereby the European Parliament and the Council, act in accordance with the ordinary legislative procedure to issue the necessary directives.
Amendment 53 #
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 and where they have economic substance. It is therefore necessary to provide for mechanisms that discourageprohibit 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.
Amendment 61 #
Proposal for a directive
Recital 3 a (new)
Recital 3 a (new)
(3a) In addition, improving the internal market is the key factor for encouraging growth and job creation. The introduction of a CCCTB should improve growth and lead to more jobs in the Union by reducing the administrative costs for companies, particularly for small businesses operating in several Member States.
Amendment 75 #
Proposal for a directive
Recital 4
Recital 4
(4) Considering the need to act swiftly in order to ensure a proper functioning of the internal market by making it, on the one hand, friendlier to trade and investment and, on the other hand, more resilient to tax avoidance schemes, it is necessary to divide the ambitious CCCTB initiative into two separate proposals. At a first stage, rules on a common corporate tax base should be agreed, before addressing, at a second stage, the issue ofeal with the CCTB and CCCTB proposals in parallel. Rules on a common corporate tax base should enter into application, at the same time as the consolidation.
Amendment 82 #
Proposal for a directive
Recital 5
Recital 5
(5) Many aggressive tax planning structures tend to feature in a cross-border context, which implies that the participating groups of companies possess a minimum of resources. On this premise, for reasons of proportionality, the rules on a CCCTB should be mandatory only for groups of companies of a substantial size. For that purpose, a size-related threshold should be fixed on the basis of the total consolidated revenue of a group which files consolidated financial statements. In addition, in order to better serve the aim of facilitating trade and investment in the internal market, the rules on a CCCTB should also be available, as an option, to those groups that fall short of the size- related threshold. Five years after the entry into force of this Directive, the Commission shall, in its review, assess the impact of making this system mandatory for all companies and, if appropriate, issue a legislative proposal to amend this Directive accordingly.
Amendment 87 #
Proposal for a directive
Recital 5 a (new)
Recital 5 a (new)
(5a) One of the main problems encountered by the tax authorities is the impossibility of gaining access in due time to comprehensive and relevant information about MNEs' tax planning strategies. Such information should be made publicly available, in order for tax authorities to react quickly to tax risks, by assessing those risks more effectively, targeting checks and alerting about changes required to the legislation in force.
Amendment 91 #
Proposal for a directive
Recital 5 b (new)
Recital 5 b (new)
(5b) In order to create a level playing field and to eliminate tax competition and the resulting race to the bottom as regards corporate taxation levels, minimum effective corporate tax rate should be introduced in parallel of the common consolidated corporate tax base so as to avoid transferring unfair competition on the tax base to unfair competition on the tax rates. This Directive therefore sets a minimum corporate tax rate at 20% in each Member State, applicable two years after the date of implementation of the present Directive, with a possibility for Member States to extend this deadline up to five years subject to a prior authorisation by the Commission.
Amendment 94 #
Proposal for a directive
Recital 5 c (new)
Recital 5 c (new)
(5c) A severe lack in investments has been one of the root causes of the Union economic troubles but the Union budget is still insufficiently geared towards future- oriented investments. Creating additional Union budget related resources is possible according to the existing flexibilities of the Treaty. This proposal therefore includes the objective to have a part of the EU fiscal revenues financed from the common consolidated corporate tax base.
Amendment 97 #
Proposal for a directive
Recital 6
Recital 6
(6) Eligibility for the consolidated tax group should be determined in accordance with a two-partcriteria test based on (i) control (more than 50 percent of voting rights) andor (ii) ownership (more than 75 percent of equity) or rights to profits (more than 75 percent of rights giving entitlement to profit). Such a test would ensure a high level of economic integration between group members. To guarantee the integrity of the system, the two thresholdscriteria for control andor ownership or profit rights should be met throughout the tax year; otherwise, the failing company should leave the group immediately. To prevent a manipulation of the tax results through companies entering and leaving the group within a short-term, there should also be a minimum requirement of nine consecutive months for establishing group membership.
Amendment 100 #
Proposal for a directive
Recital 7
Recital 7
(7) Rules on business reorganisations should ensure that the effect of such reorganisations on the existing taxing rights of Member States is kept to a minimum. Each time that a company joins a group, the Member States where other group members are resident for tax purposes or situated should therefore not bear the extra cost of losses that the company incurred under the rules of another corporate tax system which applied to that company prior to the rules of this Directive. Pre-consolidation trading losses of a company joining a group should thus be carried forward to be set off against that company's apportioned share. Accordingly, losses incurred by a group member during the period of consolidation should not exclusively be allocated to that group member but be shared across the group instead. In the case of more extensive reorganisations, where more than one company is leaving a loss- making group, it would be essential to fix a threshold, in order to determine under which conditions companies should no longer be leaving a loss-making group without being allocated any losses to carry forward. A similar adjustment should be made in respect of capital gains resulting from the disposal of certain assets within a short period after those assets joined, or departed from, a group alongside a joining or leaving company. In these cases, the Member State(s) where these gains accrued should be given the right to tax them, despite the fact that the assets may no longer be under their taxing jurisdiction. The tax treatment of capital gains engrained in self-generated intangible assets calls for a customised approach, since these assets are often not registered on a company’s financial accounts and since there does not seem to be a way to precisely calculate their value. Accrued capital gains should therefore be assessed on the basis of a suitable proxy, namely the costs for research and development and for marketing and advertising over a specific period.
Amendment 103 #
Proposal for a directive
Recital 10
Recital 10
(10) TAs far as companies not involved in digital business through virtual permanent establishments are concerned, the formula apportionment for the consolidated tax base should comprise three equally weighted factors, namely labour, tangible assets and sales by destination. As far as companies fully or partially operating digitally through one or several virtual permanent establishments are concerned, the formula apportionment for the consolidated tax base should comprise four equally weighted factors, namely labour, tangible assets, revenues generated from collected data and number of users in the destination country. Those equally weighted factors should reflect a balanced approach to distributing taxable profits amongst the relevant Member States and should ensure that profits are taxed where they are actually earned. Labour and tangible assets should therefore be allocated to the Member State where the labour is performed or the assets are located, and would thereby give appropriate weight to the interests of the Member State of origin, whilst sales, or, as far as digital activities are concerned, revenues generated from collected data and the number of users should be allocated to the Member State of destination of the goods or services. To account for differences in the levels of wages across the Union and thus allow for a fair distribution of the consolidated tax base, the labour factor should comprise both payroll and the number of employees (i.e. each item counting for half). The asset factor, on the other hand, should comprise all fixed tangible assets, but not intangible and financial assets because of their mobile nature and the resulting risk that the rules of this Directive could be circumvented. Where, due to exceptional circumstances, the outcome of the apportionment does not fairly represent the extent of business activity, a safeguard clause should provide for an alternative method of income allocation.
Amendment 105 #
Proposal for a directive
Recital 10
Recital 10
(10) The formula apportionment for the consolidated tax base should comprise three equally weighted factors, namely labour, assets and sales by destination. Those equally weighted factors should reflect a balanced approach to distributing taxable profits amongst the relevant Member States and should ensure that profits are taxed where they are actually earned. Labour and assets should therefore be allocated to the Member State where the labour is performed or the assets are located, and would thereby give appropriate weight to the interests of the Member State of origin, whilst sales should be allocated to the Member State of destination of the goods or services. To account for differences in the levels of wages across the Union and thus allow for a fair distribution of the consolidated tax base, the labour factor should comprise both payroll and the number of employees (i.e. each item counting for half). The asset factor, on the other hand, should comprise all fixed tangible assets, but not intangible and financial assets because of their mobile nature and the resulting risk that the rules of this Directive could be circumvented. Where, due to exceptional circumstances, the outcome of the apportionment does not fairly represent the extent of business activity, a safeguard clause should provide for an alternative method of income allocation.
Amendment 116 #
Proposal for a directive
Recital 13
Recital 13
(13) Audits should in principle be initiated and coordinated by the principal tax authority, but given that the first stage consisting in the calculation of the tax base is performed locally, the national authorities of any Member State in which the profits of a group member are subject to tax should also be able to request the initiation of an audit. Accordingly, to protect the national tax base, the competent authority of the Member State in which a group member is resident for tax purposes or established in the form of a permanent or virtual permanent establishment should be able to challenge before the courts of the Member State of the principal tax authority a decision of that tax authority concerning the notice to create a group or a decision concerning an amended tax assessment. Disputes between taxpayers and tax authorities shouldmay be dealt with by an administrative body at first instance, in order to reduce the number of cases that reach the courts. That body should be structured and operating in accordance with the law of the Member State of the principal tax authority is competent to hear appeals at first instance. The Commission should establish a new CCCTB forum to which companies and Member States can refer questions and disputes relating to the CCCTB. That forum should be able to give guidance to companies and Member States.
Amendment 120 #
Proposal for a directive
Recital 14
Recital 14
(14) This Directive builds upon Council Directive 2016/xx/EU on a common corporate tax base (which lays down a common set of corporate tax rules for computing the tax base) and focusses on the consolidation of tax results across the group. It wouldis thus be necessary to deal with the interaction between the two legislative instruments and cater for the transition of certain elements of the tax base into the new framework of the group. Such elements should include, in particular, the interest limitation rule, the switch-over clause and controlled foreign company legislation as well as hybrid mismatches. Member States should not be prevented from introducing additional anti-tax avoidance measures in order to reduce the negative effects of shifting profits to low- tax countries outside the Union.
Amendment 123 #
Proposal for a directive
Recital 14 a (new)
Recital 14 a (new)
(14a) In order to reach its objectives, this Directive should ensure a real consolidation process of tax bases rather than a simple aggregation process which could eventually lead to new loopholes and mismatches between the different national accounting rules. The consolidated tax base should therefore be regarded as the result of the consolidated net taxable revenue of the group members as calculated on an accounting basis applicable to all group members.
Amendment 131 #
Proposal for a directive
Recital 18
Recital 18
(18) Since the objectives of this Directive, namely to improve the functioning of the internal market through countering practices of international tax avoidance and to facilitate businesses in expanding across borders within the Union, cannot be sufficiently achieved by the Member States acting individually and in a disparate fashion because coordinated action is necessary to obtain these objectives, but can rather, by reason of the fact that the Directive targets inefficiencies of the internal market that originate in the interaction between disparate national tax rules which impact on the internal market and discourage cross-border activity, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary in order to achieve those objectives, especially considering that its mandatory scope is currently limited to groups beyond a certain size.
Amendment 133 #
Proposal for a directive
Recital 20
Recital 20
(20) The Commission should be required to review the application of the Directive five years after its entry into force and report to Council and European Parliament on its operation. Member States should be required to communicate to the Commission the text of the provisions of national law which they adopt in the field covered by this Directive,
Amendment 140 #
Proposal for a directive
Article 2 – paragraph 1 – introductory part
Article 2 – paragraph 1 – introductory part
1. The rules of this Directive shall apply to a company that is established under the laws of a Member State, including its permanent and virtual permanent establishments in other Member States, where the company meets all of the following conditions:
Amendment 146 #
Proposal for a directive
Article 2 – paragraph 1 – point c
Article 2 – paragraph 1 – point c
(c) it belongs to a consolidated group for financial accounting purposes with a total consolidated group revenue that exceeded EUR 7540 000 000 during the financial year preceding the relevant financial year;
Amendment 151 #
Proposal for a directive
Article 2 – paragraph 2 a (new)
Article 2 – paragraph 2 a (new)
2a. This Directive shall also apply to a company that is established under the laws of a third country in respect of its virtual permanent establishments that are specifically directed towards consumers or businesses in a Member State or that principally receive their revenue from activity in a Member State, where the company meets the conditions laid down in points (b) to (d) of paragraph 1.
Amendment 153 #
Proposal for a directive
Article 2 – paragraph 4
Article 2 – paragraph 4
Amendment 157 #
Proposal for a directive
Article 3 – paragraph 1 – point 23
Article 3 – paragraph 1 – point 23
(23) 'consolidated tax base' means the result of adding up the tax basesthe consolidated net taxable revenue of allthe group members, as calculated ion an accordance withunting basis applicable to all group members according to Directive 2016/xx/EU;
Amendment 160 #
Proposal for a directive
Article 3 – paragraph 1 – point 28 a (new)
Article 3 – paragraph 1 – point 28 a (new)
(28a) ‘permanent and virtual permanent establishment’ as defined in point (X) of Article 4 of Directive 2016/xx/EU;
Amendment 169 #
Proposal for a directive
Article 4 – paragraph 5
Article 4 – paragraph 5
5. A non-resident taxpayer shall be subject to corporate tax on all income from an activity carried on through a permanent or virtual permanent establishment in a Member State.
Amendment 172 #
Proposal for a directive
Article 5 – paragraph 1 – point a
Article 5 – paragraph 1 – point a
(a) it has a right to exercise more than 50 % of the voting rights; andor
Amendment 177 #
Proposal for a directive
Article 5 – paragraph 2 a (new)
Article 5 – paragraph 2 a (new)
2a. The use of letterbox companies by taxpayers operating in the Union should be prohibited. Taxpayers should communicate to tax authorities evidence demonstrating the economic substance of each of the entities in their group, as part of their annual country-by-country reporting obligations.
Amendment 178 #
Proposal for a directive
Article 6 – paragraph 1 – point a
Article 6 – paragraph 1 – point a
(a) all its permanent and virtual permanent establishments that are situated in a Member State;
Amendment 179 #
Proposal for a directive
Article 6 – paragraph 1 – point b
Article 6 – paragraph 1 – point b
(b) all permanent and virtual permanent establishments that are situated in a Member State and belong to its qualifying subsidiaries that are resident in a third country for tax purposes;
Amendment 180 #
Proposal for a directive
Article 6 – paragraph 1 – point c
Article 6 – paragraph 1 – point c
(c) all its qualifying subsidiaries that are resident in a Member State for tax purposes, including the permanent and virtual permanent establishments of those subsidiaries where such permanent establishments are situated in a Member State;
Amendment 181 #
Proposal for a directive
Article 6 – paragraph 2
Article 6 – paragraph 2
2. A non-resident taxpayer shall form a group in respect of all of its permanent and virtual permanent establishments that are situated in one or more Member States and with all of its qualifying subsidiaries that are resident in a Member State for tax purposes, including the permanent and virtual permanent establishments of those subsidiaries where such permanent establishments are also situated in one or more Member States.
Amendment 184 #
Proposal for a directive
Article 7 – paragraph 1
Article 7 – paragraph 1
1. The tax bases of all members of a group shall be added together into a consolidated tax basnet taxable revenue of a group’s members shall be based on their financial statements which are to be adjusted so that taxable revenues include all cash and exchange or barter receipts - arising during or due for the period - less those accounted for in previous periods, those of a capital nature and those explicitly exempted from charge.
Amendment 186 #
Proposal for a directive
Article 7 – paragraph 1 a (new)
Article 7 – paragraph 1 a (new)
1a. The net taxable revenue shall not include cash, barter or exchange payments made or due which were accounted for in previous periods for the purposes of the trade of the corporation, as well as loan or equity capital repayment and expenses that are explicitly exempted from deduction.
Amendment 187 #
Proposal for a directive
Article 7 – paragraph 2
Article 7 – paragraph 2
2. Where the consolidated tax base is negative, the loss shall be carried forward and be set off against the next positive consolidated tax base during a maximum of five years. Where the consolidated tax base is positive, it shall be apportioned in accordance with Chapter VIII.
Amendment 197 #
Proposal for a directive
Article 9 – paragraph 4 a (new)
Article 9 – paragraph 4 a (new)
4a. All such intra-group transactions shall be eliminated from the tax base as a result of the consolidation required by Article 7 (1).
Amendment 198 #
Proposal for a directive
Article 11 – paragraph 4
Article 11 – paragraph 4
4. The taxpayer that, as a result of a business reorganisation, no longer exists or no longer has a permanent or virtual permanent establishment in the Member State in which it was resident for tax purposes on the date that it joined the group, shall be considered to have a permanent or virtual permanent establishment in that Member State for the purpose of applying this Article.
Amendment 199 #
Proposal for a directive
Article 15
Article 15
Amendment 200 #
Proposal for a directive
Article 22 – paragraph 3
Article 22 – paragraph 3
3. For the purpose of applying this Article, the transferring taxpayer referred to in paragraph 2 that no longer exists or no longer has a permanent or virtual permanent establishment in the Member State from which the assets were transferred shall be considered to have a permanent or virtual permanent establishment in that Member State.
Amendment 201 #
Proposal for a directive
Article 23 – paragraph 1 – subparagraph 1
Article 23 – paragraph 1 – subparagraph 1
Where, as a result of a business reorganisation, one or more groups, or two or more group members, become part of another group, any unrelieved losses of the previously existing group or groups shall be allocated to each of the group members in accordance with Chapter VIII and on the basis of the factors as they stand at the end of the tax year in which the business reorganisation takes place. Unrelieved losses of the previously existing group or groups shall be carried forward for futurduring a maximum of five years.
Amendment 204 #
Proposal for a directive
Article 23 – paragraph 2
Article 23 – paragraph 2
2. Where two or more principal taxpayers merge within the meaning of points (i) and (ii) of Article 2(a) of Council Directive 2009/133/EC15 , any unrelieved losses of a group shall be allocated to its members in accordance with Chapter VIII, on the basis of the factors as they stand at the end of the tax year in which the merger takes place. Unrelieved losses shall be carried forward for futurduring a maximum of five years. __________________ 15 Council Directive 2009/133/EC of 19 Council Directive 2009/133/EC of 19 October 2009 on the common system of taxation applicable to mergers, divisions, partial divisions, transfers of assets and exchanges of shares concerning companies of different Member States and to the transfer of the registered office of an SE or SCE between Member States (OJ L 310, 25.11.2009, p. 34).
Amendment 206 #
Proposal for a directive
Article 24 – paragraph 3
Article 24 – paragraph 3
3. Where the beneficial owner of the shares that were disposed of is a non- taxpayer or a non-resident taxpayer with those shares attributed to its head office or permanent or virtual permanent establishment in a third country, the market value of the asset or assets at the time of the disposal of the shares, 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.
Amendment 207 #
Proposal for a directive
Article 25 – paragraph 2
Article 25 – paragraph 2
2. The tax credit referred to in paragraph 1 shall be calculated separately for each Member State or third country as well as for each type of income. It shall not exceed the amount resulting from subjecting the income attributed to a taxpayer or to a permanent or virtual permanent establishment to the corporate tax rate of the Member State where the taxpayer is resident for tax purposes or where the permanentsuch establishment is situated.
Amendment 212 #
Proposal for a directive
Article 28 – paragraph 1 – subparagraph 1
Article 28 – paragraph 1 – subparagraph 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:The formula for apportionment to be used shall depend on whether or not the company has virtual permanent establishments, as defined in Directive 2016/xx/EU.
Amendment 214 #
Proposal for a directive
Article 28 – paragraph 1 – subparagraph 1 a (new)
Article 28 – paragraph 1 – subparagraph 1 a (new)
As far as non-digital activities are concerned, , the formula for determining the apportioned share of a group member A shall take the following form, giving equal weight to the factors of sales, labour and assets:
Amendment 218 #
Proposal for a directive
Article 28 – paragraph 1 – subparagraph 2 a (new)
Article 28 – paragraph 1 – subparagraph 2 a (new)
As far as digital activities are concerned, the formula for determining the apportioned share of a group member A shall take the following form, giving equal weight to the factors of revenues, labour, assets, and users:
Amendment 220 #
Proposal for a directive
Article 28 – paragraph 1 – subparagraph 2 b (new)
Article 28 – paragraph 1 – subparagraph 2 b (new)
Share A= [1/4 (Revenues generated from data collected by A)/(Revenues of the Group) + 1/4 (No of users A)/(No of users of the Group)) + 1/4 (1/2 (Payroll A)/(Payroll Group) + 1/2 (No of employees A)/(No of employees Group)) + 1/4 (Assets A)/(Assets Group)
Amendment 221 #
Proposal for a directive
Article 28 – paragraph 1 – subparagraph 2 c (new)
Article 28 – paragraph 1 – subparagraph 2 c (new)
The Commission shall adopt delegated acts in accordance with Article XX to lay down the detailed rules on how the revenues generated from collected data as well as how the number of user shall be defined and calculated depending on the type of digital business concerned.
Amendment 222 #
Proposal for a directive
Article 28 – paragraph 5
Article 28 – paragraph 5
Amendment 224 #
Proposal for a directive
Article 29
Article 29
As an exception to the rule set out in Article 28, if the principal taxpayer or a competent authority considers that the outcome of the apportionment of the consolidated tax base to a group member does not fairly represent the extent of the business activity of that group member, the principal taxpayer or competent authority may request the use of an alternative method for calculating the tax share of each group member. An alternative method can be used only if, following consultations among the competent authorities and, where applicable, discussions held in accordance with Articles 77 and 78, all these authorities agree to that alternative method. The Member State of the principal tax authority shall inform the Commission about the alternative method used.rticle 29 deleted Safeguard clause
Amendment 234 #
Proposal for a directive
Article 35 a (new)
Article 35 a (new)
Amendment 236 #
Proposal for a directive
Article 37 – paragraph 1
Article 37 – paragraph 1
1. The sales factor shall consist of the total sales allocated to a group member, including permanent and virtual permanent establishments that are considered to exist pursuant to Article 22(3), as its numerator and the total sales of the group as its denominator.
Amendment 240 #
Proposal for a directive
Article 39 – paragraph 1
Article 39 – paragraph 1
The Commission may adopt acts laying down detailed rules on the calculation of the labour, asset, sales, data and saleusers factors, the allocation of employees and payroll, assets and sales to the respective factor and the valuation of assets. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 77(2).
Amendment 250 #
Proposal for a directive
Article 46 – paragraph 3
Article 46 – paragraph 3
3. The principal tax authority shall transmit the notice immediately to the competent authorities of all Member States in which group members are resident for tax purposes or situated in the form of a permanent or virtual permanent establishment. Those authorities may submit their views and any relevant information on the validity and scope of the notice to the principal tax authority within one month of its transmission.
Amendment 251 #
Proposal for a directive
Article 47 – paragraph 1
Article 47 – paragraph 1
1. This Directive shall start applying to a group one month after the notice to create a group was received, as referred to in Article 46(3), by the competent authorities of all Member States in which group members are resident for tax purposes or situated in the form of a permanent or virtual permanent establishment. The principal tax authority shall inform the principal taxpayer in this regard.
Amendment 252 #
Proposal for a directive
Article 48 – paragraph 2
Article 48 – paragraph 2
The Commission mayshall adopt an act establishing a standard form of the notice to create a group. That implementing act shall be adopted in accordance with the examination procedure referred to in Article 77(2).
Amendment 253 #
Proposal for a directive
Article 51 – paragraph 3
Article 51 – paragraph 3
3. Where the consolidated tax return does not have the legal status of a tax assessment for the purposes of enforcing a tax debt, the competent authority of a Member State may, in respect of a group member that is resident for tax purposes or situated there in the form of a permanent or virtual permanent establishment, issue an instrument of national law authorising enforcement in that Member State. That instrument shall incorporate the data in the consolidated tax return concerning the group member. Appeals shall be permitted against the instrument exclusively on grounds of form and not to the underlying tax assessment. The procedure shall be governed by the national law of the relevant Member State.
Amendment 254 #
Proposal for a directive
Article 51 – paragraph 4
Article 51 – paragraph 4
4. The principal taxpayer shall be responsible for all procedural obligations relating to the taxation of permanent or virtual permanent establishments as referred to in Article 11(4) or Article 22(3).
Amendment 256 #
Proposal for a directive
Article 56 – paragraph 5 – subparagraph 1
Article 56 – paragraph 5 – subparagraph 1
Prior to issuing an amended tax assessment, the principal tax authority shall consult the competent authorities of the Member States in which a group member is resident for tax purposes or situated in the form of a permanent or virtual permanent establishment. Those authorities may express their views within one month of consultation.
Amendment 257 #
Proposal for a directive
Article 56 – paragraph 5 – subparagraph 2
Article 56 – paragraph 5 – subparagraph 2
The competent authority of a Member State in which a group member is resident for tax purposes or situated in the form of a permanent or virtual permanent establishment may call on the principal tax authority to issue an amended tax assessment. Failure of the principal tax authority to notify within three months of that call to the competent authority that it undertakes to issue that amended tax assessment shall be treated as a refusal.
Amendment 258 #
Proposal for a directive
Article 58 – paragraph 2
Article 58 – paragraph 2
In exceptional circumstances, the competent tax authorities of the Member States in which the group members are resident or in which they have a permanent or virtual permanent establishment may, within six months of the notice referred to in Article 46 or within six months of a reorganisation involving the principal taxpayer, decide by common agreement that a taxpayer other than the taxpayer designated by the group shall be the principal taxpayer.
Amendment 259 #
Proposal for a directive
Article 60 – paragraph 1
Article 60 – paragraph 1
A taxpayer shall at the request of the competent authority of the Member State in which it is resident or in which its permanent or virtual permanent establishment is situated provide all information foreseeably relevant to the determination of its tax liability. In addition, the principal taxpayer shall at the request of the principal tax authority provide all information foreseeably relevant to the determination of the consolidated tax base or of the tax liability of any group member.
Amendment 260 #
Proposal for a directive
Article 61 – paragraph 1 – subparagraph 1
Article 61 – paragraph 1 – subparagraph 1
A taxpayer may request from the competent authority of the Member State in which it is resident or in which it has a permanent or virtual permanent establishment an opinion on the implementation of the rules of this Directive on a specific transaction or series of transactions that it plans to carry out. A taxpayer may also request an opinion on the proposed composition of a group. The competent authority shall take all possible steps to respond to the request within a reasonable time.
Amendment 262 #
Proposal for a directive
Article 65 – paragraph 1
Article 65 – paragraph 1
1. Where the competent authority of the Member State in which a group member is resident for tax purposes or situated in the form of a permanent or virtual permanent establishment disagrees with a decision of the principal tax authority made pursuant to Articles 49 or 56(2) or (4) or the second subparagraph of Article 56(5) may challenge that decision before the courts of the Member State of the principal tax authority within a period of three months.
Amendment 265 #
Proposal for a directive
Article 67 – paragraph 1
Article 67 – paragraph 1
1. Appeals against amended tax assessments or tax assessments made pursuant to Article 54 shall be heard by an administrative body that according to the law of the Member State of the principal tax authority is competent to hear appeals at first instance. That administrative body shall be independent from the tax authorities in the Member State of the principal tax authority. Where there is no such administrative body in that Member State or where the principal taxpayer prefers so, the principal taxpayer may lodge a judicial appeal directly.
Amendment 266 #
Proposal for a directive
Article 67 – paragraph 5
Article 67 – paragraph 5
5. TIf seized of the case, the administrative body referred to in paragraph 1 shall decide on the appeal within six months. If no decision is received by the principal taxpayer within that period, the decision of the principal tax authority shall be deemed to have been confirmed.
Amendment 268 #
Proposal for a directive
Article 69 – paragraph 2
Article 69 – paragraph 2
2. Where paragraph 1 applies, the exceeding borrowing costs and EBITDA shall be calculated at the level of the group and comprise the results of all group members. The amount of EUR 31 000 000 referred to in Article 13 of Directive 2016/xx/EU shall be increased to 53 000 000 while respecting the time conditions set out in article 13 of Directive 2016/xx/EU.
Amendment 272 #
Proposal for a directive
Article 71
Article 71
Amendment 274 #
Proposal for a directive
Article 72 – paragraph 1
Article 72 – paragraph 1
Amendment 277 #
Proposal for a directive
Article 73 – paragraph 1
Article 73 – paragraph 1
For the purposes of this Directive, the scope of controlled foreign company legislation applies as defined under Article 59 of Directive 2016/xx/EU shall be limited to relations between group members and entities that are resident for tax purposes, or permanent establishments that are situated, in a third country.
Amendment 280 #
Proposal for a directive
Article 74 – paragraph 1
Article 74 – paragraph 1
For the purposes of this Directive, the scope of the rules on hybrid mismatches uander Article 61 of Directive 2016/xx/EU shall be limited to relations between group members and non-group members that are associated enterpris related arrangements applies, as rdeferred to inined under Article 561 of Directive 2016/xx/EU.
Amendment 281 #
Proposal for a directive
Article 75 a (new)
Article 75 a (new)
Article 75a Minimum effective tax rate and contribution to the Union budget 1. Two years after the date of implementation of this Directive, Member States shall not be allowed to set an effective corporate tax rate below 20%, whilst no upper limit is set by this Directive. 2. By way of derogation of paragraph 1, Member States may request an extended deadline to the European Commission, so as to keep an effective corporate tax rate below 20% for longer than two years after the implementation of this Directive, but for no longer than seven years after its implementation. The derogation request shall be motivated and authorised by the European Commission. When deciding on a possible extension of the phasing-in period for a particular Member State, due account shall be taken of the specific situation of that Member State, the objective reasons for the request, and the impact of such a derogation on other Member States. 3. The Commission shall put forward by [two years after the entry into application of this Directive] a legislative proposal for the allocation of a part of the fiscal revenues generated from the common consolidated corporate tax base to the budget of the European Union in order to increase its own resources.
Amendment 282 #
Proposal for a directive
Article 75 b (new)
Article 75 b (new)
Article 75b CCCTB forum The Commission shall establish a CCCTB forum to which companies and Member States may refer questions and general disputes relating to the CCCTB. That forum shall provide guidance to companies and Member States and shall be coordinated and chaired by Commission services.
Amendment 287 #
Proposal for a directive
Article 79 – paragraph 1
Article 79 – paragraph 1
The Commission shall, five years after the entry into force of this Directive, review its application and report to the Council and the European Parliament on the operation of this Directive. The report shall in particular include an analysis of the impact of the mechanism set up in Chapter VIII of this Directive on the apportionment of the tax bases between the Member States.
Amendment 293 #
Proposal for a directive
Article 80 – paragraph 1 – subparagraph 1
Article 80 – paragraph 1 – subparagraph 1
Member States shall adopt and publish, by 31st December 202019 at the latest, the laws, regulations and administrative provisions necessary to comply with this Directive. They shall forthwith communicate to the Commission the text of those provisions.
Amendment 298 #
Proposal for a directive
Article 80 – paragraph 1 – subparagraph 2
Article 80 – paragraph 1 – subparagraph 2
They shall apply those provisions from 1st January 20210.