Procedure completed
Role | Committee | Rapporteur | Shadows |
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Lead | ECON | GIEGOLD Sven (Verts/ALE) | |
Opinion | JURI | KARIM Sajjad (ECR) |
Legal Basis TFEU 115
Activites
- 2011/12/29 Final act published in Official Journal
- #3129
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2011/11/30
Council Meeting
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2011/11/30
End of procedure in Parliament
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2011/11/30
Act adopted by Council after consultation of Parliament
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2011/10/26
Results of vote in Parliament
- Results of vote in Parliament
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T7-0464/2011
summary
The European Parliament adopted by 585 votes to 72, with 11 abstentions, a legislative resolution on the proposal for a Council directive on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States (recast).Parliament’s position at first under the ordinary legislative procedure approves the Commission proposal as adapted to the recommendations of the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission.Parliament underlines that in relation to the treatment of permanent establishments, Member States may need to determine the conditions and legal instruments in order to protect the national tax revenue and fend off circumvention of national law, and to avoid extreme forms of under-taxation or non-taxation.Therefore, Members suggested amendments that stipulate that were a parent company or its permanent establishment, by virtue of the association of the parent company with its subsidiary, receives distributed profits, the State of the parent company and the State of its permanent establishment shall, except when the subsidiary is liquidated, either:refrain from taxing such profits if they have been taxed in the country of the subsidiary at a statutory corporate tax rate not lower than 70% of the average statutory corporate tax rate applicable in the Member States;tax such profits at a statutory corporate tax rate not lower than 70% of the average statutory corporate tax rate applicable in the Member States while authorising the parent company and the permanent establishment to deduct from the amount of tax due that fraction of the corporation tax related to those profits and paid by the subsidiary and any lower-tier subsidiary, subject to the condition that at each tier a company and its lower-tier subsidiary fall within the definitions laid down in the Directive and meet the requirements provided for in the Directive, up to the limit of the amount of the corresponding tax due.
- 2011/10/25 Debate in Parliament
- 2011/09/27 Committee report tabled for plenary, 1st reading/single reading
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2011/09/22
Vote in committee, 1st reading/single reading
- #3088
- 2011/05/17 Council Meeting
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2011/02/03
Committee referral announced in Parliament, 1st reading/single reading
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2011/01/04
Legislative proposal published
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COM(2010)0784
summary
PURPOSE: the recast of Council Directive 90/435/EEC concerning the common taxation system applicable in the case of parent companies and subsidiaries of different Member States.PROPOSED ACT: Council Directive.LEGAL BASIS: Article 115 of the Treaty on the Functioning of the European Union (TFEU).IMPACT ASSESSMENT: no impact assessment was undertaken.CONTENT: the codification of Council Directive 90/435/EEC of 23 July 1990 on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member Stateshas been initiated by the Commission, and a relevant proposal has been submitted to the legislative authority. The new Directive was to have superseded the various acts incorporated in it.In the course of the legislative procedure, views were expressed by the European Parliament and by the Council that the wording of the second subparagraph of Article 4(3) of Directive 90/435/EEC, as it appeared in Article 4(5) of the proposed codified text, might be understood as establishing a secondary legal basis.In the light of the judgment of the Court of Justice of 6 May 2008 in Case C-133/06 and for the avoidance of any doubt and for the sake of legal certainty, those two institutions requested that the provision in the proposed codified text be redrafted. Since such a redrafting would imply certain substantive changes, and would therefore go beyond straightforward codification, it was considered necessary that point 8of the Interinstitutional Agreement of 20 December 1994 – Accelerated working method for official codification of legislative texts – be applied, in the light of the Joint declaration on that point.The amendment to be made to Article 4(5) of the proposed codified text concerns the insertion of words clarifying that the rules referred to in that provision are adopted by the Council acting in accordance with the procedure provided for in the Treaty. It is therefore appropriate to transform the codification of Directive 90/435/EEC into a recast in order to incorporate the necessary amendment.BUDGETARY IMPLICATION: the proposal has no implication for the European Union’s budget.
- DG [{'url': 'http://ec.europa.eu/taxation_customs/index_en.htm', 'title': 'Taxation and Customs Union'}, {'url': 'http://ec.europa.eu/dgs/legal_service/', 'title': 'Legal Service'}],
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COM(2010)0784
summary
Documents
- Legislative proposal published: COM(2010)0784
- Debate in Council: 3088
- Committee report tabled for plenary, 1st reading/single reading: A7-0314/2011
- Debate in Parliament: Debate in Parliament
- Results of vote in Parliament: Results of vote in Parliament
- Decision by Parliament, 1st reading/single reading: T7-0464/2011
- : Directive 2011/96
- : OJ L 345 29.12.2011, p. 0008
Amendments | Dossier |
11 |
2010/0387(CNS)
2011/06/29
ECON
11 amendments...
Amendment 1 #
Draft legislative resolution Paragraph 1 1. Approves the Commission proposal as adapted to the recommendations of the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission and as amended below;
Amendment 10 #
Proposal for a directive Article 4 – paragraph 1 – point b (b) tax such profits at a statutory corporate tax rate not lower than 70% of the average statutory corporate tax rate applicable in the Member States while authorising the parent company and the permanent establishment to deduct from the amount of tax due that fraction of the corporation tax related to those profits and paid by the subsidiary and any lower-tier subsidiary, subject to the condition that at each tier a company and its lower-tier subsidiary fall within the definitions laid down in Article 2 and meet the requirements provided for in Article 3, up to the limit of the amount of the corresponding tax due.
Amendment 11 #
Proposal for a directive Article 4 – paragraph 1 – point b (b) tax such profits at a statutory corporate tax rate not lower than 75% of the average corporate tax rate applicable in the Member States while authorising the parent company and the permanent establishment to deduct from the amount of
Amendment 2 #
Draft legislative resolution Paragraph 1 a (new) 1a. Calls on the Commission to alter its proposal accordingly, in accordance with Article 293(2) of the Treaty on the Functioning of the European Union;
Amendment 3 #
Proposal for a directive Recital 9 (9) In relation to the treatment of permanent establishments Member States may need to determine the conditions and legal instruments in order to protect the national tax revenue and fend off circumvention of national laws, and to avoid extreme forms of under-taxation or non-taxation, in accordance with the Treaty principles and taking into account internationally accepted tax rules.
Amendment 4 #
Proposal for a directive Article 3 – paragraph 1 – point a – point i (i) at least to any company of a Member State which fulfils the conditions set out in Article 2 and
Amendment 5 #
Proposal for a directive Article 3 – paragraph 1 – point a – point ii (ii) under the same conditions, to a company of a Member State which
Amendment 6 #
Proposal for a directive Article 3 – paragraph 2 – point a (a)
Amendment 7 #
Proposal for a directive Article 3 – paragraph 2 – point b Amendment 8 #
Proposal for a directive Article 4 – paragraph 1 – point a (a) refrain from taxing such profits if they have been taxed in the country of the subsidiary at a statutory corporate tax rate not lower than 70% of the average statutory corporate tax rate applicable in the Member States; or
Amendment 9 #
Proposal for a directive Article 4 – paragraph 1 – point a (a) refrain from taxing such profits, provided that they have been taxed in the country of the subsidiary at a statutory corporate tax rate not lower than 75% of the average statutory corporate tax rate applicable in the Member States; or
source: PE-465.004
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