2022/2146(INI) Further reform of corporate taxation rules
Lead committee dossier:
Progress: Procedure completed
| Role | Committee | Rapporteur | Shadows |
|---|---|---|---|
| Lead | ECON |
BENJUMEA BENJUMEA Isabel ( EPP)
|
MARQUES Pedro ( S&D),
HLAVÁČEK Martin ( Renew),
GRUFFAT Claude ( Verts/ALE),
MOŻDŻANOWSKA Andżelika Anna ( ECR),
AUBRY Manon ( GUE/NGL)
|
| Committee Opinion | BUDG |
VAN OVERTVELDT Johan ( ECR)
|
Eider GARDIAZABAL RUBIAL ( S&D),
Younous OMARJEE ( GUE/NGL),
Dimitrios PAPADIMOULIS ( GUE/NGL),
Roberts ZĪLE ( ECR),
Joachim KUHS ( ID),
David CORMAND ( Verts/ALE)
|
Lead committee dossier:
Legal Basis:
RoP 54
Legal Basis:
RoP 54Subjects
Events
2023/12/12
EP - Text adopted by Parliament, single reading
Documents
2023/12/12
EP - Decision by Parliament
Documents
2023/11/14
EP - Committee report tabled for plenary
Details
The Committee on Economic and Monetary Affairs adopted an own-initiative report by Isabel BENJUMEA BENJUMEA (PPE, ES) on further reform of corporate taxation rules.
Members recalled that although tax policy remains a Member State responsibility, the single market requires a certain level of tax cooperation and harmonisation complete, improve and further develop it. It is crucial to adopt a common approach on tax policies is crucial for addressing harmful tax competition and profit shifting, fighting against tax avoidance and evasion.
The report took note of the package put forward by the Commission on tax simplification for SMEs and BEFIT and the need to adopt solutions at EU level that are well designed, taking into account existing systems in the Member States and do not impose additional, disproportionate and unnecessary burdens on businesses, in particular SMEs.
Members deplored the fact that national tax systems, tax administrations and, in general, differences in the broader public administration of the countries have an impact on the burden of compliance, particularly for SMEs, as they have to cope with up to 27 different tax systems. The Commission is called on to make the best use of the EU’s existing forums to ensure a coherent implementation of EU tax legislation across Member States.
Reducing the burden of compliance on EU companies, particularly SMEs
The report revealed that, according to the Commission, the estimated tax compliance costs for large multinational enterprises (MNEs) amount to about 2 % of taxes paid, while for SMEs the estimate is about 30 % of taxes paid. The Commission is called on to design tax policies in a way that makes them easy to implement for smaller companies, lowering the costs that they bear and reducing their administrative obligations under tax legislation.
The Commission should present an overall evaluation of previous actions taken on corporate taxation since 2011 and to publish a thorough impact assessment on the best options to ease the administrative burden on businesses, particularly SMEs, to map all differences in transposition in the EU, and identify areas for simplification and to ensure that businesses already under strain have a reasonable timeframe to implement policies.
Member States are called on to:
- consider engaging in policies of full expensing for capital investments and to make capital allowance provisions permanent in order to improve real investments, in particular investments in research and development and to reach the climate targets, as well as to assist Europe’s competitiveness;
- relieve the burden on companies, especially SMEs, for instance through temporary tax measures to mitigate the increase in energy costs and to use the additional revenues based on higher energy prices to provide direct and targeted relief to help the most vulnerable citizens and the middle class.
The Pillar Two Agreement
The report welcomed the fact that the two-pillar solution was agreed at the OECD/G20 Inclusive Framework on the allocation of taxing rights and the application of a minimum effective tax rate of 15 % on the global profits of MNEs and the adoption of the Pillar Two Directive implementing the international agreement in EU law.
Members noted that Pillar One and Pillar Two rules are only applicable to MNEs with a turnover above the thresholds and most companies, notably SMEs, are therefore exempt from this agreement. They took noted of the Commission’s efforts to build BEFIT on the international pillar 2 agreement and the EU’s Pillar Two Directive.
The Commission took noted note that the Commission reiterated its acknowledgment that BEFIT is also relevant from an own resource perspective. Members recalled that Parliament has expressed support for new own resources linked to corporate taxation such as the common consolidated corporate tax base (CCCTB), digital services tax and, most recently, for the ‘Pillar One’-based own resource in the context of the OECD inclusive framework on Base Erosion and Profit Shifting (BEPS). Members recalled furthermore its call for a EU-wide Financial Transaction Tax (FTT) and to evaluate, as further options an excise duty on the repurchase of shares by corporations as proposed in the US Inflation Reduction Act and a common and standardised withholding tax framework.
Towards a coordinated and simplified company taxation regime (BEFIT)
The report noted that the BEFIT initiative and the SME support package on taxation are complementary and both aim to improve simplification for businesses. The Commission is invited to propose measures to help all Member States move towards a simplified, efficient and competitive tax system in order to reduce the administrative burden on businesses, especially SMEs. Members noted that simplifying refund procedures, deductions and disputes are other ways of reducing the administrative burden, particularly for SMEs.
The report noted the Commission's intention to work on a BEFIT proposal, with a view to designing a new single EU corporate tax rulebook and a common tax base of income taxation for businesses. It called on the Commission to ensure that the new proposal provides clarity and predictability for businesses and facilitates cross-border economic activity.
Members consider that the implementation of a single tax rulebook may help reduce the scope for harmful tax competition and tax avoidance between Member States while simplifying corporate tax rules in the EU.
Given that companies doing business across the EU have to deal with different tax laws and tax authorities, Members highlighted the idea of a one-stop-shop allowing for the filing of one consolidated tax return as a possible way of reducing administrative burdens and minimising tax obstacles to the Single Market.
According to Members, all the very large firms operating in the EU should come within the scope of the future BEFIT proposal. They called on Commission to make sure that the specific demands of SMEs are met, by keeping BEFIT optional for SMEs, especially those not doing cross-border business.
Members recalled that corporate spending on research and development was equal to only 1.5 % of EU GDP in 2020, compared to 2.6 % in the United States and Japan, according to the European Investment Bank’s 2022/2023 investment report. This shortfall could reduce the EU’s long-term competitiveness. The Commission is called on to conduct an impact assessment on the use of new technologies to improve the speed, efficiency, reliability, transparency and resilience of tax-related administrative procedures.
Documents
2023/10/24
EP - Vote in committee
2023/07/06
EP - Amendments tabled in committee
Documents
2023/06/29
EP - Specific opinion
Documents
2023/06/19
EP - VAN OVERTVELDT Johan (ECR) appointed as rapporteur in BUDG
2023/05/16
EP - Committee draft report
Documents
2023/02/07
EP - BENJUMEA BENJUMEA Isabel (EPP) appointed as rapporteur in ECON
2022/10/20
EP - Committee referral announced in Parliament
Documents
- Text adopted by Parliament, single reading: T9-0460/2023
- Decision by Parliament: T9-0460/2023
- Committee report tabled for plenary: A9-0359/2023
- Amendments tabled in committee: PE751.609
- Specific opinion: PE750.072
- Committee draft report: PE736.738
- Committee draft report: PE736.738
- Specific opinion: PE750.072
- Amendments tabled in committee: PE751.609
- Text adopted by Parliament, single reading: T9-0460/2023
Activities
- Isabel BENJUMEA BENJUMEA
Plenary Speeches (1)
Votes
Further reform of corporate taxation rules – A9-0359/2023 – Isabel Benjumea Benjumea – Motion for a resolution #
2023/12/12 Outcome: +: 495, -: 65, 0: 58
PPE
NI
The Left| Amendments | Dossier |
| 292 |
2022/2146(INI)
2023/07/06
ECON
292 amendments...
Amendment 1 #
Motion for a resolution Citation 8 a (new) – having regard to the Commission communication of 15 January 2019 entitled ‘Commission launches debate on a gradual transition to more efficient and democratic decision-making in EU tax policy’14a _________________ 14a https://ec.europa.eu/commission/presscor ner/detail/en/IP_19_225
Amendment 10 #
Motion for a resolution Citation 19 Amendment 100 #
Motion for a resolution Recital G e (new) Ge. Whereas according to the Corporate Tax Haven Index 2021, nine EU Member States feature among the 25 most harmful corporate tax havens, namely Netherlands, Luxembourg, Ireland, Cyprus, Belgium, France, Spain, Germany and Hungary1g; _________________ 1g Tax Justice Network, Corporate Tax Haven Index 2021, available from https://cthi.taxjustice.net/en/
Amendment 101 #
Motion for a resolution Recital G f (new) Gf. Deplores the use of harmful tax practices by the Member States, which are a root cause of tax evasion and avoidance; supports an extension of the EU tax haven blacklist to cover EU tax havens, such as Hungary, Ireland, Luxembourg, Malta, the Netherlands and Cyprus;
Amendment 102 #
Motion for a resolution Paragraph 1 1. Recalls that
Amendment 103 #
Motion for a resolution Paragraph 1 1. Recalls that EU Member States’ cooperation
Amendment 104 #
Motion for a resolution Paragraph 1 1. Recalls that EU Member States' cooperation
Amendment 105 #
Motion for a resolution Paragraph 1 1. Recalls that EU Member States cooperating on corporate taxation is not a goal in itself, but rather a tool to avoid harmful tax comp
Amendment 106 #
Motion for a resolution Paragraph 1 1. Recalls that EU Member States cooperating on corporate taxation is
Amendment 107 #
Motion for a resolution Paragraph 1 1. Recalls that EU Member States cooperating on corporate taxation is not a goal in itself, but rather a tool to complete, improve and further develop the single market; points out that such cooperation requires mutual trust and good faith on the part of all Member States; recalls that the harmful and unfair tax practices implemented by some Member States have contributed to a deficit in mutual trust and a search for top-down solutions;
Amendment 108 #
Motion for a resolution Paragraph 1 1. Recalls that EU Member States cooperating on corporate taxation is not a goal in itself, but rather a tool to complete, improve and further develop the single market; calls on the Commission and the Council to assist our companies to improve the investment climate and make corporate taxation less burdensome, more sustainable and orientated towards improving Europe’s competitiveness;
Amendment 109 #
Motion for a resolution Paragraph 1 a (new) 1a. Observes that some of the fundamental tax obstacles and distortions in the Internal Market will only be addressed by a substantial harmonisation of corporate taxation in the EU;
Amendment 11 #
Motion for a resolution Citation 19 a (new) – having regard to its resolution of 29 November 2018 on gender equality and taxation policies in the EU ;1a _________________ 1a https://www.europarl.europa.eu/doceo/doc ument/A-8-2018-0416_EN.html
Amendment 110 #
Motion for a resolution Paragraph 1 a (new) 1a. Underlines that EU Member States have a full responsibility for proper tax collection and they are entitled to decide on their own tax systems;
Amendment 111 #
Motion for a resolution Paragraph 1 b (new) 1b. Highlights that well-functioning tax systems and national tax administrations play a key role in tax collection and that sustainable tax revenue in the Member States´ public budgets is important in the current challenging economic climate;
Amendment 112 #
Motion for a resolution Paragraph 2 Amendment 113 #
Motion for a resolution Paragraph 2 2.
Amendment 114 #
Motion for a resolution Paragraph 2 2. Welcomes the European Council conclusions of 23 March 2023 calling for the general regulatory environment to be simplified and for the administrative burden to be reduced, and the Commission
Amendment 115 #
Motion for a resolution Paragraph 2 2. Welcomes the European Council conclusions of 23 March 2023 calling for the general regulatory environment to be simplified and for the administrative burden to be reduced, and the Commission communication of 16 March 2023 underlining that the EU tax framework is key in supporting growth and private investment, in particular by removing tax barriers to cross-border investment; stresses the need to adopt solutions at EU level that are well-designed, compatible with existing systems in the Member States and do not impose additional burdens on businesses, in particular SMEs;
Amendment 116 #
Motion for a resolution Paragraph 2 a (new) 2a. Welcomes the Commission proposal on Faster and Safer Relief of Excess Withholding Taxes1a and calls for its swift adoption and implementation; _________________ 1a COM(2023) 324 final
Amendment 117 #
Motion for a resolution Paragraph 3 3. Underlines that it is paramount to fight aggressive profit shifting while promoting fiscal fairness, transparency and certainty,
Amendment 118 #
Motion for a resolution Paragraph 3 3. Underlines that it is paramount to fight aggressive profit shifting while promoting fiscal fairness, transparency and certainty
Amendment 119 #
Motion for a resolution Paragraph 3 3. Underlines that it is paramount to fight aggressive profit shifting
Amendment 12 #
Motion for a resolution Citation 22 a (new) – having regard to its resolution of 10 March 2022 on a European Withholding Tax framework;19a _________________ 19a https://www.europarl.europa.eu/doceo/doc ument/A-9-2022-0011_EN.html
Amendment 120 #
Motion for a resolution Paragraph 3 3. Underlines that it is paramount to fight
Amendment 121 #
3. Underlines that it is paramount to fight aggressive profit shifting, and that this requires a firm, consistent and solidarity-based approach from all EU Member States, in particular towards large corporations, while promoting fiscal fairness, transparency and certainty, and while keeping taxes at levels that support sustainable economic growth, the EU's fiscal attractiveness and the competitiveness of the European economy;
Amendment 122 #
Motion for a resolution Paragraph 3 3. Underlines that it is paramount to fight aggressive profit shifting while promoting fiscal fairness, transparency and certainty, and while keeping taxes at levels that support sustainable economic growth and the EU's competitiveness;
Amendment 123 #
Motion for a resolution Paragraph 3 a (new) Amendment 124 #
Motion for a resolution Paragraph 3 b (new) 3b. Welcomes the remarks by Christine Lagarde, ECB President, in the Monetary Dialogue of 5th June 2023, acknowledging that some sectors’ firms increased their profit margins by pushing higher prices to the consumer, above the respective increases in costs; supports the comments by Ms Lagarde on the need to have better data on profits in order to fully appreciate their impact on inflation; encourages Member States to release statistics on profits margins and its impact on corporate taxation revenues;
Amendment 125 #
Motion for a resolution Paragraph 4 4.
Amendment 126 #
Motion for a resolution Paragraph 4 4.
Amendment 127 #
Motion for a resolution Paragraph 4 4. Takes note of the
Amendment 128 #
Motion for a resolution Paragraph 4 4.
Amendment 129 #
Motion for a resolution Paragraph 4 4. Takes note of the numerous tax directives since 2011 that have led to fairer, simpler and more effective corporate taxation in the EU, and to a high number of tax compliance obligations on companies within the EU21 ; However, also underlines significant directives that were blocked in the Council, such as Financial Transaction Tax, the recast of the Interest and Royalties Directive, or the CCTB and CCCTB proposals; Deplores that corporate tax avoidance continues to have a severe impact on Member States and third countries21a; _________________ 21 See notably the Anti-Tax Avoidance
Amendment 13 #
Motion for a resolution Citation 22 b (new) – having regard to its resolution of 6 July 2022 on national vetoes to undermine the global tax deal;19b _________________ 19b https://www.europarl.europa.eu/doceo/doc ument/TA-9-2022-0290_EN.html
Amendment 130 #
Motion for a resolution Paragraph 4 4. Takes note of the numerous tax directives since 2011 that have led to fairer, simpler and more effective corporate taxation in the EU, and to a high number of tax compliance obligations on companies within the EU21; stresses the need to introduce only such solutions at EU level that do not impose additional costs and administrative burdens on businesses, in particular SMEs; _________________ 21 See notably the Anti-Tax Avoidance
Amendment 131 #
Motion for a resolution Paragraph 4 4.
Amendment 132 #
Motion for a resolution Paragraph 5 Amendment 133 #
Motion for a resolution Paragraph 5 5.
Amendment 134 #
Motion for a resolution Paragraph 5 5.
Amendment 135 #
Motion for a resolution Paragraph 5 5. Deplores the fact that in certain cases the Member States have implemented and applied tax directives in a divergent manner, which may undermin
Amendment 136 #
Motion for a resolution Paragraph 5 5. Deplores the fact that the Member States have implemented and applied tax directives in a divergent manner, undermining the proper functioning of the single market and leading to misalignment in tax bases, more red tape and higher compliance costs;
Amendment 137 #
Motion for a resolution Paragraph 5 5. Deplores the fact that the Member States have implemented and applied tax directives in a divergent manner, undermining the proper functioning of the single market and leading to misalignment in tax bases, more red tape and higher compliance costs; deplores, in this regard, the observation of the Commission of January 2022 that national tax systems, tax administrations and, in general, differences in the broader public administration of the countries do have an impact on the burden of compliance;
Amendment 138 #
Motion for a resolution Paragraph 5 5. Deplores the fact that the Member States have implemented and applied tax directives in a divergent manner, undermining the proper functioning of the single market and leading to misalignment in tax bases, more red tape and higher compliance costs; calls in this regard on the Commission to make consistent, fair and clear recommendations on the application of the directives to individual Member States, as well as on their effective enforcement;
Amendment 139 #
Motion for a resolution Paragraph 5 5. Deplores the fact that the Member States have implemented and applied tax directives in a divergent manner, undermining the proper functioning of the single market and leading to misalignment in tax bases, more red tape and higher compliance costs; calls on Member States and the European Commission to make the best use of the EU's existing fora to ensure a coherent implementation of EU tax legislation across Member States;
Amendment 14 #
Motion for a resolution Citation 23 a (new) – having regards to its resolution of 15 June 2023 on the lessons learnt from the Pandora Papers and other revelations;
Amendment 140 #
Motion for a resolution Paragraph 5 a (new) 5a. Welcomes the solidarity contribution implemented by the European Commission; notes with concern that some of the largest energy companies in the EU may not be subject to the contribution and that non energy companies will not be subject to the contribution even though they make windfall profits; Underlines that windfall profits are not limited to the energy sector and specifically to the fossil fuel industries; recalls that both the International Monetary Fund and the chief economist of the ECB support a windfall tax covering all sectors; calls, therefore, on the Commission to redesign its proposal for a solidarity contribution to cover all sectors with windfall profits; recalls that this windfall tax should not be limited to 2022 profits, but should be designed as a permanent tax, which could be reactivated in future crises in the event that such windfall profits are made again by the large multinational enterprises; recalls that the International Monetary Fund is calling for a permanent windfall tax;
Amendment 141 #
Motion for a resolution Paragraph 5 a (new) 5a. Takes note of the Council agreement of November 2022 on broadening the scope of the Code of Conduct on Business Taxation;; calls on the Code of Conduct Group on Business to Taxation to make full use of its revised mandate;
Amendment 142 #
Motion for a resolution Paragraph 5 a (new) 5a. Recalls that a high taxes environment, namely on what regards corporate taxation, discourages investment and, therefore, is a significant obstacle to job creation, economic growth generation and competitiveness promotion.
Amendment 143 #
Motion for a resolution Paragraph 5 a (new) 5a. Calls on the Commission and EU Member States to perpetuate and extend to all sectors the solidarity contribution collected from the fossil fuels sector ;
Amendment 144 #
Motion for a resolution Paragraph 5 b (new) 5b. Calls on the Commission and EU Member States to introduce progressive excessive ecological footprint taxes designed to operationalise the polluter pays principle, including progressive taxation on material and land-use footprints, to make corporate users of natural resources pay for their use as well as for any associated negative consequences (such as health and climate impacts) that would otherwise be passed on to individuals or society at large;
Amendment 145 #
Motion for a resolution Subheading 1 Amendment 146 #
Motion for a resolution Subheading 1 Reducing the burden of compliance on EU companies, particularly SMEs
Amendment 147 #
Motion for a resolution Paragraph 6 6. Notes that the estimated tax compliance costs for
Amendment 148 #
Motion for a resolution Paragraph 6 6. Notes that the estimated tax compliance costs for large multinational enterprises (MNEs) amount to about 2 % of taxes paid, while for SMEs the estimate is about 30 % of taxes paid;
Amendment 149 #
Motion for a resolution Paragraph 6 6. Notes that the estimated tax compliance costs for large multinational enterprises (MNEs) amount to about 2 % of taxes paid, while for SMEs the estimate is about 30 % of taxes paid; recalls that European companies, in particular SMEs, are the main enhancers of economic growth and job creation; calls in this regard for any new legislation at EU level to prioritise the interests of SMEs, with a view to lowering the costs that they bear and reducing their obligations under tax legislation;
Amendment 15 #
Motion for a resolution Citation 24 a (new) Amendment 150 #
Motion for a resolution Paragraph 6 6. Notes that according to the European Commission the estimated tax compliance costs for large multinational enterprises (MNEs) amount to about 2 % of taxes paid, while for SMEs the estimate is about 30 % of taxes paid; recalls that European companies, in particular SMEs, are the main enhancers of economic growth and job creation; calls for the European Commission to design tax policies in a way that makes them easy to implement for smaller companies;
Amendment 151 #
Motion for a resolution Paragraph 6 a (new) 6a. Calls on the Commission to conduct a EU-wide study on the levels of tax compliance costs, in a country-by- country basis and an overall evaluation of the identified scenario; additionaly, calls on the Commission to follow-up such assessment with an initiative to tackle high compliance costs and enhance cooperation to reduce the administrative burden.
Amendment 152 #
Motion for a resolution Paragraph 6 a (new) 6a. Observes that in the single market, cross-border activities for workers and the self-employed remain administratively complex from a tax and social security perspective; observes, further, that the increased possibility of telework has exacerbated this problem;
Amendment 153 #
Motion for a resolution Paragraph 6 b (new) 6b. Warns against the impact of teleworking on personal income tax and tax residence in the EU; calls on the Commission to take the necessary legislative measures to harmonise or better coordinate the tax residence of individuals and self-employed persons in the EU and the cross-border implications of personal income tax; notes that personal income tax is the biggest source of tax revenue for most EU Member States;
Amendment 154 #
Motion for a resolution Paragraph 7 7. Calls on the Commission to present an overall evaluation of actions taken on corporate taxation since 2011 and to
Amendment 155 #
Motion for a resolution Paragraph 7 7. Calls on the Commission to present an overall evaluation of actions taken on corporate taxation since 2011 and to
Amendment 156 #
Motion for a resolution Paragraph 7 7. Calls on the Commission to present an overall evaluation of actions taken on corporate taxation since 2011
Amendment 157 #
Motion for a resolution Paragraph 7 7. Calls on the Commission to present an overall evaluation of actions taken on corporate taxation since 2011
Amendment 158 #
Motion for a resolution Paragraph 7 7. Calls on the Commission to present an overall evaluation of actions taken on corporate taxation since 2011 and to immediately ease the burden on businesses
Amendment 159 #
Motion for a resolution Paragraph 7 7. Calls on the Commission to present an overall evaluation of actions taken on corporate taxation since 2011
Amendment 16 #
Motion for a resolution Citation 24 b (new) – having regard to Commission report ‘Tax Policies in the European Union, 2016 Survey, raising concerns with respect to patent boxes in EU Member States tax regimes ,1a _________________ 1a European Commission, ‘Tax Policies in the European Union, 2016 Survey,’ p21” Patent boxes give a tax break on the output from R&D activities i.e. earned from exploiting intellectual property rights. Research shows that they do not stimulate R&D and may rather be used as a profit-shifting instrument, leading to high revenue losses”. Available from https://ec.europa.eu/taxation_customs/site s/taxation/files/tax_policies_survey_2016. pdf
Amendment 160 #
Motion for a resolution Paragraph 7 7. Calls on the Commission to present an overall evaluation of actions taken on corporate taxation since 2011 and to immediately ease the burden on businesses by invoking a regulatory moratorium
Amendment 161 #
Motion for a resolution Paragraph 7 7. Calls on the Commission to present an overall evaluation of actions taken on corporate taxation since 2011 and to immediately ease the burden on businesses by invoking a regulatory moratorium and delaying those tax acts that would unnecessarily increase costs for businesses already under strain; calls on the Commission to carry out competitiveness checks for new legislative tax proposals, as requested by the European Council for all new proposals on 22 March 2023; calls on the Commission also to take into account, in new legislative proposals on taxation, the need to ensure that they are compatible with solutions already introduced in individual Member States which contribute to reducing the burden on businesses; calls for the adoption of realistic timetables for the implementation of tax legislation in the future;
Amendment 162 #
7. Calls on the Commission to present an overall evaluation of actions taken on corporate taxation since 2011 and to immediately ease the burden on businesses by invoking a regulatory moratorium and delaying those tax acts that would unnecessarily increase costs for businesses already under strain; calls on the Commission to carry out competitiveness checks for new legislative tax proposals, as requested by the European Council for all new proposals on 22 March 2023, and to ensure that the submission of any new proposal, if necessary, is essential for the smooth functioning of the single market ;
Amendment 163 #
Motion for a resolution Paragraph 7 7. Calls on the Commission to present an overall evaluation of previous actions taken on corporate taxation since 2011 and to immediately ease the burden on businesses by invoking a regulatory moratorium and delaying those tax acts that would unnecessarily increase costs for businesses already under strain; calls on the Commission to carry out competitiveness checks for new legislative tax proposals, as requested by the European Council for all new proposals on 22 March 2023;
Amendment 164 #
Motion for a resolution Paragraph 7 a (new) 7a. Recalls the European Union and Member States’ commitments to policy coherence for development; Calls on the Commission to undertake a spillover analysis of the impacts of EU tax policies on developing countries’ domestic revenue mobilisation and exposure to corporate tax avoidance;
Amendment 165 #
Motion for a resolution Paragraph 8 Amendment 166 #
Motion for a resolution Paragraph 8 8. Welcomes the proposal of the Conference on the Future of Europe of 9 May 2022
Amendment 167 #
Motion for a resolution Paragraph 8 8. Welcomes the proposal of the Conference on the Future of Europe of 9 May 2022 for
Amendment 168 #
Motion for a resolution Paragraph 8 8. Welcomes the proposal of the Conference on the Future of Europe of 9 May 2022 for a competitiveness check to analyse the impact, among other things, of new tax legislation on companies and their business environments; awaits impatiently the implementation of the announcement by Commission President Ursula von der Leyen of 19 October 2022 introducing a standard competitiveness check in EU regulation; points out that maintaining the competitiveness of the EU economy should now be a top priority when developing new tax legislation;
Amendment 169 #
Motion for a resolution Paragraph 8 a (new) 8a. Welcomes the REPowerEU Plan and its priorities and calls on Member States to integrate tax breaks measures and tax incentives to speed up the execution of funds, to achieve greater competitiveness and to help SMEs, companies and industry sector in achieving the objectives of this programme in their modified NRRPs as suggested by the Commission;
Amendment 17 #
Motion for a resolution Citation 24 c (new) – having regard to Council Regulation 2022/1854 of 6 October 2022 on an emergency intervention to address high energy prices,
Amendment 170 #
Motion for a resolution Paragraph 9 9. Takes note of the renewed debate on tax incentives following the US Inflation Reduction Act;
Amendment 171 #
Motion for a resolution Paragraph 9 9. Takes note of the renewed debate
Amendment 172 #
Motion for a resolution Paragraph 9 9. Takes note of the renewed debate on tax incentives following the
Amendment 173 #
Motion for a resolution Paragraph 9 9. Takes note of the renewed debate on tax incentives following the US Inflation Reduction Act; calls on the Commission to a
Amendment 174 #
Motion for a resolution Paragraph 9 9. Takes note of the renewed debate on tax incentives following the US Inflation Reduction Act; calls on the Commission to allow for experimentation with tax credits; insists, nevertheless, that all decisions should be taken in a coordinated manner to preserve the functioning of the single market; draws attention to the risk that the internal market will undergo fragmentation due to excessive state aid targeted at specific sectors of the economy and the disparities in Member States' ability to use state aid, which poses a challenge for competition policy;
Amendment 175 #
Motion for a resolution Paragraph 9 a (new) 9a. Notes that tax credits are de facto limited by the global minimum tax under Pillar Two which could lead to increased competition on refundable tax credits and subsidies; recalls that the absence of common rules and procedures that ensure the effective taxation of intra-EU flows of dividends, interest and royalty payments, can also provide conduits for these flows to leave the EU untaxed for low-tax third jurisdictions, thus imposing significant losses in tax collection for Member States; invites the Commission to monitor the such developments and to publish its recommendations and observations in an annual report;
Amendment 176 #
Motion for a resolution Paragraph 9 a (new) 9a. Emphasises that tax incentives should aim to attract real investments, meaning tangible assets and employment; notes with concern that a significant amount of government funding is already being lost through ineffective tax exemptions, deductions, credits, deferrals and reduced tax rates; urges Member States to carefully design tax incentives so that the benefits to society outweigh the costs for public coffers; calls on Member States to perform annual, detailed and public cost-benefit analyses of each tax provision;
Amendment 177 #
Motion for a resolution Paragraph 9 b (new) 9b. Calls for the phasing out of tax exemptions and subsidies for fossil fuels no later than 2025;
Amendment 178 #
Motion for a resolution Paragraph 10 Amendment 179 #
Motion for a resolution Paragraph 10 10. Calls on the
Amendment 18 #
Motion for a resolution Citation 28 a (new) – having regard to the statement of the Organisation for Economic Cooperation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) entitled ‘Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy’, which had been joined and agreed to by 137 out of 141 members as of 4 November 2021
Amendment 180 #
Motion for a resolution Paragraph 10 10. Calls on the Member States to consider engag
Amendment 181 #
Motion for a resolution Paragraph 10 10.
Amendment 182 #
Motion for a resolution Paragraph 10 10. Calls on the Member States to engage in policies of full expensing for capital investments, in particular for R&D investment, and to make capital allowance provisions permanent in order to improve real investments and to assist Europe’s competitiveness;
Amendment 183 #
Motion for a resolution Paragraph 11 11. Calls on the Member States, in the light of high inflation rates, to
Amendment 184 #
Motion for a resolution Paragraph 11 11. Calls on the Member States, in the light of high inflation rates, to use the additional revenues
Amendment 185 #
Motion for a resolution Paragraph 11 11. Calls on the Member States, in the light of high inflation rates, to use the additional revenues based on higher energy prices directly to
Amendment 186 #
Motion for a resolution Paragraph 11 11. Calls on the Member States, in the light of high inflation rates, to use the additional revenues based on higher energy prices directly to relieve the burden on
Amendment 187 #
Motion for a resolution Paragraph 11 a (new) 11a. Recalls that secrecy around corporate taxation plays an enabling role in corporate tax avoidance; Notes that the national transposition of EU Directive 2021/2101 is ongoing, but only introducing a limited form of public country by country reporting; Regrets that the scope of that EU directive will not require large multinational corporations to publish information on a country by country basis for the vast majority of countries worldwide undermining the effectiveness and value of the measure;
Amendment 188 #
11a. Recalls that the solidarity contribution of the Union was designed as an appropriate mean to tackle surplus profits in the energy sector, in the event of unforeseen circumstances; requests that an automatic contribution on profits which do not correspond to any regular profits that Union companies or permanent establishments in the Union could have expected in the absence of a major unpredictable event affecting the EU as a whole should be levied according to similar design features;
Amendment 189 #
Motion for a resolution Paragraph 11 a (new) 11a. Welcomes the adopted solidarity contribution in the EU; regrets, however, its limited scope and short time span; calls on the Commission to consider a permanent excess profit tax on all sectors, in light of the growing evidence that inflation is partly profit driven; believes that such taxes would curb the oligopolistic power of certain companies and boost competitiveness, while fighting inflation and raising revenue;
Amendment 19 #
Motion for a resolution Citation 29 a (new) Amendment 190 #
Motion for a resolution Paragraph 11 b (new) 11b. Condemns the fact that the Commission has proactively approached Member States with an information letter on gold plating without informing the European Parliament; Reminds that the Directive sets a minimum standard that Member States are free to improve and that the Commission has no political mandate to influence the Member States on that issue;
Amendment 191 #
Motion for a resolution Subheading 2 Amendment 192 #
Motion for a resolution Paragraph 12 12.
Amendment 193 #
Motion for a resolution Paragraph 12 12.
Amendment 194 #
Motion for a resolution Paragraph 12 12.
Amendment 195 #
Motion for a resolution Paragraph 12 12.
Amendment 196 #
Motion for a resolution Paragraph 12 12.
Amendment 197 #
Motion for a resolution Paragraph 12 12. Takes note of the two-pillar solution reached at the OECD/G20 Inclusive Framework on the allocation of taxing rights and the application of a minimum effective tax rate of 15 % on the global profits of MNEs;
Amendment 198 #
Motion for a resolution Paragraph 12 12. Takes note of the two-pillar solution reached at the OECD/G20 Inclusive Framework on the allocation of taxing rights and the application of a minimum effective tax rate of 15 % on the global profits of MNEs; points out that tax avoidance by multinationals is one of the biggest problems facing Member States' tax policies, adversely affecting their revenues, the fairness of the tax system and the competitiveness of the European economy;
Amendment 199 #
12. Takes note of the two-pillar solution reached at the OECD/G20 Inclusive Framework on the allocation of taxing rights and the application of a minimum effective tax rate of 15 % on the global profits of MNEs; calls on the Commission to report back to Parliament on the success of the ratification process of the pillar 2 agreement in non-EU countries;
Amendment 2 #
Motion for a resolution Citation 10 a (new) – having regard to the Commission communication of 22 December 2021 entitled ‘The Commission proposes the next generation of EU own resources’14b _________________ 14b https://ec.europa.eu/commission/presscor ner/detail/en/ip_21_7025
Amendment 20 #
Motion for a resolution Citation 29 a (new) – having regard to the EU Tax Observatory study of October 2021 entitled ‘Revenue effects of the global minimum tax: country-by-country estimates’20a; _________________ 20a https://www.taxobservatory.eu/wp- content/uploads/2021/10/Note-2- November-2021-1.pdf
Amendment 200 #
Motion for a resolution Paragraph 12 a (new) 12a. Notes that the Member States should not wait to strike an ambitious agreement with tax havens to move forward; calls on the Member States, therefore, to introduce and collect the tax deficit of multinationals: the difference between what a corporation pays in taxes globally and what it would have to pay if all of its profits were subject to a minimum tax rate in each of the countries in which it operates; underlines that such a solution could encourage other states to follow this move and progressively lead to an ambitious global solution;
Amendment 201 #
12a. Takes note that Member States reached an agreement in principle on 12 December 2022 to implement at EU level the minimum taxation component, known as Pillar 2; takes note, in this regard, of its position of 19 May 2022 on minimum level of taxation for multinational groups; urges the Commission to present a legislative proposal on a definition of a maximum rate on the global profits of MNEs mirroring the pillar 2 agreement on a minimum rate;
Amendment 202 #
Motion for a resolution Paragraph 13 13.
Amendment 203 #
Motion for a resolution Paragraph 13 13. Observes that
Amendment 204 #
Motion for a resolution Paragraph 13 13.
Amendment 205 #
Motion for a resolution Paragraph 13 13. Observes that, in addition to coping
Amendment 206 #
Motion for a resolution Paragraph 13 13. Observes that, in addition to coping with a volatile business environment and an increasing number of EU tax directives, companies are focusing their financial and human resources on applying the Pillar Two rules; calls on the Commission to
Amendment 207 #
Motion for a resolution Paragraph 13 13. Observes that, in addition to coping with a volatile business environment and an increasing number of EU tax directives, companies are focusing their financial and human resources on applying the Pillar
Amendment 208 #
Motion for a resolution Paragraph 13 13. Observes that, in addition to coping with a volatile business environment and an increasing number of EU tax directives, companies are focusing their financial and human resources on applying the Pillar Two rules;
Amendment 209 #
Motion for a resolution Paragraph 13 13. Observes that, in addition to coping with a volatile business environment and an increasing number of EU tax directives, companies are focusing their financial and human resources on applying the Pillar
Amendment 21 #
Motion for a resolution Citation 32 a (new) – having regard to the Commission Proposal of 16 June 2023 for a Council Directive on Faster and Safer Relief of Excess Withholding Taxes1a; _________________ 1a COM(2023) 324 final
Amendment 210 #
Motion for a resolution Paragraph 13 a (new) 13a. Understands the OECD agreement as a package that must be in force simultaneously; takes note of the delay on the adoption of the Pillar One proposal by the Commission ; believes that Pillar Two must be in force once the future Pillar One proposal is approved; takes duly note of the international scenario on the transposition of Pillar One and Pillar Two.
Amendment 211 #
Motion for a resolution Paragraph 13 a (new) 13a. Recalls the Commission to issue its announced initiative on the annual publication of the effective corporate tax rate of certain large companies with operations in the EU, using the methodology agreed for the Pillar Two calculations, as foreseen in its communication “Business Taxation for the 21st Century”;
Amendment 212 #
Motion for a resolution Paragraph 13 a (new) 13a. Reiterates that the Commission should submit a legislative proposal for a digital levy or a similar measure in the event of a lack of progress on the implementation of the Organisation for Economic Cooperation and Development/G20 Inclusive Framework Pillar 1 Agreement until the end of 2023;
Amendment 213 #
Motion for a resolution Paragraph 13 a (new) 13a. Calls for the introduction of Pillar Two in the criteria used for assessing third countries in the EU listing of non- cooperative jurisdictions; considers that the EU listing process needs to be reformed, including its formalisation in EU law, notably via a binding instrument;
Amendment 214 #
Motion for a resolution Paragraph 13 b (new) 13b. Notes that since 1997 the Code of Conduct for Business Taxation has been the Union’s primary instrument to prevent harmful tax competition for companies; stresses that there need to be common principles on the extent to which Member States can use their tax regimes and policies to attract businesses and profits to end a "beggar thy neighbour" policies within the Single market;
Amendment 215 #
Motion for a resolution Paragraph 13 b (new) 13b. Stresses the need for further strengthening of global tax cooperation on corporate tax matters; calls for the EU to support the setting up of a UN framework convention on tax, which includes further measures to combat corporate tax avoidance and related illicit financial flows;
Amendment 216 #
Motion for a resolution Paragraph 13 b (new) 13b. Regrets that the shipping industry is under-taxed and even excluded from the OECD/G20 Pillar Two agreement; supports the call for a multilateral initiative to tax international shipping activities from a profit and carbon perspective;
Amendment 217 #
Motion for a resolution Paragraph 13 c (new) 13c. Calls on the Commission to evaluate the effectiveness of patent boxes and other intellectual property (IP) regimes under the new nexus approach defined by Action 5 of the BEPS Action Plan on harmful tax practices, including the impact on revenue losses; calls on the Commission to come forward with proposals in the event that the evaluation establishes an absence of impact of IP regimes on real economic activity;
Amendment 218 #
Motion for a resolution Paragraph 13 d (new) Amendment 219 #
Motion for a resolution Paragraph 13 e (new) 13e. Recalls that the European Union is required to establish new own resources in order to repay the financing to NextGeneration EU; welcomes that a contribution from the corporate sector, most notably through Pillar One, has been proposed by the European Commission; stresses that, if the implementation of Pillar One is delayed beyond the current mandate, the Commission must put forward alternative proposals to fulfil this purpose, for instance, a single market levy or a digital levy that would restore fair competition between physical stores and e-commerce; welcomes the proposal of the Commission to create a temporary contribution from the corporate sector, to be replaced by a possible contribution via BEFIT;
Amendment 22 #
Motion for a resolution Recital A A. whereas
Amendment 220 #
Motion for a resolution Subheading 3 Towards a simplified corporate tax regime that addresses tax avoidance and tax competition
Amendment 221 #
Motion for a resolution Subheading 3 Towards a more harmonized and simplified corporate tax regime
Amendment 222 #
Motion for a resolution Subheading 3 Towards a simplified corporate tax regime (BEFIT)
Amendment 223 #
14. Calls on the Commission to guide all the Member States towards a simplified tax system to
Amendment 224 #
Motion for a resolution Paragraph 14 14.
Amendment 225 #
Motion for a resolution Paragraph 14 14. Calls on the Commission
Amendment 226 #
Motion for a resolution Paragraph 14 14. Calls on the Commission to
Amendment 227 #
Motion for a resolution Paragraph 14 14. Calls on the Commission to
Amendment 228 #
Motion for a resolution Paragraph 14 14. Highlights that the fragmentation of national tax policies can have a distortive effect on the EU single market and be harmful for the EU economy, particularly for SMEs, as they have to cope with up to 27 different tax systems ; Calls on the Commission to guide all the Member States towards a simplified and more harmonized tax system to reduce the administrative burden for companies, especially SMEs; acknowledges that simplifying refund procedures, deductions and litigation are other solutions to reduce the administrative burden, especially for SMEs;
Amendment 229 #
Motion for a resolution Paragraph 14 14. Calls on the Commission to guide all the Member States towards a simplified tax system to reduce the administrative burden for companies, especially SMEs; acknowledges that simplifying refund procedures, deductions and litigation are other solutions to reduce the administrative burden, especially for SMEs; notes that abrogating most of the tax credits and other tax loopholes will simplify the rules and makes the competition between SMEs and MNEs fairer;
Amendment 23 #
Motion for a resolution Recital A A. whereas Member States are free to decide on their own economic policies, in particular their own tax policies
Amendment 230 #
Motion for a resolution Paragraph 14 14. Calls on the Commission to guide all the Member States towards a simplified, effective and competitive tax system to reduce the administrative burden for companies, especially SMEs; acknowledges that simplifying refund procedures, deductions and litigation are other solutions to reduce the administrative burden, especially for SMEs;
Amendment 231 #
Motion for a resolution Paragraph 14 a (new) 14a. Welcomes that the EU has developed peer review procedures within the Code of Conduct Group for business taxation; underlines that in this framework Member States re-examine, amend or abolish their existing tax measures that constitute harmful tax competition, as well as refrain from introducing new ones in the future; welcomes in this regard the 2022 Council agreement to broaden the scope of the tax measures under scrutiny when examining harmful tax practices within the EU;
Amendment 232 #
Motion for a resolution Paragraph 14 a (new) 14a. Notes that research underlines that only the more complex MNEs shift profits away, while MNEs with flat ownership structures do not display such pattern 1a; calls on the Council to come to an agreement on the UNSHELL proposal without further delay; supports and encourages the up-take of voluntary tax transparency frameworks such as GRI 207 and voluntary tax codes of conduct for businesses by large companies; _________________ 1a https://www.taxobservatory.eu/publication /tax-avoidance-and-the-complexity-of- multinational-enterprises/
Amendment 233 #
Motion for a resolution Paragraph 15 15. Recalls that simplifying the complexity of the legal framework
Amendment 234 #
Motion for a resolution Paragraph 15 15. Recalls that simplifying the complexity of the legal framework for corporate tax systems helps to attract foreign direct investment
Amendment 235 #
Motion for a resolution Paragraph 15 15. Recalls that
Amendment 236 #
Motion for a resolution Paragraph 15 15. Recalls that simplifying the complexity of the legal framework for corporate tax systems helps to attract foreign direct investment and reduces the risk of companies relocating to non-EU countries; draws attention to the need for the EU to remain fiscally competitive and to meet the challenges posed by innovative solutions being adopted outside the EU, most notably in the US;
Amendment 237 #
Motion for a resolution Paragraph 15 a (new) Amendment 238 #
Motion for a resolution Paragraph 16 16.
Amendment 239 #
Motion for a resolution Paragraph 16 16.
Amendment 24 #
Motion for a resolution Recital A A. whereas Member States are free to decide on their own economic policies, in particular their own tax policies within the boundaries of the EU Treaties; whereas, although tax policy largely remains a responsibility of the Member States, the single market requires coordination in setting tax policy in order to further single market integration; whereas Member States should be entitled to implement countermeasures that would defend their tax base, such as: a) non-deductibility of costs; b) withholding tax measures; c) limitation of participation exemption; d) special documentation requirements, especially regarding transfer pricing ;
Amendment 240 #
Motion for a resolution Paragraph 16 16.
Amendment 241 #
Motion for a resolution Paragraph 16 16. Welcomes the Commission’s plan to work on a BEFIT proposal, expected in the third quarter of 2023, with a view to designing a new and single EU corporate
Amendment 242 #
Motion for a resolution Paragraph 16 16. Welcomes the Commission’s plan to work on a BEFIT proposal, expected in the third quarter of 2023, with a view to designing a new and single EU corporate tax rulebook, based on a fair, comprehensive and effective formulary apportionment and a common tax base of income taxation for businesses, which will provide clarity and predictability for companies; further welcomes the fact that the Commission considers the potential introduction of a new own resource based on BEFIT framework once adopted, in accordance with the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources (IIA)1a; _________________ 1a OJ L 433 I, 22.12.2020, p. 28.
Amendment 243 #
Motion for a resolution Paragraph 16 16. Welcomes the Commission’s plan to work on a BEFIT proposal, expected in the third quarter of 2023, with a view to designing a new and single EU corporate tax rulebook, based on a fair, comprehensive and effective formulary apportionment and a common tax base of income taxation for businesses, which will provide clarity and predictability for companies; Notes that this proposal should provide more tax revenues for Member States, by targeting MNEs which currently use the differences in the EU tax systems to artificially pay less tax than they should; Calls on the Commission to ensure a BEFIT proposal addresses tax competition and tax avoidance, and to avoid introducing additional avenues for multinational corporations to reduce their tax payments, such as EU-wide corporate tax incentives, in addition to simplifying corporate tax rules in the EU;
Amendment 244 #
Motion for a resolution Paragraph 16 16. Welcomes the Commission’s plan to work on a BEFIT proposal, expected in the third quarter of 2023, with a view to designing a new and single EU corporate tax rulebook, based on a fair,
Amendment 245 #
Motion for a resolution Paragraph 16 16. Underlines the Commission’s Communication on Business taxation for the 21st century stating that “the lack of a common corporate tax system in the Single Market acts as a drag on competitiveness (...) and that it creates a competitive disadvantage compared to third country markets”; Welcomes the Commission’s plan to work on a BEFIT proposal, expected in the third quarter of 2023, with a view to designing a new and single EU corporate tax rulebook, based on a fair, comprehensive and effective formulary apportionment and a common tax base of income taxation for businesses, which will provide clarity and predictability for companies;
Amendment 246 #
Motion for a resolution Paragraph 16 16. Welcomes the Commission’s plan to work on a BEFIT proposal, expected in the third quarter of 2023, with a view to designing a new and single EU corporate tax rulebook, based on a fair, comprehensive and effective formulary apportionment and a common tax base of income taxation for businesses, which will provide clarity and predictability for companies and will facilitate cross-border economic activity;
Amendment 247 #
Motion for a resolution Paragraph 16 a (new) 16a. Considers that fixing loopholes that allow for tax evasion, avoidance and fraud should be a priority for legislative initiatives in the realm of taxation; notes that the corporate tax framework can also be improved in this regard; urges, therefore, the Commission to introduce strong safeguards against tax evasion, avoidance and fraud in BEFIT; stresses that such tax schemes undermine the law, the sustainability of public finances, and the sovereignty of Member States;
Amendment 248 #
Motion for a resolution Paragraph 17 17. Reiterates its consideration that the BEFIT initiative
Amendment 249 #
Motion for a resolution Paragraph 17 17. Reiterates its consideration that the BEFIT initiative should be supported by the political process in building political support for change, including consideration of next steps in the absence of such political support, and that the initiative
Amendment 25 #
A. whereas Member States are free to decide on their own economic policies, in particular their own tax policies within the boundaries of the EU Treaties; whereas, although tax policy largely remains a responsibility of the Member States, the single market and free circulation of capital requires coordination in setting tax policy in order to further single market integration and to avoid harmful tax competition which often leads to a race to the bottom;
Amendment 250 #
Motion for a resolution Paragraph 17 17. Reiterates its consideration that the BEFIT initiative should be supported by
Amendment 251 #
Motion for a resolution Paragraph 18 18. Takes note of the BEFIT objectives, as addressed in the Commission’s call for evidence for an impact assessment, to increase businesses’ resilience by reducing the complexity of tax rules and the compliance costs faced by EU businesses with cross-border operations, to remove obstacles to cross- border investment and make the single market a more attractive location for international investment, to create an environment conducive to fair and sustainable growth by paving the way for administrative simplification, and to provide sustainable tax revenue, which is particularly important
Amendment 252 #
Motion for a resolution Paragraph 18 18. Takes note of the BEFIT objectives, as addressed in the Commission’s call for evidence for an impact assessment, to increase businesses’ resilience by reducing the complexity
Amendment 253 #
Motion for a resolution Paragraph 18 18.
Amendment 254 #
Motion for a resolution Paragraph 18 18. Takes note of the BEFIT objectives, as addressed in the Commission’s call for evidence for an impact assessment, to increase businesses’ resilience by reducing the complexity of tax rules and the compliance costs faced by EU businesses with cross-border operations, to remove obstacles to cross- border investment and make the single market a more attractive location for international investment, to create an environment conducive to fair and sustainable growth by paving the way for administrative simplification, and to provide sustainable tax revenue, which is particularly important in the current challenging economic climate; Notes with concern that the Commission in this call for evidence does not state an aim of addressing tax competition and corporate tax avoidance; Calls on the Commission to ensure these aims have primacy within the forthcoming proposal; Calls on the Commission to exclude tax incentives, such as notional interest deductions or elements of the DEBRA proposal from BEFIT;
Amendment 255 #
Motion for a resolution Paragraph 18 18. Takes note of the BEFIT objectives, as addressed in the Commission’s call for evidence for an impact assessment, to increase businesses’ resilience by reducing the complexity of tax rules and the compliance costs faced by EU businesses with cross-border operations, to remove obstacles to cross- border investment and make the single market a more attractive location for international investment, to create an environment conducive to fair and sustainable growth by paving the way for administrative simplification, and to provide sustainable tax revenue, which is particularly important in the current challenging economic climate; emphasises that the implementation of a single tax rulebook would help reduce the scope for harmful tax competition between Member States while decreasing compliance costs, in particular for cross-border economic operations;
Amendment 256 #
Motion for a resolution Paragraph 18 18. Takes note of the intended BEFIT objectives, as addressed in the Commission’s call for evidence for an impact assessment, to increase businesses’ resilience by reducing the complexity of
Amendment 257 #
Motion for a resolution Paragraph 18 a (new) 18a. Highlights that the European Parliament adopted a common position on the Common Consolidated Corporate Tax Base Directive in 2018; regrets that the Council could not find a common position; notes that Pillar 1 of the OECD inclusive framework features a form of unitary taxation as well; reiterates the opportunities of formulary apportionment to come to simplified and robust corporate tax system; calls upon Member States to urgently adopt any future Commission proposal on formulary apportionment to the benefit of corporates and EU citizens;
Amendment 258 #
18a. Considers that all very large firms operating in the EU should be in the scope of the future BEFIT proposal; welcomes, nonetheless, any proposal allowing smaller firms to rely on a simplified and harmonised corporate taxation framework; considers essential to ensure all sectors are covered by the future BEFIT reform, including the financial sector;
Amendment 259 #
Motion for a resolution Paragraph 18 b (new) 18b. Recalls that multinational entities frequently abuse transfer pricing rules to reduce taxable profits; recognises and acknowledges the efforts of the OECD to address shortcomings in global transfer pricing rules; however regrets that transfer pricing abuse remains a common practise also for payments to entities outside the European Union; notes that such abuse greatly impacts tax income in many EU Member States; calls upon the Commission and Code of Conduct Group to urgently adress such issues with third countries and make use of its full tool box to fight abuse of transfer pricing;
Amendment 26 #
Motion for a resolution Recital A A. whereas Member States are free to decide on their own economic policies, in particular their own tax policies within the boundaries of the EU Treaties; whereas a well-functioning tax system is in the interest of Member States in order to ensure proper tax collection; whereas, although tax policy largely remains a responsibility of the Member States, the single market requires coordination in setting tax policy in order to further single market integration;
Amendment 260 #
Motion for a resolution Paragraph 18 b (new) 18b. Suggests that any adjustments to financial statements should be aligned with Pillar Two and must not leave possibilities for further unilateral adjustments, at the risk of losing the benefits of tax base harmonisation;
Amendment 261 #
Motion for a resolution Paragraph 18 c (new) 18c. Recalls the long standing demand of the Parliament to establish an allocation formula based on three criteria: (i) tangible assets (ii) labour (equally shared between personnel and salaries); (iii) sales by destination;
Amendment 262 #
Motion for a resolution Paragraph 18 d (new) 18d. Recalls that intangibles assets have the particularity of being highly mobile; considers that any future allocation formula must refrain from including intangible assets, in order not to incentivise rent-seeking business models;
Amendment 263 #
Motion for a resolution Paragraph 18 e (new) 18e. Highlights that harmonising the EU rules on corporate income taxation would not solve the complexities and vulnerabilities for base erosion related to transfer prices involving third countries; demands the Commission to propose an alternative methodology to transfer pricing, in order to limit its exploitation for base erosion and profit shifting, including the usage of formulary apportionment;
Amendment 264 #
Motion for a resolution Paragraph 18 f (new) 18f. Highlight the prominent role of tax administrations in ensuring the implementation of a future BEFIT reform; advises that sufficient means, including training, is allocated by Member States and through the future FISCALIS program;
Amendment 265 #
Motion for a resolution Paragraph 19 19. Highlights the idea of a one-stop- shop allowing for the filing of one consolidated tax return; calls
Amendment 266 #
Motion for a resolution Paragraph 19 19.
Amendment 267 #
Motion for a resolution Paragraph 19 19.
Amendment 268 #
Motion for a resolution Paragraph 19 19. Notes that companies doing business across the Union have to deal with different tax laws and tax authorities; Highlights the idea of a one- stop-
Amendment 269 #
Motion for a resolution Paragraph 20 20. Takes note of the Commission proposal of 11 May 2022 addressing the debt-equity bias;
Amendment 27 #
Motion for a resolution Recital A A. whereas Member States are free to decide on their own economic policies, in particular their own tax policies within the boundaries of the EU Treaties; whereas, although tax policy largely remains a responsibility of the Member States, the single market requires coordination in setting tax policy in order to further single market integration; whereas their tax policies should not deprive other member states tax resources;
Amendment 270 #
Motion for a resolution Paragraph 20 20. Takes note of the
Amendment 271 #
Motion for a resolution Paragraph 20 20.
Amendment 272 #
Motion for a resolution Paragraph 20 20.
Amendment 273 #
Motion for a resolution Paragraph 20 20.
Amendment 274 #
Motion for a resolution Paragraph 20 20. Takes note of the Commission proposal of 11 May 2022 addressing the debt-equity bias
Amendment 275 #
Motion for a resolution Paragraph 20 20. Takes note of the Commission proposal of 11 May 2022 addressing the debt-equity bias;
Amendment 276 #
Motion for a resolution Paragraph 20 20. Takes note of the Commission proposal of 11 May 2022 addressing the debt-equity bias; deplores the Council decision of 6 December 2022 to suspend the examination of the proposal; calls on the Council to relaunch negotiations on this proposal, with a view to incentivise equity financing rather than disincentivising debt financing, while maintaining Member State ownership in taxation issues;
Amendment 277 #
Motion for a resolution Paragraph 20 20. Takes note of the Commission proposal of 11 May 2022 addressing the debt-equity bias; deplores the Council decision of 6 December 2022 to suspend the examination of the proposal; calls on the Council to relaunch negotiations on this proposal and adopt the Commission’s proposal with amendments as soon as possible ;
Amendment 278 #
Motion for a resolution Paragraph 20 a (new) Amendment 279 #
Motion for a resolution Paragraph 20 a (new) Amendment 28 #
Motion for a resolution Recital A A. whereas Member States are free to decide on their own economic policies, in particular their own tax policies within the boundaries of the EU Treaties; whereas, although tax policy largely remains a responsibility of the Member States, the single market requires coordination and cooperation in setting tax policy in order to further single market integration and to avoid economic distortions;
Amendment 280 #
Motion for a resolution Paragraph 20 b (new) Amendment 281 #
Motion for a resolution Paragraph 20 c (new) 20c. Pertains that international pressure can lead to reform and notes the Netherlands as an example of such reform, nonetheless takes the view that the aggressive tax planning in the EU is still being facilitated by the Member States that the European Parliament has classified as tax havens in the past, being in particular the Netherlands, Ireland, Luxemburg, Malta and Cyprus;
Amendment 282 #
Motion for a resolution Paragraph 21 21. Highlights that
Amendment 283 #
Motion for a resolution Paragraph 21 21.
Amendment 284 #
Motion for a resolution Paragraph 21 21. Highlights that targeted tax incentives applied in a fiscally responsible manner for private research and development
Amendment 285 #
Motion for a resolution Paragraph 21 21. Highlights that tax incentives applied in a fiscally responsible manner for private research and development (e.g. via tax credits, enhanced allowances or adjusted depreciation schedules) can help lift an economy’s overall spending towards research and development, which often comes with positive externalities; recalls that corporate spending on research and development was equal to 1.5 % of EU GDP in 2020, compared to 2.6 % in the US and Japan, according to the European Investment Bank’s 2022/2023 investment report;
Amendment 286 #
Motion for a resolution Paragraph 21 21. Highlights that tax incentives
Amendment 287 #
Motion for a resolution Paragraph 21 21. Highlights that tax incentives applied in a fiscally responsible manner for private research and development (e.g. via tax credits, enhanced allowances or adjusted depreciation schedules) can help lift an economy’s overall spending towards research and development, which often comes with positive externalities; recalls that corporate spending on research and development was equal to 1.5 % of EU GDP in 2020, compared to 2.6 % in the US and Japan, according to the European Investment Bank’s 2022/2023 investment report; welcomes in this regard the Commission communication of 16 of March 2023 encouraging Member States to provide general tax-based incentives for research and innovation activities; calls on the Commission to present an assessment of tax incentives for private research and development;
Amendment 288 #
Motion for a resolution Paragraph 21 21. Highlights that tax incentives applied in a fiscally responsible manner for private research and development (e.g. via tax credits, enhanced allowances or adjusted depreciation schedules) can help lift an economy’s overall spending towards research and development, which often comes with positive externalities; recalls that corporate spending on research and development was equal to only 1.5 % of EU GDP in 2020, compared to 2.6 % in the US and Japan, according to the European Investment Bank’s 2022/2023 investment report; notes that this shortfall could reduce the EU's long-term competitiveness; calls on the Commission to present an assessment of tax incentives for private research and development;
Amendment 289 #
Motion for a resolution Paragraph 21 a (new) 21a. Warns for an increase in the international subsidy competition; recalls the letter of Commissioner Vestager on 13 January 2023 showing that France and Germany accounted for over 77% of approved subsidies; calls upon the Commission to strengthen the state aid framework for tax credits and subsidies to prevent international subsidy competition which may benefit the larger and wealthier Member States and thereby negatively impact the level playing field in the single market; asks the Commission to monitor international subsidy developments and report the results to the European Parliament;
Amendment 29 #
Motion for a resolution Recital A A. whereas Member States are free to decide on their own economic policies, in particular their own tax policies within the boundaries of the EU Treaties, especially the rule of unaninimity thereof; whereas, although tax policy largely remains a responsibility of the Member States, the single market requires coordination in setting tax policy in order to further single market integration;
Amendment 290 #
Motion for a resolution Paragraph 21 a (new) 21a. Calls on the Commission to conduct an impact assessment on the use of new technologies to improve the speed, efficiency, reliability, transparency and resilience of tax-related administrative procedures; understands that the Commission may follow-up such impact assessment with a proposal to enhance cooperation between tax authorities, taking advantage of good practices identified, leading to a business-friendly environment, with less bureaucracy, compliance costs and administrative overburden.
Amendment 291 #
Motion for a resolution Paragraph 21 a (new) Amendment 292 #
Motion for a resolution Paragraph 21 b (new) 21b. Recalls the Commission to come forward with a proposal based on article 116 TFEU to tackle harmful tax practices distorting competition in the single market;
Amendment 3 #
– having regard to the Commission communication of 20 June 2023 entitled ‘EU budget: Commission puts forward an adjusted package for the next generation of own resources'15a _________________ 15a https://ec.europa.eu/commission/presscor ner/detail/en/ip_23_3328
Amendment 30 #
Motion for a resolution Recital A a (new) Aa. whereas unanimity, as it appears in the Treaties, must be counterbalanced by a very high level of responsibility from Member States and must be in line with the principle of sincere cooperation based on Article 4(3) TEU; whereas national vetoes in tax matters have been abused by certain Member States to achieve concessions in other policy areas; whereas unanimity voting in the Council over tax policy, and corporate tax in particular, has often lead to delays and lack of progress in the harmonisation and coordination of tax rules across the Union that would be to the benefit of all; whereas the procedure laid down in Article 116 TFEU can be applied without altering the distribution of competences between the Union and the Member States;
Amendment 31 #
Motion for a resolution Recital A a (new) Aa. whereas tax policy is a national competence under the treaties and tax sovereignty is a fundamental priciple of the EU legal order; whereas this primary law framework allows a high level of legislative coordination and administrative cooperation among EU Member States; whereas such coordination and cooperation is required in order to preserve the integrity of the Single Market and a loyal, fair and transparent tax competition;
Amendment 32 #
Motion for a resolution Recital A a (new) Aa. whereas the notion of a fair and efficient tax system does not necessarily imply a higher overall level of taxation;
Amendment 33 #
Motion for a resolution Recital B Amendment 34 #
Motion for a resolution Recital B B. whereas some European companies are
Amendment 35 #
Motion for a resolution Recital B B. whereas, owing to crises unforeseen by European decision-makers, such as the COVID-19 pandemic or the Russian aggression in Ukraine and to the high cost of the European Green Deal, European companies are battling strong headwinds as a result of the current adverse economic and social situations;
Amendment 36 #
Motion for a resolution Recital B B. whereas European citizens, the most vulnerable in particular, and some companies are battling strong headwinds as a result of the current adverse economic and social situations; whereas other companies, particularly MNEs, have increased their profits;
Amendment 37 #
Motion for a resolution Recital B B. whereas some European companies are battling strong headwinds as a result of the current adverse economic and social situations when some MNEs are making windfall profits;
Amendment 38 #
Motion for a resolution Recital B B. whereas a number of European companies are
Amendment 39 #
Motion for a resolution Recital B a (new) Ba. whereas windfall profits are not restricted to the energy sector; whereas some multinational companies such as CMA-CGM (maritime transport), the Louis Dreyfus Company (agricultural goods), BNP-Paribas (banking), Apple (technology) and LVMH (luxury goods) made record profits during the crisis; whereas the profits of listed companies are reaching a historic peak and are mostly redistributed as dividends to their shareholders; whereas the dividends of large European companies increased by 28.7 % in the second quarter of 2022, when the crisis was surging;
Amendment 4 #
Motion for a resolution Citation 12 a (new) – having regard to Council Regulation (EU) 2022/1854 of 6 October 2022 on an emergency intervention to address high energy prices, which includes the temporary solidarity contribution15b _________________ 15b https://eur-lex.europa.eu/legal- content/EN/ALL/?uri=CELEX%3A32022 R1854
Amendment 40 #
Motion for a resolution Recital B a (new) Ba. Whereas as of the 4 November 2021, 137 out of 141 members of the OECD/G20 Inclusive Framework on BEPS, including all EU Member States, agreed on the reform of the international tax system through a two-pillar solution to address the challenges stemming from the digitalisation of the economy, including placing multilaterally agreed limitations on profit shifting;
Amendment 41 #
Motion for a resolution Recital B a (new) Ba. whereas ExxonMobil, Shell, BP, Chevron, and TotalEnergies, the world’s biggest fossil fuel companies, reported a total of around $200 billion in profits in 2022, nearly 120% more than the previous year, and the highest level in the industry’s history 1a ; _________________ 1a https://www.ft.com/content/fe60488e- 58bb-4cee-bdbb-c915e2155cd6 , https://www.cnbc.com/2023/02/08/big-oil- rakes-in-record-annual-profit-fueling- calls-for-higher-taxes.html
Amendment 42 #
Motion for a resolution Recital B b (new) Bb. Whereas SMEs currently account for almost all European Union (EU-28) non-financial business sector enterprises (99.8%), two-thirds of total EU-28 employment (66.6%) and slightly less than three-fifths (56.8%) of the value added generated by the nonfinancial business sector according to the Commission’s report on Tax compliance costs for SMEs: An update and a complement of January 2022;
Amendment 43 #
Motion for a resolution Recital B b (new) Amendment 44 #
Motion for a resolution Recital B b (new) Bb. whereas ExxonMobil, Shell, BP, Chevron, and TotalEnergies, the world’s biggest fossil fuel companies, reported a total of around $200 billion in profits in 2022, nearly 120% more than the previous year, and the highest level in the industry’s history1b; _________________ 1b https://www.ft.com/content/fe60488e- 58bb-4cee-bdbb-c915e2155cd6 , https://www.cnbc.com/2023/02/08/big-oil- rakes-in-record-annual-profit-fueling- calls-for-higher-taxes.html
Amendment 45 #
Motion for a resolution Recital B c (new) Amendment 46 #
Motion for a resolution Recital B c (new) Bc. whereas the Council agreed to a temporary solidarity contribution from companies in the crude petroleum, natural gas, coal and refinery sectors, that have earned surplus profits due to the sudden and unpredictable circumstances of Russia’s war of aggression against Ukraine;
Amendment 47 #
Motion for a resolution Recital B d (new) Bd. whereas many environmentally harmful activities, such as the burning of kerosene to power aircraft, bunker fuels burned in ships, air pollution from factories, harmful substances leaking into the air, water and soil from agricultural practices, deforestation, and the depletion of freshwater sources, remain tax free;
Amendment 48 #
Motion for a resolution Recital C C. whereas the BEPS action plan managed to establish a
Amendment 49 #
Motion for a resolution Recital C C. whereas the BEPS action plan managed to establish a
Amendment 5 #
Motion for a resolution Citation 15 a (new) – having regard to Council Regulation 2022/1854 of 6 October 2022 on an emergency intervention to address high energy prices;
Amendment 50 #
C. whereas the BEPS action plan managed to establish a global consensus on
Amendment 51 #
Motion for a resolution Recital C C. whereas the BEPS action plan managed to establish a global consensus on many issues regarding the fight against tax avoidance and aggressive tax planning;
Amendment 52 #
Motion for a resolution Recital C a (new) Amendment 53 #
Motion for a resolution Recital D D. whereas the EU led by example in transposing international agreements into
Amendment 54 #
Motion for a resolution Recital D D. whereas the EU led by example in transposing international agreements into
Amendment 55 #
Motion for a resolution Recital D D. whereas the EU led by example in transposing international agreements into a high number of tax directives improving coordination and the EU’s fight against aggressive tax planning; whereas the EU transposition only stick to the international agreements instead of being more ambitious and leading by example;
Amendment 56 #
Motion for a resolution Recital D D. whereas the EU led by example in transposing international agreements into a high number of tax directives improving coordination and the EU’s fight against tax fraud, tax avoidance and aggressive tax planning;
Amendment 57 #
Motion for a resolution Recital D a (new) Da. Whereas the average statutory corporate tax rate in the European Union has declined significantly during the past several decades, from approximately 35% in 1995 to nearly 21% in 2021; whereas affiliates of large multinational enterprises (MNEs) have on average paid less than 20% of their profits in corporate tax in most member states in 2016 and 2017, whereas in 8 member states, the average effective tax rate (ETR) for affiliates of large MNEs was even estimated to be below 10% for 2016 and 2017, based on country-by-country data;
Amendment 58 #
Motion for a resolution Recital D a (new) Amendment 59 #
Motion for a resolution Recital D b (new) Db. whereas the average headline corporate income tax rate in EU countries has been on a downwards trend in recent decades, from 35 % in 1995 to 21.2% in 2023; whereas the effective tax rate is often well below the headline tax rate;
Amendment 6 #
Motion for a resolution Citation 17 – having regard to the state of the union speech by Commission President Ursula von der Leyen at the European Parliament plenary
Amendment 60 #
Motion for a resolution Recital D c (new) Dc. whereas the Code of Conduct Group on Business Taxation did not manage to fully eradicate unfair tax arrangements offered by some Member States to large companies; whereas the Code of Conduct Group on Business Taxation has failed to reform its mandate, notably in the issue of economic substance;
Amendment 61 #
Motion for a resolution Recital E E. whereas as of
Amendment 62 #
Motion for a resolution Recital E E. whereas as of 16 December 2022, 138
Amendment 63 #
Motion for a resolution Recital E E. whereas as of 16 December 2022, 138
Amendment 64 #
Motion for a resolution Recital E a (new) Ea. whereas the EU Tax Observatory has estimated that the implementation of the OECD/G20 agreement’s Pillar II will lead to an immediate increase of EUR 63.9 billion in tax revenue for the 27 Member States;
Amendment 65 #
Motion for a resolution Recital E b (new) Eb. whereas the inter-institutional agreement establishing NextGeneration EU also refers the need to create new own resources to finance the respective repayments; whereas, in December 2021, the Commission proposed an own resource derived from the companies in- scope for Pillar One of the OECD/G20 agreement; whereas, in June 2023, the Commission proposed an own resource linked to the corporate sector, which is to be replaced by a possible contribution from BEFIT;
Amendment 66 #
Motion for a resolution Recital F F. whereas tax policy fragmentation creates various obstacles for c
Amendment 67 #
Motion for a resolution Recital F F. whereas tax policy fragmentation c
Amendment 68 #
Motion for a resolution Recital F F. whereas tax policy fragmentation creates various obstacles for citizens and companies in the single market, particularly small and medium-sized enterprises (SMEs); whereas these obstacles discourage cross-border economic activity
Amendment 69 #
Motion for a resolution Recital F F. whereas tax policy fragmentation creates various obstacles for citizens and companies in the single market, particularly small and medium-sized enterprises (SMEs); whereas these obstacles discourage cross-border economic activity and can distort the single market; whereas Member States continue to lose tax revenue due to harmful tax practices enabled by loopholes between Member States’ legislation, or between Member States and third countries, and estimates of revenue lost as a result of harmful tax practices range from EUR 36-37 billion to EUR 160-190 billion per year; whereas policy fragmentations might increase the cost of enforcement for tax authorities;
Amendment 7 #
Motion for a resolution Citation 17 a (new) – having regard to the 2023 Commission Country reports in its European Semester;
Amendment 70 #
Motion for a resolution Recital F F. whereas tax policy fragmentation, complexity and inadequate digitalisation creates various obstacles for citizens and companies in the single market, particularly small and medium-sized enterprises (SMEs); whereas these obstacles discourage cross-border economic activity and can distort the single market; whereas overcoming these obstacles requires multilateral cooperation between Member States and the urgent implementation by Member States of digital solutions that simplify and reduce the cost of tax compliance for businesses;
Amendment 71 #
Motion for a resolution Recital F F.
Amendment 72 #
Motion for a resolution Recital F F. whereas tax policy fragmentation creates various obstacles for citizens and companies in the single market, particularly small and medium-sized enterprises (SMEs), workers and self- employed; whereas these obstacles discourage cross-border economic activity and can distort the single market;
Amendment 73 #
Motion for a resolution Recital F a (new) Fa. whereas the solidarity contribution applied to the windfall profits of some companies from the energy sector was an effective European approach to implement a top-up levy on their corporate income tax; whereas this approach was also successful in avoiding any fragmentation resulting from individual action by Member States; whereas some countries have applied similar taxes on windfall profits from other sectors;
Amendment 74 #
Motion for a resolution Recital F a (new) Fa. whereas both the average top statutory corporate income tax rate in EU countries and the effective tax rates on privately owned capital have been on a downwards trend in recent decades while taxes on labour and consumption have increased; whereas taxes as a measure of costs for investment have been declining as well;1a _________________ 1a https://taxation- customs.ec.europa.eu/system/files/2023- 07/ART%20- %20Report%202023_Digital%20Version. pdf
Amendment 75 #
Motion for a resolution Recital F a (new) Fa. whereas within the EU’s Social Market Economy adequate tax levels as well as simple and clear tax laws should not distort economic actors’ decision making; whereas sound tax policies should support the creation of jobs and economic growth and improve the competitiveness of the EU and its Member States;
Amendment 76 #
Motion for a resolution Recital F a (new) Fa. Whereas according to the Commission’s study of January 2022, companies are estimated to spend an annual total amount estimated around EUR 204 billion to comply with obligations related to CIT, VAT, wage related taxes and contributions, property and real estate taxes and local taxes;
Amendment 77 #
Motion for a resolution Recital F a (new) Fa. whereas such tax policy fragmentation must be mitigated with increased coordination and cooperation and with a clear commitment of Member States with the swift and competent transposition of Directives in the area of taxation;
Amendment 78 #
Motion for a resolution Recital F b (new) Fb. Whereas the long-term trends in taxation that have taken place in Member States during the last few decades have weakened the redistributive power of tax systems, which also impacts on gender equality;1a _________________ 1a https://www.europarl.europa.eu/RegData/ etudes/STUD/2017/583138/IPOL_STU(20 17)583138_EN.pdf
Amendment 79 #
Motion for a resolution Recital F b (new) Fb. Whereas the average corporate income tax rate in the EU in 2022 was 21.2% according to the Commission;
Amendment 8 #
Motion for a resolution Citation 17 b (new) – having regards to the intervention of the European Central Bank (ECB) President Christine Lagarde at the Monetary Dialogue in the European Parliament the 5th June 2023;
Amendment 80 #
Motion for a resolution Recital F c (new) Amendment 81 #
Motion for a resolution Recital F d (new) Fd. whereas a well functioning corporate income tax is essential to sustain the progressivity of the overall tax system;
Amendment 82 #
Motion for a resolution Recital G G. whereas
Amendment 83 #
Motion for a resolution Recital G G. whereas
Amendment 84 #
Motion for a resolution Recital G G. whereas
Amendment 85 #
Motion for a resolution Recital G G. whereas
Amendment 86 #
Motion for a resolution Recital G G.
Amendment 87 #
G. whereas the debt-equity bias in corporate taxation allows for generous tax deductions on interest payments; whereas equity financing costs cannot be deducted in a similar manner; whereas this bias sets problematic incentives towards over- indebtedness;
Amendment 88 #
Motion for a resolution Recital G a (new) Ga. Whereas private companies play a fundamental role in society by being the main generators of employment. Through their business activity, these organisations create job opportunities for millions of people, which in turn drives the economic and social development of the communities in which they operate. By fostering competition and innovation, private enterprises promote efficiency in the allocation of resources, resulting in increased productivity and economic growth. Whereas, by generating employment, these enterprises provide people with the possibility of earning an income, improving their quality of life and meeting their basic needs. Private business activity also generates tax revenues for the state, which can be used to finance essential public services. Private enterprises, as the main generators of employment, play an essential role in the economic and social development of societies, promoting progress and improving people's quality of life;
Amendment 89 #
Motion for a resolution Recital G a (new) Ga. whereas corporate income tax represents a higher share of tax revenues and gross domestic product in developing countries than in rich countries; whereas losses due to global corporate taxation in developing countries are estimated to range from 6 to 13 % of total tax revenue, compared with 2 to 3 % in member countries of the Organisation for Economic Co-operation and Development (OECD);1a _________________ 1a United Nations Conference on Trade and Development (UNCTAD) report entitled ‘Tackling Illicit Financial Flows for Sustainable Development in Africa’, 2020, p. 21: https://unctad.org/system/files/official- document/aldcafrica2020_en.pdf.
Amendment 9 #
Motion for a resolution Citation 18 a (new) – having regards to the Commission's annual report on taxaation 2023; 1a _________________ 1a https://taxation- customs.ec.europa.eu/taxation- 1/economic-analysis-taxation/annual- report-taxation_en
Amendment 90 #
Motion for a resolution Recital G a (new) Amendment 91 #
Motion for a resolution Recital G a (new) Ga. whereas many tax incentives are exploited by MNEs to pay less than their fair share; whereas this consequently makes MNEs pay less tax than SMEs and deprives the resources of the member states;
Amendment 92 #
Motion for a resolution Recital G a (new) Ga. whereas to date no comprehensive analytical framework to examine gender implications of corporate taxation exists, one factor causing this research gap is the lack of data;1a _________________ 1a https://www.europarl.europa.eu/RegData/ etudes/STUD/2017/583138/IPOL_STU(20 17)583138_EN.pdf
Amendment 93 #
Motion for a resolution Recital G b (new) Gb. whereas corporate income tax represents a higher share of tax revenues and gross domestic product in developing countries than in rich countries; whereas losses in developing countries due to global corporate taxation avoidance are estimated to range from 6 to 13 % of total tax revenue, compared with 2 to 3 % in member countries of the Organisation for Economic Co-operation and Development (OECD)1e; _________________ 1e United Nations Conference on Trade and Development (UNCTAD) report entitled ‘Tackling Illicit Financial Flows for Sustainable Development in Africa’, 2020, p. 21: https://unctad.org/system/files/official- document/aldcafrica2020_en.pdf
Amendment 94 #
Motion for a resolution Recital G b (new) Gb. Whereas the proposal for the Retail Investor Strategy was published by the European Commission on 24 May. Stresses that it is a unique opportunity to protect our SMEs, allowing them to be less dependent on bank credit and to have the capital and investment they need for their projects. Regrets that it has been published at the end of the legislature, putting at risk that it could be adopted this legislature;
Amendment 95 #
Motion for a resolution Recital G b (new) Gb. whereas the Commission legislative impetus on taxation, namely on corporate taxation, must pursue clear priorities linked with administrative simplification, bureaucracy reduction and compliance costs mitigation, namely on what regards SMEs;
Amendment 96 #
Motion for a resolution Recital G b (new) Gb. whereas the European Central Bank acknowledges current inflationary pressure is driven by some companies raising prices in excess of their costs at the expense of consumers and wage earners1a _________________ 1a https://www.ecb.europa.eu/press/key/date/ 2023/html/ecb.sp230605~0aadd43ce7.en. html
Amendment 97 #
Motion for a resolution Recital G c (new) Gc. Whereas InvestEU is a European Union fund that supports sustainable investment, innovation and job creation in Europe with the aim of triggering investments. Regrets the low level of implementation where only five states have applied for the funds and is at 19% mobilisation. Encourages the Commission to make a proposal to speed up the arrival of funds to boost job creation;
Amendment 98 #
Motion for a resolution Recital G c (new) Gc. whereas the share of tax revenues coming from corporate tax has decreased throughout the last decades when on the opposite the share of tax revenues coming from tax impacting mostly modest households like consumption tax has increased;
Amendment 99 #
Motion for a resolution Recital G d (new) Gd. whereas the European Central Bank acknowledges current inflationary pressure is driven by some companies raising prices in excess of their costs at the expense of consumers and wage earners1f; _________________ 1f https://www.ecb.europa.eu/press/key/date/ 2023/html/ecb.sp230605~0aadd43ce7.en. html
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