2022/2146(INI) | [ParlTrack]

Motion for a resolution
Citation 19

~~– having regard to the European Council conclusions of 23 March 2023,~~deleted

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 #

Gilles BOYER, Stéphanie YON-COURTIN, Dragoş PÎSLARU, Olivier CHASTEL, Valérie HAYER, Eva Maria POPTCHEVA

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 ~~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~~although tax policy largely remains a Member State responsibility, the single market requires tax cooperation and harmonization in setting tax policy ;

Amendment 103 #

Niels FUGLSANG, Pedro MARQUES

Motion for a resolution
Paragraph 1

1. Recalls that EU Member States’ cooperationg on corporate taxation is ~~not a goal in itself, but rather a tool to complete, improve and further develop the single market;~~ a tool to complete, improve and further develop the single market aswell as putting an end to the detrimental race to the bottom on corporate tax rates; takes the view that instead of competing by slashing rates, countries should compete by boosting infrastructure spending, investing in access to education, and funding research.

Amendment 104 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

Motion for a resolution
Paragraph 1

1. Recalls that EU Member States' cooperationg on corporate taxation is ~~not a goal in itself, but rather~~ a tool to complete, improve and further develop the single market; notes, in addition, that a common approach on tax policies is crucial to effectively curb tax evasion, avoidance and fraud, particularly by reducing loopholes arising from different national tax provisions;

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 complet~~e, improve and further develop the single market~~ition leading to a race to the bottom and lower public resources;

Amendment 106 #

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~~a key instrument to complete, improve and further develop the single market while stopping harmful tax competition and profit shifting, fighting against tax avoidance and evasion more effectively as well as facilitating revenue mobilisation in period of crisis such as the recently adopted solidarity contribution;

Amendment 107 #

Isabel BENJUMEA BENJUMEA, Luděk NIEDERMAYER, Lídia PEREIRA

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 #

Martin HLAVÁČEK, Gilles BOYER, Olivier CHASTEL, Engin EROGLU, Erik POULSEN, Caroline NAGTEGAAL, Billy KELLEHER, Dragoş PÎSLARU, Stéphanie YON-COURTIN, Ondřej KOVAŘÍK

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 #

Martin HLAVÁČEK, Olivier CHASTEL, Gilles BOYER, Erik POULSEN, Engin EROGLU, Caroline NAGTEGAAL, Billy KELLEHER, Dragoş PÎSLARU, Ondřej KOVAŘÍK, Stéphanie YON-COURTIN

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

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;deleted

Amendment 113 #

Motion for a resolution
Paragraph 2

2. ~~Welcomes the European Council conclus~~Takes note of the Commission communications of 2316 March 2023 ~~calling for the general regulatory environment to be simplified and for the administrative burd~~underlining that the EU tax framework is key in supporting growth and private investment, in particular by removing tax barriers to cross-border investment; Believes that the EU must generally promote harmonised and efficient 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 investmentaxation procedures and reduce legal uncertainty; recommends therefore to lift tax barriers by easing the tax compliance for cross-border businesses, workers and self-employed; warns however against the further decrease of corporate and capital taxation in the EU in light of budgetary pressures, inflation and the urgent need to sustain and even increase revenues, and redistribute more effectively;

Amendment 114 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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 communications 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, and that the EU’s active role on tax policies seeks to address distortions, ensure the good functioning of the Single Market and prevent its fragmentation;

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, ~~and while keeping taxes at levels that support sustainable economic growth;~~

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~~, and while keeping taxes at levels that support sustainable economic growth~~;

Amendment 119 #

Motion for a resolution
Paragraph 3

3. Underlines that it is paramount to fight aggressive profit shifting ~~while promoting fiscal~~and achieve fairness, transparency, gender equality and certainty, and while keeping taxes at levels that support ~~sustainable~~inclusive, societal and economic ~~growth~~welfare;

Amendment 12 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Paul TANG

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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~~; highlights that addressing tax evasion, tax avoidance and aggressive tax planning will provide additional tax revenue that helps national governments to keep taxes at levels that support sustainable economic growth;

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 #

Gilles BOYER, Stéphanie YON-COURTIN, Dragoş PÎSLARU, Olivier CHASTEL, Valérie HAYER

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

Motion for a resolution
Paragraph 3 a (new)

3a. Calls on the Commission to insist on the implementation of recommendations in the context of the European Semester and the assessment of the national recovery and resilience plans regarding aggressive tax planning;

Amendment 124 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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. ~~Takes note of the numerous~~Welcomes the different 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 wi~~while helped reducing the cost of tax compliance, especially for SMEs that operate in more thian ~~the EU~~one Member State 21 ; _________________ 21 See notably the Anti-Tax Avoidance Directives (ATAD I and ATAD II), the amendments of the Directive on administrative cooperation in the field of taxation (DAC 1 to DAC 7), the revision of the Parent Subsidiary Directive, the EU Dispute Settlement Directive, the Public Country-by-Country Reporting Directive, or the Pillar Two Directive.

Amendment 126 #

Motion for a resolution
Paragraph 4

4. ~~Takes note of~~Welcomes 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 ; _________________ 21 See notably the Anti-Tax Avoidance Directives (ATAD I and ATAD II), the amendments of the Directive on administrative cooperation in the field of taxation (DAC 1 to DAC 7), the revision of the Parent Subsidiary Directive, the EU Dispute Settlement Directive, the Public Country-by-Country Reporting Directive, or the Pillar Two Directive.; Deplores that the Council could not find an agreement on harmonising the corporate income tax base for large companies;

Amendment 127 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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~~while stressing that loopholes prevail in the current framework; notes that benefits of said directives should outweigh its costs, and that tax compliance obligations on companies within the EU21 , particularly SMEs, should not be disproportionate; _________________ 21 See notably the Anti-Tax Avoidance Directives (ATAD I and ATAD II), the amendments of the Directive on administrative cooperation in the field of taxation (DAC 1 to DAC 7), the revision of the Parent Subsidiary Directive, the EU Dispute Settlement Directive, the Public Country-by-Country Reporting Directive, or the Pillar Two Directive.

Amendment 128 #

Martin HLAVÁČEK, Olivier CHASTEL, Erik POULSEN, Engin EROGLU, Caroline NAGTEGAAL, Billy KELLEHER

Motion for a resolution
Paragraph 4

4. ~~Takes note of the numerous~~Welcomes different tax directives since 2011 that have led to fairer, simpler and more effective corporate taxation in the EU, ~~and~~but also to a high number of tax compliance obligations on companies within the EU21 ; _________________ 21 See notably the Anti-Tax Avoidance Directives (ATAD I and ATAD II), the amendments of the Directive on administrative cooperation in the field of taxation (DAC 1 to DAC 7), the revision of the Parent Subsidiary Directive, the EU Dispute Settlement Directive, the Public Country-by-Country Reporting Directive, or the Pillar Two Directive.

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 Directives (ATAD I and ATAD II), the amendments of the Directive on administrative cooperation in the field of taxation (DAC 1 to DAC 7), the revision of the Parent Subsidiary Directive, the EU Dispute Settlement Directive, the Public Country-by-Country Reporting Directive, or the Pillar Two Directive. 21a Estimates by Tax Justice Network suggest approximately US$312 billion is lost to cross-border corporate tax abuse by multinational corporations (‘State of Tax Justice 2021’, p6). In the European Union (EU), the annual loss to profit shifting by multinational corporations is conservatively estimated to be €50-70 billion per year (European Parliament Research Service (2015), ‘Bringing transparency, coordination and convergence to corporate tax policies in the European Union. I – Assessment of the magnitude of aggressive corporate tax planning). Losses are even more severe in the Global South, where the problem of corporate tax avoidance is exacerbated by the unfair and antiquated international tax rules and financial architecture (‘State of Tax Justice 2021’, p31).

Amendment 13 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Paul TANG

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 #

Isabel BENJUMEA BENJUMEA, Luděk NIEDERMAYER, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

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 Directives (ATAD I and ATAD II), the amendments of the Directive on administrative cooperation in the field of taxation (DAC 1 to DAC 7), the revision of the Parent Subsidiary Directive, the EU Dispute Settlement Directive, the Public Country-by-Country Reporting Directive, or the Pillar Two Directive.

Amendment 131 #

Motion for a resolution
Paragraph 4

4. TRecognizes EU’s past actions against aggressive profit shifting in line with international developments at the level of the OECD/G20; 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 ; _________________ 21 See notably the Anti-Tax Avoidance Directives (ATAD I and ATAD II), the amendments of the Directive on administrative cooperation in the field of taxation (DAC 1 to DAC 7), the revision of the Parent Subsidiary Directive, the EU Dispute Settlement Directive, the Public Country-by-Country Reporting Directive, or the Pillar Two Directive.

Amendment 132 #

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;deleted

Amendment 133 #

Martin HLAVÁČEK, Olivier CHASTEL, Engin EROGLU, Erik POULSEN

Motion for a resolution
Paragraph 5

5. ~~Deplores the fact that the Member States have implemented and applied tax dir~~Calls Member States to pursue additional national measures to increase the ambition and effectiveness in a ~~divergent manner, undermining the proper functioning of the single market and leading to misalignment i~~ddressing corporate tax avoidance and harmful tax practices and notes that national initiatives are often taxhe bas~~es, more red tape and higher compliance costs~~is for increased political will for EU action;

Amendment 134 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

Motion for a resolution
Paragraph 5

5. ~~Deplo~~Regrets th~~e fact that the Member States have implemented and applied tax directives in a divergent manner, undermining the~~at the implementation of some tax directives did not fully address divergences in national legislative framework, thus limiting its benefits; calls on Member States to ensure that tax directives are applied as closely as possible to its intention in order to ensure a proper functioning of the single market, and ~~leading to misalignment in tax bases, more red tape and higher compliance cost~~prevent unnecessary administrative and compliance costs, and the proliferation of tax schemes due to regulatory mismatches between EU jurisdictions;

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~~ing~~e the proper functioning of the single market and lead~~ing~~ to misalignment in tax bases, more red tape and higher compliance costs;

Amendment 136 #

Isabel BENJUMEA BENJUMEA, Luděk NIEDERMAYER, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

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; Observes that the Anti- Tax Avoidance Directive (ATAD) granted too much leeway to Member States resulting in considerable fragmentation of the internal market; Considers that a reduction of the number of options in the directive should lead to a more homogenous anti-avoidance landscape across all Member States;1a 2a _________________ 1a https://www.europarl.europa.eu/RegData/ etudes/STUD/2022/703353/IPOL_STU(20 22)703353_EN.pdf 2a https://www.europarl.europa.eu/RegData/ etudes/STUD/2022/733964/IPOL_STU(20 22)733964_EN.pdf

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 #

Isabel BENJUMEA BENJUMEA, Luděk NIEDERMAYER, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

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 #

Aurore LALUCQ

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

~~Reducing the burden of~~Easing tax compliance oin ~~EU companies~~the EU

Amendment 146 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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 ~~large multinational enterprises (MNEs) amount to about~~companies in the EU range between 1% and 2 % of t~~axes paid, while for SMEs the estimate is about 30 % of taxes paid; recalls that European companies, in particular~~urnover; notes that multinational tax planning can lead to higher tax liabilities for SMEs; Recalls that SMEs, are the main enhancers of economic growth and job creation;

Amendment 148 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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~~deplores how the significant disparity between effective tax rates between MNEs and SMEs creates a regressive tax system that harms the latter; recalls that SMEs, are the main enhancers of economic growth and job creation;

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)

– having regard to the Commission studies on ‘aggressive tax planning indicators’ 1a _________________ 1a ‘Study on Structures of Aggressive Tax Planning and Indicators – Final Report’ (Taxation paper No 61, 27 January 2016), ‘The Impact of Tax Planning on Forward-Looking Effective Tax Rates’ (Taxation paper No 64, 25 October 2016) and ‘Aggressive tax planning indicators – Final Report’ (Taxation paper No 71, 7 March 2018).

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 ~~immediately ease the burden on businesses by invoking a regulatory moratorium and delay~~map all divergences in transposition ing th~~ose tax acts that would unnecessarily increase costs for businesses already under strain~~e EU; considers that the harmonisation of rules is expected to bring benefits in the form of lower compliance costs; cCalls 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~~ prioritise simplicity and clarity in future tax proposals reducing the introduction of options and exceptions for Member States; 1a _________________ 1a https://www.europarl.europa.eu/RegData/ etudes/STUD/2023/642353/IPOL_STU(20 23; )642353_EN.pdf

Amendment 155 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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 onassess the best options towards easing the administrative burden on businesses, particularly SMEs; notes the European Council's request for competitiveness checks for all new proposals, aiming to simplify the general regulatory environment and to reduce the administrative burden, from 22 March 2023;

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 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 to carry out competitiveness checks for new legislative tax proposals, as requested by the European Council for all new proposals on 22 March 2023; 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 157 #

Gilles BOYER, Stéphanie YON-COURTIN, Dragoş PÎSLARU, Olivier CHASTEL, Valérie HAYER, Eva Maria POPTCHEVA

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;

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 ~~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 159 #

Martin HLAVÁČEK, Engin EROGLU, Erik POULSEN, Billy KELLEHER, Ondřej KOVAŘÍK

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~~with the aim to ease the burden on businesses ~~by invoking a regulatory moratorium~~ and to delay~~ing~~ 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 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 ~~and~~, delaying those tax acts that would unnecessarily increase costs for businesses already under strain and identifying areas for simplification; 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 161 #

Isabel BENJUMEA BENJUMEA, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

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 #

Martin HLAVÁČEK, Olivier CHASTEL, Engin EROGLU, Erik POULSEN, Billy KELLEHER, Caroline NAGTEGAAL, Ondřej KOVAŘÍK

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

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;deleted

Amendment 166 #

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; on harmonising and coordinating tax policies such as taxing big polluters and digital giants, preventing tax avoidance and evasion; avoiding tax havens in the EU, ensuring a just transition through a reform of the tax systems with fairer taxation and anti- fraud measures, introducing health taxes on processed food, and ensuring that tax policy supports European industry and prevents job losses; 1a _________________ 1a https://www.europarl.europa.eu/resources /library/media/20220509RES29121/20220 509RES29121.pdf

Amendment 167 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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~~harmonising and coordinating tax policies within the Member States of the EU in order to prevent tax evasion and avoidance, and for a competitiveness check; awaits the proposal announce~~ment~~d by Commission President Ursula von der Leyen ofn 19 October 2022 to introduc~~ing~~e a standard competitiveness check in EU regulation; warns that competitiveness checks cannot be used to undermine labour and social standards;

Amendment 168 #

Isabel BENJUMEA BENJUMEA, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

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; ~~calls on the Commission to allow for~~Warns against a harmful, untargeted subsidy race in the European Union benefiting solely large companies and their shareholders; warns exspe~~rimentation with tax credits; insists, nevertheless, that all decisions should be taken in a coordinated manner to preserve the functioning of the single market~~cially against accelerated aggressive tax competition through the use of tax credits; observes that OECD Pillar Two introduces an advantageous treatment for refundable tax credits, which are in effect direct subsidies through the tax system; calls on the EU to draw up rules defining harmful tax credits; emphasises that tax credits should not serve the sole purpose of lowering the tax burden of large companies at the expense of public coffers and undermining global minimum tax rates;

Amendment 171 #

Martin HLAVÁČEK, Olivier CHASTEL, Engin EROGLU, Erik POULSEN, Ondřej KOVAŘÍK

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 and that tax credits and tax incentives often create new ways for MNEs to reduce their taxes, which at the end makes them pay less tax than SMEs; Calls for an impact assessment of all the tax credits and tax incentives in order to abolish all of them which have negative social and ecological consequences;

Amendment 172 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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~~adoption of Pillar Two Model Rules guaranteeing a minimum level of effective corporate income taxation at 15% and in the aftermath of the US Inflation Reduction Act; notes that any experimentation with tax credits, most notably within the revised framework of EU state aid, must be strictly conditional to safeguarding workers’ conditions, while prioritising green innovation and climate adaptation; insists, nevertheless, that all decisions should be taken in a coordinated manner to preserve the functioning of the single market;

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~~llow for~~nalyse experimentation with tax credits; insists, nevertheless, that all decisions should be taken in a coordinated manner to preserve the functioning of the single market;

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER

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

10. Calls on the Member States to engage in policies of full expensing for capital investments and to make capital allowance provisions permanent in order to improve real investments and to assist Europe’s competitiveness;deleted

Amendment 179 #

Isabel BENJUMEA BENJUMEA, Luděk NIEDERMAYER, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 10

10. Calls on the ~~Member States to engage in policies of full expensing for capital investments and to make capital allowance provisions permanent in order to improve real investments and to assist Europe’s~~Commission to assess carefully the potential benefits of full expensing for capital investments for urgently needed investments to reach the climate targets; calls on the Commission to consider in its assessment the costs and benefits of full expensing, especially the revenue impact on Member States; warns that such measure should be introduced in a coordinated manner to avoid further fragmentation, profit shifting and tax competiti~~veness~~on;

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 #

Martin HLAVÁČEK, Erik POULSEN, Engin EROGLU, Ondřej KOVAŘÍK

Motion for a resolution
Paragraph 10

10. Calls on the Member States to consider engageing in policies of full expensing for capital investments and to make capital allowance provisions permanent in order to improve real investments and to assist Europe’s competitiveness;

Amendment 181 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

Motion for a resolution
Paragraph 10

10. ~~Calls on the Member States to engage in policies of full expensing for capital investments and to make capital allowance provisions permanent in~~ Highlights full expensing for capital investments require a careful design and significant administrative diligence to prevent a vehicle for unwarranted tax subsidies or for tax abuse; stresses, therefore, that such policies should go hand-in-hand with regular and public monitoring of tax expenditure reporting and spillover analyses; notes that capital allowance provisions must be conditional to improving wordker ~~to improve real investments and to assis~~s' conditions, while also increasing investments in the real economy, with a priority for green innovation and climate adaptation, and support Europe’s competitiveness;

Amendment 182 #

Eva Maria POPTCHEVA, Billy KELLEHER, Olivier CHASTEL, Engin EROGLU

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 ~~use the additional revenues based on higher energy prices directly to relieve the burden on companies, especially SME~~relieve the burden on companies, especially SMEs, for instance through temporary tax breaks to compensate for the increase in energy costs;

Amendment 184 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Paul TANG

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~~to provide direct and targeted relievef to the ~~burden on companies, especially SME~~most vulnerable citizens and the middle class;

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 ~~relieve the burden on companies, especially SMEs~~help the most vulnerable by encouraging price reductions, direct income support, vouchers and to relieve the burden fromthe SMEs that have been quite impacted by the crisis; regrets large companies misusing their market power to unjustly increase profit margins and drive inflation;

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 ~~companies, especially SMEs~~SMEs and people in financial difficulty;

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Paul TANG

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)

– having regard for United Nations resolution A/C.2/77/L.11/Rev.1 on “Promotion of inclusive and effective international tax cooperation at the United Nations”, adopted by consensus by the UN General Assembly on 23 November 20221a _________________ 1a “begin intergovernmental discussions in New York at United Nations Headquarters on ways to strengthen the inclusiveness and effectiveness of international tax cooperation through the evaluation of additional options, including the possibility of developing an international tax cooperation framework or instrument that is developed and agreed upon through a United Nations intergovernmental process, taking into full consideration existing international and multilateral arrangements”. Paragraph 2, A/C.2/77/L.11/Rev.1 on “Promotion of inclusive and effective international tax cooperation at the United Nations”, adopted by consensus by the UN General Assembly on 23 November 2022.

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Paul TANG

Motion for a resolution
Subheading 2

~~The Pillar Two Agreement~~Improve tax fairness in Europe, including through the implementation of the OECD/G20 Agreement on corporate income tax reform

Amendment 192 #

Valérie HAYER, Gilles BOYER, Stéphanie YON-COURTIN, Pascal CANFIN, Olivier CHASTEL, Dragoş PÎSLARU

Motion for a resolution
Paragraph 12

12. ~~Takes note of the~~Recalls that originally a two-pillar solution ~~reach~~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, however the Pillar I solution is still pending, which creates an unbalanced situation;

Amendment 193 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

Motion for a resolution
Paragraph 12

12. ~~Takes note of~~Welcomes 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; understands that the minimum rate should be subject to a periodic upwards review, also taking into account the proposal by the Biden administration of a 21% minimum effective corporate tax rate; considers that this agreement contributes to a fairer playing field between MNEs and SMEs; calls on Member States to assess other multilateral initiatives that can fix shortcomings in the EU tax framework, including at UN level;

Amendment 194 #

Motion for a resolution
Paragraph 12

12. ~~Takes note of~~Welcomes 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; expresses its concern at the delays in the international process agreeing on Pillar One; recalls the implementation of this pillar is key to the introduction of a new own resource based on a share of the residual profits of the largest and most profitable MNEs that are reallocated to Member States under the agreement;

Amendment 195 #

Martin HLAVÁČEK, Gilles BOYER, Olivier CHASTEL, Engin EROGLU, Erik POULSEN, Caroline NAGTEGAAL, Billy KELLEHER, Valérie HAYER, Dragoş PÎSLARU, Eva Maria POPTCHEVA, Stéphanie YON-COURTIN

Motion for a resolution
Paragraph 12

12. ~~Takes note of~~Welcomes 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; welcomes the adoption of the Pillar Two Directive implementing the international agreement in the EU law;

Amendment 196 #

Motion for a resolution
Paragraph 12

12. ~~Takes note of~~Welcomes 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 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; Regrets, however, that the final agreement was significantly watered down, leaving a large space for improvement; notes that the agreement was criticised by the Tax Justice Network1a and the Independent Commission for the Reform of International Corporate Taxation1b, which pointed out that developing countries in particular will not really benefit from it; regrets that the global minimum rate will only be 15 % and that according to the EU Tax Observatory tax deficit simulator, the gain for the EU would have been EUR 168 billion with a 25 % rate; regrets that the ‘carve-out’ included in the deal would ‘allow companies to escape taxation as long as they have sufficient operations (assets and employees) in tax havens’ and thus ‘reduce tax revenues by 15 % to 30 % in the EU relative to a minimum tax without carve-out’, according to a note from the EU Tax Observatory1c; Calls Member States to implement the minimum effective tax rate directive with more ambitious standards, like a higher effective tax rate of 25%; _________________ 1a Tax Justice Network, ‘OECD tax deal fails to deliver’, 8 October 2021. 1b Independent Commission for the Reform of International Corporate Taxation, ‘ICRIT open letter to G20 leaders: “A global tax deal for the rich”’, 12 October 2021. 1cEU Tax Observatory, ‘Minimizing the Minimum Tax? The Critical Effect of Substance Carve-Outs’.

Amendment 198 #

Isabel BENJUMEA BENJUMEA, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Paul TANG

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Paul TANG

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 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

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. 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 onCalls on the Member States and the Commission to ~~give~~support companies ~~breathing space and enough time to prepare for the possible new BEFIT~~in applying the Pillar Two rules;

Amendment 203 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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 give companies breathing space and enough time to prepare for the possibl Pillar One and Pillar Two rules are only applicable for MNEs with a turnover above the thresholds, respectively, of EUR 20 billion and EUR 750 million; stresses that most companies, notably SMEs, are therefore exempt from this agreement, calls on the Commission to ensure full coherence and consistency of Pillar One and Pillar Two with the new BEFIT rules;

Amendment 204 #

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 give companies breathing space andCalls on the Commission, when planning its legislative work and the implementation of the BEFIT rules, to ensure that a realistic timetable is in place to allow businesses enough time to prepare for the ~~possible new BEFIT~~new rules;

Amendment 205 #

Eva Maria POPTCHEVA, Billy KELLEHER, Olivier CHASTEL, Engin EROGLU

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 give companies breathing space and enough time to prepare for the possible new BEFIT~~Notes that BEFIT rules could help to lower the compliance costs of SMEs by uniformizing the rules;

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 ~~give companies b~~avoid creathing ~~space and enough time to prepare for the possible new BEFIT rules~~a disproportionate burden on companies when proposing further measures in the field of corporate taxation;

Amendment 207 #

Valérie HAYER, Gilles BOYER, Stéphanie YON-COURTIN, Pascal CANFIN, Olivier CHASTEL, Dragoş PÎSLARU

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 give companies ~~breathing space~~adequate means and enough time to prepare for the possible new BEFIT rules;

Amendment 208 #

Martin HLAVÁČEK, Olivier CHASTEL, Engin EROGLU, Erik POULSEN, Billy KELLEHER, Dragoş PÎSLARU, Ondřej KOVAŘÍK

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~~invites the Commission to assess effectiveness and impact of the Pillar Two rules, namely in the context of expected aims, cost-benefits analysis, fight against tax evasion and avoidance, fair tax competition and higher tax revenue, and thus to give companies breathing space and enough time to prepare for the possible new BEFIT rules;

Amendment 209 #

Isabel BENJUMEA BENJUMEA, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

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, further OECD guidance and further interpretations by individual Member States; ; calls on the Commission to give companies breathing space and enough time to prepare for the possible new BEFIT rules;

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

Motion for a resolution
Paragraph 13 d (new)

13d. Agrees that an essential step for a fairer tax system is a greater public transparency on the taxes paid by large economic actors; therefore urges 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 2 calculations, as foreseen in its communication “Business Taxation for the 21st Century”;

Amendment 219 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Evelyn REGNER, Paul TANG

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 ~~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 and to avoid harmful tax competition which often leads to a race to the bottom ;

Amendment 220 #

Gilles BOYER, Stéphanie YON-COURTIN, Dragoş PÎSLARU, Olivier CHASTEL, Valérie HAYER, Eva Maria POPTCHEVA

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Paul TANG

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 ~~reduce the administrative burden~~ease compliance for companies, especially SMEs; ~~acknowledges that simplifying refund procedures, deduct~~welcomes the recent Commission's ~~and litigation are other solutions to reduce the administrative burden, especially for SMEs~~proposal - FASTER - on simplifying withholding tax procedures in the EU;

Amendment 224 #

Motion for a resolution
Paragraph 14

14. ~~Calls on the Commission to guide all the Member States towards a simplified tax system to~~Recalls that reduceing the administrative burden for companies is essential, especially for SMEs; acknowledges that simplifying refund procedures, deductions and litigation are ~~other~~kind of solutions to reduce the administrative burden, especially for SMEs;

Amendment 225 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

Motion for a resolution
Paragraph 14

14. Calls on the Commission ~~to guide all the Member States~~work towards a simplified tax system to reduce ~~the~~unnecessary administrative burden for companies, especially SMEs; acknowledges that simplifying refund procedures, deductions and litigation are other solutions to reduce ~~the~~unnecessary administrative burden, especially for SMEs; takes note, in this regard, of the Commission proposal from June 2023 aiming to boost cross-border investment and help fight tax abuse via a reform of withholding tax procedures;

Amendment 226 #

Gilles BOYER, Stéphanie YON-COURTIN, Dragoş PÎSLARU, Olivier CHASTEL, Valérie HAYER, Eva Maria POPTCHEVA

Motion for a resolution
Paragraph 14

14. Calls on the Commission to ~~guide~~coordinate cooperation between 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; calls on the Commission to respect and take into account in its planned legislative initiatives the solutions (including digital solutions) already implemented and in operation in the individual Member States to reduce administrative burdens on businesses;

Amendment 227 #

Martin HLAVÁČEK, Gilles BOYER, Olivier CHASTEL, Engin EROGLU, Erik POULSEN, Caroline NAGTEGAAL, Billy KELLEHER, Valérie HAYER, Dragoş PÎSLARU, Stéphanie YON-COURTIN

Motion for a resolution
Paragraph 14

14. Calls on the Commission to ~~guide~~suggest measures for 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;

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 ~~within the boundaries of~~, as guaranteed by 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~~it is necessary for the integration of the Single Market that those policies are coordinated among the Member States and at EU level;

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 #

Martin HLAVÁČEK, Olivier CHASTEL, Gilles BOYER, Erik POULSEN, Caroline NAGTEGAAL, Valérie HAYER, Dragoş PÎSLARU, Eva Maria POPTCHEVA, Stéphanie YON-COURTIN, Engin EROGLU

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 ~~for corporate tax systems~~through harmonisation, increasing legal certainty and good governance helps to attract foreign direct investment ~~and reduces the risk of companies relocating to non-EU countries~~;

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 ~~and~~, improves the EU's competittiveness thereby reducesing the risk of companies relocating to non-EU countries; recalls that a simpler framework also reduces the possibilities for aggresive tax planning;

Amendment 235 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

Motion for a resolution
Paragraph 15

15. Recalls that ~~simplify~~harmonising and reducing 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;

Amendment 236 #

Isabel BENJUMEA BENJUMEA, Luděk NIEDERMAYER, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

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)

15a. Welcomes that the Commission President announced in her state of the Union Address 2022, as part of the SME Relief Package, a proposal for a single set of tax rules for doing business in Europe, called Business in Europe: Framework for Income Taxation (BEFIT);

Amendment 238 #

Frances FITZGERALD, Jessica POLFJÄRD

Motion for a resolution
Paragraph 16

16. ~~Welcom~~Notes 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 the intention to provide clarity and predictability for companies, especially those operating cross-border; stresses that any such proposal must not over-step or undermine agreements reached or discussions ongoing at the global level; reiterates that agreements on corporate tax frameworks are most effective when reached at a global level;

Amendment 239 #

Billy KELLEHER, Caroline NAGTEGAAL, Martin HLAVÁČEK, Ondřej KOVAŘÍK

Motion for a resolution
Paragraph 16

16. ~~Welcom~~Notes 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 the intention to provide clarity and predictability for companies, especially those operating cross-border; stresses that any such proposal must not over-step or undermine agreements reached or discussions ongoing at the global level; reiterates that agreements on corporate tax frameworks are most effective when reached at a global level;

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 #

Valérie HAYER, Gilles BOYER, Stéphanie YON-COURTIN, Pascal CANFIN, Olivier CHASTEL, Dragoş PÎSLARU, Eva Maria POPTCHEVA

Motion for a resolution
Paragraph 16

16. ~~Welcomes~~Takes note of 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 241 #

Martin HLAVÁČEK, Gilles BOYER, Olivier CHASTEL, Engin EROGLU, Erik POULSEN, Caroline NAGTEGAAL, Valérie HAYER, Dragoş PÎSLARU, Ondřej KOVAŘÍK, Eva Maria POPTCHEVA, Stéphanie YON-COURTIN

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 wil~~. In this context, calls on the Commission to ensure that the new proposal provides clarity and predictability for companies;

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 #

Gilles BOYER, Stéphanie YON-COURTIN, Dragoş PÎSLARU, Olivier CHASTEL, Valérie HAYER, Eva Maria POPTCHEVA

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 use a formula that includes criteria on employees, as well as sales and assets, in order to recognise where value is created;

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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 #

Martin HLAVÁČEK, Olivier CHASTEL, Engin EROGLU, Erik POULSEN, Caroline NAGTEGAAL

Motion for a resolution
Paragraph 17

17. Reiterates its consideration that the BEFIT initiative ~~should be supported by the political process in building~~needs political support for change and that the initiative should be accompanied by a thorough impact assessment;

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 ~~should~~must be accompanied by a thorough impact assessment;

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 the political process in building political support for change and that the initiative should be accompanied by a thorough impact assessment going beyond the mere impact on corporate tax revenues in each Member State; considers essential to ensure all sectors are covered by the future BEFIT reform, including the financial sector; warns the Commission to be cautious in including intangible assets to the allocation formula;

Amendment 251 #

Valérie HAYER, Gilles BOYER, Stéphanie YON-COURTIN, Pascal CANFIN, Olivier CHASTEL, Dragoş PÎSLARU, Eva Maria POPTCHEVA

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~~to face societal challenges ; Notes that limiting tax competition and fighting corporate tax avoidance are key objectives as well ;

Amendment 252 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Paul TANG

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 ofcaused by different sets of national tax rules and the respective 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 sustain~~abl~~ed tax revenues, which is particularly important in the current challenging economic climate;

Amendment 253 #

Motion for a resolution
Paragraph 18

18. ~~Takes note of~~Welcomes 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;

Amendment 254 #

Gilles BOYER, Stéphanie YON-COURTIN, Dragoş PÎSLARU, Olivier CHASTEL, Valérie HAYER, Eva Maria POPTCHEVA

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 #

Martin HLAVÁČEK, Engin EROGLU, Erik POULSEN, Caroline NAGTEGAAL

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 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 for the national budgets of the EU Member States, which is particularly important in the current challenging economic climate;

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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 #

Isabel BENJUMEA BENJUMEA, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

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 #

Martin HLAVÁČEK, Gilles BOYER, Olivier CHASTEL, Engin EROGLU, Erik POULSEN, Caroline NAGTEGAAL, Billy KELLEHER, Dragoş PÎSLARU, Eva Maria POPTCHEVA, Stéphanie YON-COURTIN

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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 o, in th~~e Commission to introduce a one-stop-shop for the application of the BEFIT rules in a test phase and to incorporate it as a permanent feature of BEFIT if the test phase is successful~~is regard, on Member States to step up their efforts in introducing electronic filing system that benefits the taxpayer; calls on the Commission to assess whether the One-Stop-Shop could potentially be tested for groups operating in the single market and applying the Pillar Two rules and as a follow-up to incorporate later the new BEFIT rules; welcomes in this regard the Commission communication of 16.3.2023 highlighting the usefulness of one-stop- shops for bringing down barriers;

Amendment 266 #

Eva Maria POPTCHEVA, Billy KELLEHER, Olivier CHASTEL, Engin EROGLU

Motion for a resolution
Paragraph 19

19. ~~Highlights the idea of~~Calls for a one-stop- shop allowing for the filing of one consolidated tax return as a way of reducing administrative burden and minimising tax obstacles to the Single Market; calls on the Commission to introduce a one-stop-shop for the application of the BEFIT rules in a test phase and to incorporate it as a permanent feature of BEFIT if the test phase is successful;

Amendment 267 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

Motion for a resolution
Paragraph 19

19. ~~Highlight~~Notes the idea of a one-stop- shop allowing for the filing of one consolidated tax return; ~~calls on the Commission to~~acknowledges that the introducetion of a one-stop-shop ~~for the application of the BEFIT rules in a test phase and to~~requires further harmonisation of the corporate tax base and the establishment of a formula for fair and effective allocation of taxing rights among Member States, and an expansion of reportable income to be exchanged between national tax authorities; notes that a one-stop-shop may be introduced via a test phase for a limited number of taxpayers, and only incorporate itd as a permanent feature of BEFIT if ~~the~~such test phase is successful;

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- shop allowing for the filing of one consolidated tax return; calls on the Commission to introduce a one-stop-shop for the application of the BEFIT rules in a test phase and to incorporate it as a permanent feature of BEFIT if the test phase is successful;

Amendment 269 #

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;~~

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 ~~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~~warns for the high cost of this proposal in view of increasing interest rates;

Amendment 271 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

Motion for a resolution
Paragraph 20

20. ~~Takes note of~~Stresses its reservations towards the Commission proposal of 11 May 2022 addressing the debt-equity bias~~; deplor~~, particularly the costs it could generate for Member States; notes the Council's decision of 6 December 2022 to suspend the examination of the proposal; recalls ~~on the Council to relaunch negotiations on this proposal~~that, in the past, allowances for corporate equity have been exploited as tax loopholes in the Union; supports the incorporation of strong anti- avoidance provisions to prevent any allowance on equity to be used as a new tool for base erosion if an allowance for corporate equity should be set up;

Amendment 272 #

Eva Maria POPTCHEVA, Billy KELLEHER, Olivier CHASTEL

Motion for a resolution
Paragraph 20

20. ~~Takes note of~~Deplores the debt-equity bias in corporate taxation that allows for generous tax deductions of interest payments, while equity financing costs cannot be deducted in a similar manner; highlights the structural disadvantages for companies relying on equity financing, which are often younger and smaller companies with poor access to credit; Welcomes 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; calls on the Commission to facilitate the Council deliberations;

Amendment 273 #

Motion for a resolution
Paragraph 20

20. ~~Takes note of~~Welcomes the Commission proposal of 11 May 2022 addressing the debt-equity bias as a means to promoting financing through capital markets; 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;

Amendment 274 #

Martin HLAVÁČEK, Engin EROGLU, Erik POULSEN

Motion for a resolution
Paragraph 20

20. Takes note of the Commission proposal of 11 May 2022 addressing the debt-equity bias~~; deplores~~ and the Council decision of 6 December 2022 to suspend the examination of the proposal; calls on the Council to re~~launch~~assess negotiations on this proposal; within a broader context after other proposals in the area of corporate income taxation announced by the Commission have been put forward ;

Amendment 275 #

Jessica POLFJÄRD, Frances FITZGERALD

Motion for a resolution
Paragraph 20

20. Takes note of the Commission proposal of 11 May 2022 addressing the debt-equity bias; ~~deplores~~takes note of the Council decision of 6 December 2022 to suspend the examination of the proposal; calls on the Council to relaunch negotiations on this proposal; stresses that limiting interest deductions, instead of creating equity allowances, would allow larger tax revenues for Member States;

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 #

Isabel BENJUMEA BENJUMEA, Luděk NIEDERMAYER, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

Motion for a resolution
Paragraph 20 a (new)

20a. Considers that tax certainty would be reinforced if Member States had a common understanding of what constitutes tax incentives that are not distortive; favours incentives that are expenditure-based, limited in time, regularly assessed, and repealed in case of no positive impact, limited in geographical scope and rather partial than full exemptions; considers that income-based incentives such as Intellectual Property Regimes have not proven efficiency, shall therefore be limited; recalls that the BEPS Action 5 reforms intellectual property regimes ('patent boxes') to ensure that tax relief is conditional upon a closer connection between the location of the income and the actual research activities due to the proliferation of harmful income-based tax incentives; recalls that the effectiveness of R&D tax incentives appears more positive for expenditure-based incentives than for income-based incentives21a recommends that any new income-based tax incentive shall be submitted to prior examination of either the Commission or the Code of Conduct on Business Taxation, also considering the newly introduced minimum effective level of taxation in the Council Directive (EU) 2022/2523 of 14 December 2022 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union; _________________ 21a Tax Challenges Arising from Digitalisation – Economic Impact Assessment : Inclusive Framework on BEPS, Investment Impacts of Pillar One and Pillar Two, paragraph 424 https://www.oecd- ilibrary.org/sites/23ce5d0f- en/index.html?itemId=/content/componen t/23ce5d0f-en#annex-d1e29348

Amendment 279 #

Motion for a resolution
Paragraph 20 a (new)

20a. Notes that there is a proliferation of IP boxes in the EU; recalls research findings1a showing substantial aggressive tax planning practices using intellectual property; points out that patent boxes have a strong effect on the location of patents but not on the location of real economic activity such as research and development; calls upon the Commission to come forward with proposals to stop aggressive tax planning using intellectual property and to abolish patent boxes; _________________ 1a European Commission Taxation paper N. 71: Aggressive Tax Planning Indicators and European Commission Taxation paper N.5: Patent Boxes Design, Patent Location and Local Research and development

Amendment 28 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Paul TANG

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)

20b. Recalls the words of the Dutch state secretary on taxation that “evidence is in the numbers, you can make policies but have to show what the results are”1a; notes that the size of foreign direct investment in the Netherlands are extremely high at 5,5 times its gross domestic product; notes that the Netherlands, after China and the United States, is the highest ranking FDI receiving country in the world; acknowledges the Netherlands intends to reduce foreign direct investment flows; notes that the amount of FDI to and from some of the other members States such as Luxembourg, Ireland, Malta and Cyprus are disproportional as well; notes that many of these investments do not concern investments in the real economy but constitute what the IMF called ‘phantom investment’; _________________ 1a European Parliament, Exchange of views with State Secretary Marnix van Rij, 13-10-2022 09:46

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 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; calls on the Commission to present an assessment of tax incentives for private research and development; several Member States use patent boxes and that evidence in the literature suggests that patent boxes do not necessarily stimulate R&D and are often used as a profit-shifting instrument1a; _________________ 1a https://op.europa.eu/en/publication- detail/-/publication/22508340-1149-11ed- 8fa0-01aa75ed71a1/language-en/format- PDF/source-262413960

Amendment 283 #

Motion for a resolution
Paragraph 21

21. ~~Highlights that tax incentives applied in a~~ Calls on the Commission and Member States to signifiscalntly ~~responsible manner for private~~boost research ~~and~~, development ~~(e.g. via tax credits, enhanced allowance~~and innovation budgets for a~~djusted depreciation schedules) can help lift an economy’s overall spending to~~chieving the objective of 3 % of EU GDP in a coordinated manner; wardns ~~research and development, which often comes with positive externali~~against ineffective R&D tax incentives; 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; calls on the Commission to present an assessment of tax incentives for private research and development such as the widespread use of patent boxes in the Union; emphasises that in order to be effective, tax incentives should focus on investments made and not profits;

Amendment 284 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

Motion for a resolution
Paragraph 21

21. Highlights that targeted 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 externalitiescan help lift private spending towards these purposes, which often can come with positive externalities; stresses that regular analysis of such positive externalities should be conducted and, whenever appropriate, lead to the termination of incentives that failed to produce the intended results; highlights that such incentives are more effective for SMEs if they are expenditure-based21b; underlines that such tax incentives must be strictly conditional to safeguarding workers’ conditions, while prioritising green innovation and climate adaptation; 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; calls on the Commission to present an assessment of the most effective and efficient tax incentives for private research and development; calls on the Commission to produce guidelines on how to design fair and transparent tax incentives while preventing a market distortion; _________________ 21b Subcommittee on Tax affairs, hearing on "The role of tax incentives and exemptions in the framework of the reform of corporate taxation and in the promotion of European economies' competitiveness" July 11 2022

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; ~~calls on the Commission to present an assessment of tax incentives for private research and development;~~

Amendment 286 #

Isabel BENJUMEA BENJUMEA, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

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 to 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; calls on the Commission to present an assessment of tax incentives for private research and development; underlines the crucial importance of research for the development of technologies relevant to the new economy and the green transition;

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 #

Jessica POLFJÄRD, Frances FITZGERALD

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)

21a. 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 be country basis for the vast majority of countries worldwide undermining the effectiveness and value of the measure;

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Paul TANG

– 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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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 #

Isabel BENJUMEA BENJUMEA, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

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

~~B. w~~Whereas European companies are B. battling strong headwinds ~~as a result of the current adverse economic and social situation~~due to inflation, the side-effects of lockdowns, supply chain problems, scarcity of raw materials, and they will have to invest to adapt to the Green Deal rules, digital transition and the new pillar 2 rules;

Amendment 34 #

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~~facing adverse economic and social situations when others are making windfall profits; whereas growing evidence indicates inflation being partially profit driven ;

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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 #

Martin HLAVÁČEK, Olivier CHASTEL, Gilles BOYER, Engin EROGLU, Erik POULSEN, Caroline NAGTEGAAL, Billy KELLEHER, Valérie HAYER, Dragoş PÎSLARU, Stéphanie YON-COURTIN

Motion for a resolution
Recital B

B. whereas a number of European companies are battling strong headwinds as a result of the current adverse economic and social situations;

Amendment 39 #

Isabel BENJUMEA BENJUMEA, Luděk NIEDERMAYER, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Paul TANG

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 #

Isabel BENJUMEA BENJUMEA, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

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)

Bb. whereas these five oil and gas giants together returned $102 billion in profits to benefit their investors, paying out $48 billion in dividends, and spending $54 billion on shares buy-back 1a; whereas at the same time those companies’ capital investments into renewable power and the energy transition remain marginal 2a ; _________________ 1a https://www.globalwitness.org/en/campaig ns/fossil-gas/crisis-year-2022-brought- 134-billion-in-excess-profit-to-the-wests- five-largest-oil-and-gas-companies/ 2a https://www.bloomberg.com/news/articles/ 2023-06-25/big-oil-s-pullback-from-clean- energy-matters-less-than-you-d- think?cmpid=BBD062523_GREENDAIL Y&utm_medium=email&utm_source=ne wsletter&utm_term=230625&utm_campai gn=greendaily≤adSource=uverify%20wall

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)

Bc. whereas these five oil and gas giants together returned $102 billion in profits to benefit their investors, paying out $48 billion in dividends, and spending $54 billion on shares buy-back1c; whereas at the same time those companies’ capital investments into renewable power and the energy transition remain marginal1d; _________________ 1c https://www.globalwitness.org/en/campaig ns/fossil-gas/crisis-year-2022-brought- 134-billion-in-excess-profit-to-the-wests- five-largest-oil-and-gas-companies/ 1d https://www.bloomberg.com/news/articles/ 2023-06-25/big-oil-s-pullback-from-clean- energy-matters-less-than-you-d- think?cmpid=BBD062523_GREENDAIL Y&utm_medium=email&utm_source=ne wsletter&utm_term=230625&utm_campai gn=greendaily≤adSource=uverify%20wall

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 ~~global~~ consensus ~~on many~~, amongst OECD countries, on some issues regarding the fight against aggressive tax planning; whereas on many other issues the OECD didn’t manage in bringing forward a clear set of recommendations leading to divergences between countries;

Amendment 49 #

Motion for a resolution
Recital C

C. whereas the BEPS action plan managed to establish a ~~global~~n OECD consensus on many issues regarding the fight against aggressive tax planning;

Amendment 5 #

Niels FUGLSANG, Pedro MARQUES

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

C. whereas the BEPS action plan managed to establish a global consensus on ~~many~~several issues regarding the fight against aggressive tax planning; whereas loopholes prevail and must be addressed, notably concerning the digitalisation of the economy as well as the role of intangible assets; whereas the BEPS action plan was only decided by OECD developed countries in 2015;

Amendment 51 #

Martin HLAVÁČEK, Gilles BOYER, Engin EROGLU, Erik POULSEN, Caroline NAGTEGAAL, Billy KELLEHER, Valérie HAYER, Dragoş PÎSLARU, Eva Maria POPTCHEVA, Stéphanie YON-COURTIN

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)

Ca. Whereas profit shifting has a deleterious effect on tax morale, impacts the competitiveness of domestic companies and produces tax revenue losses, resulting in fewer public goods and services offered. Whereas profit shifting and tax competition constitutes a severe threat to the single market.

Amendment 53 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Paul TANG

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;

Amendment 54 #

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 some Member States in the Council pushed for a weak implementation of the OECD BEPS action plan; whereas Member State transposed these anti-tax avoidance directives in various ways leading to tax policy fragmentation and new avoidance opportunities;

Amendment 55 #

Niels FUGLSANG, Pedro MARQUES

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 #

Martin HLAVÁČEK, Gilles BOYER, Engin EROGLU, Erik POULSEN, Caroline NAGTEGAAL, Billy KELLEHER, Valérie HAYER, Dragoş PÎSLARU, Eva Maria POPTCHEVA, Stéphanie YON-COURTIN

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

Motion for a resolution
Recital D a (new)

Da. whereas Member States continue to lose tax revenue due to harmful tax practices, and estimates of the revenue lost due to corporate tax avoidance range from EUR 36-37 billion20b to EUR 160- 190 billion per year20c; _________________ 20b Commission report of 18 May 2021 entitled ‘Annual Report on Taxation 2021’. 20c Dover, R. et al., ‘Bringing transparency, coordination and convergence to corporate tax policies in the European Union, Part I: Assessment of the magnitude of aggressive corporate tax planning’, European Parliament, Directorate-General for Parliamentary Research Services, European Added Value Unit, September 2015

Amendment 59 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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 ~~on 19 October 2022 on the preparations for the European Council meeting of 20- 21 October~~in Septembre 2022,;

Amendment 60 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Paul TANG

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

Motion for a resolution
Recital E

E. whereas as of ~~16 December~~June 20223, 1~~38 state~~43 jurisdictions, including all EU Member States, had agreed on the reform of the international tax system through a two- pillar solution;

Amendment 62 #

Martin HLAVÁČEK, Gilles BOYER, Engin EROGLU, Erik POULSEN, Caroline NAGTEGAAL, Billy KELLEHER, Valérie HAYER, Dragoş PÎSLARU, Eva Maria POPTCHEVA, Stéphanie YON-COURTIN

Motion for a resolution
Recital E

E. whereas as of 16 December 2022, 138 ~~state~~jurisdictions, including all EU Member States, had agreed on the reform of the international tax system through a two- pillar solution;

Amendment 63 #

Motion for a resolution
Recital E

E. whereas as of 16 December 2022, 138 ~~state~~jurisdictions, including all EU Member States, had agreed on the reform of the international tax system through a two- pillar solution;

Amendment 64 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Evelyn REGNER, Paul TANG

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~~itizens and companie~~ompanies and citizens in the sSingle mMarket~~, particularly small and medium-sized enterprises (SMEs)~~: legal uncertainty, red-tape, risk of double taxation, difficulties claiming tax refunds; whereas theose obstacles discourage cross- border economic activity ~~and can distort the single market~~in the Single Market; whereas policy fragmentation also creates risks for tax authorities such as double non-taxation and arbitrage possibilities (tax planning);

Amendment 67 #

Martin HLAVÁČEK, Gilles BOYER, Olivier CHASTEL, Engin EROGLU, Erik POULSEN, Caroline NAGTEGAAL, Billy KELLEHER, Dragoş PÎSLARU, Valérie HAYER, Stéphanie YON-COURTIN

Motion for a resolution
Recital F

F. whereas tax policy fragmentation c~~reates~~ontributes to creation of 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;

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 ~~and~~ can distort the single market and allows a special treatment for MNEs, encouraging an unfair competition with SMEs;

Amendment 69 #

Martin HLAVÁČEK, Gilles BOYER, Olivier CHASTEL, Engin EROGLU, Erik POULSEN, Caroline NAGTEGAAL, Billy KELLEHER, Valérie HAYER, Dragoş PÎSLARU, Eva Maria POPTCHEVA, Stéphanie YON-COURTIN

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 #

Isabel BENJUMEA BENJUMEA, Luděk NIEDERMAYER, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

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. wWhereas tax policy fragmentation creates various obstacles for citizens and companies in the single market, particularly small and medium-sized enterprises (SMEs); including legal uncertainty, red tape, the risk of double taxation and difficulties claiming tax refunds whereas these obstacles discourage cross-border economic activity and can distort the single market;

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 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

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 #

Isabel BENJUMEA BENJUMEA, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

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 #

Isabel BENJUMEA BENJUMEA, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

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)

Fc. Whereas tax revenues need to increase to respond to immediate and future challenges such as the climate and biodiversity crisis and the ageing of our population; whereas to respond to the ageing of our population government spending would require, on average, an increase in structural revenue of 8 percentage points of GDP by 2060 to stabilise public debt ratios near recent levels;1a _________________ 1a https://www.oecd- ilibrary.org/docserver/9ce9e8e3- en.pdf?expires=1688473841&id=id∾cna me=ocid194994✓sum=612B246DE8586C 8660AEAACA6DCE6B7E

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 ~~the debt-~~incentives on equity ~~bias~~ financing co~~rporate taxation allows for generous tax deductions on interest payments; whereas equity financing costs cannot be deducted in a similar manner~~sts still have an impact on the debt equity bias and have generated paths for corporate tax avoidance in some countries which have implemented it;

Amendment 83 #

Motion for a resolution
Recital G

G. whereas ~~the debt-equity bias in corporate taxation allows for~~a significant number of generous tax deductions on interest payments~~; whereas equity financing costs cannot be deducted in a similar manner~~, in particular intra-groups, facilitate harmful tax practices; whereas the debt-equity bias shall be resolved by limiting such types of reductions, instead of creating new deductions to equity financing costs;

Amendment 84 #

Isabel BENJUMEA BENJUMEA, Luděk NIEDERMAYER, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Recital G

G. whereas ~~the debt-equity bias in~~ corporate taxation allows for generous tax deductions on interest payments leading to the debt-equity bias ; whereas tax deductions on interest payments are estimated to cost 245 billion EUR; whereas equity financing costs ~~cannot be~~are not deducted in a similar manner;

Amendment 85 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, Niels FUGLSANG, Evelyn REGNER, Paul TANG

Motion for a resolution
Recital G

G. whereas ~~the debt-equity bias in~~most corporate taxation systems in the EU allows for generous tax deductions on interest payments~~; whereas equity financing costs cannot be deducted in a similar manner;~~ , up to a cost of EUR 245 billion20d; whereas equity financing costs, which include dividend payments, cannot be deducted in a similar manner; _________________ 20d Impact assessment accompanying the document proposal for a Council directive on laying down rules on a debt-equity bias reduction and on limiting the deductibility of interest for corporate income tax purposes, p.48.

Amendment 86 #

Motion for a resolution
Recital G

G. wWhereas 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 there is a structural disadvantage facing companies that rely on equity financing, in particular if they are young and small companies with poor access to credit;

Amendment 87 #

Isabel BENJUMEA BENJUMEA, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

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)

Ga. whereas the Commission announced a proposal for a single set of tax rules for doing business in Europe, the Business in Europe: Framework for Income Taxation (BEFIT), to be adopted in the third quarter of 2023;

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 #

Isabel BENJUMEA BENJUMEA, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

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 #

Isabel BENJUMEA BENJUMEA, Lídia PEREIRA, José Manuel GARCÍA-MARGALLO Y MARFIL

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 #