Lately we have been paying a lot of attention to the European Parliament’s Special Committee on Tax Rulings and Other Measures Similar in Nature or Effect (TAXE). But there is also another EP Committee that has been working on BEPS/taxation and that is the European Parliament’s Economic and Monetary Affairs Committee. On November 30 and December 1, 2015 this latter Committee had a meeting. During this meeting the Committee a.o. discussed and voted on a report drafted by the co-rapporteurs Anneliese Dodds and Luděk Niedermayer. The report contains a draft motion for a European Parliament’s Resolution with recommendations to the European Commission on bringing transparency, coordination and convergence to corporate tax policies in the Union. The Committee approved the report by 45 votes to 3, with 10 abstentions.

 

The committee resolution is now scheduled to be debated on by Parliament as a whole on December 15, 2015 and scheduled to be put to a vote by Parliament as a whole on December 16, 2015. If the Resolution is approved by the European Parliament as a whole, the European Commission will have three months to respond to the recommendations, either with a legislative proposal or with an explanation for not doing so.

 

In its draft resolution the Economic and Monetary Affairs Committee asks the Commission, inter alia, to:

·        table a proposal for country-by-country reporting on profit, tax and subsidies by June 2016,

·        table a proposal for introducing a "Fair Tax Payer" label,

·        introduce a Common Tax Base (CCTB) as a first step, which later on should be consolidated as well (CCCTB),

·        table a proposal for a common European Tax Identification Number,

·        table a proposal for legal protection of whistle-blowers,

·        improve cross-border taxation dispute resolution mechanisms,

·        table a proposal for a new mechanism whereby member states should inform each other if they intend to introduce a new allowance, relief, exception, incentive, etc. that may affect the tax base of others,

·        estimate the corporate tax gap (corporate taxes owed minus what has been paid),

·        strengthen the mandate and improve transparency of the Council Code of Conduct Working Group on Business Taxation,

·        provide guidelines regarding “patent boxes” so as to ensure they are not harmful,

·        come up with common definitions for "permanent establishment" and "economic substance" so as to ensure that profits are taxed where value is generated,

·        come up with an EU definition of "tax haven" and counter-measures for those who use them, and

·        improve the transfer pricing framework in the EU.

 

The following documents were discussed during the November 30 – December 1 meeting:

·        DRAFT REPORT with recommendations to the Commission on Bringing transparency, coordination and convergence to Corporate Tax policies in the Union;

·        AMENDMENTS 1 - 219 Draft report - Bringing transparency, coordination and convergence to Corporate Tax policies in the Union;

·        AMENDMENTS 220 - 433 - Draft report - Bringing transparency, coordination and convergence to Corporate Tax policies in the Union;

·        OPINION of the Committee on Industry, Research and Energy for the Committee on Economic and Monetary Affairs  Bringing transparency, coordination and convergence to Corporate Tax policies in the Union

 

How the voting on the amendments went, we unfortunately do not know.

 

 

Copyright – internationaltaxplaza.info

 

 

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