# C_2017408EN.01039701.xml

| 30.11.2017 | EN | Official Journal of the European Union | C 408/397 |
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30.11.2017

EN

Official Journal of the European Union

C 408/397

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P7_TA(2014)0275

Common system of taxation applicable in the case of parent companies and subsidiaries of different Member States *

European Parliament legislative resolution of 2 April 2014 on the proposal for a Council directive amending Directive 2011/96/EU on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States (COM(2013)0814 — C7-0464/2013 — 2013/0400(CNS))

(Special legislative procedure — consultation)

(2017/C 408/24)

The European Parliament,

The European Parliament

| — | having regard to the Commission proposal to the Council (COM(2013)0814), |
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—

having regard to the Commission proposal to the Council (COM(2013)0814),

| — | having regard to Article 115 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C7-0464/2013), |
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—

having regard to Article 115 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C7-0464/2013),

| — | having regard to Rule 55 of its Rules of Procedure, |
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—

having regard to Rule 55 of its Rules of Procedure,

| — | having regard to the report of the Committee on Economic and Monetary Affairs and the opinion of the Committee on Legal Affairs (A7-0243/2014), |
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—

having regard to the report of the Committee on Economic and Monetary Affairs and the opinion of the Committee on Legal Affairs (A7-0243/2014),

| 1. | Approves the Commission proposal as amended; |
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1.

Approves the Commission proposal as amended;

| 2. | Calls on the Commission to alter its proposal accordingly, in accordance with Article 293(2) of the Treaty on the Functioning of the European Union; |
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2.

Calls on the Commission to alter its proposal accordingly, in accordance with Article 293(2) of the Treaty on the Functioning of the European Union;

| 3. | Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament; |
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3.

Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

| 4. | Asks the Council to consult Parliament again if it intends to substantially amend the Commission proposal; |
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4.

Asks the Council to consult Parliament again if it intends to substantially amend the Commission proposal;

| 5. | Instructs its President to forward its position to the Council, the Commission and the national parliaments. |
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5.

Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Amendment 1

Amendment 1

Proposal for a directive

Proposal for a directive

Recital - 1 (new)

Recital - 1 (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (-1) | An estimated EUR 1 trillion of potential tax revenue is lost to tax fraud, tax evasion, tax avoidance or aggressive tax planning in the Union every year, representing an approximate cost of EUR 2 000 per annum for each Union citizen. It is therefore vital to take appropriate measures against tax fraud and to amend Council Directive 2011/96/EU

   (1a)

  in order to ensure that the application of that directive does not prevent effective action against double non-taxation in the area of hybrid loan structures. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(-1)

(-1)

An estimated EUR 1 trillion of potential tax revenue is lost to tax fraud, tax evasion, tax avoidance or aggressive tax planning in the Union every year, representing an approximate cost of EUR 2 000 per annum for each Union citizen. It is therefore vital to take appropriate measures against tax fraud and to amend Council Directive 2011/96/EU

   (1a)

  in order to ensure that the application of that directive does not prevent effective action against double non-taxation in the area of hybrid loan structures.

An estimated EUR 1 trillion of potential tax revenue is lost to tax fraud, tax evasion, tax avoidance or aggressive tax planning in the Union every year, representing an approximate cost of EUR 2 000 per annum for each Union citizen. It is therefore vital to take appropriate measures against tax fraud and to amend Council Directive 2011/96/EU

1a

in order to ensure that the application of that directive does not prevent effective action against double non-taxation in the area of hybrid loan structures.

Amendment 2

Amendment 2

Proposal for a directive

Proposal for a directive

Recital - 1 a (new)

Recital - 1 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (-1a) | The Commission Communication of 6 December 2012 entitled ‘An Action Plan to strengthen the fight against tax fraud and tax evasion’ identifies tackling mismatches between tax systems as one of the actions to be undertaken in the short term and includes an amendment of Directive 2011/96/EU in order to ensure that the application of that directive does not inadvertently prevent effective action against double non-taxation in the area of hybrid loan structures. The Action Plan also announced a review of anti-abuse provisions in the corporate tax directives, including Directive 2011/96/EU, with a view to implement the principles underlying the Commission Recommendation of 6 December 2012 on aggressive tax-planning. In its resolution of 21 May 2013 on Fight against Tax Fraud, Tax Evasion and Tax Havens, the European Parliament called on the Commission to put forward a proposal in 2013 to amend Directive 2011/96/EU with a view to revising the anti-abuse provision and eliminating double non-taxation, as facilitated by hybrid entities and financial instruments in the Union. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(-1a)

(-1a)

The Commission Communication of 6 December 2012 entitled ‘An Action Plan to strengthen the fight against tax fraud and tax evasion’ identifies tackling mismatches between tax systems as one of the actions to be undertaken in the short term and includes an amendment of Directive 2011/96/EU in order to ensure that the application of that directive does not inadvertently prevent effective action against double non-taxation in the area of hybrid loan structures. The Action Plan also announced a review of anti-abuse provisions in the corporate tax directives, including Directive 2011/96/EU, with a view to implement the principles underlying the Commission Recommendation of 6 December 2012 on aggressive tax-planning. In its resolution of 21 May 2013 on Fight against Tax Fraud, Tax Evasion and Tax Havens, the European Parliament called on the Commission to put forward a proposal in 2013 to amend Directive 2011/96/EU with a view to revising the anti-abuse provision and eliminating double non-taxation, as facilitated by hybrid entities and financial instruments in the Union.

The Commission Communication of 6 December 2012 entitled ‘An Action Plan to strengthen the fight against tax fraud and tax evasion’ identifies tackling mismatches between tax systems as one of the actions to be undertaken in the short term and includes an amendment of Directive 2011/96/EU in order to ensure that the application of that directive does not inadvertently prevent effective action against double non-taxation in the area of hybrid loan structures. The Action Plan also announced a review of anti-abuse provisions in the corporate tax directives, including Directive 2011/96/EU, with a view to implement the principles underlying the Commission Recommendation of 6 December 2012 on aggressive tax-planning. In its resolution of 21 May 2013 on Fight against Tax Fraud, Tax Evasion and Tax Havens, the European Parliament called on the Commission to put forward a proposal in 2013 to amend Directive 2011/96/EU with a view to revising the anti-abuse provision and eliminating double non-taxation, as facilitated by hybrid entities and financial instruments in the Union.

Amendment 3

Amendment 3

Proposal for a directive

Proposal for a directive

Recital 2

Recital 2

| Text proposed by the Commission | Amendment |
| --- | --- |
| (2) | The benefits of Directive 2011/96/EU should not lead to situations of double non-taxation and, therefore, generate unintended tax benefits for groups of parent companies and subsidiaries of different Member States in comparison with groups of companies of the same Member State. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(2)

The benefits of Directive 2011/96/EU should not lead to situations of double non-taxation and, therefore, generate unintended tax benefits for groups of parent companies and subsidiaries of different Member States in comparison with groups of companies of the same Member State.

| (2) | The benefits of Directive 2011/96/EU should not lead to situations of double non-taxation
  or extreme forms of under-taxation
  and, therefore, generate unintended tax benefits for groups of parent companies and subsidiaries of different Member States in comparison with groups of companies of the same Member State. |
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(2)

The benefits of Directive 2011/96/EU should not lead to situations of double non-taxation
  or extreme forms of under-taxation
  and, therefore, generate unintended tax benefits for groups of parent companies and subsidiaries of different Member States in comparison with groups of companies of the same Member State.

or extreme forms of under-taxation

Amendment 4

Amendment 4

Proposal for a directive

Proposal for a directive

Recital 4

Recital 4

| Text proposed by the Commission | Amendment |
| --- | --- |
| (4) | In order to prevent tax avoidance and abuse through artificial arrangements, a common anti-abuse provision tailored to the purpose and objectives of Directive 2011/96/EU should be inserted. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(4)

In order to prevent tax avoidance and abuse through artificial arrangements, a common anti-abuse provision tailored to the purpose and objectives of Directive 2011/96/EU should be inserted.

| (4) | In order to prevent tax avoidance and abuse through artificial arrangements, a common,
  compulsory
  anti-abuse provision tailored to the purpose and objectives of Directive 2011/96/EU should be inserted. |
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(4)

In order to prevent tax avoidance and abuse through artificial arrangements, a common,
  compulsory
  anti-abuse provision tailored to the purpose and objectives of Directive 2011/96/EU should be inserted.

compulsory

Amendment 5

Amendment 5

Proposal for a directive

Proposal for a directive

Recital 5

Recital 5

| Text proposed by the Commission | Amendment |
| --- | --- |
| (5) | It is necessary to ensure that this Directive does not preclude the application of domestic or agreement-based provisions required for the prevention of tax evasion. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(5)

It is necessary to ensure that this Directive does not preclude the application of domestic or agreement-based provisions required for the prevention of tax evasion.

| (5) | It is necessary to ensure that this Directive does not preclude the application of domestic or agreement-based provisions required for the prevention of tax evasion
  , in so far as they are compatible with this Directive
  . |
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(5)

It is necessary to ensure that this Directive does not preclude the application of domestic or agreement-based provisions required for the prevention of tax evasion
  , in so far as they are compatible with this Directive
  .

, in so far as they are compatible with this Directive

Amendment 6

Amendment 6

Proposal for a directive

Proposal for a directive

Article 1 — point 1

Article 1 — point 1

Directive 2011/96/EU

Article 1 — paragraph 2

| Text proposed by the Commission | Amendment |
| --- | --- |
| 2.   This Directive shall not preclude the application of domestic or agreement-based provisions required
  for the prevention
  of tax evasion. | 2.   This Directive shall not preclude the application of domestic or agreement-based provisions required
  in order to prevent
  tax evasion
  or to permit the taxation of activities at the place of production or consumption, in so far as they are compatible with this Directive
  . |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

2.   This Directive shall not preclude the application of domestic or agreement-based provisions required
  for the prevention
  of tax evasion.

for the prevention

2.   This Directive shall not preclude the application of domestic or agreement-based provisions required
  in order to prevent
  tax evasion
  or to permit the taxation of activities at the place of production or consumption, in so far as they are compatible with this Directive
  .

in order to prevent

or to permit the taxation of activities at the place of production or consumption, in so far as they are compatible with this Directive

Amendment 7

Amendment 7

Proposal for a directive

Proposal for a directive

Article 1 — point 2

Article 1 — point 2

Directive 2011/96/EU

Article 1a — paragraph 1

| Text proposed by the Commission | Amendment |
| --- | --- |
| 1.   Member States shall withdraw the benefit of this directive in the case of an artificial arrangement or an artificial series of arrangements which has been put into place for the
  essential
  purpose of obtaining an improper tax advantage under this directive and which defeats the object, spirit and purpose of the tax provisions invoked. | 1.   Member States shall withdraw the benefit of this directive in the case of an artificial arrangement or an artificial series of arrangements which has been put into place for the purpose of obtaining an improper tax advantage under this directive and which defeats the object, spirit and purpose of the tax provisions invoked. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

1.   Member States shall withdraw the benefit of this directive in the case of an artificial arrangement or an artificial series of arrangements which has been put into place for the
  essential
  purpose of obtaining an improper tax advantage under this directive and which defeats the object, spirit and purpose of the tax provisions invoked.

essential

1.   Member States shall withdraw the benefit of this directive in the case of an artificial arrangement or an artificial series of arrangements which has been put into place for the purpose of obtaining an improper tax advantage under this directive and which defeats the object, spirit and purpose of the tax provisions invoked.

Amendment 8

Amendment 8

Proposal for a directive

Proposal for a directive

Article 1 — point 2

Article 1 — point 2

Directive 2011/96/EU

Article 1 a — paragraph 2 — subparagraph 2 — introductory part

| Text proposed by the Commission | Amendment |
| --- | --- |
| In determining whether an arrangement or series of arrangements is artificial, Member States shall ascertain, in particular, whether they involve one or more of the following situations: | In determining whether an arrangement or series of arrangements is artificial, Member States shall ascertain, in particular
  , but not exclusively
  , whether they involve one or more of the following situations: |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

In determining whether an arrangement or series of arrangements is artificial, Member States shall ascertain, in particular, whether they involve one or more of the following situations:

In determining whether an arrangement or series of arrangements is artificial, Member States shall ascertain, in particular
  , but not exclusively
  , whether they involve one or more of the following situations:

, but not exclusively

Amendment 9

Amendment 9

Proposal for a directive

Proposal for a directive

Article 1 — point 2 a (new)

Article 1 — point 2 a (new)

Directive 2011/96/EU

Article 3 — paragraph 2 — point a

| Present text | Amendment |
| --- | --- |
| | 2a.
     
  In Article 3(2), point (a) is replaced by the following: |
| (a) | replacing
  , by means of bilateral agreement, the criterion of a holding in the capital
  by
  that of a holding of voting rights; |

Present text

Present text

Amendment

Amendment

2a.
     
  In Article 3(2), point (a) is replaced by the following:

2a.

In Article 3(2), point (a) is replaced by the following:

(a)

replacing
  , by means of bilateral agreement, the criterion of a holding in the capital
  by
  that of a holding of voting rights;

replacing

by

| ‘(a) | adding
  , by means of bilateral agreement, the criterion of a holding in the capital
  to
  that of a holding of voting rights;’ |
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‘(a)

adding
  , by means of bilateral agreement, the criterion of a holding in the capital
  to
  that of a holding of voting rights;’

adding

to

Amendment 11

Amendment 11

Proposal for a directive

Proposal for a directive

Article 1 a (new)

Article 1 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | Article 1a




  Review




  By 31 December 2016, the Commission shall report to the European Parliament and to the Council reviewing the operation of the amendments to Directive 2011/96/EU introduced by this Directive and in particular its effectiveness in preventing tax avoidance and abuse.




  That report shall be submitted together with a legislative proposal, if appropriate. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Article 1a

Article 1a

Review

Review

By 31 December 2016, the Commission shall report to the European Parliament and to the Council reviewing the operation of the amendments to Directive 2011/96/EU introduced by this Directive and in particular its effectiveness in preventing tax avoidance and abuse.

By 31 December 2016, the Commission shall report to the European Parliament and to the Council reviewing the operation of the amendments to Directive 2011/96/EU introduced by this Directive and in particular its effectiveness in preventing tax avoidance and abuse.

That report shall be submitted together with a legislative proposal, if appropriate.

That report shall be submitted together with a legislative proposal, if appropriate.

Amendment 12

Amendment 12

Proposal for a directive

Proposal for a directive

Article 3

Article 3

| Text proposed by the Commission | Amendment |
| --- | --- |
| This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. | This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
  It shall be published in consolidated form with the Directive which it amends within three months of its publication. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
  It shall be published in consolidated form with the Directive which it amends within three months of its publication.

It shall be published in consolidated form with the Directive which it amends within three months of its publication.

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(1a)  
  Council Directive 2011/96/EU of 30 November 2011 on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States (OJ L 345, 29.12.2011, p. 8).

1a

Council Directive 2011/96/EU of 30 November 2011 on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States (OJ L 345, 29.12.2011, p. 8).

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