# CE2013264EN.01010701.xml

| 13.9.2013 | EN | Official Journal of the European Union | CE 264/107 |
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13.9.2013

EN

Official Journal of the European Union

CE 264/107

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Wednesday 23 May 2012Common system for taxing financial transactions *

P7_TA(2012)0217

European Parliament legislative resolution of 23 May 2012 on the proposal for a Council directive on a common system of financial transaction tax and amending Directive 2008/7/EC (COM(2011)0594 – C7-0355/2011 – 2011/0261(CNS))

2013/C 264 E/24

(Special legislative procedure – consultation)

The European Parliament,

The European Parliament

| — | having regard to the Commission proposal to the Council (COM(2011)0594), |
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—

having regard to the Commission proposal to the Council (COM(2011)0594),

| — | having regard to Article 113 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C7-0355/2011), |
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—

having regard to Article 113 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C7-0355/2011),

| — | having regard to the reasoned opinions submitted, within the framework of the Protocol No 2 on the application of the principles of subsidiarity and proportionality, by the Cypriot Parliament, the Maltese Parliament and the Swedish Parliament, asserting that the draft legislative act does not comply with the principle of subsidiarity, |
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—

having regard to the reasoned opinions submitted, within the framework of the Protocol No 2 on the application of the principles of subsidiarity and proportionality, by the Cypriot Parliament, the Maltese Parliament and the Swedish Parliament, asserting that the draft legislative act does not comply with the principle of subsidiarity,

| — | 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 opinions of the Committee on Development, the Committee on Budgets and the Committee on the Internal Market and Consumer Protection (A7-0154/2012), |
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—

having regard to the report of the Committee on Economic and Monetary Affairs and the opinions of the Committee on Development, the Committee on Budgets and the Committee on the Internal Market and Consumer Protection (A7-0154/2012),

| 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 amend the Commission proposal substantially; |
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4.

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

| 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.

| TEXT PROPOSED BY THE COMMISSION | AMENDMENT |
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| Amendment 1 |
| Proposal for a directive


  Recital 1 |
| (1) | The recent financial crisis has led to debates at all levels about a possible additional tax on the financial sector and in particular a financial transactions tax (FTT). This debate stems from the desire to ensure the financial sector contribute to covering the costs of the crisis and that it is taxed in a fair way vis-à-vis other sectors for the future; to dis-incentivise excessively risky activities by financial institutions; to complement regulatory measures aimed at avoiding future crises and to generate additional revenue for general budgets or specific policy purposes. |

TEXT PROPOSED BY THE COMMISSION

AMENDMENT

Amendment 1

Amendment 1

Proposal for a directive

Proposal for a directive

Recital 1

Recital 1

(1)

The recent financial crisis has led to debates at all levels about a possible additional tax on the financial sector and in particular a financial transactions tax (FTT). This debate stems from the desire to ensure the financial sector contribute to covering the costs of the crisis and that it is taxed in a fair way vis-à-vis other sectors for the future; to dis-incentivise excessively risky activities by financial institutions; to complement regulatory measures aimed at avoiding future crises and to generate additional revenue for general budgets or specific policy purposes.

| (1) | The recent financial crisis has led to debates at all levels about a possible additional tax on the financial sector and in particular a financial transactions tax (FTT). This debate stems from the desire to ensure the financial sector contribute to covering the costs of the crisis and that it is taxed in a fair way vis-à-vis other sectors for the future; to dis-incentivise excessively risky activities by financial institutions; to complement regulatory measures aimed at avoiding future crises and to generate additional revenue for general budgets,
  inter alia as a contribution to fiscal consolidation, in order to stimulate growth and create jobs
  , or
  for
  specific policy purposes,
  such as development aid and fighting climate change
  . |
| --- | --- |

(1)

The recent financial crisis has led to debates at all levels about a possible additional tax on the financial sector and in particular a financial transactions tax (FTT). This debate stems from the desire to ensure the financial sector contribute to covering the costs of the crisis and that it is taxed in a fair way vis-à-vis other sectors for the future; to dis-incentivise excessively risky activities by financial institutions; to complement regulatory measures aimed at avoiding future crises and to generate additional revenue for general budgets,
  inter alia as a contribution to fiscal consolidation, in order to stimulate growth and create jobs
  , or
  for
  specific policy purposes,
  such as development aid and fighting climate change
  .

inter alia as a contribution to fiscal consolidation, in order to stimulate growth and create jobs

for

such as development aid and fighting climate change

Amendment 2

Amendment 2

Proposal for a directive

Proposal for a directive

Recital 2

Recital 2

| (2) | In order to prevent distortions through measures taken unilaterally by Member States, bearing in mind the extremely high mobility of most of the relevant financial transactions, and thus to ensure the proper functioning of the internal market, it is important that the basic features of a FTT in the Member States are harmonised at Union level. Incentives for tax arbitrage in the Union and allocation distortions between financial markets in the Union, as well as possibilities for double or non taxation should thereby be avoided. |
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(2)

In order to prevent distortions through measures taken unilaterally by Member States, bearing in mind the extremely high mobility of most of the relevant financial transactions, and thus to ensure the proper functioning of the internal market, it is important that the basic features of a FTT in the Member States are harmonised at Union level. Incentives for tax arbitrage in the Union and allocation distortions between financial markets in the Union, as well as possibilities for double or non taxation should thereby be avoided.

| (2) | In order to prevent distortions through measures taken unilaterally by Member States, bearing in mind the extremely high mobility of most of the relevant financial transactions, and thus to ensure the proper functioning of the internal market, it is important that the basic features of FTT in the Member States are harmonised,
  and this Directive is implemented
  , at Union level. Incentives for tax arbitrage in the Union and allocation distortions between financial markets in the Union, as well as possibilities for double or non taxation should thereby be avoided.
  Bearing in mind the ultimate goal of a Union-wide application of FTT, should a group of Member States, including, but not limited to euro area Member States, choose to move faster by means of enhanced cooperation under Article 329 of the Treaty on the Functioning of the European Union, the model developed in this Directive would seem suitable as a basis for implementation within that group of Member States. However, an introduction of FTT in a particularly limited number of Member States could lead to a significant distortion of competition in the internal market and comprehensive measures should be taken in order to ensure that such a move does not negatively affect the functioning of the internal market
  . |
| --- | --- |

(2)

In order to prevent distortions through measures taken unilaterally by Member States, bearing in mind the extremely high mobility of most of the relevant financial transactions, and thus to ensure the proper functioning of the internal market, it is important that the basic features of FTT in the Member States are harmonised,
  and this Directive is implemented
  , at Union level. Incentives for tax arbitrage in the Union and allocation distortions between financial markets in the Union, as well as possibilities for double or non taxation should thereby be avoided.
  Bearing in mind the ultimate goal of a Union-wide application of FTT, should a group of Member States, including, but not limited to euro area Member States, choose to move faster by means of enhanced cooperation under Article 329 of the Treaty on the Functioning of the European Union, the model developed in this Directive would seem suitable as a basis for implementation within that group of Member States. However, an introduction of FTT in a particularly limited number of Member States could lead to a significant distortion of competition in the internal market and comprehensive measures should be taken in order to ensure that such a move does not negatively affect the functioning of the internal market
  .

and this Directive is implemented

Bearing in mind the ultimate goal of a Union-wide application of FTT, should a group of Member States, including, but not limited to euro area Member States, choose to move faster by means of enhanced cooperation under Article 329 of the Treaty on the Functioning of the European Union, the model developed in this Directive would seem suitable as a basis for implementation within that group of Member States. However, an introduction of FTT in a particularly limited number of Member States could lead to a significant distortion of competition in the internal market and comprehensive measures should be taken in order to ensure that such a move does not negatively affect the functioning of the internal market

Amendment 3

Amendment 3

Proposal for a directive

Proposal for a directive

Recital 2 a (new)

Recital 2 a (new)

| (2a) | In line with the European Council conclusions of 17 June 2010 and taking into account that FTT will truly achieve its objectives if it is introduced at a global level, the Union should lead efforts to reach agreement on FTT at a global level. By means of setting an example for the introduction of FTT, the Union must push resolutely for a global agreement in the relevant international arena, in particular the G20, to establish a common ground for introducing a global FTT. Concrete actions in this direction should be part of the report of the Commission in the framework of the first review of this Directive
  . |
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(2a)

(2a)

In line with the European Council conclusions of 17 June 2010 and taking into account that FTT will truly achieve its objectives if it is introduced at a global level, the Union should lead efforts to reach agreement on FTT at a global level. By means of setting an example for the introduction of FTT, the Union must push resolutely for a global agreement in the relevant international arena, in particular the G20, to establish a common ground for introducing a global FTT. Concrete actions in this direction should be part of the report of the Commission in the framework of the first review of this Directive
  .

In line with the European Council conclusions of 17 June 2010 and taking into account that FTT will truly achieve its objectives if it is introduced at a global level, the Union should lead efforts to reach agreement on FTT at a global level. By means of setting an example for the introduction of FTT, the Union must push resolutely for a global agreement in the relevant international arena, in particular the G20, to establish a common ground for introducing a global FTT. Concrete actions in this direction should be part of the report of the Commission in the framework of the first review of this Directive

Amendment 4

Amendment 4

Proposal for a directive

Proposal for a directive

Recital 3

Recital 3

| (3) | For the internal market to function properly
  , FTT should apply to trade in a wide range of financial instruments, including structured products, both in the organised markets and ‘over-the-counter’, as well as to the conclusion and modification of all derivative contracts. For the same reason, it should apply to a broadly determined range of financial institutions. |
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(3)

For the internal market to function properly
  , FTT should apply to trade in a wide range of financial instruments, including structured products, both in the organised markets and ‘over-the-counter’, as well as to the conclusion and modification of all derivative contracts. For the same reason, it should apply to a broadly determined range of financial institutions.

For the internal market to function properly

| (3) | In order
  to
  reduce the scope for tax avoidance, relocation risk and regulatory arbitrage
  , FTT should apply to trade in a wide range of financial instruments, including structured products, both in the organised markets and ‘over-the-counter’, as well as to the conclusion and modification of all derivative contracts. For the same reason, it should apply to a broadly determined range of financial institutions.
  Including the widest possible range of financial instruments and actors should also ensure that the tax burden is equally spread among all actors but relatively higher on more speculative and more disruptive financial transactions. The same result could not be achieved if the scope of FTT were more limited, e.g. if it took the form of a stamp duty, which would place the full tax burden on a much more limited group of instruments traded on regulated markets without fulfilling the aim of curbing excessive and harmful speculation
  . |
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(3)

In order
  to
  reduce the scope for tax avoidance, relocation risk and regulatory arbitrage
  , FTT should apply to trade in a wide range of financial instruments, including structured products, both in the organised markets and ‘over-the-counter’, as well as to the conclusion and modification of all derivative contracts. For the same reason, it should apply to a broadly determined range of financial institutions.
  Including the widest possible range of financial instruments and actors should also ensure that the tax burden is equally spread among all actors but relatively higher on more speculative and more disruptive financial transactions. The same result could not be achieved if the scope of FTT were more limited, e.g. if it took the form of a stamp duty, which would place the full tax burden on a much more limited group of instruments traded on regulated markets without fulfilling the aim of curbing excessive and harmful speculation
  .

In order

reduce the scope for tax avoidance, relocation risk and regulatory arbitrage

Including the widest possible range of financial instruments and actors should also ensure that the tax burden is equally spread among all actors but relatively higher on more speculative and more disruptive financial transactions. The same result could not be achieved if the scope of FTT were more limited, e.g. if it took the form of a stamp duty, which would place the full tax burden on a much more limited group of instruments traded on regulated markets without fulfilling the aim of curbing excessive and harmful speculation

Amendment 5

Amendment 5

Proposal for a directive

Proposal for a directive

Recital 11 a (new)

Recital 11 a (new)

| (11a) | With a view to strengthening the position of stock exchange trading, which is strictly regulated, controlled and transparent, against unregulated, uncontrolled and less transparent off-exchange trading, Member States should apply lower tax rates to financial transactions on stock exchanges than to off-exchange transactions. This will make it possible to effect a shift in trading from markets with little or no regulation to stock exchanges that are subject to strict regulation and control. |
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(11a)

(11a)

With a view to strengthening the position of stock exchange trading, which is strictly regulated, controlled and transparent, against unregulated, uncontrolled and less transparent off-exchange trading, Member States should apply lower tax rates to financial transactions on stock exchanges than to off-exchange transactions. This will make it possible to effect a shift in trading from markets with little or no regulation to stock exchanges that are subject to strict regulation and control.

With a view to strengthening the position of stock exchange trading, which is strictly regulated, controlled and transparent, against unregulated, uncontrolled and less transparent off-exchange trading, Member States should apply lower tax rates to financial transactions on stock exchanges than to off-exchange transactions. This will make it possible to effect a shift in trading from markets with little or no regulation to stock exchanges that are subject to strict regulation and control.

Amendment 6

Amendment 6

Proposal for a directive

Proposal for a directive

Recital 12

Recital 12

| (12) | In order to concentrate the taxation on the financial sector as such rather than on citizens and because financial institutions execute the vast majority of transactions on financial markets, the tax should apply to those institutions, whether they trade in their own name, in the name of other persons, for their on own account or for the account of other persons. |
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(12)

In order to concentrate the taxation on the financial sector as such rather than on citizens and because financial institutions execute the vast majority of transactions on financial markets, the tax should apply to those institutions, whether they trade in their own name, in the name of other persons, for their on own account or for the account of other persons.

| (12) | In order to concentrate the taxation on the financial sector as such rather than on citizens and because financial institutions execute the vast majority of transactions on financial markets, the tax should apply
  only
  to those institutions, whether they trade in their own name, in the name of other persons, for their on own account or for the account of other persons. |
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(12)

In order to concentrate the taxation on the financial sector as such rather than on citizens and because financial institutions execute the vast majority of transactions on financial markets, the tax should apply
  only
  to those institutions, whether they trade in their own name, in the name of other persons, for their on own account or for the account of other persons.

only

Amendment 7

Amendment 7

Proposal for a directive

Proposal for a directive

Recital 13

Recital 13

| (13) | Because of the high mobility of financial transactions and in order to help mitigating potential tax avoidance,
  the
  FTT should be applied on the basis of
  the
  residence principle. |
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(13)

Because of the high mobility of financial transactions and in order to help mitigating potential tax avoidance,
  the
  FTT should be applied on the basis of
  the
  residence principle.

the

the

| (13) | Because of the high mobility of financial transactions and in order to help mitigating potential tax avoidance
  and in order to ensure the widest possible coverage of actors and transactions
  , FTT should be applied on the basis of
  a very broadly defined
  residence principle,
  supplemented by elements of the issuance principle. In addition, for better enforcement of FTT, the ownership principle should apply. |
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(13)

Because of the high mobility of financial transactions and in order to help mitigating potential tax avoidance
  and in order to ensure the widest possible coverage of actors and transactions
  , FTT should be applied on the basis of
  a very broadly defined
  residence principle,
  supplemented by elements of the issuance principle. In addition, for better enforcement of FTT, the ownership principle should apply.

and in order to ensure the widest possible coverage of actors and transactions

a very broadly defined

supplemented by elements of the issuance principle. In addition, for better enforcement of FTT, the ownership principle should apply.

Amendment 8

Amendment 8

Proposal for a directive

Proposal for a directive

Recital 14

Recital 14

| (14) | The minimum tax rates should be set at a level sufficiently high for the harmonisation objective of this Directive to be achieved. At the same time, they have to be low enough so that delocalisation risks are minimised. |
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(14)

The minimum tax rates should be set at a level sufficiently high for the harmonisation objective of this Directive to be achieved. At the same time, they have to be low enough so that delocalisation risks are minimised.

| (14) | The minimum tax rates should be set at a level sufficiently high for the harmonisation objective of this Directive to be achieved,
  so that the financial sector makes an appropriate contribution towards the costs of the economic crisis, thus boosting the real economy
  . At the same time,
  until the implementation of a uniform global FTT regime
  , those rates have to be low enough so that delocalisation risks are minimised. |
| --- | --- |

(14)

The minimum tax rates should be set at a level sufficiently high for the harmonisation objective of this Directive to be achieved,
  so that the financial sector makes an appropriate contribution towards the costs of the economic crisis, thus boosting the real economy
  . At the same time,
  until the implementation of a uniform global FTT regime
  , those rates have to be low enough so that delocalisation risks are minimised.

so that the financial sector makes an appropriate contribution towards the costs of the economic crisis, thus boosting the real economy

until the implementation of a uniform global FTT regime

Amendment 9

Amendment 9

Proposal for a directive

Proposal for a directive

Recital 15 a (new)

Recital 15 a (new)

| (15a) | Since avoidance, evasion and abuse rates will partly depend on the capability of Member States to verify taxable transactions carried out on a trading venue in a third country, Member States and, where applicable, the Commission should make full use of instruments for cooperation on tax matters established by the OECD, the Council of Europe and other international organisations. If necessary, new bilateral and multilateral cooperative initiatives should be taken in this regard. |
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(15a)

(15a)

Since avoidance, evasion and abuse rates will partly depend on the capability of Member States to verify taxable transactions carried out on a trading venue in a third country, Member States and, where applicable, the Commission should make full use of instruments for cooperation on tax matters established by the OECD, the Council of Europe and other international organisations. If necessary, new bilateral and multilateral cooperative initiatives should be taken in this regard.

Since avoidance, evasion and abuse rates will partly depend on the capability of Member States to verify taxable transactions carried out on a trading venue in a third country, Member States and, where applicable, the Commission should make full use of instruments for cooperation on tax matters established by the OECD, the Council of Europe and other international organisations. If necessary, new bilateral and multilateral cooperative initiatives should be taken in this regard.

Amendment 10

Amendment 10

Proposal for a directive

Proposal for a directive

Recital 16

Recital 16

| (16) | In order to allow the adoption of more detailed rules for determining whether certain financial activities constitute a significant part of an undertaking's activity, so that the undertaking can be considered a financial institution for the purposes of this Directive, as well as more detailed rules regarding protection against tax evasion, avoidance and abuse, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of specifying the measures necessary to this effect. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work,
  including at expert level
  . The Commission, when preparing and drawing-up delegated acts, should ensure a timely and appropriate transmission of relevant documents to the Council. |
| --- | --- |

(16)

In order to allow the adoption of more detailed rules for determining whether certain financial activities constitute a significant part of an undertaking's activity, so that the undertaking can be considered a financial institution for the purposes of this Directive, as well as more detailed rules regarding protection against tax evasion, avoidance and abuse, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of specifying the measures necessary to this effect. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work,
  including at expert level
  . The Commission, when preparing and drawing-up delegated acts, should ensure a timely and appropriate transmission of relevant documents to the Council.

including at expert level

| (16) | In order to allow the adoption of more detailed rules for determining whether certain financial activities constitute a significant part of an undertaking's activity, so that the undertaking can be considered a financial institution for the purposes of this Directive, as well as more detailed rules regarding protection against tax evasion, avoidance and abuse, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of specifying the measures necessary to this effect. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work,
  particularly with experts, non-governmental organisations (NGOs) and other stakeholders
  . The Commission, when preparing and drawing-up delegated acts, should ensure a timely and appropriate transmission of relevant documents to
  the European Parliament and
  the Council. |
| --- | --- |

(16)

In order to allow the adoption of more detailed rules for determining whether certain financial activities constitute a significant part of an undertaking's activity, so that the undertaking can be considered a financial institution for the purposes of this Directive, as well as more detailed rules regarding protection against tax evasion, avoidance and abuse, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of specifying the measures necessary to this effect. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work,
  particularly with experts, non-governmental organisations (NGOs) and other stakeholders
  . The Commission, when preparing and drawing-up delegated acts, should ensure a timely and appropriate transmission of relevant documents to
  the European Parliament and
  the Council.

particularly with experts, non-governmental organisations (NGOs) and other stakeholders

the European Parliament and

Amendment 11

Amendment 11

Proposal for a directive

Proposal for a directive

Recital 17 a (new)

Recital 17 a (new)

| (17a) | This Directive does not address the management of revenue from FTT. However, having regard to the Commission proposal for a Council regulation laying down the multiannual financial framework for the years 2014 to 2020 and in particular concerning the provisions on the Union's own resources, part of the revenue from FTT could be managed at Union level, either as a part of Union own resources or directly linked to specific Union policies and public goods. The use of part of revenue from FTT as Union own resources would reduce national contributions to the Union budget and would therefore release funds from the national budgets for other uses. |
| --- | --- |

(17a)

(17a)

This Directive does not address the management of revenue from FTT. However, having regard to the Commission proposal for a Council regulation laying down the multiannual financial framework for the years 2014 to 2020 and in particular concerning the provisions on the Union's own resources, part of the revenue from FTT could be managed at Union level, either as a part of Union own resources or directly linked to specific Union policies and public goods. The use of part of revenue from FTT as Union own resources would reduce national contributions to the Union budget and would therefore release funds from the national budgets for other uses.

This Directive does not address the management of revenue from FTT. However, having regard to the Commission proposal for a Council regulation laying down the multiannual financial framework for the years 2014 to 2020 and in particular concerning the provisions on the Union's own resources, part of the revenue from FTT could be managed at Union level, either as a part of Union own resources or directly linked to specific Union policies and public goods. The use of part of revenue from FTT as Union own resources would reduce national contributions to the Union budget and would therefore release funds from the national budgets for other uses.

Amendment 12

Amendment 12

Proposal for a directive

Proposal for a directive

Recital 17 b (new)

Recital 17 b (new)

| (17b) | Only Member States are competent to raise tax. |
| --- | --- |

(17b)

(17b)

Only Member States are competent to raise tax.

Only Member States are competent to raise tax.

Amendment 13

Amendment 13

Proposal for a directive

Proposal for a directive

Article 1 – paragraph 2

Article 1 – paragraph 2

2.   This Directive shall apply to all financial transactions,
  on condition that
  at least one party to the transaction is established in a Member State and
  that
  a financial institution established in the territory of a Member State is party to the transaction, acting either for its own account or for the account of another person, or is acting in the name of a party to the transaction.

on condition that

that

2.   This Directive shall apply,
  in accordance with Article 3
  , to all financial transactions,
  subject to one of the following conditions:

in accordance with Article 3

subject to one of the following conditions:

| (a) | at least one party to the transaction is established in a Member State and a financial institution established in the territory of a Member State is party to the transaction, acting either for its own account or for the account of another person, or is acting in the name of a party to the transaction;
  or |
| --- | --- |

(a)

(a)

at least one party to the transaction is established in a Member State and a financial institution established in the territory of a Member State is party to the transaction, acting either for its own account or for the account of another person, or is acting in the name of a party to the transaction;
  or

or

| (b) | the transaction involves a financial instrument issued by legal entities registered in the Union. |
| --- | --- |

(b)

(b)

the transaction involves a financial instrument issued by legal entities registered in the Union.

the transaction involves a financial instrument issued by legal entities registered in the Union.

Amendment 14

Amendment 14

Proposal for a directive

Proposal for a directive

Article 2 – paragraph 1 – point 1 – point c a (new)

Article 2 – paragraph 1 – point 1 – point c a (new)

| (ca) | currency spot transactions except where they are directly related to the commercial activities of a non-financial counterparty that is an end user; |
| --- | --- |

(ca)

(ca)

currency spot transactions except where they are directly related to the commercial activities of a non-financial counterparty that is an end user

Amendment 15

Amendment 15

Proposal for a directive

Proposal for a directive

Article 2 – paragraph 1 – point 7 – point f

Article 2 – paragraph 1 – point 7 – point f

| (f) | a pension fund or an institution for occupational retirement provision as defined in Article 6(a) of Directive 2003/41/EC of the European Parliament and the Council, an investment manager of such fund or institution; |
| --- | --- |

(f)

a pension fund or an institution for occupational retirement provision as defined in Article 6(a) of Directive 2003/41/EC of the European Parliament and the Council, an investment manager of such fund or institution;

| (f) | a pension fund or an institution for occupational retirement provision as defined in Article 6(a) of Directive 2003/41/EC of the European Parliament and of the Council
  on the activities and supervision of institutions for occupational retirement provision
  , an investment manager of such fund or institution,
  and an entity set up for the purpose of investment of such funds or institutions acting solely and exclusively in the interest of such funds or institutions, shall not be considered a financial institution for the purposes of this Directive until the review of this Directive pursuant to Article 16
  ; |
| --- | --- |

(f)

a pension fund or an institution for occupational retirement provision as defined in Article 6(a) of Directive 2003/41/EC of the European Parliament and of the Council
  on the activities and supervision of institutions for occupational retirement provision
  , an investment manager of such fund or institution,
  and an entity set up for the purpose of investment of such funds or institutions acting solely and exclusively in the interest of such funds or institutions, shall not be considered a financial institution for the purposes of this Directive until the review of this Directive pursuant to Article 16
  ;

on the activities and supervision of institutions for occupational retirement provision

and an entity set up for the purpose of investment of such funds or institutions acting solely and exclusively in the interest of such funds or institutions, shall not be considered a financial institution for the purposes of this Directive until the review of this Directive pursuant to Article 16

Amendment 16

Amendment 16

Proposal for a directive

Proposal for a directive

Article 3 – paragraph 1 – point e a (new)

Article 3 – paragraph 1 – point e a (new)

| (ea) | it is party, acting either for its own account or for the account of another person, or is acting in the name of a party to the transaction in relation to a financial instrument issued within the territory of a Member State or of the Union. |
| --- | --- |

(ea)

(ea)

it is party, acting either for its own account or for the account of another person, or is acting in the name of a party to the transaction in relation to a financial instrument issued within the territory of a Member State or of the Union.

Amendment 17

Amendment 17

Proposal for a directive

Proposal for a directive

Article 3 – paragraph 2 a (new)

Article 3 – paragraph 2 a (new)

2a.
     
  For the purpose of applying paragraph 1 in a consistent manner, Member States' competent authorities shall closely cooperate with each other and with ESMA in relation to the supervision of financial markets.

2a.

For the purpose of applying paragraph 1 in a consistent manner, Member States' competent authorities shall closely cooperate with each other and with ESMA in relation to the supervision of financial markets.

Amendment 18

Amendment 18

Proposal for a directive

Proposal for a directive

Article 3 a (new)

Article 3 a (new)

Article 3a

Article 3a

Issuance

Issuance

1.
     
  For the purposes of this Directive, a financial instrument is deemed to be issued within the territory of a Member State or of the Union where it is issued by a legal entity that is registered in a MemberState.

1.

For the purposes of this Directive, a financial instrument is deemed to be issued within the territory of a Member State or of the Union where it is issued by a legal entity that is registered in a MemberState.

2.
     
  In the case of a derivatives agreement the condition of issuance within the territory of a Member State or of the Union is fulfilled where the reference or underlying instrument is issued by a legal entity that is registered in a MemberState.

2.

In the case of a derivatives agreement the condition of issuance within the territory of a Member State or of the Union is fulfilled where the reference or underlying instrument is issued by a legal entity that is registered in a MemberState.

3.
     
  In the case of a structured instrument, the condition of issuance within the territory of a Member State or of the Union is fulfilled where the structured instrument is based on or backed by a significant proportion of assets or financial instruments and derivatives agreement with reference to financial instruments issued by a legal entity that is registered in a Member State.

3.

In the case of a structured instrument, the condition of issuance within the territory of a Member State or of the Union is fulfilled where the structured instrument is based on or backed by a significant proportion of assets or financial instruments and derivatives agreement with reference to financial instruments issued by a legal entity that is registered in a Member State.

Amendment 19

Amendment 19

Proposal for a directive

Proposal for a directive

Article 3 b (new)

Article 3 b (new)

Article 3b

Article 3b

Transfer of legal title

Transfer of legal title

1.
     
  A financial transaction in relation to which no FTT has been levied shall be deemed legally unenforceable and shall not result in a transfer of legal title of the underlying instrument.

1.

A financial transaction in relation to which no FTT has been levied shall be deemed legally unenforceable and shall not result in a transfer of legal title of the underlying instrument.

2.
     
  A financial transaction as referred to in paragraph 1 shall be deemed not to fulfil the requirements for central clearing under Regulation (EU) No .../2012 of the European Parliament and the Council of ... on OTC derivatives, central counterparties and trade repositories [EMIR] or the capital adequacy requirements under Regulation (EU) No .../2012 of the European Parliament and the Council of ... on prudential requirements for credit institutions and investment firms [CRR IV].

2.

A financial transaction as referred to in paragraph 1 shall be deemed not to fulfil the requirements for central clearing under Regulation (EU) No .../2012 of the European Parliament and the Council of ... on OTC derivatives, central counterparties and trade repositories [EMIR] or the capital adequacy requirements under Regulation (EU) No .../2012 of the European Parliament and the Council of ... on prudential requirements for credit institutions and investment firms [CRR IV].

3.
     
  In the case of automatic electronic payment schemes with or without the participation of payment settlement agents, revenue authorities of a MemberStatemay establish a system of automatic electronic collection of FTT and certificates for transferring legal title.

3.

In the case of automatic electronic payment schemes with or without the participation of payment settlement agents, revenue authorities of a MemberStatemay establish a system of automatic electronic collection of FTT and certificates for transferring legal title.

Amendment 20

Amendment 20

Proposal for a directive

Proposal for a directive

Article 8 – paragraph 3

Article 8 – paragraph 3

3.   Member States shall apply the same rate to all financial transactions that fall under the same category pursuant to paragraph 2 (a) and (b).

3.   
  In order to avoid tax arbitrage
  , Member States shall apply the same rate to all financial transactions that fall under the same category pursuant to paragraph 2 (a) and (b).

In order to avoid tax arbitrage

Amendment 21

Amendment 21

Proposal for a directive

Proposal for a directive

Article 8 – paragraph 3 a (new)

Article 8 – paragraph 3 a (new)

3a.
     
  Member States shall apply a lower rate of tax to financial transactions on stock exchanges than to those in off-exchange trading. This shall apply to the financial transactions referred to in Articles 5 and 6.

3a.

Member States shall apply a lower rate of tax to financial transactions on stock exchanges than to those in off-exchange trading. This shall apply to the financial transactions referred to in Articles 5 and 6.

Amendment 22

Amendment 22

Proposal for a directive

Proposal for a directive

Article 9 – paragraph 2

Article 9 – paragraph 2

2.   Where a financial institution acts in the name
  or
  for the account of another financial institution only that other financial institution shall be liable to pay FTT.

or

2.   Where a financial institution acts in the name, for the account
  or by order
  of another financial institution, only that other financial institution shall be liable to pay FTT.
  Where several financial institutions are involved in such a process only the original institution listed as a trader shall be liable to pay FTT.

or by order

Where several financial institutions are involved in such a process only the original institution listed as a trader shall be liable to pay FTT.

Amendment 23

Amendment 23

Proposal for a directive

Proposal for a directive

Article 10 – paragraph 1

Article 10 – paragraph 1

1.   Member States shall lay down
  registration
  , accounting, reporting obligations and other obligations intended to ensure that FTT due to the tax authorities is effectively paid.

registration

1.   Member States shall lay down accounting
  and
  reporting obligations and other obligations intended to ensure that FTT due to the tax authorities is effectively paid.

and

Amendment 24

Amendment 24

Proposal for a directive

Proposal for a directive

Article 10 – paragraph 1 a (new)

Article 10 – paragraph 1 a (new)

1a.
     
  A financial institution shall, within six months from the entry into force of this Directive, register at the tax authorities of the Member State where it is deemed to be established in accordance with Article 3(1).

1a.

A financial institution shall, within six months from the entry into force of this Directive, register at the tax authorities of the Member State where it is deemed to be established in accordance with Article 3(1).

Amendment 25

Amendment 25

Proposal for a directive

Proposal for a directive

Article 10 – paragraph 1 b (new)

Article 10 – paragraph 1 b (new)

1b.
     
  A Member State shall inform other Member States of the financial institutions registered at their territory.

1b.

A Member State shall inform other Member States of the financial institutions registered at their territory.

Amendment 26

Amendment 26

Proposal for a directive

Proposal for a directive

Article 10 – paragraph 5 a (new)

Article 10 – paragraph 5 a (new)

5a.
     
  Member states shall disclose annually to the Commission and to Eurostat transaction volumes against which revenues have been collected.

5a.

Member states shall disclose annually to the Commission and to Eurostat transaction volumes against which revenues have been collected.

Amendment 27

Amendment 27

Proposal for a directive

Proposal for a directive

Article 11 – title

Article 11 – title

Specific provisions relating to the prevention of evasion, avoidance and abuse

Specific provisions relating to the prevention of evasion, avoidance and abuse

Specific provisions relating to
  transparency and
  the prevention of
  tax evasion, avoidance and abuse

Specific provisions relating to

transparency and

the prevention of

tax

Amendment 28

Amendment 28

Proposal for a directive

Proposal for a directive

Article 11 – paragraph 1

Article 11 – paragraph 1

1.   
  Member States
  shall
  adopt measures
  to prevent tax evasion, avoidance and abuse.

Member States

adopt measures

1.   
  Union rules
  shall
  be adopted
  to prevent tax evasion, avoidance and abuse.

Union rules

be adopted

Amendment 29

Amendment 29

Proposal for a directive

Proposal for a directive

Article 11 – paragraph 1 a (new)

Article 11 – paragraph 1 a (new)

1a.
     
  The Commission shall establish an expert working group (FTT Committee) comprising representatives from the Member States that supervises the application of this Directive. Member States shall appoint bodies with sufficient competence to take immediate action in the case of abuse.

1a.

The Commission shall establish an expert working group (FTT Committee) comprising representatives from the Member States that supervises the application of this Directive. Member States shall appoint bodies with sufficient competence to take immediate action in the case of abuse.

The FTT Committee shall supervise financial transactions in order to detect avoidance schemes, to propose countermeasures and to coordinate the implementation of such countermeasures at national level where appropriate.

The FTT Committee shall supervise financial transactions in order to detect avoidance schemes, to propose countermeasures and to coordinate the implementation of such countermeasures at national level where appropriate.

Amendment 30

Amendment 30

Proposal for a directive

Proposal for a directive

Article 11 – paragraph 3 a (new)

Article 11 – paragraph 3 a (new)

3a.
     
  The administrative burden imposed on tax authorities through the introduction of FTT shall be kept to a minimum and, to that end, the Commission shall encourage cooperation between national tax authorities.

3a.

The administrative burden imposed on tax authorities through the introduction of FTT shall be kept to a minimum and, to that end, the Commission shall encourage cooperation between national tax authorities.

Amendment 31

Amendment 31

Proposal for a directive

Proposal for a directive

Article 11 – paragraph 3 b (new)

Article 11 – paragraph 3 b (new)

3b.
     
  Eurostat shall collect and publish annually the financial flows subject to FTT within the Union.

3b.

Eurostat shall collect and publish annually the financial flows subject to FTT within the Union.

Amendment 32

Amendment 32

Proposal for a directive

Proposal for a directive

Article 11 – paragraph 3 c (new)

Article 11 – paragraph 3 c (new)

3c.
     
  In order to verify taxable transactions carried out on a trading venue in a third country, Member States and, where applicable, the Commission shall make full use of instruments for cooperation on tax matters established by relevant international organisations.

3c.

In order to verify taxable transactions carried out on a trading venue in a third country, Member States and, where applicable, the Commission shall make full use of instruments for cooperation on tax matters established by relevant international organisations.

Amendment 33

Amendment 33

Proposal for a directive

Proposal for a directive

Article 11 – paragraph 3 d (new)

Article 11 – paragraph 3 d (new)

3d.
     
  In order to adapt Member States' tax administrations to the provisions of this Directive and, in particular, in relation to administrative cooperation referred to in paragraph 3, Member States shall provide them with necessary and adequate human resources and technical equipment. Particular attention shall be focused on providing training for officials.

3d.

In order to adapt Member States' tax administrations to the provisions of this Directive and, in particular, in relation to administrative cooperation referred to in paragraph 3, Member States shall provide them with necessary and adequate human resources and technical equipment. Particular attention shall be focused on providing training for officials.

Amendment 34

Amendment 34

Proposal for a directive

Proposal for a directive

Article 11 – paragraph 3 e (new)

Article 11 – paragraph 3 e (new)

3e.
     
  The Commission shall conduct a thorough examination to analyse the administrative costs for regional and local authorities arising from the implementation of this Directive.

3e.

The Commission shall conduct a thorough examination to analyse the administrative costs for regional and local authorities arising from the implementation of this Directive.

Amendment 35

Amendment 35

Proposal for a directive

Proposal for a directive

Article 16

Article 16

Every five years and for the first time by 31 December 2016, the Commission shall submit to the Council a report on the application of this Directive and, where appropriate, a proposal for its modification.

Every five years and for the first time by 31 December 2016, the Commission shall submit to
  the European Parliament and
  the Council a report on the application of this Directive and, where appropriate, a proposal for its modification.

the European Parliament and

In that report the Commission shall, at least, examine the impact of
  the
  FTT on the proper functioning of the internal market, the financial markets and the real economy
  and
  it shall
  take into account the progress on taxation of the financial sector in the international context.

the

and

take into account the progress on taxation of the financial sector in the international context.

In that report the Commission shall, at least, examine the impact of FTT on the proper functioning of the internal market, the financial markets and the real economy. It shall
  also assess the impact of certain provisions such as the appropriate scope of FTT, the possibility to distinguish between different categories of financial products and assets with a view to charging higher rates after a certain ratio of cancelled orders, the rate of taxation and the exemption of institutions for occupational retirement provision under Article 2(1)(7)(f). Where the Commission finds that distortion or abuse has taken place, it shall propose appropriate remedies.

also assess the impact of certain provisions such as the appropriate scope of FTT, the possibility to distinguish between different categories of financial products and assets with a view to charging higher rates after a certain ratio of cancelled orders, the rate of taxation and the exemption of institutions for occupational retirement provision under Article 2(1)(7)(f). Where the Commission finds that distortion or abuse has taken place, it shall propose appropriate remedies.

In addition, the Commission shall analyse and report on national FTT tax revenue collection based on the residency of financial institutions and to what extent that collection differs from tax distribution based on the underlying customer residency, namely to what extent financial consolidation centralises tax revenues in financial centres.

In addition, the Commission shall analyse and report on national FTT tax revenue collection based on the residency of financial institutions and to what extent that collection differs from tax distribution based on the underlying customer residency, namely to what extent financial consolidation centralises tax revenues in financial centres.

In its reports, the Commission shall take into account different forms of taxation of the financial sector, under discussion or already in place, and progress regarding the introduction of a wider FTT. Where appropriate, the Commission shall put forward proposals or undertake action in order to facilitate convergence and promote the introduction of a global FTT.

In its reports, the Commission shall take into account different forms of taxation of the financial sector, under discussion or already in place, and progress regarding the introduction of a wider FTT. Where appropriate, the Commission shall put forward proposals or undertake action in order to facilitate convergence and promote the introduction of a global FTT.

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