(2)

the following Chapter 10a is inserted: ‘Chapter 10a Report on Income tax information Article 48a Definitions relating to reporting on income tax information For the purposes of this Chapter, the following definitions shall apply: (1) “ultimate parent undertaking” means an undertaking which draws up the consolidated financial statements of the largest body of undertakings; (2) “consolidated financial statements” means the financial statements prepared by a parent undertaking of a group in which the assets, liabilities, equity, income and expenses are presented as those of a single economic entity; (3) “tax jurisdiction” means a State as well as a non-State jurisdiction which has fiscal autonomy in respect of corporate income tax. Article 48b Undertakings and branches required to report on income tax information 1. Member States shall require ultimate parent undertakings governed by their national laws and having a consolidated net turnover of or exceeding EUR 750 000 000 as well as undertakings governed by their national laws that are not affiliated undertakings and having a net turnover of or exceeding EUR 750 000 000 to draw up and publish make publicly available free of charge a report on income tax information on an annual basis. [Am. 26] The report on income tax information shall be published in a common template available free of charge in an open data format and made accessible to the public on the website of the undertaking on the date of its publication in at least one of the official languages of the Union. On the same date, the undertaking shall also file the report in a public registry managed by the Commission . Member States shall not apply the rules set out in this paragraph where such undertakings are established only within the territory of a single Member State and in no other tax jurisdiction. [Am. 27] 2. Member States shall not apply the rules set out in paragraph 1 of this Article to ultimate parent undertakings where such undertakings or their affiliated undertakings are subject to Article 89 of Directive 2013/36/EU of the European Parliament and of the Council (*1) and encompass, in a country-by-country report, information on all the activities of all the affiliated undertakings included in the consolidated financial statement of those ultimate parent undertakings. 3. Member States shall require the medium-sized and large subsidiary undertakings referred to in Article 3(3) and (4) which are governed by their national laws and controlled by an ultimate parent undertaking which on its balance sheet in a financial year has a consolidated net turnover of or exceeding EUR 750 000 000 and which is not governed by the law of a Member State, to publish the report on income tax information of that ultimate parent undertaking on an annual basis. [Am. 28] The report on income tax information shall be published in a common template available free of charge in an open data format and made accessible to the public on the date of its publication on the website of the subsidiary undertaking or on the website of an affiliated undertaking in at least one of the official languages of the Union. On the same date, the undertaking shall also file the report in a public registry managed by the Commission . [Am. 29] 4. Member States shall require branches which are opened in their territories by an undertaking which is not governed by the law of a Member State to publish and make publicly available free of charge on an annual basis the report on income tax information of the ultimate parent undertaking referred to in point (a) of paragraph 5 of this Article. [Am. 30] The report on income tax information shall be published in a common template available in an open data format and made accessible to the public on the date of its publication on the website of the branch or on the website of an affiliated undertaking in at least one of the official languages of the Union. On the same date, the undertaking shall also file the report in a public registry managed by the Commission . [Am. 31] Member States shall apply the first subparagraph of this paragraph only to branches which have net turnover exceeding net turnover threshold defined by the law of each Member State pursuant to Article 3(2). 5. Member States shall apply the rules set out in paragraph 4 only to a branch where the following criteria are met: (a) the undertaking which opened the branch is either an affiliated undertaking of a group which is controlled by an ultimate parent undertaking not governed by the law of a Member State and which on its balance sheet has a consolidated net turnover of or exceeding EUR 750 000 000, or an undertaking that is not an affiliated and which has a net turnover of or exceeding EUR 750 000 000; [Am. 32] (b) the ultimate parent undertaking referred to in point (a) does not have a medium-sized or large subsidiary undertaking as referred to in paragraph 3 already subject to the reporting obligations . [Am. 33] 6. Member States shall not apply the rules set out in paragraphs 3 and 4 of this Article where a report on income tax information drawn up in accordance with Article 48c is made accessible to the public on the website of the ultimate parent undertaking not governed by the law of a Member State within a reasonable period of time, which shall not exceed 12 months after the balance sheet date and where the report identifies the name and registered office of the single subsidiary undertaking or the single branch governed by the law of a Member State which has published the report in accordance with Article 48d(1). 7. Member State shall require subsidiaries or branches not subject to the provisions of paragraphs 3 and 4 to publish and make accessible the report on income tax information where such subsidiaries or branches have been established for the purpose of avoiding the reporting requirements set out in this Chapter. 7a. For Member States which have not adopted the euro, the amount in national currency equivalent to the amount set out in paragraphs 1, 3 and 5 shall be obtained by applying the exchange rate published in the Official Journal of the European Union and that is effective as of the date of the entry into force of this Chapter. [Am. 34] Article 48c Content of the report on income tax information 1. The report on income tax information shall include information relating to all the activities of the undertaking and the ultimate parent undertaking, including activities of all affiliated undertakings consolidated in the financial statement in respect of the relevant financial year. 2. The information referred to in paragraph 1 shall be presented in a common template and shall comprise the following , broken down by tax jurisdiction : [Am. 35] (a) the name of the ultimate undertaking and, where applicable, the list of all its subsidiaries, a brief description of the nature of the their activities and their respective geographical location ; [Am. 36] (b) the number of employees on a full-time equivalent basis ; [Am. 37] (ba) fixed assets other than cash or cash equivalents; [Am. 38] (c) the amount of the net turnover, which includes including a distinction between the turnover made with related parties and the turnover made with unrelated parties ; [Am. 39] (d) the amount of profit or loss before income tax; (e) the amount of income tax accrued (current year) which is the current tax expense recognised on taxable profits or losses of the financial year by undertakings and branches resident for tax purposes in the relevant tax jurisdiction; (f) the amount of income tax paid which is the amount of income tax paid during the relevant financial year by undertakings and branches resident for tax purposes in the relevant tax jurisdiction; (g) the amount of accumulated earnings; (ga) stated capital; [Am. 40] (gb) details of public subsidies received and any donations made to politicians, political organisations or political foundations; [Am. 65] (gc) whether undertakings, subsidiaries or branches benefit from preferential tax treatment, from a patent box or equivalent regimes. [Am. 41] For the purposes of point (e) of the first subparagraph the current tax expense shall relate only to the activities of an undertaking in the current financial year and shall not include deferred taxes or provisions for uncertain tax liabilities. 3. The report shall present the information referred to in paragraph 2 separately for each Member State. Where a Member State comprises several tax jurisdictions, the information shall be combined at Member State level presented separately for each tax jurisdiction . [Am. 42] The report shall also present the information referred to in paragraph 2 of this Article separately for each tax jurisdiction which, at the end of the previous financial year, is listed in the common outside the Union list of certain tax jurisdictions drawn up pursuant to Article 48 g, unless the report explicitly confirms, subject to the responsibility referred to in Article 48e below, that the affiliated undertakings of a group governed by the laws of such tax jurisdiction do not engage directly in transactions with any affiliated undertaking of the same group governed by the laws of any Member State. [Am. 43] The report shall present the information referred to in paragraph 2 on an aggregated basis for other tax jurisdictions. [Am. 44] In order to protect commercially sensitive information and to ensure fair competition, Member States may allow one or more specific items of information listed in this Article to be temporarily omitted from the report as regards activities in one or more specific tax jurisdictions when they are of a nature such that their disclosure would be seriously prejudicial to the commercial position of the undertakings referred to in Article 48b(1) and Article 48b(3) to which it relates. The omission shall not prevent a fair and balanced understanding of the tax position of the undertaking. The omission shall be indicated in the report together with a duly justified explanation for each tax jurisdiction as to why this is the case and with a reference to the tax jurisdiction or tax jurisdictions concerned. [Am. 83] Member States shall make such omissions subject to prior authorisation of the national competent authority. The undertaking shall seek each year a new authorisation from the competent authority, which will take a decision on the basis of a new assessment of the situation. Where the information omitted no longer complies with the requirement laid down in subparagraph 3a, it shall immediately be made publicly available. As from the end of the non-disclosure period, the undertaking shall also retroactively disclose, in the form of an arithmetic average, the information required under this Article for the preceding years covered by the non-disclosure period. [Am. 69/rev] Members States shall notify the Commission of the granting of such a temporary derogation and shall transmit to it, in a confidential manner, the omitted information together with a detailed explanation for the derogation granted. Every year, the Commission shall publish on its website the notifications received from Member States and the explanations provided in accordance with subparagraph 3a. [Am. 47] The Commission shall verify that the requirement laid down in subparagraph 3a is duly respected, and shall monitor the use of such a temporary derogation authorised by national authorities. [Am. 48] If the Commission concludes, after having carried out its assessment of the information received pursuant to subparagraph 3c, that the requirement laid down in subparagraph 3a is not fulfilled, the undertaking concerned shall immediately make the information publicly available. As from the end of the non-disclosure period, the undertaking shall also retroactively disclose, in the form of an arithmetic average, the information required under this Article for the preceding years covered by the non-disclosure period. [Am. 70/rev] The Commission shall, by means of a delegated act, adopt guidelines to assist Member States defining cases where the publication of information shall be considered seriously prejudicial to the commercial position of the undertakings to which it relates. [Am. 50] The information shall be attributed to each relevant tax jurisdiction on the basis of the existence of a fixed place of business or of a permanent business activity which, arising from the activities of the group, can give rise to income tax liability in that tax jurisdiction. Where the activities of several affiliated undertakings can give rise to a tax liability within a single tax jurisdiction, the information attributed to that tax jurisdiction shall represent the sum of the information relating to such activities of each affiliated undertaking and their branches in that tax jurisdiction. Information on any particular activity shall not be attributed simultaneously to more than one tax jurisdiction. 4. The report shall include at group level an overall narrative providing explanations on material discrepancies between the amounts disclosed pursuant to points (e) and (f) of paragraph 2, if any, taking into account if appropriate corresponding amounts concerning previous financial years. 5. The report on income tax information shall be published in a common template available free of charge in an open data format and made accessible to the public on the date of its publication on the website of the subsidiary undertaking or on the website of an affiliated undertaking in at least one of the official languages of the Union. On the same date, the undertaking shall also file the report in a public registry managed by the Commission. [Am. 51] 6. The currency used in the report on income tax information shall be the currency in which the consolidated financial statements are presented. Member States shall not require this report to be published in a different currency than the currency used in the financial statements. 7. Where Member States have not adopted the euro, the threshold referred to in Article 48b(1) shall be converted into the national currency by applying the exchange rate as at … [date of the entry in force of this Directive] published in the Official Journal of the European Union and by increasing or decreasing it by not more than 5 % in order to produce a round sum in the national currencies. The thresholds referred to in Article 48b(3) and (4) shall be converted to an equivalent amount in the national currency of any relevant third countries by applying the exchange rate as at … [date of the entry in force of this Directive], rounded off to the nearest thousand. Article 48d Publication and Accessibility 1. The report on income tax information shall be published as laid down by the laws of each Member State in accordance with Chapter 2 of Directive 2009/101/EC, together with documents referred to in Article 30(1) of this Directive and where relevant, with the accounting documents referred to in Article 9 of Council Directive 89/666/EEC (*2). 2. The report referred to in Article 48b(1), (3), (4) and (6) shall remain accessible on the website for a minimum of five consecutive years. Article 48e Responsibility for drawing up, publishing and making accessible the report on income tax information 1. To strengthen accountability towards third parties and ensure appropriate governance, Member States shall ensure that the members of the administrative, management and supervisory bodies of the ultimate parent undertaking referred to in Article 48b(1), acting within the competences assigned to them under national law, have collective responsibility for ensuring that the report on income tax information is drawn up, published and made accessible in accordance with Articles 48b, 48c and 48d. [Am. 52] 2. Member States shall ensure that the members of the administrative, management and supervisory bodies of the subsidiary undertakings referred to in Article 48b(3) of this Directive and the person(s) designated to carry out the disclosure formalities provided for in Article 13 of Directive 89/666/EEC for the branch referred to in Article 48b(4) of this Directive, acting within the competences assigned to them by national law, have collective responsibility for ensuring that, to the best of their knowledge and ability, the report on income tax information is drawn up, published and made accessible in accordance with Articles 48b, 48c and 48d. Article 48f Independent check Member States shall ensure that, where the financial statements of an affiliated undertaking are audited by one or more statutory auditor(s) or audit firm(s) pursuant to Article 34(1), the statutory auditor(s) or audit firm(s) also check whether the report on income tax information has been provided and made accessible in accordance with Articles 48b, 48c and 48d. The statutory auditor(s) or audit firm(s) shall indicate in the audit report if the report on income tax information has not been provided or made accessible in accordance with those Articles. Article 48 g Common Union list of certain tax jurisdictions The Commission shall be empowered to adopt delegated acts in accordance with Article 49 in relation to drawing up a common Union list of certain tax jurisdictions. That list shall be based on the assessment of the tax jurisdictions, which do not comply with the following criteria: (1) Transparency and exchange of information, including information exchange on request and Automatic Exchange of Information of financial account information; (2) Fair tax competition; (3) Standards set up by the G20 and/or the OECD; (4) Other relevant standards, including international standards set up by the Financial Action Task Force. The Commission shall regularly review the list and, where appropriate, amend it to take account of new circumstances. [Am. 53] Article 48h Commencement date for reporting on income tax information Member States shall ensure that laws, regulations and administrative provisions transposing Articles 48a to 48f apply, at the latest, from the commencement date of the first financial year starting on or after …[two years after the entry into force of this Directive]. Article 48i Report The Commission shall report on the compliance with and the impact of the reporting obligations set out in Articles 48a to 48f. The report shall include an evaluation of whether the report on income tax information delivers appropriate and proportionate results, and shall assess the costs and benefits of lowering the consolidated net turnover threshold beyond which undertakings and branches are required to report on income tax information. The report shall, in addition, evaluate any necessity to take further complementary measures, taking into account the need to ensure a sufficient level of transparency and the need for to preserve and ensure a competitive environment for undertakings and private investment . [Am. 54] The report shall be submitted to the European Parliament and to the Council by …[six years after the entry into force of this Directive]. (*1) Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338)." (*2) Eleventh Council Directive 89/666/EEC of 21 December 1989 concerning disclosure requirements in respect of branches opened in a Member State by certain types of company governed by the law of another State (OJ L 395, 30.12.1989, p. 36).’"