Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive 2013/34/EU as regards disclosure of income tax information by certain undertakings and branches
Date: 2016-04-12
Institutions: Directorate-General for Financial Stability, Financial Services and Capital Markets Union, European Commission
Subjects: European tax cooperation, corporation tax, exchange of information, multinational enterprise, single market, tax avoidance, tax evasion, tax inspection, tax law

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   EUROPEAN COMMISSION  Strasbourg, 12.4.2016  COM(2016) 198 final 2016/0107 (COD)   Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive 2013/34/EU as regards disclosure of income tax information by certain undertakings and branches (Text with EEA relevance) {SWD(2016) 117 final} {SWD(2016) 118 final}  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

A  healthy  Single  Market  needs  a  fair,  efficient  and  growth-friendly  corporate  tax  system, 
based  on  the  principle  that  companies  should  pay  taxes  in  the  country  where  profits  are 
generated. Aggressive tax planning undermines this principle. The majority of companies do 
not engage in aggressive tax planning and suffer a competitive disadvantage to those that do. 
Small and medium-sized companies are particularly affected by this phenomenon. 

Fighting against tax avoidance and aggressive tax planning, both at EU and global level, is a 
political priority for the European Commission. As part of a broader strategy for  a Fair and 
Efficient Corporate Tax System in the EU1, public scrutiny can help to ensure that profits are 
effectively  taxed  where  they  are  generated.  Public  scrutiny  can  reinforce  public  trust  and 
strengthen  companies'  corporate  social  responsibility  by  contributing  to  the  welfare  through 
paying  taxes  in  the  country  where  they  are  active.  In  addition,  it  can  also  promote  a  better 
informed debate on potential shortcomings in tax laws. 

The Commission announced  in March 2015 a comprehensive list  of initiatives in its Action 
Plan  on  a  Fairer  Corporate  Tax  System  (COM(2015)302)  and  proposed  as  part  of  the 
subsequent Anti-Tax Avoidance Package2 (ATAP), to implement in the Union Action 13 of 
the  OECD  Action  Plan  endorsed  by  the  G20  to  fight  base  erosion  and  profit  shifting 
(hereafter,  BEPS).  As  a  result,  tax  authorities will receive  a  country-by-country  report  from 
multinational enterprises (MNEs) on income tax paid which should enable better compliance 
with tax laws. 

Responding  to  the  calls  from  the  G20  and  elsewhere,  greater  transparency  on  the  side  of 
companies  is  needed  to  enable  public  scrutiny  of  whether  tax  is  paid  where  profits  are 
produced. This proposal requires that MNEs disclose publicly in a specific report the income 
tax  they  pay  together  with  other  relevant  tax-related  information.  MNEs,  whether 
headquartered  in  the  EU  or  outside,  with  turnover  of  more  than  EUR  750m  will  need  to 
comply with these additional transparency requirements.  For the first time, not only European 
businesses  but  also  non-European  multinational  companies  doing  business  in  Europe  will 
have the same reporting obligations.  

Third country jurisdictions which do not respect international tax good governance standards 
create particular opportunities for tax avoidance and tax evasion. If MNEs are active in such 
jurisdictions, special transparency requirements should apply.  

This  proposal  focusses  on  corporate  groups  with  a  worldwide  consolidated  net  turnover  of 
more  than  EUR  750  million,  in  line  with  the  scope  of  global  OECD  initiatives  on  tax 
transparency.  The  proposal  does  not  impose  any  obligations  on  small  and  medium-sized 
companies3.  It is proportionate both in terms of scope and information to be disclosed so as to 
limit compliance and other costs for affected companies, as well as to avoid jeopardising their 

1 

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3 

See  European  Commission,  Action  Plan  on  Corporate  Taxation,  June  2015.  See  also  European 
Commission, Anti Tax Avoidance Package, January 2016 
Commission  Proposal  for  a  Council  Directive  amending  Directive  2011/16/EU  as  regards  mandatory 
automatic exchange of information in the field of taxation. 
With  the  exception  of  medium-sized  subsidiaries  and  branches  of  non-EU  MNE  groups  with  a 
consolidated turnover exceeding EUR 750 million which will be subject to reporting requirements. 

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competitiveness  or  expose  them  unduly  to  double  taxation  risks.  It  fits  into  the  multilateral 
approach  supported  by  the  G20  and  the  OECD.  The  Commission  will  continue  to  work 
proactively on these issues with all relevant international partners. 

• 

Consistency with existing policy provisions in the policy area 

This  proposal  complements  undertakings'  current  financial  reporting  requirements  and  does 
not interfere with these requirements in relation to their financial statements, for example. 

This  proposal  does  not  modify  the  rules  already  in  place  on  non-financial  reporting  and 
sectoral  CBCR  for  both  the  banking  sector4  and  the  extractive  and  logging  industries5. 
However it introduces an exemption clause to avoid double reporting for the banking sector, 
which is already subject to stringent public reporting rules in the EU banking legislation.  

• 

Consistency with other Union policies 

In the wake of the endorsement by the G20 of the Action Plan designed by the OECD to fight 
base erosion and profit shifting, the ATAP that was tabled in January 2016 requires very large 
MNEs6  to  report  CBCR  information  to  tax  authorities.  The  information  reported  to  tax 
authorities will not be disclosed to the public. The CBCR requirement in the ATAP is a tool 
that will assist tax authorities in orienting their tax audits and in ensuring compliance. 

This proposal complements the ATAP proposal but has a different purpose. It will require the 
same MNEs to disclose publicly certain items of the information submitted to tax authorities.  

This proposal contributes to EU policies on Corporate Social Responsibility, growth and jobs. 
This proposal responds to calls by the European Parliament to introduce a CBCR on corporate 
income tax.  

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

Article  50,  paragraph  1  TFEU  has  been  determined  to  be  an  appropriate  legal  base  for  this 
initiative, since it amends an existing Directive, which is based on that Article. 

• 

Subsidiarity (for non-exclusive competence) 

In  an  increasingly  global  integrated  and  digitalised  economy,  corporations  and  production 
value  chains  reflect  less  national  and  indeed  regional  boundaries.    By  contrast,  tax  policies 
and administration remain primarily a national responsibility. Due to the cross-border nature 
of  numerous  tax  planning  structures  and  transfer  pricing  arrangements,  MNEs  can  easily 
relocate their tax base from one jurisdiction to another within or outside the Union. The EU 
action  is  thus  justified  on  the  grounds  of  subsidiarity  in  order  to  address  the  cross-border 
dimension where there is aggressive tax planning or transfer pricing arrangements. 

• 

Proportionality 

This initiative builds largely on the international consensus developed by the G20 in terms of 
scope  and  content.  It  ensures  the  right  balance  between  benefits  derived  through  public 

4 

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6 

Directive 2013/36/EU on access to the activity of credit institutions and the prudential supervision of 
credit institutions and investment firms (Article 89) 
Directive 2013/34/EU (Chapter 10) 
Commission  Proposal  for  a  Council  Directive  amending  Directive  2011/16/EU  as  regards  mandatory 
automatic exchange of information in the field of taxation. 

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transparency and the need for a strong and robust EU economy. This initiative responds to the 
concerns  expressed  by  interested  parties  about  the  distortions  in  the  single  market  without 
compromising  EU  competitiveness.  It  should  not  cause  undue  administrative  burden  on 
companies,  generate further tax conflicts or pose the risk of double taxation. It is limited to 
what is necessary to achieve the objective of greater transparency. 

• 

Choice of the instrument 

Having  regard  to  the  legal  base  and  the  strong  connection  of  the  initiative  with  corporate 
reporting,  including  non-financial  reporting,  an  amendment  of  the  Accounting  Directive  is 
proposed. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

This  proposal  introduces  Country  by  Country  Reporting  which  is  new  for  most  industry 
sectors.  Similar  reporting  requirements  have  been  introduced  for  the  banking,  logging  and 
extractive industries. The evidence of the CBCR published by banks since it came into force 
in 2015 is that CBCR is a useful tool for enabling the assessment of whether taxes are being 
paid where profits are bring generated. 

• 

Consultations 

The  Commission  services  held  a  wide  consultation  between  June  and  December  2015, 
generating  views  from  over  four  hundred  respondents  representing  business,  industry 
associations,  NGOs,  citizens  and  think  tanks.  The  factual  summary  of  this  consultation  is 
available  on  the  web  site  of  the  European  Commission7.  In  addition,  ad  hoc  exchanges, 
meetings  and  a  high  level  roundtable8  allowed  the  Commission  to  obtain  a  further 
understanding of the challenges at stake, including both the benefits and the risks of greater 
public  transparency  in  the  area  of  corporate  income  tax.  All  inputs  received  during  the 
consultation have been carefully considered and taken into account. 

Most  individuals  who  responded  to  the  public  consultation  called  for  the  EU  to  lead  the 
debate, and if necessary to go beyond the current initiatives at international level on country 
by country reporting. NGOs and trade unions tended to agree with this position.   On the other 
hand,  most  businesses  preferred  to  go  no  further  than  implementation,  at  EU  level,  of  the 
G20/OECD BEPS Action Plan requiring disclosure of a country-by-country report just to tax 
authorities. 

• 

Collection and use of expertise 

The Commission services held a meeting on tax transparency with the Platform for Tax Good 
Governance  on  24 September  20159.  Amongst  other  research,  the  Commission  services 
commissioned  a  study  from  PwC10  in  2014  on  the  potential  economic  consequences  of 
country-by-country  reporting  for  banks.  A  synopsis  report  on  all  the  consultation  activities 

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10 

European Commission,  Factual Summary of the responses to the public consultation on assessing the 
potential for further transparency on corporate income taxes, January 2016 
Roundtable where Commissioners Dombrovskis, Hill and Moscovici met with an array of stakeholders 
(1 October 2015) 
European Commission, Platform for Tax Good Governance 
Study "General assessment of potential economic consequences of country-by-country reporting under 
CRD IV", PWC, 2014 

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carried out by the European Commission to support this initiative is available on the web site 
of the European Commission. 

• 

Impact assessment 

The  proposal  is  supported  by  an  impact  assessment  which  was  positively  received  by  the 
Regulatory Scrutiny  Board. Following the opinion of the Board, the impact  assessment was 
improved  in  several  ways.  First,  it  better  distinguishes  measures  designed  to  directly  tackle 
the  corporate  tax  avoidance  problem  from  the  indirect  benefits  that  are  expected  through 
increased  transparency.  Second,  it  elaborates  further  on  a  voluntary  disclosure  option 
(labelling  system).  Third,  the  assessment  of  the  estimated  impacts  is  more  clearly  separated 
from the impact of other tax avoidance measures included in the baseline scenario. 

The proposal made today is based on the preferred option identified in the impact assessment, 
which  is  a  public  CBCR  on  worldwide  operations  broken  down  by  EU  Member  State  and 
aggregated for non-EU operations. The proposal applies to all EU and non-EU MNEs with a 
consolidated turnover of at least EUR 750 million, having activities in the EU by way of at 
least an establishment. The type of information to be disclosed includes income tax paid and 
accrued  as  well  as  the  necessary  contextual  information.    The  proposal  diverges  from  the 
impact  assessment  in  two  areas:  it  has  been  refined  with  respect  to  reporting  for  non-EU 
operations, where the same level of detailed assessment applying to EU Member States will 
also be required for certain tax jurisdictions. Moreover, it is proposed to require the disclosure 
of  accumulated  earnings  on  a  country-by-country  basis  and  to  seek  explanations  at  the 
corporate  group  level  where  there  are  material  discrepancies  between  the  taxes  accrued  and 
the taxes effectively paid. 

In terms of societal benefits, this initiative responds to the increased demand for transparency 
regarding  the  tax  affairs  of  MNE  groups.  By  providing  more  information  in  a  more 
convenient form, it should also contribute to increasing public trust in the fairness of the tax 
systems.  

In terms of economic impact, the proposal does not imply significant additional administrative 
burdens as very large MNEs will in any case have to submit a more comprehensive CBCR to 
tax authorities when the ATAP is implemented. All very large MNEs with activities in the EU 
will have the same disclosure requirement, whether they are headquartered in the EU or in a 
third-country. Moreover, this public CBCR presents in a single document information that is 
already 
the  business  registers  of  each  Member  State.  The 
competitiveness of undertakings will therefore not be affected. The risk of generating further 
tax conflicts and double taxation will be limited as publicly available tax information will be 
broken  down  only  for  a  limited  number  of  tax  jurisdictions.  The  information  is  in  general 
aggregated as regards operations in other jurisdictions. 

largely  accessible 

in 

• 

Regulatory fitness and simplification 

No  new  obligations  are  imposed  on  micro  or  small  undertakings  in  the  EU.  The  measure 
targets  only  multinational  companies  that  are  the  best  equipped  to  engage  in  tax  planning 
activities;  that  is  companies  whose  consolidated  turnover  exceeds  EUR  750  million.  It  is 
estimated  that  at  least  6 000  multinational  companies  will  need  to  draw  up  a  country-by-
country report due to being active in the EU markets. Of those, around 2 000 companies are 
headquartered in the EU, i.e., only a fraction of the total 7.5 million European companies. In 
order to cover multinational companies that are established in non-EU countries, the medium-

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sized and larger subsidiaries in the EU – alternatively, branches of a comparable size – will be 
subject to obligations. 

Digitalised  reports  facilitate  access  and  processing  by  any  interested  party  (whether  an 
interested  investor,  or  members  of  civil  society).  For  this  reason,  a  publication  on  the 
undertakings' web site is required. No particular format or language is imposed. 

• 

Fundamental rights 

Overall,  the  extent  of  information  envisaged  is  proportionate  to  the  objectives  of  enhancing 
public  transparency  and  scrutiny.  Reporting  builds  on  information  generally  published  in 
financial statements of most of MNE groups in the EU. 

4. 

BUDGETARY IMPLICATIONS 

There are no budgetary implications of the initiative. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The Commission will monitor the implementation of the policy in cooperation with Member 
States. Five years after the transposition date, the Commission will produce an evaluation of 
this Directive. 

The  evaluation  will  examine  the  effectiveness,  efficiency,  relevance,  coherence  and  added 
value  in  terms  of  public  information  of  the  proposal,  including  any  significant  impacts  on 
undertakings or in third countries. The evaluation will also take into account new international 
developments. 

• 

Explanatory documents 

CBCR is a relatively new concept that requires technically sound implementation. In order to 
fulfil the objective of this proposal and avoid potential loopholes and mismatches in terms of 
Member State implementation into national law, explanatory documents will be necessary to 
assist with transposition and to allow effective verification. 

This justifies the need for Member States to accompany the notification of their transposition 
measures with explanatory documents in the form of e.g. a correlation table. 

• 

Detailed explanation of the specific provisions of the proposal 

Scope – very large MNE groups 

To  ensure  an  appropriate  balance  of  reporting  burden,  only  MNE  Groups  with  a  total 
consolidated  group  revenue  exceeding  EUR  750  million  will  be  required  to  prepare  the 
CBCR.  This  is  the  same  threshold  as  that  set  out  in  the  OECD/BEPS  and  in  the  ATAP.  In 
light of the specific objectives of public tax transparency, and going further in some respects 
than  the  rules  currently  applicable  in  the  sectors  of  banks  and  extractive  industries,  the 
threshold of EUR 750 million will be calculated on a worldwide basis, and MNE groups are 
required to submit information on their worldwide activities. According to the OECD, based 
on this threshold, only 10-15% of MNEs will be required to submit a CBCR; but the turnover 
of  those  MNEs  will  represent  approximately  90%  of  the  turnover  of  all  MNEs.  Small  and 
medium-sized companies are not affected by the proposal11.  

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For any MNE headquartered in a third country, the obligation will fall on its subsidiaries or 
branches  in  the  EU  unless  the  non-EU  MNE  makes  the  CBCR  group  report  publicly 
accessible  and  indicates  which  subsidiary  or  branch  in  the  EU  is  responsible  for  the 
publication of the CBCR on behalf of the "parent" company. 
This  is  in  line  with  the  Directive  on  Administrative  Cooperation12  which  provides  that 
subsidiaries or branches in the EU must provide the CBCR of its third country parent's group 
to  tax  authorities.  The  objective  is  to  provide  the  tax  administration  with  a  complete  set  of 
information  required  to  consider  potential  harmful  tax  practices  rather  than  to  provide  the 
wider public with a general set of country-by-country data to improve transparency. 

Given  the  threshold  proposed  for  multinational  companies  to  fall  within  the  scope  of  this 
initiative  and  given  the  current  reporting  obligations  in  the  EU,  it  is  proportionate  and 
efficient  to  impose  the  reporting  obligation  only  on  medium-sized  or  larger  subsidiaries 
established  in  the  EU.  There  are  thus  no  new  obligations  placed  on  small  companies,  who 
represent more than 95 % of all companies in the EU. 

Banking groups 

Banking groups established in the EU are already required to publish a CBCR under Article 
89 of Directive 2013/36/EU of the European Parliament and of the Council. Where these are 
MNEs which fall within the scope of this initiative, they will be exempted from the obligation 
to  report  on  income  tax  information,  provided  that  the  report  disclosed  under  Article  89  of 
Directive 2013/36/EU encompasses the activities of the ultimate parent undertaking in the EU 
and of all of its affiliated undertakings13. 

Content 

Only information that is necessary and sufficient to meet the stated objectives of this initiative 
will be disclosed,  namely:  the nature of the activities, the number of persons  employed,  the 
net turnover made (including with related parties), the profit made before tax, the amount of 
income  tax  due  in  the  country  as  a reason  of  the  profit  made  in  the  current  year,  the  actual 
payments  made  to  the  country's  treasury  during  that  year,  and  the  amount  of  accumulated 
earnings. 

In  order  to  ensure  a  level  of  detail  that  will  enable  citizens  to  better  assess  how  MNEs 
contribute  to  welfare  in  each  Member  State,  the  information  should  be  broken  down  by 
Member  State.  In  addition,  because  some  third  countries  refuse  to  respect  good  governance 
standards in taxation and pose specific tax challenges, the information on operations of MNEs 
should  also  be  shown  with  a  high  level  of  detail.  The  EU  has  undertaken  to  draw  up  a 
common  list  of  certain  tax  jurisdiction  on  this  basis  in  line  with  the  Commission 
Communication14 of 28 January 2016, which specified the proposed approach and the criteria 
to draw up such a list. 

As  set  out  in  that  Communication,  the  common  EU  list  will  be  based  on  clear  and 
internationally justifiable criteria, based on internationally-agreed standards as set out in the 
Directive and a robust screening process. The list will be developed by the Commission and 
Member States. The Commission proposes that a final decision on the tax jurisdictions to be 

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14 

Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation 
Regulation  (EU)  No 575/2013  of  the  European  Parliament  and  of  the  Council  of  26 June  2013  on 
prudential  requirements  for  credit  institutions  and  investment  firms  and  amending  Regulation  (EU) 
No 648/2012 (OJ L 176, 27.6.2013, p. 1). 
Communication  from  the  Commission  to  the  European  Parliament  and  the  Council  on  an  External 
Strategy for Effective Taxation, COM (2016) 24 final.  

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included in the common EU list would be made in a Delegated Act allowing a role for both 
Council and Parliament. 

Apart  from  the  exception  noted  above  in  relation  to  some  third  country  jurisdictions  which 
pose  particular  challenges,  the  same  information  on  the  activities  of  the  group  in  other  tax 
jurisdictions will be provided on an aggregated basis. Where more than one entity of a group 
is involved in a given country, the CBCR will present the sum of the information relating to 
each entity in that country. 

Publication 

The  consolidated  report  on  income  tax  information  will  be  published  in  a  business  register 
with the objective of ensuring certainty and availability over time. Moreover, as the objective 
of this initiative is to enable public scrutiny, those reports will also be made accessible to the 
public  on  company  websites.  To  allow  for  comparisons  over  time,  reports  will  remain 
accessible for at least five consecutive years on the websites. 

Enforcement 

Enforcement  of  this  initiative  will  be  ensured  with  a  combination  of  provisions.  Member 
States  should  introduce  collective  responsibility  of  the  administrative,  management  and 
supervisory bodies  for  these  reports.  The  statutory  auditor  of  any  local  subsidiary  in  charge 
will have to verify whether the CBCR has been provided and made accessible on the Internet. 
In  the  case  of  a  branch  of  a  third  country  MNE,  that  responsibility  will  be  borne  by  those 
persons in charge of disclosure formalities. Finally, Article 51 of Directive 2013/34/EU will 
apply,  ensuring  that  infringements  will  be  sanctioned  by  effective,  proportionate  and 
dissuasive penalties for MNEs or their subsidiaries or branches. 

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2016/0107 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Directive 2013/34/EU as regards disclosure of income tax information by 
certain undertakings and branches 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 50(1) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee15, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

15 
16 
17 
18 
19 

In recent years, the challenge posed by corporate income tax avoidance has increased 
considerably and has become a major focus of concern within the Union and globally. 
The  European  Council  in  its  conclusions  of  18  December  2014  acknowledged  the 
urgent  need  to  advance  efforts  in  the  fight  against  tax  avoidance  both  at  global  and 
Union  level.  The  Commission  in  its  communications  entitled  ‘Commission  Work 
Programme  2016  -  No  time  for  business  as  usual’16  and  ‘Commission  Work 
Programme 2015 - A New Start’17 identified as a priority the need to move to a system 
whereby the country in which profits are generated is also the country of taxation. The 
Commission also identified as a priority the need to respond to our societies’ call for 
fairness and tax transparency. 

The  European  Parliament  in  its  resolution  of  16  December  2015  on  bringing 
transparency,  coordination  and  convergence  to  corporate  tax  policies  in  the  Union18 
acknowledged  that  increased  transparency  in  the  area  of  corporate  taxation  can 
improve  tax  collection,  make  the  work  of  tax  authorities  more  efficient  and  ensure 
increased public trust and confidence in tax systems and governments. 

Following  the  European  Council  conclusions  of  22  May  2013,  a  review  clause  was 
introduced in Directive 2013/34/EU of the European Parliament and of the Council19 
requiring  the  Commission  to  consider  the  possibility  of  introducing  an obligation  on 

OJ C , , p. . 
COM(2015) 610 final of 27 October 2015. 
COM(2014) 910 final of 16 December 2014. 
2015/2010(INL)  
Directive  2013/34/EU  of  the  European  Parliament  and  of  the  Council  of  26 June  2013  on  the  annual 
financial  statements,  consolidated  financial  statements  and  related  reports  of  certain  types  of 
undertakings,  amending  Directive  2006/43/EC  of  the  European  Parliament  and  of  the  Council  and 
repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19). 

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large  undertakings  of  additional  industry  sectors  to  produce,  on  an  annual  basis,  a 
country-by-country reporting taking into account the developments in the Organisation 
for  Economic  Cooperation  and  Development  (OECD)  and  the  results  of  related 
European initiatives. 

Calling for a globally fair and modern international tax system in November 2015, the 
G20  endorsed  the  OECD  ‘Action  Plan  on  Base  Erosion  and  Profit  Shifting’  (BEPS) 
which aimed at providing governments with clear international solutions to address the 
gaps  and  mismatches  in  existing  rules  which  allow  corporate  profits  to  shift  to 
locations  of  no  or  low  taxation,  where  no  real  value  creation  may  take  place.  In 
particular,  BEPS  Action  13  introduces  a  country-by-country  reporting  by  certain 
multinational  undertakings  to  national  tax  authorities  on  a  confidential  basis.  On  27 
January 2016, the Commission adopted the ‘Anti-Tax Avoidance Package’. One of the 
objectives  of  that  package  is  to  transpose  into  Union  law,  the  BEPS  Action  13  by 
amending Council Directive 2011/16/EU20. 

Enhanced  public  scrutiny  of  corporate  income  taxes  borne  by  multinational 
undertakings  carrying  out  activities  in  the  Union  is  an  essential  element  to  further 
foster corporate responsibility, to contribute to the welfare through taxes, to promote 
fairer tax competition within the Union through a better informed public debate and to 
restore public trust in the fairness of the national tax systems. Such public scrutiny can 
be achieved by means of a report on income tax information, irrespective of where the 
ultimate parent undertaking of the multinational group is established. 

The public should be able to scrutinise all the activities of a group when the group has 
certain establishments within the Union. For groups which carry out activities within 
the Union only through subsidiary undertakings or branches, subsidiaries and branches 
should  publish  and  make  accessible  the  report  of  the  ultimate  parent  undertaking. 
However for reasons of proportionality and effectiveness, the obligation to publish and 
make  accessible  the  report  should  be  limited  to  medium-sized  or  large  subsidiaries 
established in the Union, or branches of a comparable size opened in a Member State. 
The  scope  of  Directive  2013/34/EU  should  therefore  be  extended  accordingly  to 
branches opened in a Member State by an undertaking which is established outside the 
Union. 

In order to avoid double reporting for the banking sector, ultimate parent undertakings 
which  are  subject  to  Directive  2013/36/EU  of  the  European  Parliament  and  of  the 
Council21 and which include in their report prepared in accordance with Article 89 of 
Directive  2013/36/EU  all  its  activities  and  all  the  activities  of  its  affiliated 
undertakings included in the consolidated financial statements, including activities not 
subject to the provisions of Chapter 2 of Title 1 of Part Three of Regulation (EU) No 
575/2013 of the European Parliament and of the Council22, should be exempted from 
the reporting requirements set out in this Directive. 

Council  Directive  2011/16/EU  of  15 February  2011  on  administrative  cooperation  in  the  field  of 
taxation and repealing Directive 77/799/EEC (OJ L 64, 11.3.2011, p. 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). 
Regulation  (EU)  No 575/2013  of  the  European  Parliament  and  of  the  Council  of  26 June  2013  on 
prudential  requirements  for  credit  institutions  and  investment  firms  and  amending  Regulation  (EU) 
No 648/2012 (OJ L 176, 27.6.2013, p. 1). 

(4) 

(5) 

(6) 

(7) 

20 

21 

22 

EN 

10 

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(8) 

(9) 

(10) 

The  report on  income  tax  information  should  provide  information  concerning  all  the 
activities of an undertaking or of all the affiliated undertakings of a group controlled 
by an ultimate parent undertaking. The information should be based on the reporting 
specifications of BEPS’ Action 13 and should be limited to what is necessary to enable 
effective  public  scrutiny,  in  order  to  ensure  that  disclosure  does  not  give  rise  to 
disproportionate  risks  or  disadvantages.  The  report  should  also  include  a  brief 
description  of  the  nature  of  the  activities.  Such  description  might  be  based  on  the 
categorisation  provided  for  in  table  2  of  the  Annex  III  of  Chapter  V  of  the  OECD 
“Transfer Pricing Guidelines on Documentation”. The report should include an overall 
narrative  providing  explanations  in  case  of  material  discrepancies  at  group  level 
between  the  amounts  of  taxes  accrued  and  the  amounts  of  taxes  paid,  taking  into 
account corresponding amounts concerning previous financial years. 

In order to ensure a level of detail that enables citizens to better assess the contribution 
of multinational undertakings to welfare in each Member State, the information should 
be broken down by Member State. Moreover, information concerning the  operations 
of multinational enterprises should also be shown with a high level of detail as regards 
certain tax jurisdictions which pose particular challenges.  For all other third country 
operations, the information should be given in an aggregate number.  

In  order  to  strengthen  responsibility  vis-á-vis  third  parties  and  to  ensure  appropriate 
governance,  the  members  of  the  administrative,  management  and  supervisory  bodies 
of  the  ultimate  parent  undertaking  which  is  established  within  the  Union  and  which 
has the obligation to draw up, publish and make accessible the report on income tax 
information, should be collectively responsible for ensuring the compliance with these 
reporting  obligations.  Given  that  members  of  the  administrative,  management  and 
supervisory  bodies  of  the  subsidiaries  which  are  established  within  the  Union  and 
which are controlled by an ultimate parent undertaking established outside the Union 
or  the  person(s)  in  charge  of  carrying  out  the  disclosures  formalities  for  the  branch 
may  have  limited  knowledge  of  the  content  of  the  report  on  income  tax  information 
prepared by the ultimate parent undertaking, their responsibility to publish and make 
accessible the report on income tax information should be limited. 

(11)  To ensure that cases of non-compliance are disclosed to the public, statutory auditor(s) 
or audit firm(s) should check whether the report on income tax information has been 
submitted  and  presented  in  accordance  with  the  requirements  of  this  Directive  and 
made  accessible  on  the  relevant  undertaking’s  website  or  on  the  website  of  an 
affiliated undertaking. 

(12)  This Directive aims to enhance transparency and public scrutiny on corporate income 
tax  by  adapting  the  existing  legal  framework  concerning  the  obligations  imposed  on 
companies and firms in respect of the publication of reports, for the protection of the 
interests of members and others, within the meaning of Article 50(2)(g) TFEU. As the 
Court  of  Justice  held,  in  particular,  in  Case  C-97/96  Verband  deutscher  Daihatsu-
Händler23 , Article 50(2)(g) TFEU refers to the need to protect the interests of "others" 
generally, without distinguishing or excluding any categories falling within the ambit 
of that term. Moreover, the objective of attaining freedom of establishment, which is 
assigned  in  very  broad  terms  to  the  institutions  by  Article  50(1)  TFEU,  cannot  be 
circumscribed by the provisions of Article 50(2) TFEU. Given that this Directive does 

23 

Judgement of the Court of Justice of 4 December 1997, C-97/96 Verband deutscher Daihatsu-Händler 
ECLI:EU:C:1997:581 

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(13) 

not  concern  the  harmonisation  of  taxes  but  only  obligations  to  publish  reports  on 
income tax information, Article 50(1) TFEU constitutes the appropriate legal basis. 

In order to determine certain tax jurisdictions for which a high level of detail should be 
shown,  the  power  to  adopt  acts  in  accordance  with  Article  290  TFEU  should  be 
delegated to the Commission in respect of drawing up a common Union list of these 
tax jurisdictions. This list should be drawn up on the basis of certain criteria, identified 
on the basis of Annex 1 of the Communication from the Commission to the European 
Parliament  and  Council  on  an  External  Strategy  for  Effective  Taxation  (COM(2016) 
24  final).  It  is  of  particular  importance  that  the  Commission  carry  out  appropriate 
consultations  during  its  preparatory  work,  including  at  expert  level,  and  that  those 
consultations  be  conducted  in  accordance  with  the  principles  laid  down  in  the 
Interinstitutional  Agreement  on  Better  Law-Making  as  approved  by  the  European 
Parliament,  the  Council  and  the  Commission  and  pending  formal  signature.  In 
particular,  to  ensure  equal  participation  in  the  preparation  of  delegated  acts,  the 
European  Parliament  and  the  Council  receive  all  documents  at  the  same  time  as 
Member  States'  experts,  and  their  experts  systematically  have  access  to  meetings  of 
Commission expert groups dealing with the preparation of delegated acts.   

(14)  Since  the  objective  of  this  Directive  cannot  be  sufficiently  achieved  by  the  Member 
States  but  can  rather,  by  reason  of  its  effect,  be  better  achieved  at  Union  level,  the 
Union may adopt measures, in accordance with the principle of subsidiarity as set out 
in  Article  5  of  the  Treaty  on  European  Union.  In  accordance  with  the  principle  of 
proportionality  as  set  out  in  that  Article,  this  Directive  does  not  go  beyond  what  is 
necessary in order to achieve that objective. 

(15)  This Directive respects the fundamental rights and observes the principles recognised 

in particular by the Charter of Fundamental Rights of the European Union. 

(16) 

In  accordance  with  the Joint  Political  Declaration  of  28  September  2011  of  Member 
States  and  the  Commission  on  explanatory  documents24,  Member  States  have 
undertaken  to  accompany,  in  justified  cases,  the  notification  of  their  transposition 
measures  with  one  or  more  documents  explaining  the  relationship  between  the 
components  of  a  directive  and  the  corresponding  parts  of  national  transposition 
instruments. With regard to this Directive, the legislator considers the transmission of 
such documents to be justified. 

(17)  Directive 2013/34/EU should therefore be amended accordingly, 

HAVE ADOPTED THIS DIRECTIVE: 

Article 1 

Amendments to Directive 2013/34/EU 

Directive 2013/34/EU is amended as follows: 

(1) 

in Article 1, the following paragraph 1a is inserted: 

‘1a. The coordination measures prescribed by Articles 2, 48a to 48g and 51 shall also 
apply  to  the  laws,  regulations  and  administrative  provisions  of  the  Member  States 
relating  to  branches  opened  in  a  Member  State  by  an  undertaking  which  is  not 
governed by the law of a Member State but which is of a legal form comparable with 
the types of undertakings listed in Annex I.’; 

24 

OJ C 369, 17.12.2011, p. 14. 

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(2) 

 the following Chapter 10a is inserted: 

‘Chapter 10a 

Report on Income tax information 

 Definitions relating to reporting on income tax information 

For the purposes of this Chapter, the following definitions shall apply: 

Article 48a 

(1) 

(2) 

(3) 

1. 

2. 

3. 

‘ultimate parent undertaking’ means an undertaking which draws up the consolidated 
financial statements of the largest body of undertakings; 

‘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; 

‘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 

Member States shall require ultimate parent undertakings governed by their national 
laws and having a consolidated net turnover exceeding EUR 750 000 000 as well as 
undertakings governed by their national laws that are not affiliated undertakings and 
having a net turnover exceeding EUR 750 000 000 to draw up and publish a report 
on income tax information on an annual basis. 

The report on income tax information shall be made accessible to the public on the 
website of the undertaking on the date of its publication. 

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* 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. 

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 has a consolidated net turnover 
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. 

The report on income tax information shall be 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. 

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  on  an 

EN 

13 

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annual basis the report on income tax information of the ultimate parent undertaking 
referred to in point (a) of paragraph 5 of this Article. 

The report on income tax information shall be 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. 

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  has  a  consolidated  net  turnover 
exceeding  EUR  750 000 000  or  an  undertaking  that  is  not  an  affiliated  and 
which has a net turnover exceeding EUR 750 000 000;  

(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. 

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). 

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. 

Article 48c 

 Content of the report on income tax information 

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. 

6. 

7. 

1. 

2. 

The information referred to in paragraph 1 shall comprise the following: 

(a) 

(b) 

(c) 

(d) 

(e) 

a brief description of the nature of the activities; 

the number of employees; 

the amount of the net turnover, which includes the turnover made with related 
parties; 

the amount of profit or loss before income tax; 

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 

EN 

14 

   EN 

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; and 

(g) 

the amount of accumulated earnings. 

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.  

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  Union  list  of  certain  tax  jurisdictions  drawn  up  pursuant  to 
Article  48g,  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. 

The report shall present the information referred to in paragraph 2 on an aggregated 
basis for other tax jurisdictions. 

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. 

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. 

The report on income tax information shall be published and made accessible on the 
website in at least one of the official languages of the Union. 

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. 

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 [Publications Office- set the date = the date of the entry in force of this Directive] 
published  in  the  Official  Journal  of  the  European  Union  and  by  increasing  or 

4. 

5. 

6. 

7. 

EN 

15 

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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 [Publications Office - set the date = the date of the 
entry in force of this Directive], rounded off to the nearest thousand. 

Article 48d 

 Publication and Accessibility 

1. 

2. 

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 
in  Article  9  of  Council  Directive 
to 
89/666/EEC**. 

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. 

2. 

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. 

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. 

EN 

16 

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Article 48g 

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) 

(2) 

(3) 

(4) 

Transparency  and  exchange  of  information,  including  information  exchange  on 
request and Automatic Exchange of Information of financial account information; 

Fair tax competition; 

Standards set up by the G20 and/or the OECD;  

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. 

 Commencement date for reporting on income tax information 

Article 48h 

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  [Publications  Office-  set  the  date  =  one  year  after  the  transposition 
deadline]. 

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,  taking  into 
account the need to ensure a sufficient level of transparency and the need for a competitive 
environment for undertakings. 

The report shall be submitted to the European Parliament and to the Council by [Publications 
Office- set the date = five years after the transposition date of this Directive].’ 

(3) 

(a) 

Article 49 is amended as follows: 

Paragraphs 2 and 3 are replaced by the following 

‘2. The power to adopt delegated acts referred to in Article 1(2), Article 3(13), Article 
46(2)  and  Article  48g  shall  be  conferred  on  the  Commission  for  an  indeterminate 
period of time from the date referred to in Article 54. 

3. The delegation of power referred to in Article 1(2), Article 3(13), Article 46(2) and 
Article 48g may be revoked at any time by the European Parliament or by the Council. 
A decision to revoke shall put an end to the delegation of the power specified in that 
decision.  It  shall  take  effect  the  day  following  the  publication  of  the  decision  in  the 
Official Journal of the European Union or at a later date specified therein. It shall not 
affect the validity of any delegated acts already in force.’ 

(b) 

The following paragraph 3a is inserted: 

EN 

17 

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‘3a. Before adopting a delegated act, the Commission shall consult experts designated 
by  each  Member  State  in  accordance  with  the  principles  laid  down  in  the 
Interinstitutional Agreement on Better Law-Making of [date].’ 

(c) 

Paragraph 5 is replaced by the following: 

‘5.  A  delegated  act  adopted  pursuant  to  Article  1(2),  Article  3(13)  Article  46(2)  or 
Article 48g shall enter into force only if no objection has been expressed either by the 
European Parliament or by the Council within a period of two months of notification 
of that act to the European Parliament and the Council or if, before the expiry of that 
period, the European Parliament and the Council have both informed the Commission 
that they will not object. That period shall be extended by two months at the initiative 
of the European Parliament or of the Council.’ 

______________________ 

* 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). 

**  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).' 

Article 2 

 Transposition 

1. 

Member  States  shall  bring  into  force  the  laws,  regulations  and  administrative 
provisions necessary to comply with this Directive by [Publications Office - set the 
date  =  one  year  after  entry  into  force]  at  the  latest.  They  shall  forthwith 
communicate to the Commission the text of those provisions. 

When  Member  States  adopt  those  provisions,  they  shall  contain  a  reference  to  this 
Directive  or  be  accompanied  by  such  a  reference  on  the  occasion  of  their  official 
publication. Member States shall determine how such reference is to be made. 

2. 

Member States shall communicate to the Commission the text of the main provisions 
of national law which they adopt in the field covered by this Directive. 

Article 3 

 Entry into force 

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

EN 

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Article 4 

 Addressees 

This Directive is addressed to the Member States. 

Done at Strasbourg, 

For the European Parliament 
The President 

For the Council 
The President 

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