CELEX: 51985PC0319
Language: en
Date: 1985-06-19
Title: AMENDMENTS TO THE PROPOSAL FOR A COUNCIL DIRECTIVE ON THE HARMONIZATION OF THE LAWS OF THE MEMBER STATES RELATING TO TAX ARRANGEMENTS FOR THE CARRY-OVER OF LOSSES OF UNDERTAKINGS

9. 7. 85                              Official Journal of the European Communities                            N o C 170/3
         Amendments to the Proposal for a Council Directive on the harmonization of the laws of the
            Member States relating to tax arrangements for the carry-over of losses of undertakings (')
                                                     COM(85) 319 final
         (Submitted by the Commission to the Council pursuant to Article 149, second paragraph, of the
                                                EEC Treaty on 25 June 1985)
                                                      (85/C 170/03)
         1. Article 2 is replaced by the following:
             'Article 2
            For the purposes of this Directive, profit or loss of a financial year shall mean the positive or
            negative results of an undertaking ascertained, after any possible set-off against other
            income or against results recorded abroad by permanent establishments or subsidiaries, in
            accordance with the tax laws of the state in which it is subject to tax.'
         2. Paragraph 1 of Article 3 is amended as follows:
            '1.     Where the result of a given financial year for an undertaking shows a loss, that loss
            shall be set off, at the choice of the undertaking:
            — either against the profits     of one or more of the three preceding financial years in chrono-
                 logical order or against     the non-distributed portion of those profits, not withstanding
                 that the tax liability for  those financial years has been finally determined; then, if need
                 be, against the profits of  the following financial years in chronological order;
            — or against the profits of the following financial years in chronological order.
            However, the undertaking may choose not to set off losses against profits which have not
            been taxed in the State where it is subject to tax or which have been taxed at a reduced
            rate.'
         0) OJ No C 253, 20. 9. 1984, p. 5.