2009/2174(INI)
Promoting good governance in tax matters
| ECON | |
| Lead Rapporteur | DOMENICI Leonardo (S&D) |
| Opinion Rapporteur(s) |
Legal basis: RoP 048
Procedure completed
| Role | Committee | Rapporteur | Shadows |
|---|---|---|---|
| Lead | ECON | DOMENICI Leonardo (S&D) |
Legal Basis RoP 048
Activites
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2010/02/10
Text adopted by Parliament, single reading
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T7-0020/2010
summary
The European Parliament adopted by 554 votes to 46, with 71 abstentions, a resolution on promoting good governance in tax matters. Members consider good tax governance - understood to mean transparency, exchange of information at all levels, effective cross-border cooperation and fair tax competition - to be a key element in rebuilding the global economy after the 2008 financial collapse. Against this background, Parliament strongly condemns the role played by tax havens in encouraging and profiteering from tax avoidance, tax evasion and capital flight. The European Union is called upon to step up its action and to take immediate concrete measures - such as sanctions - against tax havens, tax evasion and illicit capital flight. Members recall the importance of putting an end to the use of artificial legal persons as a way to avoid taxation. They stress also that instead of bank secrecy, automatic information exchange should take place in all circumstances, including in all the Member States and dependent territories. They welcome in this respect the Commission's proposal on administrative cooperation in the field of taxation because, inter alia, it extends cooperation between the Member States to cover taxes of any kind, abolishes bank secrecy and establishes the automatic exchange of information as a general rule. 1) At EU level, the resolution recalls that Parliament delivered its position to the Council on amendments to Directive 2003/48/EC, asking, in particular: (i) that it end the temporary derogation that allows Austria, Belgium and Luxembourg to avoid exchanging information by applying a withholding tax; (ii) that the scope of Directive 2003/48/EC be extended substantially in particular to cover legal entities (especially private companies and trusts) and various forms of investment income. Members also call for the provisions of Directive 2003/48/EC to be extended to Singapore, Hong Kong, Macao and other jurisdictions such as Dubai, New Zealand, Ghana and certain states of the United States, which are not bound by the Directive 2003/48/EC and are therefore a favoured location for tax evaders. Parliament welcomes as a first step, in relation to EU savings taxation, the withdrawal by Austria, Belgium, Luxembourg and Switzerland of their reservations to Article 26 of the OECD Model Tax Convention, and the endorsement of the OECD standards by Andorra, Monaco, Liechtenstein and San Marino. It welcomes Belgium's decision to switch from a system of withholding tax to one of automatic exchange of information from 1 January 2010. Members consider that the marketing in the EU of alternative funds domiciled in a third country must be conditional on that third country complying with good tax governance standards. They emphasise that more efficient implementation of existing EU and national tax legislation would facilitate better recovery of taxes. It urges the Council to adopt the new directive on administrative cooperation in the field of taxation and to fight fraud in the area of VAT, taking due account of Parliament's position. 2) At international level, the Parliament urges all parties concerned to accelerate the conclusion of the anti-fraud agreement with Liechtenstein. It urges the Council to agree on a mandate for the Commission to negotiate similar agreements with Andorra, Monaco, San Marino and Switzerland. It calls, in this respect, on the Member States to review their bilateral tax agreements with third countries. Members call for increased cooperation, such as the automatic exchange of information between countries, with a view to facilitating the recovery of capital moved abroad via illegal activity to the detriment of the internal market. The OECD and its Member States are invited to involve the Commission fully in the Global Forum peer review exercise, in particular as regards the identification of non-cooperative jurisdictions, the development of a process for evaluating compliance and the implementation of dissuasive counter-measures to promote adherence to the standards in question. Furthermore, Parliament considers that the OECD framework for combating tax havens is unsatisfactory. It regrets, in this context, that the exchange of information takes place only on request rather than being a compulsory and binding requirement, and, furthermore, that the OECD allows governments to escape its blacklist merely by promising to comply with the information exchange principles, without ensuring that those principles are actually put into practice. Parliament considers that there is a need for consistency and for a genuine EU policy of good tax governance. It believes that the European Union's credibility depends, inter alia, on its willingness to clamp down on tax havens on its own territory first as an example of good governance. The Commission is invited to estimate the number of cross-border tax claims by the Member States to be recovered within the territory of the European Union and to introduce quantifiable indicators for measuring progress in cross-border recovery over time. The resolution recommends setting up an appropriate incentive system for the recovery of cross-border tax claims in order to increase the current low recovery rate of 5%. Parliament considers that the EU should actively promote the improvement of the OECD standards, with the aim of making the automatic, multilateral exchange of information the global standard. It urges the EU to: · adopt measures that prevent abuse of the 'residence principle' through artificial domicile and ownership schemes allowing holding companies with no activity or shell companies to shield beneficial owners from paying taxes in their country of domicile; · adopt a common approach to the application of anti-abuse measures, which should be effective, fair and aligned with the concept of wholly artificial arrangements as established by the Court of Justice; · implement a consistent approach to good tax governance in the context of the European Neighbourhood Policy, the enlargement policy and the development cooperation policy. The resolution stresses the need to revise current international accounting standards with the aim of increasing transparency and emphasises the need for the Member States to coordinate their policies in order to enhance the implementation of anti-avoidance rules. It recalls that the introduction of a common corporate consolidated tax base would help to tackle - within the EU - double taxation and transfer price issues within consolidated groups. The EU should also: · examine a range of options for sanctions and incentives, such as for instance: (i) the setting up of a special levy on movements to or from non-cooperative jurisdictions; (ii) non-recognition within the EU of the legal status of companies set up in non-cooperative jurisdictions and a prohibition on EU financial institutions establishing or maintaining subsidiaries and branches in non-cooperative jurisdictions; · ensure consistency in the implementation at EU and international level of standards in the areas of prudential supervision, taxation and money laundering and counterterrorism. The Commission is invited to report to Parliament annually on the implementation of the EU tax governance policy, starting in October 2010.
- Results of vote in Parliament
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T7-0020/2010
summary
- 2010/02/10 Commission response to text adopted in plenary
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2010/02/08
Debate in Parliament
- 2010/02/02 Committee report tabled for plenary, single reading
- 2010/02/02 Committee report tabled for plenary, single reading
- 2010/01/27 Vote in committee, 1st reading/single reading
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2009/11/16
Deadline Amendments
- 2009/11/11 Committee referral announced in Parliament, 1st reading/single reading
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2009/10/22
EP officialisation
- 2009/10/21 Committee draft report
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2009/04/28
Non-legislative basic document published
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COM(2009)0201
summary
PURPOSE: to encourage good governance in tax matters. BACKGROUND: with the financial crisis, the need for national governments to safeguard their tax revenues is more acute than ever. The need to promote international tax cooperation and common standards has now become a regular item on the agenda of discussions, both within the EU and in international fora. Most recently, the G20 Leaders agreed at their summit in London (April 2, 2009), "to take action against non-cooperative jurisdictions, including tax havens". According to an OECD estimate at the end of 2008, the world's tax havens have attracted between $5 trillion and $7 trillionin assets, although the degree of secrecy surrounding these accounts makes it difficult to determine exactly just how much is located in these individual jurisdictions. With national budgets and, therefore, social and other policies under severe strain this is an extremely serious problem. In the run-up to the G20 meeting, many jurisdictions reacted by indicating their willingness to apply international standards of transparency and information exchange from now on. Accordingly, the EU and its partners have a strong common interest at this time in promoting tax cooperation and common standards on as wide a geographical basis as possible. The time is now right for Member States and third countries to work together and to encourage and support the move that has now started towards a broader acceptance of international standards of tax co-operation. This Communication aims to identify the particular EU contribution to good governance in the area of direct taxation. It considers: how good governance could be improved within the EU, the particular tools that the European Community and EU Member States may have at their disposal to promote good governance internationally, and the scope for more co-ordinated action by EU Member States, so as to support, streamline and complement international action taken in other fora such as the OECD and the UN. CONTENT: this Communication presents for consideration a series of steps to promote good governance in the tax area, entailing action both within and outside the EU and both at EU and at individual Member State levels. 1) Improve good governance within the EU: the Commission calls on the Council to adopt as soon as possible the following Commission proposals: a proposal to replace the current Mutual Assistance Directive. The proposal would introduce two important new elements that the Commission considers indispensable to reinforce EU action at international level against tax fraud and evasion: (i) it would introduce a most favoured nation clause whereby Member States would be obliged to provide to another Member State the level of cooperation that they have accepted in relation to a third country; (ii) the proposal would prohibit Member States from invoking bank secrecy for non residents as a reason for refusing to supply information concerning a taxpayer to his or her Member State of residence; another proposal to replace the existing Directive on recovery of tax claims. It aims to increase the efficiency of assistance so as to enhance tax administrations' capacity to recover unpaid taxes, and thus contribute to the fight against tax fraud; a proposal to amend the Savings Directive: there is a need to extend the scope of the Directive to intermediate tax-exempted structures (trust, foundations…) and to income equivalent to interest obtained through investments in some innovative financial products; to eliminate harmful business tax measures under the Code of Conduct for Business Taxation. 2) Promote good governance in the relations with third countries: the Commission proposes to improve the particular tools that the European Community and EU Member States may have at their disposal to promote good governance internationally. A few of the concrete measures are as follows: improve the negotiating of provisions on good governance in the tax area with third countries within general agreements; in this context, invite the Council to give the appropriate political priority to the mandate given to the Commission to include good governance principles in relevant EU agreements with third countries; conclude specific agreements in the tax area containing, if appropriate, provisions on transparency and exchange of information for tax purposes at EU level; promote more cooperation with third countries in the framework of the Savings Tax Directive; as regards the Code of Conduct for Business Taxation, a coherent policy of coordinated action toward third countries engaging in harmful business tax practices should be put in place, such as by adopting a common approach to the application of anti-abuse measures; improve efforts at EU level to promote good governance in the tax area in third countries eligible for development aid should be enhanced by the following actions: (i) monitoring, under the Mid-Term Reviews (MTR) of aid programmes, the state of play of good governance, so as to be able to take appropriate measures when relevant; (ii) reallocation of funds towards countries that are implementing satisfactorily their commitments; and, conversely, considering a cancellation of funds earmarked for those countries that did not implement their commitments; (iii) provision of the necessary technical assistance to help countries to meet their commitments on good governance in the tax area; consider the feasibility of introducing an additional criterion in the eligibility evaluation for the allocation of funds under the current external instruments of the Community that would be linked to the application by third countries of the principles of good governance in the tax area; discuss with Member States possible counter-measures towards non cooperative jurisdictions in the tax area (the OECD Secretariat has suggested a list of measures. These will need to be examined together with the Member States); examine the extent of coherence between the principles of good governance in the tax area and Member States' own tax policies, including bilateral tax treaties with third countries; improve coordination of EU Member States' positions in discussions at the OECD, G20 and UN on international good governance in the tax area is necessary to ensure greater leverage in dealings with non-cooperative countries. The Commission intends to pursue constructive dialogue with all stakeholders concerned in connection with the principles and practical implementation of the measures identified in this Communication, and it will review and report on the situation in 2010. The Commission believes that the momentum that has been generated by the G20 Leaders in pushing forward international tax cooperation needs to be maintained and declares that it is ready to assist the Member States in taking forward the appropriate instructions in the context of the policy on good governance in the tax area. It invites the Council to adopt these policy orientations and take action to ensure their swift implementation.
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COM(2009)0201
summary
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2009/04/28
Date
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2009/04/28
Non-legislative basic document
-
COM(2009)0201
summary
PURPOSE: to encourage good governance in tax matters. BACKGROUND: with the financial crisis, the need for national governments to safeguard their tax revenues is more acute than ever. The need to promote international tax cooperation and common standards has now become a regular item on the agenda of discussions, both within the EU and in international fora. Most recently, the G20 Leaders agreed at their summit in London (April 2, 2009), "to take action against non-cooperative jurisdictions, including tax havens". According to an OECD estimate at the end of 2008, the world's tax havens have attracted between $5 trillion and $7 trillionin assets, although the degree of secrecy surrounding these accounts makes it difficult to determine exactly just how much is located in these individual jurisdictions. With national budgets and, therefore, social and other policies under severe strain this is an extremely serious problem. In the run-up to the G20 meeting, many jurisdictions reacted by indicating their willingness to apply international standards of transparency and information exchange from now on. Accordingly, the EU and its partners have a strong common interest at this time in promoting tax cooperation and common standards on as wide a geographical basis as possible. The time is now right for Member States and third countries to work together and to encourage and support the move that has now started towards a broader acceptance of international standards of tax co-operation. This Communication aims to identify the particular EU contribution to good governance in the area of direct taxation. It considers: how good governance could be improved within the EU, the particular tools that the European Community and EU Member States may have at their disposal to promote good governance internationally, and the scope for more co-ordinated action by EU Member States, so as to support, streamline and complement international action taken in other fora such as the OECD and the UN. CONTENT: this Communication presents for consideration a series of steps to promote good governance in the tax area, entailing action both within and outside the EU and both at EU and at individual Member State levels. 1) Improve good governance within the EU: the Commission calls on the Council to adopt as soon as possible the following Commission proposals: a proposal to replace the current Mutual Assistance Directive. The proposal would introduce two important new elements that the Commission considers indispensable to reinforce EU action at international level against tax fraud and evasion: (i) it would introduce a most favoured nation clause whereby Member States would be obliged to provide to another Member State the level of cooperation that they have accepted in relation to a third country; (ii) the proposal would prohibit Member States from invoking bank secrecy for non residents as a reason for refusing to supply information concerning a taxpayer to his or her Member State of residence; another proposal to replace the existing Directive on recovery of tax claims. It aims to increase the efficiency of assistance so as to enhance tax administrations' capacity to recover unpaid taxes, and thus contribute to the fight against tax fraud; a proposal to amend the Savings Directive: there is a need to extend the scope of the Directive to intermediate tax-exempted structures (trust, foundations…) and to income equivalent to interest obtained through investments in some innovative financial products; to eliminate harmful business tax measures under the Code of Conduct for Business Taxation. 2) Promote good governance in the relations with third countries: the Commission proposes to improve the particular tools that the European Community and EU Member States may have at their disposal to promote good governance internationally. A few of the concrete measures are as follows: improve the negotiating of provisions on good governance in the tax area with third countries within general agreements; in this context, invite the Council to give the appropriate political priority to the mandate given to the Commission to include good governance principles in relevant EU agreements with third countries; conclude specific agreements in the tax area containing, if appropriate, provisions on transparency and exchange of information for tax purposes at EU level; promote more cooperation with third countries in the framework of the Savings Tax Directive; as regards the Code of Conduct for Business Taxation, a coherent policy of coordinated action toward third countries engaging in harmful business tax practices should be put in place, such as by adopting a common approach to the application of anti-abuse measures; improve efforts at EU level to promote good governance in the tax area in third countries eligible for development aid should be enhanced by the following actions: (i) monitoring, under the Mid-Term Reviews (MTR) of aid programmes, the state of play of good governance, so as to be able to take appropriate measures when relevant; (ii) reallocation of funds towards countries that are implementing satisfactorily their commitments; and, conversely, considering a cancellation of funds earmarked for those countries that did not implement their commitments; (iii) provision of the necessary technical assistance to help countries to meet their commitments on good governance in the tax area; consider the feasibility of introducing an additional criterion in the eligibility evaluation for the allocation of funds under the current external instruments of the Community that would be linked to the application by third countries of the principles of good governance in the tax area; discuss with Member States possible counter-measures towards non cooperative jurisdictions in the tax area (the OECD Secretariat has suggested a list of measures. These will need to be examined together with the Member States); examine the extent of coherence between the principles of good governance in the tax area and Member States' own tax policies, including bilateral tax treaties with third countries; improve coordination of EU Member States' positions in discussions at the OECD, G20 and UN on international good governance in the tax area is necessary to ensure greater leverage in dealings with non-cooperative countries. The Commission intends to pursue constructive dialogue with all stakeholders concerned in connection with the principles and practical implementation of the measures identified in this Communication, and it will review and report on the situation in 2010. The Commission believes that the momentum that has been generated by the G20 Leaders in pushing forward international tax cooperation needs to be maintained and declares that it is ready to assist the Member States in taking forward the appropriate instructions in the context of the policy on good governance in the tax area. It invites the Council to adopt these policy orientations and take action to ensure their swift implementation.
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COM(2009)0201
summary
Documents
- Non-legislative basic document published: COM(2009)0201
- Non-legislative basic document: COM(2009)0201
- Committee draft report: PE430.374
- Committee report tabled for plenary, single reading: A7-0007/2010
- Committee report tabled for plenary, single reading: A7-0007/2010
- Decision by Parliament, 1st reading/single reading: T7-0020/2010
- Results of vote in Parliament: Results of vote in Parliament
- Commission response to text adopted in plenary: SP(2010)2011
Votes
Report: DOMENICI A7-0007/2010 - PAR 3
| Position | Total | ALDE | ECR | EFD | GUE/NGL | NI | PPE | S&D | Verts/ALE | correctional |
| For | 553 | 71 | 0 | 4 | 27 | 7 | 229 | 163 | 52 | 2 |
| Against | 93 | 0 | 48 | 20 | 0 | 15 | 9 | 1 | 0 | 6 |
| Abstain | 9 | 2 | 0 | 1 | 1 | 2 | 3 | 0 | 0 | 0 |
Report: DOMENICI A7-0007/2010 - PAR 7/1
| Position | Total | ALDE | ECR | EFD | GUE/NGL | NI | PPE | S&D | Verts/ALE | correctional |
| For | 635 | 74 | 48 | 12 | 30 | 13 | 234 | 171 | 53 | 0 |
| Against | 28 | 0 | 0 | 11 | 0 | 8 | 9 | 0 | 0 | 1 |
| Abstain | 6 | 0 | 0 | 3 | 1 | 2 | 0 | 0 | 0 | 0 |
Report: DOMENICI A7-0007/2010 - PAR 7/2
| Position | Total | ALDE | ECR | EFD | GUE/NGL | NI | PPE | S&D | Verts/ALE | correctional |
| For | 565 | 70 | 0 | 5 | 30 | 3 | 236 | 168 | 53 | 0 |
| Against | 95 | 2 | 48 | 20 | 0 | 16 | 9 | 0 | 0 | 0 |
| Abstain | 8 | 1 | 0 | 2 | 1 | 4 | 0 | 0 | 0 | 0 |
Report: DOMENICI A7-0007/2010 - PAR 25
| Position | Total | ALDE | ECR | EFD | GUE/NGL | NI | PPE | S&D | Verts/ALE | correctional |
| For | 540 | 70 | 0 | 2 | 4 | 7 | 238 | 167 | 52 | 0 |
| Against | 103 | 3 | 48 | 22 | 8 | 13 | 8 | 1 | 0 | 0 |
| Abstain | 31 | 0 | 0 | 3 | 19 | 4 | 0 | 3 | 2 | 0 |
Report: DOMENICI A7-0007/2010 - PAR 27/1
| Position | Total | ALDE | ECR | EFD | GUE/NGL | NI | PPE | S&D | Verts/ALE | correctional |
| For | 621 | 72 | 46 | 15 | 28 | 4 | 235 | 169 | 52 | 2 |
| Against | 32 | 1 | 2 | 11 | 0 | 9 | 9 | 0 | 0 | 0 |
| Abstain | 17 | 0 | 1 | 1 | 4 | 11 | 0 | 0 | 0 | 0 |
Report: DOMENICI A7-0007/2010 - PAR 27/2
| Position | Total | ALDE | ECR | EFD | GUE/NGL | NI | PPE | S&D | Verts/ALE | correctional |
| For | 543 | 67 | 0 | 3 | 28 | 10 | 223 | 161 | 51 | 1 |
| Against | 87 | 1 | 48 | 21 | 0 | 8 | 9 | 0 | 0 | 0 |
| Abstain | 12 | 0 | 0 | 3 | 4 | 5 | 0 | 0 | 0 | 0 |
Report: DOMENICI A7-0007/2010 - RESOLUTION
| Position | Total | ALDE | ECR | EFD | GUE/NGL | NI | PPE | S&D | Verts/ALE | correctional |
| For | 554 | 70 | 0 | 4 | 25 | 9 | 225 | 168 | 53 | 2 |
| Against | 46 | 1 | 5 | 20 | 0 | 9 | 10 | 1 | 0 | 0 |
| Abstain | 71 | 2 | 43 | 3 | 6 | 6 | 10 | 1 | 0 | 2 |
| Amendments | Dossier |
| 59 |
2009/2174(INI) Promoting good governance in tax matters
2009/11/17
ECON
59 amendments...
Amendment 1 #
Motion for a resolution Citation 4 a (new) – having regard to the judgment of the Court of Justice of the European Communities in Case C-255/02 on 21 February 2006 (Halifax and others v. Commissioners of Customs and Excise) in which the Court held that the Sixth VAT Directive (Directive 77/388/EEC) precludes the right of a taxable person to deduct input VAT where the transactions from which that right derives constitute an abusive practice,
Amendment 2 #
Motion for a resolution Citation 4 b (new) – having regard to the judgment of the Court of Justice of the European Communities in Case C-524/04 on 13 March 2007 (Test Claimants in the Thin Cap Group Litigation v. Commissioners of Inland Revenue), in which the Court ruled that Article 43 of the EC Treaty does not preclude legislation of a Member State restricting the right of establishment of a wholly artificial corporate arrangement entered into for tax reasons alone,
Amendment 3 #
Motion for a resolution Citation 6 a (new) – having regard to Parliament’s position of 24 April 2009 on the Commission proposal for a Council directive amending Directive 2003/48/EC on taxation of savings income in the form of interest payments,
Amendment 4 #
Motion for a resolution Recital A a (new) Aa. whereas the lack of good governance in tax matters encourages tax fraud and tax evasion and has serious consequences for Member States’ budgets and the European Union’s resource system, corresponding to 2.5 % of the European Union’s GDP per annum; whereas this leads to violations of the principle of fair and transparent taxation; whereas honest businesses are at a competitive disadvantage because of tax fraud; and whereas the loss of tax revenue due to tax fraud is ultimately met by taxpaying citizens of the European Union through other forms of taxation,
Amendment 5 #
Motion for a resolution Recital B B. whereas globalisation has led to increasing difficulties in combating fiscal fraud at international level; whereas the lack of cooperation between countries regarding the legal vacuum that exists between states on tax matters allows multinational companies to make use of aggressive tax-planning strategies at the expense of collective considerations; whereas those factors militate strongly in favour of improving international cooperation within the EU and at international level in order for it to be effective
Amendment 6 #
Motion for a resolution Recital B B. whereas globalisation has led to increasing difficulties in combating fiscal fraud at international level and the 27 EU Member States with their major differences are particularly affected by this; whereas those factors militate strongly in favour of improving international cooperation within the EU and at international level in order for it to be effective
Amendment 7 #
Motion for a resolution Recital B a (new) Ba. whereas tax avoidance and tax evasion at an international level constitute a serious obstacle to the achievement of the Millennium Development Goals,
Amendment 8 #
Motion for a resolution Recital B b (new) Bb. whereas the majority of multinational companies have been structured so as to take advantage of tax avoidance in the different jurisdictions in which they operate; whereas differential tax treatment in different jurisdictions favours undertakings that are large, international or well-established over those that are small, domestic or new (start-ups),
Amendment 9 #
Motion for a resolution Recital B c (new) Bc. whereas the ability of multinational companies to make extensive use of tax havens and offshore centres as part of their tax avoidance strategies conflicts with the principle of fair competition and corporate responsibility,
Amendment 10 #
Motion for a resolution Recital B d (new) Bd. whereas tax competition erodes the fiscal sovereignty of Member States, as they get involved in a ‘race to the bottom’ of tax rates; whereas such an erosion of fiscal sovereignty jeopardises the European Social Model,
Amendment 11 #
Motion for a resolution Recital B e (new) Be. whereas tax havens conflict with the principle of solidarity, justice and redistribution; whereas in a globalised economy, multinational companies use their power to put pressure on governments, particularly those of developing countries, to lower tax rates and provide tax incentives to attract investment; whereas in practice this has caused a shift of the tax burden on to workers and low-income households and has forced damaging cutbacks in public services,
Amendment 12 #
Motion for a resolution Recital C a (new) Ca. whereas the adoption of the General Anti-Avoidance Principles (GAAP) provides tax authorities with the power to consider whether the main purpose of a transaction is the avoidance or reduction of a tax liability and, where that is the case, to allow the authorities to levy additional tax in order to counteract such avoidance or reduction,
Amendment 13 #
Motion for a resolution Recital D a (new) Da. whereas, according to some estimates, tax fraud across all tax systems in the European Union amounts to more than EUR 200 billion a year, which represents more than 2 % of the European Union’s GDP; whereas the economic recovery plan proposed by the Commission to combat the consequences of the financial crisis amounts to around 1 % of the European Union’s GDP, which shows that the fight against tax fraud is clearly a major economic issue; whereas good governance in tax matters should result in more resources being made available to Member States and to developing countries in order to reach the Millennium Development Goals,
Amendment 14 #
Motion for a resolution Recital E E. whereas the combined efforts of the G- 20 and the UN, and within the framework of OECD-led initiatives, have produced some promising results in the area of tax governance; whereas those results remain insufficient to cope with the challenges presented by tax havens and offshore centres and must be followed by decisive, effective and consistent actions
Amendment 15 #
Motion for a resolution Recital E E. whereas the combined efforts of the G- 20 and the UN, and within the framework of OECD-led initiatives, have produced promising
Amendment 16 #
Motion for a resolution Recital F F. whereas the OECD currently values private capital accumulated in tax havens at almost USD 1 000 000 000 000 (one billion), which is five times more than two decades ago; whereas more than one million companies, particularly from the United States and the EU Member States, have their registered offices in countries where such tax havens are located
Amendment 17 #
Motion for a resolution Recital G G. whereas tax governance is an important pre-condition for preserving the integrity of financial markets, for maintaining favourable conditions for fair competition, and for enhancing the functioning of the internal market; whereas the financial crisis has shed new light on the consequences of the lack of good tax governance, showing the risks associated with opaque jurisdictions
Amendment 18 #
Motion for a resolution Recital G G. whereas tax havens sometimes host complex financial products that cause financial instability; and whereas the financial crisis has shed new light on the consequences of the lack of good tax governance, showing the risks associated with opaque jurisdictions
Amendment 19 #
Motion for a resolution Recital H a (new) Ha. whereas there is evidence that the financial crisis was driven by new types of complex financial instruments and derivatives placed, to a large extent, in funds domiciled in secrecy jurisdictions; whereas that evidence shows that many financial institutions involved in the financial crisis had off-balance-sheet liabilities in their accounts which were located in tax havens,
Amendment 20 #
Motion for a resolution Recital H a (new) Ha. whereas only 5 % of cross-border tax claims are recovered in the European Union,
Amendment 21 #
Motion for a resolution Paragraph -1 (new) -1. Strongly condemns the role played by tax havens in encouraging and profiteering from tax avoidance, tax evasion and capital flight from developed and developing countries; urges Member States therefore to make the fight against tax havens, tax evasion and illicit capital flight from developing countries their overriding priority,
Amendment 22 #
Motion for a resolution Paragraph 1 1. Considers
Amendment 23 #
Motion for a resolution Paragraph 1 1. Considers that good tax governance, understood as transparency and exchange of information at all levels, is
Amendment 24 #
Motion for a resolution Paragraph 1 a (new) 1a. Recalls in this context that it is of primary importance to put an end to the use of artificial legal persons as a way to avoid taxation; stresses also that instead of bank secrecy, automatic information exchange should occur in all circumstances, including all Member States and dependent territories; welcomes in this respect the Commission’s proposal on administrative cooperation in the field of taxation because, inter alia, it extends cooperation between Member States to cover taxes of any kind, it abolishes bank secrecy, and it establishes the automatic exchange of information as a general rule;
Amendment 25 #
Motion for a resolution Paragraph 2 2. Recalls that the Parliament has delivered its opinion to the Council on amendments to Directive 2003/48/EC, asking, inter alia, for the Council to end to the temporal derogation that allows Austria, Belgium and Luxembourg to avoid the automatic exchang
Amendment 26 #
Motion for a resolution Paragraph 2 2. Recalls that the Parliament has delivered its
Amendment 27 #
Motion for a resolution Paragraph 2 a (new) 2a. Emphasises that better recovery of taxes would be possible through the more efficient implementation of existing Community and national tax legislation;
Amendment 28 #
Motion for a resolution Paragraph 3 a (new) 3a Stresses the request made by Parliament, in its position of 24 April 2009, to extend substantially the scope of Directive 2003/48/EC, in particular to cover legal entities (especially private companies and trusts) and various forms of investment income; recalls that the provisions of Directive 2003/48/EC should be extended to Singapore, Hong Kong, Macao or other jurisdictions such as Dubai, New Zealand, Ghana, or certain states of the United States, which are not bound by the Directive 2003/48/EC and which are therefore a favoured location for tax evaders; urges the Council quickly to adopt a directive amending Directive 2003/48/EC which reflects Parliament’s position;
Amendment 29 #
Motion for a resolution Paragraph 4 4. Considers that the marketing in the Community of alternative funds domiciled in a third country must be conditional on the respect by that third country of good tax governance standards, including the effective implementation, on the basis of legally binding rules, of the principle of automatic exchange of information; in particular, highlights the fact that progress made on tax governance standards within international forums such as the OECD and the G-20 amounts to an approach of ‘minimum harmonisation’ rather than ‘maximum harmonisation’, which prevents the European Union from applying higher standards;
Amendment 30 #
Motion for a resolution Paragraph 4 4.
Amendment 31 #
Motion for a resolution Paragraph 4 a (new) 4a. Recalls that VAT-related tax fraud is a matter of particular concern for the functioning of the internal market in so far as it has a direct cross-border impact, involves substantial amounts of lost revenue and directly affects the EU budget; urges the Council to adopt a directive on administrative cooperation in the field of taxation and to fight fraud in the area of VAT, taking due account of Parliament’s position;
Amendment 32 #
Motion for a resolution Paragraph 5 a (new) 5a. Calls for increased cooperation, such as the automatic exchange of information between countries, so as to ease the recovery of capital flow abroad via illegal activity to the detriment of the internal market;
Amendment 33 #
Motion for a resolution Paragraph 6 6. Asks the Commission to report quickly on the recommendation made by the Council on 14 May 2008 to include a good tax governance clause in relevant agreements to be concluded with third countries by the Community and its Member States; in particular, stresses the need for provisions on good governance to be negotiated in the context of general or specific agreements with third countries and the need to ensure an effective monitoring process related to their implementation;
Amendment 34 #
Motion for a resolution Paragraph 6 6. Asks the Commission to report
Amendment 35 #
Motion for a resolution Paragraph 7 7. Recalls, as regards the work on harmful tax competition under the Code of Conduct for Business Taxation, the urgent need to ensure that Member States
Amendment 36 #
Motion for a resolution Paragraph 7 7. Recalls, as regards the work on harmful tax competition under the Code of Conduct for Business Taxation, the need to ensure that Member States implement the Code in their relations with third countries in way consistent with their efforts to promote transparency and exchange of information in tax matters
Amendment 37 #
Motion for a resolution Paragraph 8 8. Welcomes, as a first step, the advances made in the area of good tax governance as a result of the initiatives in other international fora such as the G-20, the G- 8, the UN and, notably, the OECD; considers, nevertheless, that the commitments taken by the G-20 to date are not sufficient to face the challenges posed by tax evasion, tax havens and off- shore centres;
Amendment 38 #
Motion for a resolution Paragraph 8 a (new) 8a. Recalls that combating tax havens and tax evasion will be successful only if the same rules apply to all so as to avoid the further creation of legal loopholes in which abuse occurs; in this context, takes the view that the Directive 2003/48/EC, which has established the principle of automatic multilateral information exchange between countries, is a welcome step towards the establishment of a global framework for automatic information exchange; welcomes, accordingly, the Commission’s proposal to promote cooperation with third countries in the framework of Directive 2003/48/EC;
Amendment 39 #
Motion for a resolution Paragraph 8 b (new) 8b. Insists on the need to transcend the OECD framework, in view of its various shortcomings, in order to combat tax havens effectively; in that respect, expresses its concern, inter alia, about the fact that the OECD international standards require exchange of information on request but that there is no automatic exchange of information such as in the context of Directive 2003/48/EC; also criticises the fact that the OECD allows governments to escape its blacklist merely by promising to comply with the information exchange principles, without ensuring that those principles are effectively put into practice; considers also that the requirement to conclude agreements with 12 countries in order to be removed from the blacklist is arbitrary as it does not refer to any qualitative indicators allowing an objective assessment to be made of compliance with good governance practices;
Amendment 40 #
Motion for a resolution Paragraph 9 9. Considers that there is a need for consistency and for a genuine EU policy of good tax governance; believes that the credibility of the European Union depends, inter alia, on its willingness first to clamp down on tax havens on its own territory as an example of good governance; asks the Commission to monitor closely, in this respect, the swift and thorough implementation of the actions set out in its communication on Promoting Good Governance in Tax Matters;
Amendment 41 #
Motion for a resolution Paragraph 9 9. Considers that there is a need for consistency a
Amendment 42 #
Motion for a resolution Paragraph 10 a (new) 10a. Recommends the creation of an appropriate incentive system for the recovery of cross-border tax claims in order to increase the current low level of recovery of 5 %; suggests that administrations recovering tax claims on behalf of a requesting Member State should be fairly remunerated from the income arising from the collection of unpaid taxes although that income is the property of the administration of the requesting Member State;
Amendment 43 #
Motion for a resolution Paragraph 10 b (new) 10b. In regard to mutual assistance for the recovery of tax claims, duties and other measures, invites the Commission to assess the amount of cross-border tax claims of Member States to be recovered in the territory of the European Union and to set up quantifiable indicators to measure the progress in cross-border recovery over time;
Amendment 44 #
Motion for a resolution Paragraph 11 11. Considers that
Amendment 45 #
Motion for a resolution Paragraph 11 11. Considers that the EU should actively promote the improvement of the OECD standards, with the aim of making the automatic, multilateral exchange of information the global standard; urges the EU, furthermore, to adopt
Amendment 46 #
Motion for a resolution Paragraph 11 11. Considers that the EU should actively promote the
Amendment 47 #
Motion for a resolution Paragraph 12 12. Calls on the OECD and its Member States to fully associate the Commission
Amendment 48 #
Motion for a resolution Paragraph 13 13. Urges the EU to implement a consistent approach to good tax governance in the context of the European Neighbourhood Policy, the enlargement policy and the development cooperation policy; stresses that the tax governance policy should actively contribute to building sustainable and transparent tax systems in developing countries, in particular with a view to eradicating tax fraud, which leads to an annual loss of tax revenue corresponding to 10 times the amount of injected development aid from the developed countries; considers that an appropriate level of resources must be allocated to reach that objective; recalls that tax governance will ultimately attract investment in so far as it contributes to legal tax certainty, transparency and stability;
Amendment 49 #
Motion for a resolution Paragraph 13 a (new) 13a. Stresses the need to revise the current international accounting standards to address poverty resulting from capital flight and tax evasion in developing countries; in particular, urges the development of country-by-country reporting which provides a comprehensive view of each parent company of a group for investors, stakeholders and tax authorities, thereby facilitating a more effective and transparent international overview of tax-led decisions;
Amendment 50 #
Motion for a resolution Paragraph 14 14. Emphasises the need for Member States to
Amendment 51 #
Motion for a resolution Paragraph 14 14. Emphasises the need for Member States to coordinate their policies in order to reinforce the implementation of anti- avoidance rules; calls furthermore for increased Member State cooperation in implementing anti-amnesty programmes and in tackling ‘forum-shopping’ practices;
Amendment 52 #
Motion for a resolution Paragraph 15 Amendment 53 #
Motion for a resolution Paragraph 15 15.
Amendment 54 #
Motion for a resolution Paragraph 15 15. Recalls that the introduction of a common consolidated corporate tax base would eliminate, within the EU, double- taxation and transfer price issues within consolidated groups; stresses also that the introduction of a CCCTB must be complemented by minimum coordination of corporate tax rates as a way to combat ‘race-to-the-bottom’ competition;
Amendment 55 #
Motion for a resolution Paragraph 15 15.
Amendment 56 #
Motion for a resolution Paragraph 16 16. Urges the EU to examine a range of options for
Amendment 57 #
Motion for a resolution Paragraph 16 16. Urges the EU to examine a range of options for sanctions and incentives
Amendment 58 #
Motion for a resolution Paragraph 16 16. Urges the EU to examine a range of options for sanctions and incentives to promote good tax governance such as a special levy on all movements to or from non-cooperative jurisdictions, the non- recognition, within the EU, of the legal status of companies set up in non- cooperative jurisdictions and the prohibition for EU financial institutions to establish or maintain subsidiaries and branches in non-cooperative jurisdictions; calls for the introduction of a financial transaction tax so as to reduce speculation and increase efforts towards the tackling of tax havens with the aim of establishing sound long-term financial stability;
Amendment 59 #
Motion for a resolution Paragraph 18 a (new) 18a. Considers that in order to achieve a higher level of transparency, the disclosure of accounting information in relation to tax havens should be required in companies’ annual accounts; suggests that the establishment of an EU public register, which would include all the names of individuals and undertakings that have established companies and accounts in tax havens and which would aim to unveil the true beneficiaries shielded by the offshore companies should be considered;
source: PE-430.689
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