European Parliament legislative resolution of 19 April 2012 on the draft Council decision on the conclusion of a Voluntary Partnership Agreement between the European Union and the Central African Republic on forest law enforcement, governance and trade in timber and derived products to the European Union (FLEGT) (14034/2011 – C7-0046/2012 – 2011/0127(NLE))

P7_TA(2012)0131 A7-0082/2012

(Consent)

The European Parliament,

–  having regard to the draft Council decision (14034/2011),

–  having regard to the draft Voluntary Partnership Agreement between the European Union and the Central African Republic on forest law enforcement, governance and trade in timber and derived products to the European Union (FLEGT) (14036/2011),

–  having regard to the request for consent submitted by the Council in accordance with Article 207(3) and (4) and Article 218(6), second subparagraph, point (a)(v), and Article 218(7) of the Treaty on the Functioning of the European Union (C7-0046/2012),

–  having regard to Rules 81 and 90(7) of its Rules of Procedure,

–  having regard to the recommendation of the Committee on International Trade and the opinion of the Committee on Development (A7-0082/2012),

1.  Consents to conclusion of the Agreement;

2.  Calls on the Commission to regularly report to Parliament on progress in the implementation of existing Voluntary Partnership Agreements (VPAs) and in negotiating and implementing new VPAs;

3.  Instructs its President to forward its position to the Council, the Commission and the governments and parliaments of the Member States and of the Central African Republic.

European Parliament legislative resolution of 19 April 2012 on the draft Council decision on the conclusion of the Voluntary Partnership Agreement between the European Union and the Republic of Liberia on forest law enforcement, governance and trade in timber products to the European Union (11104/2011 – C7-0241/2011 – 2011/0160(NLE))

P7_TA(2012)0132 A7-0081/2012

(Consent)

The European Parliament,

–  having regard to the draft Council decision (11104/2011),

–  having regard to the draft Voluntary Partnership Agreement between the European Union and the Republic of Liberia on forest law enforcement, governance and trade in timber products to the European Union (11101/2011),

–  having regard to the request for consent submitted by the Council in accordance with Article 207(3) and (4) and Article 218(6), second subparagraph, point (a)(v), and Article 218(7) of the Treaty on the Functioning of the European Union (C7-0241/2011),

–  having regard to Rules 81 and 90(7) of its Rules of Procedure,

–  having regard to the recommendation of the Committee on International Trade and the opinion of the Committee on Development (A7-0081/2012),

1.  Consents to conclusion of the Agreement;

2.  Calls on the Commission to regularly report to Parliament on progress in the implementation of existing Voluntary Partnership Agreements (VPAs) and in negotiating and implementing new VPAs;

3.  Instructs its President to forward its position to the Council, the Commission and the governments and parliaments of the Member States and of the Republic of Liberia.

European Parliament legislative resolution of 19 April 2012 on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC) No 1083/2006 as regards certain provisions relating to risk-sharing instruments for Member States experiencing or threatened with serious difficulties with respect to their financial stability (COM(2011)0655 – C7-0350/2011 – 2011/0283(COD))

P7_TA(2012)0133 A7-0067/2012

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2011)0655),

–  having regard to Article 294(2) and Article 177 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7-0350/2011),

–  having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–  having regard to the opinion of the European Economic and Social Committee of 8 December 2011(1),

–  after consulting the Committee of the Regions,

–  having regard to the undertaking given by the Council representative by letter of 28 March 2012 to approve Parliament's position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

–  having regard to Rule 55 of its Rules of Procedure,

–  having regard to the report of the Committee on Regional Development and the opinions of the Committee on Budgetary Control and the Committee on Economic and Monetary Affairs (A7-0067/2012),

1.  Adopts its position at first reading hereinafter set out;

2.  Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;

3.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Position of the European Parliament adopted at first reading on 19 April 2012 with a view to the adoption of Regulation (EU) No .../2012 of the European Parliament and of the Council amending Council Regulation (EC) No 1083/2006 as regards certain provisions relating to risk-sharing instruments for Member States experiencing or threatened with serious difficulties with respect to their financial stability

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) No 423/2012.)

(1) OJ C 43, 15.2.2012, p. 13.

European Parliament legislative resolution of 19 April 2012 on the draft Council decision on the conclusion of the Agreement between the United States of America and the European Union on the use and transfer of Passenger Name Records to the United States Department of Homeland Security (17433/2011 – C7-0511/2011 – 2011/0382(NLE))

P7_TA(2012)0134 A7-0099/2012

(Consent)

The European Parliament,

–  having regard to the draft Council decision (17433/2011),

–  having regard to the draft Agreement between the United States of America and the European Union on the use and transfer of Passenger Name Records to the United States Department of Homeland Security, annexed to that draft Council decision (17434/2011),

–  having regard to the request for consent submitted by the Council in accordance with Article 218(6), second subparagraph, point (a), in conjunction with Article 82(1), second subparagraph, point (d), and Article 87(2), point (a), of the Treaty on the Functioning of the European Union (C7-0511/2011),

–  having regard to the Communication from the Commission on the global approach to transfers of Passenger Name Record (PNR) data to third countries (COM(2010)0492),

–  having regard to its resolutions of 14 February 2007 on SWIFT, the PNR agreement and the transatlantic dialogue on these issues(1), of 12 July 2007 on the PNR agreement with the United States of America(2), of 5 May 2010 on the launch of negotiations for Passenger Name Record (PNR) agreements with the United States, Australia and Canada(3), and of 11 November 2010 on the global approach to transfers of passenger name record (PNR) data to third countries, and on the recommendations from the Commission to the Council to authorise the opening of negotiations between the European Union and Australia, Canada and the United States(4),

–  having regard to the opinions of the European Data Protection Supervisor of 19 October 2010 on the Communication from the Commission on the global approach to transfers of Passenger Name Record (PNR) data to third countries(5) and of 9 December 2011 on the proposal for a Council Decision on the conclusion of the Agreement between the United States of America and the European Union on the use and transfer of Passenger Name Records to the United States Department of Homeland Security(6),

–  having regard to Opinion 7/2010 of 12 November 2010 on the European Commission's Communication on the global approach to transfers of Passenger Name Record (PNR) data to third countries adopted by the Article 29 Data Protection Working Party, and to its letter of 6 January 2012 on the Agreement between the United States of America and the European Union on the use and transfer of Passenger Name Records to the United States Department of Homeland Security,

–  having regard to Article 16 of the Treaty on the Functioning of the European Union and Articles 7 and 8 of the Charter of Fundamental Rights of the European Union,

–  having regard to Rules 81 and 90(7) of its Rules of Procedure,

–  having regard to the recommendation of the Committee on Civil Liberties, Justice and Home Affairs and the opinion of the Committee of Foreign Affairs (A7-0099/2012),

1.  Consents to the conclusion of the Agreement;

2.  Considers that procedure 2009/0187(NLE) has lapsed as a result of the 2007 PNR Agreement between the European Union and the United States being replaced by the new PNR Agreement;

3.  Instructs its President to forward its position to the Council, the Commission, the governments and parliaments of the Member States and the government of the United States of America.

(1) OJ C 287 E, 29.11.2007, p. 349. (2) OJ C 175 E, 10.7.2008, p. 564. (3) OJ C 81 E, 15.3.2011, p. 70. (4) OJ C 74 E, 13.3.2012, p. 8. (5) OJ C 357, 30.12.2010, p. 7. (6) OJ C 35, 9.2.2012, p. 16.

European Parliament legislative resolution of 19 April 2012 on the proposal for a Council directive on a Common Consolidated Corporate Tax Base (CCCTB) (COM(2011)0121 – C7-0092/2011 – 2011/0058(CNS))

P7_TA(2012)0135 A7-0080/2012

(Special legislative procedure – consultation)

The European Parliament,

–  having regard to the Commission proposal to the Council (COM(2011)0121),

–  having regard to Article 115 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C7-0092/2011),

–  having regard to the opinion of the Committee on Legal Affairs on the proposed legal basis,

–  having regard to the reasoned opinions submitted, within the framework of Protocol No 2 on the application of the principles of subsidiarity and proportionality, by the Bulgarian Parliament, the Irish House of Representatives, the Maltese Parliament, the Netherlands House of Representatives, the Polish Diet, the Romanian Chamber of Deputes, the Slovak Parliament, the Swedish Parliament and the House of Commons of the United Kingdom, asserting that the draft legislative act does not comply with the principle of subsidiarity,

–  having regard to Rule 55 and 37 of its Rules of Procedure,

–  having regard to the report of the Committee on Economic and Monetary Affairs and the opinion of the Committee on the Internal Market and Consumer Protection (A7-0080/2012),

1.  Approves the Commission proposal as amended;

2.  Calls on the Commission to alter its proposal accordingly, in accordance with Article 293(2) of the Treaty on the Functioning of the European Union;

3.  Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

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

5.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Text proposed by the Commission   Amendment Amendment 1 Proposal for a directive Recital 1 (1)  Companies which seek to do business across frontiers within the Union encounter serious obstacles and market distortions owing to the existence of 27 diverse corporate tax systems. These obstacles and distortions impede the proper functioning of the internal market. They create disincentives for investment in the Union and run counter to the priorities set in the Communication adopted by the Commission on 3 March 2010 entitled Europe 2020 – A strategy for smart, sustainable and inclusive growth. They also conflict with the requirements of a highly competitive social market economy. (1)  Companies which seek to do business across frontiers within the Union encounter serious obstacles and market distortions owing to the existence of 27 diverse corporate tax systems. These obstacles and distortions impede the proper functioning of the internal market. They create disincentives for investment in the Union and run counter to the priorities set in the Communication adopted by the Commission on 3 March 2010 entitled Europe 2020 – A strategy for smart, sustainable and inclusive growth, to the Euro Plus Pact and to the economic, budgetary and fiscal integration needed in order to establish a highly competitive social market economy. Amendment 2 Proposal for a directive Recital 1 a (new) (1a)  More cooperation among tax authorities can lead to a significant decrease in costs and administrative burdens for businesses engaged in cross-border activities within the Union. Amendment 3 Proposal for a directive Recital 2 (2)  Tax obstacles to cross-border business are particularly severe for small and medium enterprises, which commonly lack the resources to resolve market inefficiencies. (2)  Tax obstacles may be particularly severe for small and medium-sized enterprises (SMEs)engaged in cross-border activities, as they commonly lack the resources to resolve market inefficiencies. Amendment 4 Proposal for a directive Recital 2 a (new) (2a)  Fair competition in relation to tax rates should be encouraged at Member State level and also at regional level for regions with fiscal and legislative powers. Amendment 5 Proposal for a directive Recital 3 a (new) (3a)  Improving the internal market is the key factor for encouraging growth and job creation. The introduction of a common consolidated corporate tax base (CCCTB) should improve growth and lead to more jobs in the Union by reducing the administrative costs and red tape for companies, particularly for small businesses engaged in cross-border activities. Amendment 6 Proposal for a directive Recital 4 a (new) (4a)  As the internal market encompasses all Member States, the CCCTB should be introduced in all Member States. However, if the Council fails to adopt a unanimous decision on the proposal to establish a CCCTB, it is appropriate to initiate, without delay, the procedure for a Council decision authorising enhanced cooperation in the area of the CCCTB. Such enhanced cooperation should be initiated by the Member States whose currency is the euro but should be open at any time to other Member States in accordance with the Treaty on the Functioning of the European Union. Amendment 7 Proposal for a directive Recital 4 b (new) (4b)  Certain pronounced forms of tax competition, tax optimisation and tax arbitrage could erode some Member States' revenues and create distortions concerning taxation between capital, which is mobile, and labour, which is less mobile. The reinforced Stability and Growth Pact and the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union require Member States, in particular those whose currency is the euro, to comply with strict fiscal discipline, simultaneously applying spending controls and generating sufficient tax revenues. For these reasons, and because the Euro Plus Pact, agreed by the Heads of State or government of the Member States whose currency is the euro, provides that the development of a CCCTB ‘could be a revenue-neutral way forward to ensure consistency among national tax systems while respecting national tax strategies, and to contribute to fiscal sustainability and the competitiveness of European businesses’, it is of vital importance that Member States whose currency is the euro are able to meet their budgetary commitments, in order to safeguard the stability of the euro area as a whole, and it is desirable that the CCCTB is applied as soon as possible to as many companies as possible. Amendment 8 Proposal for a directive Recital 4 c (new) (4c)  In light of the vital role that SMEs play in the internal market, the Commission should develop and make available to SMEs engaged in cross-border activities, a tool that mitigates the administrative burden and costs and that thus enables them to voluntary opt into the CCCTB system. Amendment 9 Proposal for a directive Recital 5 (5)  Since differences in rates of taxation do not give rise to the same obstacles, the system (the Common Consolidated Corporate Tax Base (CCCTB)) need not affect the discretion of Member States regarding their national rate(s) of company taxation. (5)  Since differences in rates of taxation do not give rise to the same obstacles, the CCCTB need not affect the discretion of Member States regarding their national rate(s) of company taxation. The Member States therefore also should retain the power to adopt certain incentives for businesses, particularly in the form of tax credit. Amendment 10 Proposal for a directive Recital 5 a (new) (5a)  This Directive does not aim to harmonise Member States' corporate tax rates. If, however, it becomes apparent that the economic efficiency, effectiveness and equitability of corporate taxation would benefit from an introduction of minimum rates, the Commission should consider whether such harmonisation is appropriate when reviewing the application of this Directive. This is all the more important as the evolution of corporate tax rates in the Member States clarifies that tax competition within the internal market has an impact. It is therefore useful, in the spirit of the report entitled ‘A New Strategy for the Single Market’ of 9 May 2010, to determine whether the impact of such competition is beneficial or harmful to a tax culture that is appropriate for the internal market of the 21st century. In particular, attention should be paid to whether the removal of the underlying tension between market integration and tax sovereignty is one of the ways to reconcile the market and the social dimension of the internal market. Amendment 11 Proposal for a directive Recital 6 (6)  Consolidation is an essential element of such a system, since the major tax obstacles faced by companies in the Union can be tackled only in that way. It eliminates transfer pricing formalities and intra-group double taxation. Moreover, losses incurred by taxpayers are automatically offset against profits generated by other members of the same group. (6)  Consolidation is an essential element of such a system, since the major tax obstacles faced by companies of the same group that are engaged in cross-border activities in the Union can be tackled only in that way. It eliminates transfer pricing formalities and intra-group double taxation. Moreover, losses incurred by taxpayers are automatically offset against profits generated by other members of the same group. Amendment 12 Proposal for a directive Recital 6 a (new) (6a)  The broad tax base, the consolidation and the discretionary powers of the Member States with regard to their national corporate taxation rates make the CCCTB a tax-neutral operation. Amendment 13 Proposal for a directive Recital 6 b (new) (6b)  In so far as the use of the CCCTB would affect the tax revenue of regional or local authorities, Member States are able to take measures to remedy this in accordance with their constitutional systems and in a manner compatible with this Directive. Amendment 14 Proposal for a directive Recital 8 (8)  Since such a system is primarily designed to serve the needs of companies that operate across borders, it should be an optional scheme, accompanying the existing national corporate tax systems. (8)  Since this Directive is primarily designed for the benefit of companies that operate across borders, without however excluding other companies, it is set up as an optional system, allowing all eligible companies to opt in. However, European Companies and European Cooperative Societies, which are, by definition, transnational, are considered to have opted to apply this Directive from two years after its date of application. All other companies that qualify under this Directive, except for micro, small and medium-sized enterprises, as defined in Commission Recommendation 2003/361/EC1, should also apply this Directive not later than five years after its date of application. When evaluating the impact of the CCCTB, the Commission should examine whether it should also be made mandatory for such micro, small and medium-sized enterprises. 1 OJ L 124, 20.5.2003, p. 36. Amendment 15 Proposal for a directive Recital 20 (20)  The system should include a general anti-abuse rule, supplemented by measures designed to curb specific types of abusive practices. These measures should include limitations on the deductibility of interest paid to associated enterprises resident for tax purposes in a low-tax country outside the Union which does not exchange information with the Member State of the payer based on an agreement comparable to Council Directive 2011/16/EU concerning mutual assistance by the competent authorities of the Member States in the field of direct taxation and taxation of insurance premiums and rules on controlled foreign companies. (20)  The system should include an effective general anti-abuse rule, supplemented by measures designed to curb specific types of abusive practices. These measures should include limitations on the deductibility of interest paid to associated enterprises resident for tax purposes in a low-tax country outside the Union which does not exchange information with the Member State of the payer based on an agreement comparable to Council Directive 2011/16/EU concerning mutual assistance by the competent authorities of the Member States in the field of direct taxation and taxation of insurance premiums and rules on controlled foreign companies. Member States should not be prevented from introducing and coordinating additional measures among each other in order to reduce the negative effects of low-tax countries outside the Union, which do not exchange necessary tax information. Amendment 16 Proposal for a directive Recital 21 (21)  The formula for apportioning the consolidated tax base should comprise three equally weighted factors (labour, assets and sales). The labour factor should be computed on the basis of payroll and the number of employees (each item counting for half). The asset factor should consist of all fixed tangible assets. Intangibles and financial assets should be excluded from the formula due to their mobile nature and the risks of circumventing the system. The use of these factors gives appropriate weight to the interests of the Member State of origin. Finally, sales should be taken into account in order to ensure fair participation of the Member State of destination. Those factors and weightings should ensure that profits are taxed where they are earned. As an exception to the general principle, where the outcome of the apportionment does not fairly represent the extent of business activity, a safeguard clause provides for an alternative method. (21)  The formula for apportioning the consolidated tax base should comprise three factors (labour, assets and sales). While the labour and asset factors should have a weight of 45 % each, the sales factor should have a weight of 10 %. The labour factor should be computed on the basis of payroll and the number of employees (each item counting for half). The asset factor should consist of all fixed tangible assets. Intangibles and financial assets should be excluded from the formula due to their mobile nature and the risks of circumventing the system. The use of these factors gives appropriate weight to the interests of the Member State of origin. Finally, sales should be taken into account in order to ensure fair participation of the Member State of destination. Those factors and weightings should ensure that profits are taxed where they are earned. As an exception to the general principle, where the outcome of the apportionment does not fairly represent the extent of business activity, a safeguard clause provides for an alternative method. Amendment 17 Proposal for a directive Recital 21 a (new) (21a)  The common rules on the calculation of the CCCTB should not give rise to disproportionate administrative costs for companies, in order to avoid damaging their competitiveness. Amendment 18 Proposal for a directive Recital 23 (23)  Groups of companies should be able to deal with a single tax administration (‘principal tax authority’), which should be that of the Member State in which the parent company of the group (‘principal taxpayer’) is resident for tax purposes. This Directive should also lay down procedural rules for the administration of the system. It should also provide for an advance ruling mechanism. Audits should be initiated and coordinated by the principal tax authority but the authorities of any Member State in which a group member is subject to tax may request the initiation of an audit. The competent authority of the Member State in which a group member is resident or established may challenge a decision of the principal tax authority concerning the notice to opt or an amended assessment before the courts of the Member State of the principal tax authority. Disputes between taxpayers and tax authorities should be dealt with by an administrative body which is competent to hear appeals at first instance according to the law of the Member State of the principal tax authority. (23)  Groups of companies should be able to deal with a single tax administration (‘principal tax authority’), which should be an authority of the Member State in which the parent company of the group (‘principal taxpayer’) is resident for tax purposes. This Directive should also lay down procedural rules for the administration of the system. It should also provide for an advance ruling mechanism. Audits should be initiated and coordinated by the principal tax authority but the authorities of any Member State in which a group member is subject to tax may request the initiation of an audit. The competent authority of the Member State in which a group member is resident or established may challenge a decision of the principal tax authority concerning the notice to opt or an amended assessment before the courts of the Member State of the principal tax authority. Disputes between taxpayers and tax authorities should be dealt with by an administrative body which is competent to hear appeals at first instance according to the law of the Member State of the principal tax authority. Amendment 19 Proposal for a directive Recital 23 a (new) (23a)  The Commission should establish a new CCCTB forum, similar to the Joint Transfer Pricing Forum, to which companies and Member States can refer questions and disputes relating to the CCCTB. That forum should be able to give guidance to companies and Member States. Amendment 20 Proposal for a directive Recital 27 a (new) (27a)  This Directive contains a radical new approach to an essential component of corporate taxation. The Commission should therefore conduct a thorough analysis and an independent assessment as soon as this can be done in a meaningful way. Because of the cycle that is inherent in the application and implementation of corporate taxation, no such analysis and assessment should be made before the end of five years after entry into force of this Directive. The Commission's analysis and assessment should include an examination of the following: the optional character of the CCCTB, the restriction of harmonisation of the tax base, the apportionment formula, consideration of the practicality of the regime for SMEs and the impact on the tax revenues of the Member States. Amendment 21 Proposal for a directive Article 6 a (new) Article 6a European Companies and European Cooperative Societies From ... *, eligible European Companies and European Cooperative Societies, as referred to in points (a) and (b) of Annex I, shall be considered to be companies that have opted to apply this Directive. *First day of the month following two years after the date of application of this Directive. Amendment 22 Proposal for a directive Article 6 b (new) Article 6b Application to other eligible companies From ... *, eligible companies other than micro, small and medium-sized enterprises as defined in Recommendation 2003/361/EC, shall apply this Directive. *First day of the month following five years after the date of application of this Directive. Amendment 23 Proposal for a directive Article 12 – paragraph 1 Deductible expenses shall include all costs of sales and expenses net of deductible value added tax incurred by the taxpayer with a view to obtaining or securing income, including costs of research and development and costs incurred in raising equity or debt for the purposes of the business. Deductible expenses shall include all costs of sales and expenses net of deductible value added tax incurred by the taxpayer with a view to obtaining or securing income, including costs of research and development and costs incurred in raising equity or debt for the purposes of the business. Recurring costs relating to environmental protection and reduction of carbon emissions shall also be regarded as deductible expenses. Amendment 24 Proposal for a directive Article 14 – paragraph 1 – point j (j) taxes listed in Annex III, with the exception of excise duties imposed on energy products, alcohol and alcoholic beverages, and manufactured tobacco. (j) taxes listed in Annex III. Amendment 25 Proposal for a directive Article 30 – point c (c) the technical provisions of insurance undertakings established in compliance with Directive 91/674/EEC shall be deductible, with the exception of equalisation provisions. A Member State may provide for the deduction of equalisation provisions. In the case of a group, any such deduction of equalisation provisions shall be applied to the apportioned share of the group members resident or situated in that Member State. Amounts deducted shall be reviewed and adjusted at the end of every tax year. In calculating the tax base in future years account shall be taken of amounts already deducted. (c) the technical provisions of insurance undertakings established in compliance with Directive 91/674/EEC shall be deductible, with the exception of equalisation provisions. A Member State which, pursuant to Article 62 of Directive 91/674/EEC, has introduced a commercial law requirement to constitute equalisation provisions must also make such provisions tax deductible. In the case of a group, any such deduction of equalisation provisions shall be applied to the apportioned share of the group members resident or situated in that Member State. Amounts deducted shall be reviewed and adjusted at the end of every tax year. In calculating the tax base in future years account shall be taken of amounts already deducted. Amendment 26 Proposal for a directive Article 48 Where a taxpayer incurred losses before opting into the system provided for by this Directive which could be carried forward under the applicable national law but had not yet been set off against taxable profits, those losses may be deducted from the tax base to the extent provided for under that national law. Where a taxpayer incurred losses before opting into the system provided for by this Directive which could be carried forward under the applicable national law but had not yet been set off against taxable profits, those losses may be deducted from the part of the tax base taxed in the Member State of the previously applicable national law to the extent provided for under that national law. Amendment 27 Proposal for a directive Article 73 – paragraph 1 – point a (a) a tax on profits, under the general regime in that third country, at a statutory corporate tax rate lower than 40 % of the average statutory corporate tax rate applicable in the Member States; (a) a tax on profits, under the general regime in that third country, at a statutory corporate tax rate lower than 70 % of the average statutory corporate tax rate applicable in the Member States; Amendment 28 Proposal for a directive Article 80 – paragraph 1 Artificial transactions carried out for the sole purpose of avoiding taxation shall be ignored for the purposes of calculating the tax base. Artificial transactions carried out mainly for the purpose of avoiding taxation shall be ignored for the purposes of calculating the tax base. Amendment 29 Proposal for a directive Article 82 – paragraph 1 – point b (b) under the general regime in the third country, profits are taxable at a statutory corporate tax rate lower than 40 % of the average statutory corporate tax rate applicable in the Member States, or the entity is subject to a special regime that allows for a substantially lower level of taxation than that of the general regime; (b) under the general regime in the third country, profits are taxable at a statutory corporate tax rate lower than 70 % of the average statutory corporate tax rate applicable in the Member States, or the entity is subject to a special regime that allows for a substantially lower level of taxation than that of the general regime; Amendment 30 Proposal for a directive Article 86 – paragraph 1 – introductory part 1.  The consolidated tax base shall be shared between the group members in each tax year on the basis of a formula for apportionment. In determining the apportioned share of a group member A, the formula shall take the following form, giving equal weight to the factors of sales, labour and assets: 1.  The consolidated tax base shall be shared between the group members in each tax year on the basis of a formula for apportionment. In determining the apportioned share of a group member A, the formula shall take the following form, covering the factors of sales, labour and assets: Amendment 31 Proposal for a directive Article 86 – paragraph 1 – formula Amendment 32 Proposal for a directive Article 110 – paragraph 1 a (new) 1a.  The Commission shall design a uniform tax return format in cooperation with the tax administrations of the Member States. Amendment 33 Proposal for a directive Article 122 – paragraph 1 – subparagraph 1 1.  The principal tax authority may initiate and coordinate audits of group members. An audit may also be initiated on the request of a competent authority. 1.  The principal tax authority may initiate and coordinate audits of group members. An audit may also be initiated on the request of a competent authority in the Member State where the group member is established. Amendment 34 Proposal for a directive Article 123 a (new) Article 123a CCCTB forum The Commission shall establish a CCCTB forum to which companies and Member States may refer questions and disputes relating to the CCCTB. That forum shall provide guidance to companies and Member States. Amendment 35 Proposal for a directive Article 130 The European Parliament shall be informed of the adoption of delegated acts by the Commission of any objection formulated to them, or the revocation of the delegation of powers by the Council. The European Parliament shall be informed of the adoption of delegated acts by the Commission of any objection formulated to them, or the revocation of the delegation of powers by the Council. Any future assessment of the instrument should be communicated to the members of the competent committee of the European Parliament. Amendment 36 Proposal for a directive Article 132 a (new) Article 132a Cross-border SMEs By ... *, the Commission shall provide a tool enabling SMEs engaged in cross-border activities to opt into the CCCTB scheme on a voluntary basis. *First day of the month following two years after the entry into force of this Directive. Amendment 37 Proposal for a directive Article 133 The Commission shall, five years after the entry into force of this Directive, review its application and report to the Council on the operation of this Directive. The report shall in particular include an analysis of the impact of the mechanism set up in Chapter XVI of this Directive on the distribution of the tax bases between the Member States. The Commission shall, by ...*, review the application of this Directive and report to the European Parliament and to the Council on its operation. The report shall, inter alia, include an analysis, based on an independent assessment, of: (a) the impact of the mechanism set up in Chapter XVI on the distribution of the tax bases between the Member States and the impact on their tax revenues; (b) the use by and practicability of this Directive for SMEs; (c) the advantages and disadvantages of making the system mandatory for SMEs; (d) the socio-economic implications of this Directive, including the impact on the global operations of companies and on the competitiveness of eligible and non-eligible companies; (e) the impact on a fair and just tax collection in the Member States; (f) the advantages and disadvantages of introducing minimum tax rates. Where appropriate, the Commission shall make a proposal for amending this Directive at the latest by 2020. By ...**, the Commission shall present a report to the European Parliament and the Council on the potential consequences of this Directive on the internal market with particular regard to possible distortions of competition between companies subject to the arrangements laid down in this directive and those not fulfilling the consolidation criteria. *First day of the month following five years after the entry into force of this Directive. **First day of the month following two years after the entry into force of this Directive. Amendment 38 Proposal for a directive Annex 3 – title 5 – item 4 Versicherungsteuer deleted

European Parliament legislative resolution of 19 April 2012 on the proposal for a Council Directive amending Directive 2003/96/EC restructuring the Community framework for the taxation of energy products and electricity (COM(2011)0169 – C7-0105/2011 – 2011/0092(CNS))

P7_TA(2012)0136 A7-0052/2012

(Special legislative procedure – consultation)

The European Parliament,

–  having regard to the Commission proposal to the Council (COM(2011)0169),

–  having regard to Article 113 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C7-0105/2011),

–  having regard to the reasoned opinions submitted, within the framework of Protocol No 2 on the application of the principles of subsidiarity and proportionality, by the Bulgarian Parliament, the Spanish Congress of Deputies and the Spanish Senate, asserting that the draft legislative act does not comply with the principle of subsidiarity,

–  having regard to Rule 55 of its Rules of Procedure,

–  having regard to the report of the Committee on Economic and Monetary Affairs and the opinions of the Committee on Budgets, the Committee on the Environment, Public Health and Food Safety, the Committee on Industry, Research and Energy, the Committee on Transport and Tourism and the Committee on Agriculture and Rural Development (A7-0052/2012),

1.  Approves the Commission proposal as amended;

2.  Calls on the Commission to alter its proposal accordingly, in accordance with Article 293(2) of the Treaty on the Functioning of the European Union;

3.  Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

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

5.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Text proposed by the Commission   Amendment Amendment 1 Proposal for a directive Recital 1 (1)  Council Directive 2003/96/EC was adopted in order to ensure the proper functioning of the internal market as regards the taxation of energy products and electricity. In accordance with Article 6 of the Treaty, environmental protection requirements have been integrated into the terms of that Directive, in the light, in particular, of the Kyoto protocol. (1)  Council Directive 2003/96/EC was adopted in order to ensure the proper functioning of the internal market as regards the taxation of energy products and electricity. In accordance with Article 11 of the Treaty on the Functioning of the European Union (TFEU), environmental protection requirements have been integrated into the terms of that Directive, in the light, in particular, of the Kyoto protocol. It is important that, pursuant to Article 9 TFEU, it is ascertained whether sufficient account is taken of protection of human health, for example in the context of air pollution. Amendment 2 Proposal for a directive Recital 1 a (new) (1a)  In addressing an issue as wide-ranging and crucial as energy taxation in the Union, consideration of climate and environmental policy imperatives, however necessary, is not sufficient. Energy policy and industrial policy aims constitute equally critical challenges for the Union. Furthermore, in order for the internal market to function in an adequate and efficient way in the area of energy, all Union initiatives and legislation relating to this area need to be continuously and carefully coordinated. Not only should amendments to Directive 2003/96/EC be compatible with other energy-related policies, but those policies should also be appropriately adapted to the energy taxation framework. In particular, the existing problems relating to the Union's emission trading scheme under Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community1should be dealt with resolutely so that it can function effectively. Any lack of coherence would be detrimental to the fulfilment of the long-term Union objectives of building smart, sustainable and inclusive growth. 1OJ L 275, 25.10.2003, p. 32. Amendment 3 Proposal for a directive Recital 2 (2)  It is necessary to ensure that the internal market continues to function properly in a context of new requirements relating to the limitation of climate change, to the use of renewable energy sources and to energy savings, as endorsed by the Presidency Conclusions of the European Council of 8-9 March 2007 and of 11-12 December 2008. (2)  It is necessary to ensure that the internal market functions in an optimum manner in a context of new requirements relating to the limitation of climate change, to the use of renewable energy sources and to energy savings, as endorsed by the Presidency Conclusions of the European Council of 8-9 March 2007 and of 11-12 December 2008. Consistent treatment of energy sources under Directive 2003/96/EC should therefore be guaranteed in order to provide a genuine level playing field for energy consumers regardless of the energy source used. Amendment 4 Proposal for a directive Recital 2 a (new) (2a)  Taxation of energy products should be undertaken in a technologically neutral manner in order to allow new technologies to develop. Amendment 5 Proposal for a directive Recital 3 (3)  Taxation related to CO2 emissions can be a cost-effective means for Member States to achieve the reductions of greenhouse gasses necessary according to Decision 406/2009/EC of the European Parliament and the Council of 23 April 2009 on the effort of Member States to reduce their greenhouse gas emissions to meet the Union's greenhouse gas emission reduction commitments up to 2020 as regards sources not covered by the Union scheme under Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC. In view of the potential role of CO2-related taxation, the proper functioning of the internal market requires common rules on that taxation. (3)  Taxation relating to CO2 emissions is generally a cost-effective means for Member States to achieve the reductions of greenhouse gasses necessary according to Decision 406/2009/EC of the European Parliament and the Council of 23 April 2009 on the effort of Member States to reduce their greenhouse gas emissions to meet the Union's greenhouse gas emission reduction commitments up to 2020 as regards sources not covered by the Union scheme under Directive 2003/87/EC. In view of the current and potential role of CO2-related taxation, the proper functioning of the internal market requires common rules on that taxation. Amendment 6 Proposal for a directive Recital 4 a (new) (4a)  Energy taxation should not be levied on energy recovery from waste and, in particular, the use of waste as an alternative fuel, since the aim of Directive 2008/98/EC of the European Parliament and the Council of 19 November 2008 on waste1is that waste producers and waste holders dispose of waste in the most energy-efficient and resource-friendly manner possible and gives priority to energy recovery over disposal. 1 OJ L 312, 22.11.2008, p. 3. Amendment 7 Proposal for a directive Recital 4 b (new) (4b)  Member States should also retain the right to apply a level of general energy consumption taxation down to zero on the consumption of energy products and electricity used for agricultural, horticultural and piscicultural works, and in forestry. Amendment 8 Proposal for a directive Recital 5 (5)  Therefore, provision should be made for energy taxation to consist of two components, CO2-related taxation and general energy consumption taxation. In order for energy taxation to adapt to the operation of the Union scheme under Directive 2003/87/EC Member States should be required to explicitly distinguish between those two components. This would also allow distinct treatment of fuels that are biomass or made from biomass. (5)  Therefore, provision should be made for energy taxation to consist of two components, CO2-related taxation and general energy consumption taxation. In order for energy taxation to adapt to the operation of the Union scheme under Directive 2003/87/EC Member States should be required to explicitly distinguish between those two components. This would also allow distinct treatment of fuels that are biomass or made from biomass in view of the advantages they offer as a source of renewable energy that is cheap and almost greenhouse-gas neutral, provided that they meet the sustainability criteria laid down in Article 17 of Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources1. The Commission should submit a report to the European Parliament and the Council examining whether, in addition to CO2 emissions, emissions of other harmful gases should be taken into account with the aim of protecting public health. 1 OJ L 140, 5.6.2009, p. 16. Amendment 9 Proposal for a directive Recital 6 (6)  Each of those components should be calculated on the basis of objective criteria, allowing for equal treatment of different energy sources. For the purposes of CO2-related taxation, reference should be made to CO2-emissions caused by the use of each energy product concerned, using the reference CO2 emission factors set out in Commission Decision 2007/589/EC of 18 July 2007 establishing guidelines for the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council. For the purposes of general energy consumption taxation, reference should be made to the energy content of the various energy products and of electricity as referred to in Directive 2006/32/EC of the European Parliament and of the Council of 5 April 2006 on energy end-use efficiency and energy services and repealing Council Directive 93/76/EEC. In this context, account should be taken of the environmental advantages of biomass or products made of biomass. These products should be taxed on the basis of the CO2 emission factors specified in Decision 2007/589/EC for biomass or products made of biomass and of their energy content as specified in Annex III to Directive 2009/28/EC. Biofuels and bioliquids defined in Article 2(h) and (i) of Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources are by far the most important category concerned. Since the environmental advantages of these products vary, depending on whether they comply with the sustainability criteria laid down in Article 17 of that Directive, the specific reference values for biomass and products made of biomass should only apply where these criteria are met. (6)  Each of those components should be calculated on the basis of objective criteria, allowing for equal treatment of different energy sources. For the purposes of CO2-related taxation, reference should be made to CO2-emissions caused by the use of each energy product concerned, using the reference CO2 emission factors set out in Commission Decision 2007/589/EC of 18 July 2007 establishing guidelines for the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC. For the purposes of general energy consumption taxation, reference should be made to the energy content of the various energy products and of electricity as referred to in Directive 2006/32/EC of the European Parliament and of the Council of 5 April 2006 on energy end-use efficiency and energy services. In this context, account should be taken of the environmental advantages of biomass or products made of biomass. These products should be taxed on the basis of the CO2 emission factors specified in Decision 2007/589/EC for biomass or products made of biomass and of their energy content as specified in Annex III to Directive 2009/28/EC. Biofuels and bioliquids defined in Article 2(h) and (i) of Directive 2009/28/EC are by far the most important category concerned. Since the environmental advantages of these products vary, depending on whether they comply with the sustainability criteria laid down in Article 17 of that Directive, the specific reference values for biomass and products made of biomass should only apply where these criteria are met. As soon as sustainability criteria for biomass products other than biofuels and bioliquids are laid down pursuant to Directive 2009/28/EC, those specific reference values should be applied to biomass products other than biofuels and bioliquids only if they comply with the new sustainability criteria. Amendment 10 Proposal for a directive Recital 7 (7)  CO2-related taxation should be adapted to the operation of Directive 2003/87/EC so as to complement it effectively. That taxation should apply to all uses, including those for purposes other than heating, of energy products causing CO2 emissions in installations within the meaning of that Directive, provided that the installation concerned is not subject to the emission trading scheme under that Directive. However, since the cumulative application of both instruments would not allow emission reductions beyond those attained, overall, through the emission trading scheme alone, but would merely increase the total cost of these reductions, CO2 related taxation should not apply to consumption in installations subject to the Union scheme. (7)  CO2-related taxation should be adapted to the operation of Directive 2003/87/EC so as to complement it effectively. That taxation should apply to all uses, including those for purposes other than heating, of energy products causing CO2 emissions in installations within the meaning of that Directive, provided that the installation concerned is not subject to the emission trading scheme under that Directive. However, since the cumulative application of both instruments would not allow emission reductions beyond those attained, overall, through the emission trading scheme alone, but would merely increase the total cost of these reductions, CO2- related taxation must not apply to direct or indirect consumption in installations subject to the Union scheme. A double burden in the form of double taxation and double regulation would lead to distortions of competition and must be ruled out. Amendment 51 Proposal for a directive Recital 8 (8)  In the interest of fiscal neutrality, the same minimum levels of taxation should apply for each component of energy taxation, to all energy products put to a given use. Where equal minimum levels of taxation are thus prescribed, Member States should, also for reason of fiscal neutrality, ensure equal levels of national taxation on all products concerned. Where needed, transitional periods for the purposes of equalising those levels should be foreseen. deleted Amendment 12 Proposal for a directive Recital 11 (11)  It should be ensured that the minimum levels of taxation preserve their intended effects. Since CO2-related taxation complements the operation of Directive 2003/87/EC, the market price of the emission allowances should be closely monitored in the periodic review of the Directive, incumbent on the Commission. The minimum levels of general energy consumption taxation should at regular intervals be automatically aligned to take into account the evolution of their real value in order to preserve the current level of rate harmonisation; to reduce the volatility stemming from energy and food prices, this alignment should be made on the basis of the changes in the Union-wide harmonised index of consumer prices excluding energy and unprocessed food as published by Eurostat. (11)  It should be ensured that the minimum levels of taxation preserve their intended effects. To that end, the minimum levels of general energy consumption taxation should be examined at regular intervals. Amendment 13 Proposal for a directive Recital 11 a (new) (11a)  Given the complex nature of the requirements which the two components of the new system, namely energy taxation and CO2-related taxation, are intended to meet, clear rules, which, in the interests of all consumers, are transparent and readily understandable, should be laid down at all levels in order to guarantee that the system can be properly administered. Amendment 14 Proposal for a directive Recital 12 (12)  In the field of motor fuels, the more favourable minimum level of taxation applicable to gas oil, a product originally put to business use for the most part and thus traditionally taxed at a lower level, creates a distortive effect with regard to petrol, its main competing fuel. Article 7 of Directive 2003/96/EC therefore provides for the first steps of a gradual alignment to the minimum level of taxation applicable to petrol. It is necessary to complete this alignment and gradually move to a situation where gas oil and petrol are taxed at an equal level. deleted Amendment 15 Proposal for a directive Recital 12 a (new) (12a)  Implementing the new tax structure will involve increasing the rate of taxation of gas oil to bring it into line with that for petrol. This may call into question both the decision taken by the Union automobile industry to focus on clean, energy-efficient conventional combustion engines and the achievement of the Union's CO2 emissions reduction targets, since the CO2 limit values set can be achieved only if a sufficient number of vehicles on the road are powered by gas oil. Appropriate flexible measures should be taken in order to ensure that the competitiveness of the automobile sector and the success of the CO2 emissions reduction strategy in that sector are not endangered. Sales taxes, registration taxes and annual road use taxes should be harmonised and, as a matter of principle, set solely on the basis of a vehicle's CO2 emissions. Amendment 17 Proposal for a directive Recital 14 (14)  There is a need to limit the potential cost impact of CO2-related taxation on the sectors or sub-sectors deemed to be exposed to a significant risk of carbon leakage in the meaning of Article 10a(13) of Directive 2003/87/EC. Accordingly, it is appropriate to provide for corresponding transitional measures which, however, should also preserve the environmental effectiveness of CO2-related taxation. (14)  There is a need to limit the potential cost impact of the new tax structure on the sectors or sub-sectors deemed to be exposed to a significant risk of carbon leakage. Accordingly, it is appropriate to provide for corresponding measures which, however, should also preserve the environmental effectiveness of CO2-related taxation. Amendment 18 Proposal for a directive Recital 14 a (new) (14a)  Any restructuring of energy taxation should ensure that sectors not subject to the emission trading scheme under Directive 2003/87/EC are not penalised in relation to sectors that are covered by that scheme. Amendment 19 Proposal for a directive Recital 15 (15)  Article 5 of Directive 2003/96/EC permits the application of differentiated rates of taxation in certain cases. However, in order to ensure the consistency of the CO2 price signal, the possibility for Member States to differentiate national rates should be restricted to general energy consumption taxation. Moreover, the possibility to apply a lower level of taxation to motor fuel used by taxis is no longer compatible with the objective of policies promoting alternative fuels and energy carriers and the use of cleaner vehicles in urban transport and should thus be removed. (15)  Article 5 of Directive 2003/96/EC permits the application of differentiated rates of taxation in certain cases. However, in order to ensure the consistency of the CO2 price signal, the possibility for Member States to differentiate national rates should be restricted to general energy consumption taxation. Moreover, the possibility to apply a lower level of taxation to oil-derived motor fuel used by taxis is no longer compatible with the objective of policies promoting alternative fuels and energy carriers and the use of cleaner vehicles in urban transport and should thus be removed. Amendment 20 Proposal for a directive Recital 16 a (new) (16a)  Since the introduction of electric and hybrid vehicles is key to easing dependence on non-renewable fuels in the transport sector, Member States should be able, for a limited period of time, to apply an exemption or reduction in the level of taxation to electricity utilised to charge such vehicles. Amendment 21 Proposal for a directive Recital 17 (17)  Exemption or reductions to the benefit of households and charitable organisations may form part of social measures defined by Member States. The possibility to apply such exemptions or reductions should, for reasons of equal treatment between energy sources, be extended to all energy products used as heating fuel and electricity. In order to ensure that their impact on the internal market remains limited, such exemptions and reductions should be applied only to non-business activities. (17)  Exemptions or reductions benefiting households and charitable organisations prevent a correct price signal from being given, thereby taking away an important incentive to reduce energy bills and energy use. The possibility in Directive 2003/96/EC to apply such exemptions or reductions should therefore, after a long phase-out period, be removed. In Member States where this affects energy prices, low-income households and charitable organisations should be compensated via solid and comprehensive social measures. Amendment 22 Proposal for a directive Recital 18 (18)  In the case of liquefied petroleum gas (LPG) and natural gas used as propellants, advantages in the form of lower minimum levels of general energy consumption taxation or the possibility to exempt those energy products from taxation are no longer justified, in particular in the light of the need to increase the market share of renewable energy sources and should therefore be removed in the medium term. (18)  In the case of liquefied petroleum gas (LPG) and natural gas used as propellants, advantages in the form of lower minimum levels of general energy consumption taxation or the possibility to exempt those energy products from taxation are not justified in the long term and should therefore be removed, in particular in the light of the need to enable renewable fuels to increase their market share. However, since LPG and natural gas have a less harmful environmental impact than other fossil fuels and since their distribution infrastructure could be beneficial in the introduction of renewable alternatives, the advantages should be phased out step by step. Amendment 24 Proposal for a directive Recital 20 (20)  Article 15(3) of Directive 2003/96/EC allows Member States to apply to agricultural, horticultural and piscicultural works as well as to forestry not only the provisions generally applicable to business uses but also a level of taxation down to zero. An examination of that option has revealed that as far as general energy consumption taxation is concerned its maintenance would be contrary to the Union's wider policy objectives unless it is linked to a counterpart ensuring advances in the field of energy efficiency. As regards CO2 related taxation the treatment of the sectors concerned should be aligned to the rules applying to industrial sectors. (20)  Article 15(3) of Directive 2003/96/EC allows Member States to apply to agricultural, horticultural and piscicultural works as well as to forestry not only the provisions generally applicable to business uses but also a level of taxation down to zero, with the goal of ensuring the economic viability of these sectors which are already being hampered by demanding social, plant-health and environmental requirements that are not sufficiently compensated for by the market. Despite this, an examination of that option has revealed that as far as general energy consumption taxation is concerned its maintenance would be contrary to the Union's wider policy objectives unless it is linked to a counterpart ensuring advances in the field of energy efficiency. Such advances in energy efficiency should form part of a sufficiently long cycle and be subject to public planning and monitoring by public bodies. Member States should provide technical guidance to the operators in these sectors if additional energy efficiency requirements relating to reduced tax rates are applied. As regards CO2- related taxation, the treatment of the sectors concerned should take into account the specific carbon capture and storage capacities and the risk of carbon leakage for each of the sectors and sub-sectors concerned, as well as the possible impact on their productivity and viability. The sectors producing biomass with high carbon sequestration potential should be exempted. It is essential that in regions subject to an exceptional capacity to produce energy from renewable sources, energy independence of their agricultural and breeding livestock activities are encouraged. Amendment 25 Proposal for a directive Recital 21 (21)  The general rules introduced by this Directive take account of the specificities of fuels that are biomass or made of biomass complying with the sustainability criteria laid down in Article 17 of Directive 2009/28/EC with regard both to their contribution to the CO2-balance and to their lower energy content per quantitative unit, as compared to some of the competing fossil fuels. Consequently, the provisions in Directive 2003/96/EC authorising reductions or exemptions for those fuels should be removed in the medium term. For the interim period, it should be ensured that the application of these provisions is made consistent with the general rules introduced by this Directive. Biofuels and bioliquids defined in Article 2(h) and (i) of Directive 2009/28/EC should therefore only benefit from additional tax advantages applied by Member States if they fulfil the sustainability criteria laid down in Article 17 of this Directive. (21)  The general rules introduced by this Directive take account of the specificities of fuels that are biomass or made of biomass complying with the sustainability criteria laid down in Article 17 of Directive 2009/28/EC with regard both to their contribution to the CO2-balance and to their lower energy content per quantitative unit, as compared to some of the competing fossil fuels. Consequently, the provisions in Directive 2003/96/EC authorising reductions or exemptions for those fuels should be removed in the medium term. For the interim period, it should be ensured that the application of these provisions is made consistent with the general rules introduced by this Directive. Biofuels and bioliquids defined in Article 2(h) and (i) of Directive 2009/28/EC should therefore only benefit from additional tax advantages applied by Member States if they fulfil the sustainability criteria laid down in Article 17 of that Directive. That article implies that the sustainability criteria will be made more restrictive in 2017 and 2018. In order to fulfil the criteria, the greenhouse gas emission saving will from 1 January 2017 have to be at least 50 %. From 1 January 2018 the saving will have to be at least 60 % for products made in installations in which production started on or after 1 January 2017. As soon as sustainability criteria for biomass products other than biofuels and bioliquids are laid down pursuant to Directive 2009/28/EC, such products should benefit from additional tax advantages only if they comply with those new criteria. Amendment 26 Proposal for a directive Recital 28 (28)  Every five years and for the first time by the end of 2015, the Commission should report to the Council on the application of this Directive, examining in particular the minimum level of CO2-related taxation in the light of the evolution of the market price in the EU of the emission allowances, the impact of innovation and technological developments and the justification for the tax exemptions and reductions laid down in this Directive, including for fuel used for the purpose of air and maritime navigation. The list of sectors or sub-sectors deemed to be exposed to a significant risk of carbon leakage shall be the subject of regular review, in particular taking into account the availability of emerging evidence. (28)  Every three years and for the first time by the end of 2015, the Commission should report to the European Parliament and the Council on the application of this Directive, examining in particular the minimum levels of general energy consumption taxation in order to ensure that they preserve their intended effects, the minimum level of CO2-related taxation in the light of the evolution of the market price in the EU of the emission allowances, the impact of innovation and technological developments, the impact on harmful or potentially harmful emissions other than CO2, the justification for the tax exemptions and reductions laid down in this Directive, including for fuel used for the purpose of air and maritime navigation, as well as developments in the use of biogas, natural gas and LGP in road transport. That report should include an overview of existing taxation provisions contained in bilateral air service agreements. The report should also examine the impact on the setting of industrial policy priorities in the European car industry. A list of sectors or sub-sectors deemed to be exposed to a significant risk of carbon leakage shall be drawn up and regularly reviewed, in particular taking into account the availability of emerging evidence. Amendment 27 Proposal for a directive Article 1 – point 1 Directive 2003/96/EC Article 1 – paragraph 2 – subparagraph 2 CO2-related taxation shall be calculated in EUR/t of CO2 emissions, on the basis of the reference CO2 emission factors set out in point 11 of Annex I to Commission Decision 2007/589/EC of 18 July 2007 establishing guidelines for the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council The CO2 emission factors specified in this Decision for biomass or products made of biomass shall in the case of biofuels and bioliquids defined in Article 2(h) and (i) of Directive 2009/28/EC only apply where the product concerned complies with the sustainability criteria laid down in Article 17 of Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources. Where biofuels and bioliquids do not comply with those criteria, Member States shall apply the reference CO2 emission factor for the equivalent heating fuel or motor fuel for which minimum levels of taxation are specified in this Directive. CO2-related taxation shall be calculated in EUR/t of CO2 emissions, on the basis of the reference CO2 emission factors set out in point 11 of Annex I to Commission Decision 2007/589/EC of 18 July 2007 establishing guidelines for the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC. The CO2 emission factors specified in this Decision for biomass or products made of biomass shall in the case of biofuels and bioliquids defined in Article 2(h) and (i) of Directive 2009/28/EC only apply where the product concerned complies with the sustainability criteria laid down in Article 17 of Directive 2009/28/EC. Where biofuels and bioliquids do not comply with those criteria, Member States shall apply the reference CO2 emission factor for the equivalent heating fuel or motor fuel for which minimum levels of taxation are specified in this Directive. In accordance with Directive 2009/28/EC and in order to fulfil the criteria, the greenhouse gas emission saving shall be at least 50 % from 1 January 2017 and at least 60 %, for products made in installations in which production started on or after 1 January 2017, from 1 January 2018. Amendment 28 Proposal for a directive Article 1 – point 1 Directive 2003/96/EC Article 1 – paragraph 4 4.  Unless otherwise specified, the provisions of this Directive shall apply both to CO2-related taxation and to general energy consumption taxation. 4.  Unless otherwise specified, the provisions of this Directive shall apply both to CO2-related taxation and to general energy consumption taxation. When sustainability criteria for biomass products other than biofuels and bioliquids are laid down pursuant to Directive 2009/28/EC, the reference CO2 emission factors set out in point (11) of Annex I to Commission Decision 2007/589/EC and the net calorific reference values set out in Annex III to Directive 2009/28/EC shall be applied to such biomass products only if they comply with those sustainability criteria. Where such biomass products do not comply with those sustainability criteria, Member States shall apply the reference CO2 emission factor and net calorific reference value for the equivalent heating or motor fuel for which minimum levels of taxation are specified in this Directive. Amendment 29 Proposal for a directive Article 1 – point 2 – point b Directive 2003/96/EC Article 2 – paragraph 4 a (new) 4a.  Member States shall ensure that neither the direct nor the indirect use of energy products in an installation within the meaning of Directive 2003/87/EC and neither the direct nor the indirect use of energy products in installations taxed through national CO2-reduction measures are subject to double taxation or double regulation. Amendment 30 Proposal for a directive Article 1 – point 3 Directive 2003/96/EC Article 3 – paragraph 1 – point a a (new) (aa) electricity used to pump water for irrigation; Amendment 31 Proposal for a directive Article 1 – point 3 Directive 2003/96/EC Article 3 – paragraph 1 – point b – second indent – dual use of energy products – energy-intensive industry and dual use of energy products Amendment 32 Proposal for a directive Article 1 – point 3 Directive 2003/96/EC Article 3 – paragraph 1 – point b – indent 2 a (new) – waste used as alternative fuel or waste that is thermally recovered within the meaning of Article 3(15) and Annex II, R1 of Directive 2008/98/EC. Amendment 53 Proposal for a directive Article 1 – point 4 – point b Directive 2003/96/EC Article 4 – paragraph 3 3.  Without prejudice to the exemptions, differentiations and reductions provided for in this Directive, Member States shall ensure that where equal minimum levels of taxation are laid down in Annex I in relation to a given use, equal levels of taxation are fixed for products put to that use. Without prejudice to Article 15(1)(i), for motor fuels referred to in Annex I Table A, this shall apply as from 1 January 2023. deleted For the purposes of the first subparagraph, each use for which a minimum level of taxation is identified, respectively, in Tables A, B and C in Annex I shall be considered to be a single use. Amendment 34 Proposal for a directive Article 1 – point 4 – point b Directive 2003/96/EC Article 4 – paragraph 3 – subparagraph 2 a (new) In the case of natural gas and biomethane used as motor fuel, higher minimum levels of general energy consumption taxation shall apply only after an assessment, to be carried out by the Commission by 2023, of the implementation of the provisions of this Directive relating to the level of taxation applicable to natural gas in road transport. That assessment shall, inter alia, examine the progress in the availability of natural gas and biomethane, the growth of the refilling stations network in Union, the market share of natural gas vehicles in the Union, the innovation and technological developments in biomethane used as transport fuel and the real value of the minimum level of taxation. Amendment 35 Proposal for a directive Article 1 – point 4 – point b Directive 2003/96/EC Article 4 – paragraph 4 – subparagraph 1 4.  The minimum levels of general energy consumption taxation laid down in this Directive shall be adapted every three years starting from 1 July 2016 in order to take account of the changes in the harmonised index of consumer prices excluding energy and unprocessed food as published by Eurostat. The Commission shall publish the resulting minimum levels of taxation in the Official Journal of the European Union. 4.  The minimum levels of general energy consumption taxation laid down in this Directive shall be reviewed every three years in order to ensure that they retain their intended effects, in accordance with Article 29. If deemed necessary, the Commission shall make proposals for those minimum levels to be changed. Amendment 36 Proposal for a directive Article 1 – point 4 – point b Directive 2003/96/EC Article 4 – paragraph 4 – subparagraph 2 The minimum levels shall be adapted automatically, by increasing or decreasing the base amount in euro by the percentage change in that index over the three preceding calendar years. If the percentage change since the last adaptation is less then 0.5%, no adaptation shall take place. The minimum levels of CO2-related taxation laid down in this Directive shall, every three years from 1 July 2016, be aligned with the average market price of emission allowances in the emission trading scheme under Directive 2003/87/EC over the preceding 18-months . The Commission shall adopt a delegated act in accordance with Article 27 establishing the formula on the basis of which that alignment is to be calculated. Amendment 37 Proposal for a directive Article 1 – point 5 – point b Directive 2003/96/EC Article 5 – indent 3 – for the following uses: local public passenger transport (excluding taxis), waste collection, armed forces and public administrations, disabled people, ambulances; – for the following uses: local public passenger transport (excluding taxis), waste collection, armed forces and public administrations, disabled people, ambulances, fire engines and police vehicles; Amendment 55 Proposal for a directive Article 1 – point 6 Directive 2003/96/EC Article 7 As from 1 January 2013, from 1 January 2015 and from 1 January 2018, the minimum levels of taxation applicable to motor fuels shall be fixed as set out in Annex I, Table A. 1.  As from 1 January 2013, from 1 January 2015 and from 1 January 2018, the minimum levels of taxation applicable to motor fuels shall be fixed as set out in Annex I, Table A. 2.  Member States may differentiate between commercial and non-commercial gas oil. 'Commercial gas oil used as propellant' means gas oil used as propellant for the following purposes: (a) the carriage of goods for hire or reward, or on own account, by motor vehicles or articulated vehicle combinations intended exclusively for the carriage of goods by road [...]; (b) the carriage of passengers, whether by regular or occasional service, by a motor vehicle [...]. 3.  Member States shall lay down the option for commercial transporters to apply a different tax account system. Amendment 39 Proposal for a directive Article 1 – point 11 – point a – point i Directive 2003/96/EC Article 14 – paragraph 1 – introductory part In addition to the general provisions set out in Council Directive 2008/118/EC of 16 December 2008 concerning the general arrangements for excise duty and repealing Directive 92/12/EEC on exempt uses of taxable products, and without prejudice to other Union provisions, Member States shall exempt the following from taxation under conditions which they shall lay down for the purpose of ensuring the correct and straightforward application of such exemptions and of preventing any evasion, avoidance or abuse: 1.  In addition to the general provisions set out in Council Directive 2008/118/EC of 16 December 2008 concerning the general arrangements for excise duty on exempt uses of taxable products, and without prejudice to other Union provisions, Member States shall exempt the following from taxation under conditions which they shall lay down for the purpose of ensuring the correct and straightforward application of such exemptions and of preventing energy poverty, evasion, avoidance or abuse: Amendment 41 Proposal for a directive Article 1 – point 11 – point a – point iii Directive 2003/96/EC Article 14 – paragraph 1 – point e (e) until 31 December 2020, electricity directly provided to vessels berthed in ports. (e) until 31 December 2025, electricity directly provided to vessels berthed in sea and inland ports. Amendment 42 Proposal for a directive Article 1 – point 12 Directive 2003/96/EC Article 14a – paragraph 1 1.  Until 31 December 2020, Member States shall provide a credit concerning CO2-related taxation with respect to the use of energy products by installations belonging to sectors or sub-sectors deemed to be exposed to a significant risk of carbon leakage. 1.  Until 31 December 2025, Member States shall provide a credit concerning CO2-related taxation with respect to the use of energy products by installations belonging to sectors or sub-sectors deemed to be exposed to a significant risk of carbon leakage. Amendment 43 Proposal for a directive Article 1 – point 13 – point a – point -i (new) Directive 2003/96/EC Article 15 – paragraph 1 – point b a (new) (-i) the following point is inserted: ‘(ba) until 1 January 2023, electricity used to charge electric and hybrid vehicles for road transport;’ Amendment 44 Proposal for a directive Article 1 – point 13 – point a – point i Directive 2003/96/EC Article 15 – paragraph 1 – point h (h) energy products used as heating fuel and electricity if used by households and/or by organisations recognised as charitable by the Member State concerned. In the case of such charitable organisations, Member States shall confine the exemption or reduction to use for the purpose of non-business activities. Where mixed use takes place, taxation shall apply in proportion to each type of use. If a use is insignificant, it may be treated as nil; (h) until 1 January 2025, energy products used as heating fuel and electricity if used by households and/or by organisations recognised as charitable by the Member State concerned. In the case of such charitable organisations, Member States shall confine the exemption or reduction to use for the purpose of non-business activities. Where mixed use takes place, taxation shall apply in proportion to each type of use. If a use is insignificant, it may be treated as nil; Amendment 45 Proposal for a directive Article 1 – point 13 – point a – point i Directive 2003/96/EC Article 15 – paragraph 1 – point i (i)  Until 1 January 2023, natural gas and LPG used as propellants; (i) until 1 January 2023, natural gas, biogas, and LPG used as propellants and LPG used as fuel. From 1 January 2023 until 1 January 2030, Member States may apply a reduction of up to 50 % of the minimum levels of taxation for those fuels. Amendment 46 Proposal for a directive Article 1 – point 13 – point b Directive 2003/96/EC Article 15 – paragraph 3 3.  Member States may apply a level of general energy consumption taxation down to zero on the consumption of energy products and electricity used for agricultural, horticultural, aquacultural works and in forestry. The beneficiaries shall be subject to arrangements that must lead to increased energy efficiency broadly equivalent to those that would have been achieved if the standard Union minimum rates had been observed. 3.  Member States may apply a level of general energy consumption taxation down to zero on the consumption of energy products and electricity used for agricultural, horticultural, piscicultural works and in forestry. Member States and beneficiaries shall develop targeted strategies that must lead to increased energy efficiency broadly equivalent to those that would have been achieved if the standard Union minimum rates had been observed. Amendment 47 Proposal for a directive Article 1 – point 13 – point b Directive 2003/96/EC Article 15 – paragraph 3 a (new) 3a.  Member States shall provide comprehensive guidance to beneficiaries, including to small and medium-sized farms, concerning the application of energy efficiency requirements associated with reduced tax rates. Amendment 48 Proposal for a directive Article 1 – point 13a* – point a – point i a (new) Directive 2003/96/EC Article 16 – paragraph 1 – subparagraph 1 a (new) (ia) the following subparagraph is inserted after the first subparagraph: 'As soon as sustainability criteria are established for biomass products other than biofuels and bioliquids pursuant to Directive 2009/28/EC, an exemption or a reduced rate may be applied to those products only if they comply with those sustainability criteria.‘ *NB: wrongly numbered ‘(1)’ in the Commission proposal. Amendment 49 Proposal for a directive Article 1 – point 14 Directive 2003/96/EC Article 17 – paragraph 1 – point a – paragraph 1 An ‘energy-intensive business’ shall mean a business entity, as referred to in Article 11, where either the purchases of energy products and electricity amount to at least 3.0 % of the production value or the national energy tax payable amounts to at least 0.5 % of the added value. Within this definition, Member States may apply more restrictive concepts, including sales value, process and sector definitions. An ‘energy-intensive business’ shall mean a business entity, as referred to in Article 11, where either the purchases of energy products and electricity amount to at least 5,0 % of the production value or the national energy tax payable amounts to at least 0,5 % of the added value. Within this definition, Member States may apply more restrictive concepts, including sales value, process and sector definitions. Amendment 50 Proposal for a directive Article 1 – point 21 Directive 2003/96/EC Article 29 Every five years and for the first time by the end of 2015, the Commission shall submit to the Council a report on the application of this Directive and, where appropriate, a proposal for its modification. Every three years and for the first time by the end of 2015, the Commission shall submit to the European Parliament and to the Council a report on the application of this Directive and, where appropriate, a proposal for its modification. The report by the Commission shall, inter alia, examine the minimum level of CO2-related taxation, the impact of innovation and technological developments, in particular as regards energy efficiency, the use of electricity in transport and the justification for the exemptions and reductions, including for fuel used for the purpose of air and maritime navigation, laid down in this Directive. The report by the Commission shall, inter alia, examine: (i) the minimum levels of general energy consumption taxation in order to ensure that they preserve their intended effects; (ii) the CO2 price developments relating to the emission trading scheme under Directive 2003/87/EC; (iii) the impact of innovation and technological developments, in particular as regards energy efficiency; (iv) the use of electricity in transport; (v) the justification for the exemptions and reductions, including for fuel used for the purpose of air and maritime navigation, laid down in this Directive; (vi) the impact of this Directive on the setting of industrial policy priorities in the Union car industry, inter alia in relation to clean, energy-efficient conventional internal combustion engines and the Union's CO2 reduction targets in the car sector; (vii) developments in the use of biogas, natural gas and LPG in road transport; and (viii) whether harmful or potentially harmful emissions other than of CO2 should also be taken into account. The report shall also include an overview of existing taxation provisions contained in bilateral air service agreements. The report shall take into account the proper functioning of the internal market, the real value of the minimum levels of taxation and the wider objectives of the Treaty. In any event, the list of sectors or sub-sectors deemed to be exposed to a significant risk of carbon leakage for the purposes of Article 14a of this Directive shall be the subject of regular review, in particular taking into account the availability of emerging evidence. In any event, the list of sectors or sub-sectors deemed to be exposed to a significant risk of carbon leakage shall be the subject of regular review, in particular taking into account the availability of emerging evidence. In that context, national implementing conditions shall be closely scrutinised in order to ascertain that they are clear, unambiguous and transparent for all consumers.

European Parliament resolution of 19 April 2012 on the call for concrete ways to combat tax fraud and tax evasion (2012/2599(RSP))

P7_TA(2012)0137 B7-0203/2012

The European Parliament,

–  having regard to the European Council's conclusions of 1 and 2 March 2012,

–  having regard to Question for oral answer B7-0635/2011 to the Commission of 4 October 2011 on compatibility of the German and British tax agreements with Switzerland with the EU Savings Tax Directive,

–  having regard to the OECD study of March 2012 entitled ‘Hybrid mismatch arrangements: Tax policy and compliance issues’,

–  having regard to the report on the proposal for a Council directive on a Common Consolidated Corporate Tax Base, as adopted by its Committee on Economic and Monetary Affairs on 21 March 2012 (A7-0080/2012),

–   having regard to its resolution of 2 February 2012 on the Annual Tax Report(1),

–  having regard to Rule 110(2) of its Rules of Procedure,

A.  whereas estimates indicate that tax evasion and tax avoidance cost the governments of the EU Member States a significant amount of uncollected revenues;

B.  whereas the loss of revenues raises the deficit and debt levels of the Member States, and reduces the funds available to foster public investment, growth and employment;

C.  whereas the scale of tax evasion and avoidance undermines citizens' trust and confidence in the fairness and legitimacy of tax collection;

D.  whereas major improvements are needed in the publicly available information on tax avoidance and evasion in each Member State;

E.  whereas Member States should generally avoid engaging in bilateral negotiations with non-EU countries and should, if they nevertheless consider it necessary to conclude any such bilateral agreements, inform the Commission immediately in order to avoid any infringement of EU legislation;

F.  whereas countries under assistance programmes have, after stepping up tax collection and eliminating privileges in line with Troika proposals, seen many of their larger companies leave in order to benefit from tax privileges offered by other countries;

G.  whereas clear EU rules are needed to prevent such forms of tax competition, which undermine the recovery strategies of the countries concerned;

1.  Welcomes the conclusions of the European Council meeting of 1 and 2 March 2012 calling on Member States, where appropriate, to review their tax systems with the aim of making them more effective and efficient, removing unjustified exemptions, broadening the tax base, shifting taxes away from labour, improving the efficiency of tax collection and tackling tax evasion, to rapidly intensify the fight against tax fraud and tax evasion, including in relation to third countries, and to report by June 2012;

2.  Calls on the Commission rapidly to address the issues raised by the review of the EU Savings Taxation Directive and to find a swift agreement with Switzerland and the Member States concerned;

3.  Highlights the need to generalise automatic information exchange and to extend the scope of the Savings Taxation Directive in order to effectively end banking secrecy;

4.  Reiterates the need to keep the focus on the key role that the Common Consolidated Corporate Tax Base can play against tax fraud;

5.  Considers that strengthening the regulation of, and transparency as regards, company registries and registers of trust is a prerequisite for dealing with tax avoidance;

6.  Welcomes the proposals made by the Commission on country-by-country reporting within the Accounting and Transparency Directives; recalls that country-by-country reporting requirements for cross-border companies are essential for detecting corporate tax avoidance;

7.  Calls for a review of the Parent-Subsidiary Directive and the Interests and Royalties Directive in order to eliminate evasion via hybrid financial instruments in the EU;

8.  Calls on the Commission to identify areas in which improvements to both EU legislation and administrative cooperation between Member States can be implemented in order to reduce tax fraud;

9.  Calls on the Member States to ensure smooth cooperation and coordination between their tax systems in order to avoid unintended non-taxation and tax avoidance and fraud;

10.  Calls on the Member States to allocate adequate resources to the national services that are empowered to combat tax fraud;

11.  Calls on the Member States, in accordance with Article 65 of the TFEU, in close cooperation with the Commission and in liaison with the ECB, to take measures to prevent infringements of national law and regulations, in particular in the field of taxation; notes that this is of particular importance as regards Member States experiencing, or threatened with, serious difficulties with respect to their financial stability in the euro area;

12.  Stresses the importance of implementing new and innovative strategies for combating VAT fraud across the EU;

13.  Calls on the Member States to review bilateral agreements currently in force between Member States and bilateral agreements between Member States and third countries, insofar as they contribute to tax avoidance and complicate effective source taxation in certain Member States;

14.  Calls on the Commission to report on the possibility of EU coordination in changing bilateral agreements between Member States with a view to bringing them into line with the objectives of the European Council, thus making tax avoidance more difficult;

15.  Recalls its request for increased transparency and tighter control to prevent the use of tax havens, which are foreign non-cooperative jurisdictions characterised in particular by no or nominal taxes, a lack of effective exchange of information with foreign tax authorities and a lack of transparency in legislative, legal or administrative provisions, or identified as such by the Organisation for Economic Cooperation and Development or the Financial Action Task Force;

16.  Instructs its President to forward this resolution to the Council and the Commission.

(1) Text adopted, P7_TA(2012)0030.