No. prev. doc.: 6399/21 To: Permanent Repr esentatives ...

8789/21 CDP/TB/MR/cb 1

ECOMP.3.B LIMITE EN

Council of the European Union

Brussels, 21 May 2021 (OR. en) 8789/21 LIMITE DRS 22 COMPET 357 ECOFIN 447 FISC 81 CODEC 699

Interinstitutional File: 2016/0107(COD)

NOTE

From: General Secretariat of the Council

To: Permanent Representatives Committee

No. prev. doc.: 6399/21

No. Cion doc.: 7949/16 + ADD 1-2

Subject: Proposal for a Directive of the European Parliament and of the Council amending Directive 2013/34/EU as regards disclosure of income tax information by certain undertakings and branches

- Preparation for the trilogue

I. INTRODUCTION

1. On 12 April 2016, the European Commission submitted the above-mentioned proposal to the

Council and the European Parliament. This proposal requires that Multinational Enterprises

(MNEs) disclose publicly in a specific report the income tax they pay together with other

relevant information. MNEs, whether headquartered in the EU or outside, with turnover of

more than EUR 750m will need to comply with these additional transparency requirements.

For the first time, not only European businesses but also non-European multinational

companies doing business in Europe will through their branches have the same reporting

obligations.


ECOMP.3.B LIMITE EN

The proposal complements undertakings' current financial reporting obligations under

Accounting Directive No 2013/34/EU and does not interfere with these requirements in

relation to their financial statements, for example as regards publishing of their annual

accounts.

The proposal does not modify the rules already in place on non-financial reporting and

sectoral CBCR for both the banking sector and the extractive and logging industries. However

it introduces an exemption clause to avoid double reporting for the banking sector, which is

already subject to stringent public reporting rules in the EU banking legislation. It is in line

with OECD BEPS reporting and Council Directive (EU) 2016/881 of 25 May 2016 (OJ L146

of 3.6.16, p.8).

II. STATE OF PLAY

2. The Working Party on Company Law examined the proposal at twenty-four occasions during

the Netherlands, Slovak, Maltese, Estonian, Bulgarian, Austrian, Romanian, Finnish, German

and Portuguese Presidencies. The Presidency was granted a negotiating mandate by the

Committee of Permanent Representatives on 3 March 2021 on the basis of the Annex to doc.

6399/21.

3. The European Parliament adopted its first reading position in Plenary (doc. P8_TA-

PROV(2019)0309) on 27 March 2019. The report tables 58 amendments.

4. The first trilogue took place on 29 March 2021. The second trilogue took place on 23 April

2021. This Committee was debriefed on 28 April regarding the outcome from the second

trilogue.


ECOMP.3.B LIMITE EN

5. Based on the consultations and discussions with EP, the Presidency presented to delegations

at Working Party level (Attachés) on 7 and 18 May the progress on all texts of the proposal.

On the basis of the fruitful discussions at Working Party level, the Presidency submits to the

Permanent Representatives Committee, in the fourth column of the Annex to this Note, a

compromise package to serve as basis for finalising negotiations with the European

Parliament with a view to reaching an overall balanced compromise package.

III. MAIN OUTSTANDING ISSUES

Although some delegations would have preferred a more ambitious approach, some other

delegations were not ready to accept such an approach. The overall compromise package reflects

this delicate balance among delegations and also with the European Parliament.

a) Aggregation or disaggregation of information outside of the EU: addition of some

countries to the disaggregate reporting (Article 48c - para 3 – subpara)– row 62

In the European Parliament all political groups support their amendment to disaggregate

information outside the EU country-by-country. As considered at the second trilogue on 23

April 2021, the European Parliament is ready to compromise upon this important political

issue towards the text as proposed by the Council.

However, it is necessary politically to add countries to the list of Annex I of the Council

conclusions on the EU list of non-cooperative jurisdiction for tax purposes which lists non-

cooperative jurisdictions for tax purposes.


ECOMP.3.B LIMITE EN

In order to meet this political request, the Presidency has explored various options with

delegations. Building upon language examined at the last Working Party meeting (Attachés)

on 17 May 2021 that could be supported by most delegations, the Presidency presents in the

Annex a drafting that adds disaggregate reporting obligation for countries mentioned in

Annex II of the Council Conclusions on the EU list of non-cooperative jurisdictions for tax

purposes, for 3 years consecutively. It is also accompanied with an additional Recital (11) (-a)

that clarifies that Annex II concerns the State of play of the cooperation with the EU with

respect to commitments taken by cooperative jurisdictions to implement tax good governance

principles.

Although the Presidency is aware that this solution is not optimal for a number of delegations,

it considers that this political move towards EP could pave the way for an overall balanced

compromise package.

b. Safeguard clause (Article 1, para. 1, point 2 Chapter 10a - Article 48c - para 3 - subpara 3a-

f)-rows 63 a - f for the Parliament and (Article 1, para. 1, point 2 Chapter 10a - Article 48c -

para 3a - subpara 1-3)- rows 66 a - c for the Council

The Presidency intends to stick to the Council mandate of a single time period and refuse any

prior authorization mechanism as it would create too much administrative burden and legal

uncertainty.

With the emerging compromise on aggregation-disaggregation of data between Council and

Parliament (see point a) above), the safeguard clause is no longer the only protection against

serious damage to the commercial position of the reporting undertaking.

In a spirit of compromise, the Presidency proposes to decrease the duration of the safeguard

period to 5 years.

This is an important issue for many delegations and the Presidency intends to defend this

position. This would on the other hand represent a major concession again from the European

Parliament. In view of this delicate balance, it is suggested to accept the proposed review

clause on the Directive (see Annex).


ECOMP.3.B LIMITE EN

IV. OTHER OUTSTANDING ISSUES

c. Common template: electronic reporting format (Recital 8b)- row 15b, (Article 48b - para.

6 - point a (new))- row 49a and (Article 48c - para 2a)- row 60e;

The inclusion of the requirements for an electronic reporting format and machine-readability

could be acceptable for delegations. The formulation has been modified at technical level

upon requests from delegations and in agreement with the European Parliament in order to

take into account the present realities as well as the future evolution, both in legal and

technical terms.

In particular, the drafting is now aligned to similar requirements that have already been agreed

by co-legislators in Article 16 (6)1 of Directive (EU) 2017/1132, as amended by Directive

(EU) 2019/1151 as regards the use of digital tools and processes in company law.

Machine-readability requirement is accepted in principle, while the details are to be

established by implementing acts, with examination procedure, ensuring the involvement of

Member State experts.

Details of the agreed text are presented in the Annex with the following:

A new recital 8b is included in order for the text to be in line with the proposal in row

60e. It requires that, in order to ensure the comparability of data, the Commission

should have implementing powers to lay down a common template and electronic

reporting formats, taking into account the Directive EU/2019/1024.

A new point a is included in Article 48b, paragraph 6, requiring that the report should be

made in an electronic reporting format which is machine readable.

1 "6. Member States shall ensure that all documents and information submitted as part of the formation of a company,

the registration of a branch, or a filing by a company or a branch, is stored by the registers in a machine- readable

and searchable format or as structured data;"


ECOMP.3.B LIMITE EN

In Article 48c, paragraph 2a, a requirement is included for the information to be

presented by using electronic reporting formats.

d. Independent checks (audits) (Article 48f)- rows 78-79 and (Recital 11)- row 18

In Article 48f, the proposed compromise text examined at technical level requires that the

statutory auditor(s) or audit firm(s) will simply check whether, in the previous financial year,

the report had to be made because the company was above 750 millions for 2 years and,

whether the report was published.

It is not intended for the statutory auditor(s) or audit firm(s) to examine, appreciate or produce

an opinion on the content of the report. This Article includes the Council initial proposal with

a provisional compromise for an obligation instead of an incentive, but taking into account

non-availability of data.

Recital 11 is amended accordingly, stating that Member States should require that statutory

auditor(s) or audit firm(s) state whether an undertaking is required to draw up a report on

income tax information.

e. Review clause (Article 1, para. 1, point 2 Chapter 10a - Article 48i - subpara. 1-2)- rows 90-

92

In Article 48i subpara. 1 and subpara. 2, the compromise text provides for detailed elements

for the Commission to consider in its report. It is suggested to fix the time frame to 5 years

after the transposition date.

f. Information to be published (Article 48c, rows 51-71a)

On this item again, the flexibility of the Council towards the European Parliament is fairly

limited and the Presidency will do its utmost to stick to the proposed limited amendments.

g. Transposition period

The Presidency intends to defend the Council mandate of 2 years.


ECOMP.3.B LIMITE EN

6. Technical details and recitals:

The state of play is set out in the fourth column of the 4-column-document in Annex to this

note. The adjustments indicated in the fourth column are required for achieving full coherence

of the compromise package.

It should be noted that the "comply or explain" provision, which was suggested by the

Council, has been redrafted in order to meet an important request by the European Parliament,

that a report is drawn up even if the parent company in the third country does not provide the

necessary information to the subsidy or branch established in the EU that has to prepare the

report. In this case, in line with DAC 4 provisions, the EU-based undertaking will use the

information available, obtained or acquired, to fulfill its reporting obligation and also publish

a statement, as was foreseen in the original Council mandate. This more precise drafting is

one of the not so numerous concessions the Council can offer to the European Parliament,

considering the limited flexibility of the Council on the main outstanding issues presented in

section III above. This gesture towards EP implies a number of technical adjustments in the

text.

The following details the amendments made:

Recital 5 (row 12) has been amended in order to reflect the need for protecting the competitiveness

of all enterprises, not only SMEs.

Recital 5a (row 12a) has been amended to clarify that Corporate Social Responsibility goes beyond

fulfilling legal requirements.

In Recital 7 (row 14), the Council text has been investigated at technical level but is still marked for

discussion at political level.

Recital 8 (row 15) has been redrafted for better readability without any change of substance.

Recital 8a (row 15a) has been drafted taking account of the Council's suggestions.

Recital 9 (row 16) has been drafted taking account of the Council's suggestions.

Recital 9a (row 16a) is to be deleted in conformity with the Council's position.


ECOMP.3.B LIMITE EN

Recital 10 (row 17) has been redrafted taking account of the Council's position.

Recital 11 (row 18) has been redrafted in line with the compromise on Article 48 f (rows 78 and 79,

statement by statutory auditors).

Recital 11a (row 18a) has been redrafted in line with the Interinstitutional Agreement on Better

Lawmaking 2016.

Recital 12a

Recital 13 (row 20) has been deleted by common accord together with Article 48g.

Recital 13a (row 20a) has been merged into recital 8b.

Art. 48b (3) (1) rows 41,42,48: the Presidency intends to defend the restriction to medium-sized and

large enterprises as in the original mandate.

Art. 48b (7) row 50: compromise makes the anti-avoidance clause more practicable while limiting

its scope. Alternatively, the Council would support deletion.

Art. 48b (7a) row 50(-a): Presidency intends to defend Council text.

Art. 48c (2)(b) row 54: Presidency intends to defend Council text.

Art. 48c (2a) row 60d: this Council amendment is proposed for agreement at expert level.

Establishes alternative to report according to paragraph 2 or 2a of Article 48c.

Art. 48c (2b) row 60e: common drafting at technical level proposed for agreement. Takes account

of Council's position.

Art. 48c (3) (2) row 62: Drafting in line with row 60d.

Art. 48c (3a) (3) row 66c: drafting linked to aggregation-disaggregation compromise.

Art. 48c (4) row 67: Presidency will defend the Council's drafting on the overall narrative, but

there is little difference of substance, given that this can only be a strict obligation where

applicable.

Art. 48c (8) row 71a: drafted in line with the Council's suggestion in order to correspond with the

reporting alternatives in paragraphs 2 or 2a of Article 48c (row 60d)

Art. 48d (1b) row 73e: compromise takes account of Council position.

Art. 48d (2) row 74: statements have been included in the obligation to keep the report accessible

for five years.


ECOMP.3.B LIMITE EN

Art. 48e (2) row 77: a reference to branches has been added for consistency, and the legal reference

has been updated.

Art. 49 (2) and (3) rows 93-96 have been deleted because the present draft Directive does not

include a delegated act any longer.

Art. 49 (3a) row 98 is drafted according to the Council amendment. It inserts the Interinstitutional

Agreement on Better Law-Making of 13 April 2016 on the consultation of Member States

experts.

Art. 49 rows 99-100 have been deleted as no additional delegated act is foreseen by this draft

Directive.

Art. 51 rows 101 b-e have been deleted, and a new recital 11a (penalties) has been included to cater

for the EP amendments.

V. CONCLUSION

The Permanent Representatives Committee is invited to revise the mandate of the Presidency in

view of the third and possibly final informal trilogue with the European Parliament on the basis of

the compromise package set out in the fourth column of the Annex to this Note.

8789/21 CDP/TB/MR/cb 10

ANNEX ECOMP.3.B LIMITE EN

ANNEX

Nr. Ref. COM Council EP Compromise

1 Formula THE EUROPEAN

PARLIAMENT AND THE

COUNCIL OF THE

EUROPEAN UNION,

THE EUROPEAN

PARLIAMENT AND THE

COUNCIL OF THE

EUROPEAN UNION,

THE EUROPEAN

PARLIAMENT AND THE

COUNCIL OF THE

EUROPEAN UNION,

THE EUROPEAN

PARLIAMENT AND THE

COUNCIL OF THE

EUROPEAN UNION,

2 Citation 1 Having regard to the Treaty on

the Functioning of the European

Union, and in particular

Article 50(1) thereof,

Having regard to the Treaty on












3 Citation 2 Having regard to the proposal

from the European Commission,

Having regard to the proposal






4 Citation 3 After transmission of the draft

legislative act to the national

parliaments,

After transmission of the draft


parliaments,



parliaments,



parliaments,

8789/21 CDP/TB/MR/cb 11


5 Citation 4 Having regard to the opinion of

the European Economic and

Social Committee2,

Having regard to the opinion of


Social Committee3,



Social Committee4,



Social Committee5,

6 Citation 5 Acting in accordance with the

ordinary legislative procedure,

Acting in accordance with the

ordinary legislative procedure,


ordinary legislative procedure6,


ordinary legislative procedure7,

7 Formula Whereas: Whereas:

Whereas: Whereas:

7a Recital -1

(-1) Equality of tax treatment

for all, and in particular for all

undertakings, is a sine qua non

for the single market. A

coordinated and harmonised

approach to the implementation

of national tax systems is vital

for the proper functioning of

the single market, and would

Delete.

2 OJ C , , p. . 3 OJ C , , p. . 4 OJ C 487, 28.12.2016, p. 62. 5 OJ C 487, 28.12.2016, p. 62. 6 Position of the European Parliament of 27 March 2019. 7 Position of the European Parliament of 27 March 2019.

8789/21 CDP/TB/MR/cb 12


contribute to preventing tax

avoidance and profit shifting.

[Am. 1]

7b Recital -1a

(-1a) Tax avoidance and tax

evasion, along with profit-

shifting schemes, have deprived

governments and populations of

the resources necessary to,

among other things, ensure that

there is universal free access to

public education and health

services and state social

services, and have deprived

states of the possibility of

ensuring a supply of affordable

housing and public transport,

and of building infrastructure

that is essential in order to

achieve social development and

economic growth. In short,

such schemes have been a

Delete.

8789/21 CDP/TB/MR/cb 13


factor of injustice, inequality

and economic, social and

territorial divergences.

[Am. 2]

7c Recital -1b

(-1b) A fair and effective

corporate tax system should

respond to the urgent need for a

progressive and fair global tax

policy, promote the

redistribution of wealth and

combat inequalities.

[Am. 3]

Delete.

8 Recital 1 (1) In recent years, the challenge

posed by corporate income tax

avoidance has increased

considerably and has become a

major focus of concern within

the Union and globally. The

European Council in its

conclusions of 18 December

(1) In recent years, the challenge

posed by corporate income tax

avoidance has increased

considerably and has become a

major focus of concern within

the Union and globally. The

European Council in its

conclusions of 18 December

(1) Transparency is essential

for the smooth functioning of

the Single Market. In recent

years, the challenge posed by

corporate income tax avoidance

has increased considerably and

has become a major focus of

concern within the Union and

(1) Transparency is essential for

the smooth functioning of the

Single Market.

The Commission in its

communications entitled

‘Commission Work Programme

2016 - No time for business as

usual’14 and ‘Commission Work

14 COM(2015)0610 of 27 October 2015.

8789/21 CDP/TB/MR/cb 14


2014 acknowledged the urgent

need to advance efforts in the

fight against tax avoidance both

at global and Union level. The

Commission in its





Programme 2015 - A New

Start’9 identified as a priority the

need to move to a system

whereby the country in which

profits are generated is also the

country of taxation. The

Commission also identified as a

2014 acknowledged the urgent

need to advance efforts in the

fight against tax avoidance both

at global and Union level. The

Commission in its






Start’11 identified as a priority

the need to move to a system





globally. The European Council

in its conclusions of 18

December 2014 acknowledged

the urgent need to advance

efforts in the fight against tax

avoidance both at global and

Union level. The Commission in

its communications entitled






the need to move to a system





the need to respond to European

citizens’ call for fairness and

transparency and to act as a

reference model for other

countries. It is essential that

transparency takes into account

reciprocity between competitors.

8 COM(2015) 610 final of 27 October 2015. 9 COM(2014) 910 final of 16 December 2014. 10 COM(2015) 610 final of 27 October 2015. 11 COM(2014) 910 final of 16 December 2014. 12 COM(2015)0610 of 27 October 2015. 13 COM(2014)0910 of 16 December 2014. 15 COM(2014)0910 of 16 December 2014.

8789/21 CDP/TB/MR/cb 15


priority the need to respond to

our societies’ call for fairness

and tax transparency.


our societies’ call for fairness

and tax transparency.




our societies’ European

citizens’ call for fairness and tax

transparency and the need to act

as a reference model for other

countries. It is essential that

transparency takes into account

reciprocity between competitors.

[Am. 4]

9 Recital 2 (2) The European Parliament in

its resolution of 16 December

2015 on bringing transparency,

coordination and convergence to

corporate tax policies in the

Union16 acknowledged that

(2) The European Parliament in






(2) The European Parliament in






(2) The European Parliament has

stressed the need for an

ambitious public country-by-

country reporting as a means of

increasing corporate

transparency and enhancing

16 2015/2010(INL) 17 2015/2010(INL) 18 2015/2010(INL)

8789/21 CDP/TB/MR/cb 16


increased transparency in the

area of corporate taxation can

improve tax collection, make the

work of tax authorities more

efficient and ensure increased

public trust and confidence in

tax systems and governments.

increased transparency in the

area of corporate taxation can

improve tax collection, make the

work of tax authorities more

efficient and ensure increased


tax systems and governments. In

parallel with the work

undertaken by the Council to

fight corporate income tax

avoidance, it is necessary to

enhance public scrutiny of

corporate income taxes borne

by multinational undertakings

carrying out activities in the

Union, as this is an essential

element to further foster

corporate transparency and

responsibility, thereby

increased transparency,

cooperation and convergence in

the area of corporate taxation

policy in the Union can improve

tax collection, make the work of

tax authorities more efficient,

and support policy-makers in

assessing the current taxation

system to develop future

legislation, ensure increased


tax systems and governments

and improve investment

decision-making based on more

accurate risk profiles of

companies.

[Am. 5]

public scrutiny19. In parallel

with the work undertaken by the

Council to fight corporate

income tax avoidance, it is

necessary to enhance public

scrutiny of corporate income

taxes borne by multinational

undertakings carrying out

activities in the Union, as this is

an essential element to further

foster corporate transparency

and responsibility, thereby

contributing to the welfare of

our societies. Providing for such

scrutiny is also necessary to

promote a better informed public

debate regarding in particular the

level of tax compliance of

certain multinational

19 European Parliament resolution of 26 March 2019 on financial crimes, tax evasion and tax avoidance (2018/2121(INI))

https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2018/2121(INI)

8789/21 CDP/TB/MR/cb 17


contributing to the welfare of

our societies., Providing for

such scrutiny is also necessary

to promote a better informed

public debate regarding in

particular the level of tax

compliance of certain

multinational undertakings

active in the Union and the

impact of this on the real

economy. The setting of

common rules on corporate

income tax transparency will

also serve the general economic

interest by providing for

equivalent safeguards

throughout the Union for the

protection of investors, creditors

and other third parties

generally, and thus contributing

to regaining the trust of citizens

undertakings active in the Union

and the impact of this on the real

economy. The setting of

common rules on corporate

income tax transparency will

also serve the general economic

interest by providing for

equivalent safeguards

throughout the Union for the

protection of investors, creditors

and other third parties generally,

and thus contributing to

regaining the trust of citizens of

the Union in the fairness of the

national tax systems. Such

public scrutiny can be achieved

by means of a report on income

tax information, irrespective of

where the ultimate parent

undertaking of the multinational

group is established.

8789/21 CDP/TB/MR/cb 18


of the Union in the fairness of

the national tax systems. Such

public scrutiny can be achieved

by means of a report on income

tax information, irrespective of


undertaking of the

multinational group is

established.

9a Recital 2a

(2a) Public country-by-country

reporting is an efficient and

appropriate tool to increase

transparency in relation to the

activities of multinational

enterprises, and to enable the

public to assess the impact of

those activities on the real

economy. It will also improve

shareholders’ ability to properly

evaluate the risks taken by

companies, lead to investment

(2a) Public country-by-country

reporting is an efficient and

appropriate tool to increase

transparency in relation to the

activities of multinational

enterprises, and to enable the

public to assess the impact of

those activities on the real

economy. It will also improve

shareholders’ ability to properly

evaluate the risks taken by

companies, lead to investment

8789/21 CDP/TB/MR/cb 19


strategies based on accurate

information and enhance the

ability of decision-makers to

assess the efficiency and the

impact of national legislations.

[Am. 6]

strategies based on accurate

information and enhance the

ability of decision-makers to

assess the efficiency and the

impact of national legislations.

Public scrutiny should be

conducted without harming the

investment climate in the Union

or the competitiveness of Union

companies, including small and

medium-sized undertakings

(SMEs) as defined in this

Directive.

9b Recital 2b

(2b) Country-by-country

reporting will also have a

positive impact on employees'

rights to information and

consultation as provided for in

Directive 2002/14/EC and, by

increasing knowledge on

companies’ activities, on the

(2b) Country-by-country

reporting would also likely have

a positive impact on employees'

rights to information and

consultation as provided for in

Directive 2002/14/EC and, by

increasing knowledge on

companies’ activities, on the

8789/21 CDP/TB/MR/cb 20


quality of engaged dialogue

within companies.

[Am. 7]

quality of engaged dialogue

within companies.

10 Recital 3 (3) Following the European

Council conclusions of 22 May

2013, a review clause was

introduced in Directive

2013/34/EU of the European

Parliament and of the Council20

requiring the Commission to

consider the possibility of

introducing an obligation on

large undertakings of additional

(3) Following the European






























20 Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated

financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament

and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19). 21 Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated






and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).

8789/21 CDP/TB/MR/cb 21


industry sectors to produce, on

an annual basis, a country-by-

country reporting taking into

account the developments in the

Organisation for Economic

Cooperation and Development

(OECD) and the results of

related European initiatives.

























11 Recital 4 (4) Calling for a globally fair

and modern international tax

system in November 2015, the

G20 endorsed the OECD

‘Action Plan on Base Erosion

and Profit Shifting’ (BEPS)

which aimed at providing

governments with clear

international solutions to address

the gaps and mismatches in

existing rules which allow

corporate profits to shift to

locations of no or low taxation,

(4) Calling for a globally fair and

modern international tax system

in November 2015, the G20

endorsed the OECD ‘Action

Plan on Base Erosion and Profit

Shifting’ (BEPS) which aimed at

providing governments with

clear international solutions to

address the gaps and mismatches

in existing rules which allow



where no real value creation may

(4) Calling for a globally fair

and modern international tax

system in November 2015, the

G20 endorsed the OECD

‘Action Plan on Base Erosion

and Profit Shifting’ (BEPS)

which aimed at providing

governments with clear

international solutions to address

the gaps and mismatches in

existing rules which allow



Delete.

8789/21 CDP/TB/MR/cb 22


where no real value creation

may take place. In particular,

BEPS Action 13 introduces a

country-by-country reporting by


undertakings to national tax

authorities on a confidential

basis. On 27 January 2016, the

Commission adopted the ‘Anti-

Tax Avoidance Package’. One

of the objectives of that package

is to transpose into Union law,

the BEPS Action 13 by

amending Council Directive

2011/16/EU24.

take place. In particular, BEPS

Action 13 introduces a country-

by-country reporting by certain

multinational undertakings to

national tax authorities on a

confidential basis. On 27

January 2016, the Commission

adopted the ‘Anti-Tax

Avoidance Package’. One of the

objectives of that package is to

transpose into Union law, the

BEPS Action 13 by amending

Council Directive 2011/16/EU25.

where no real value creation

may take place. In particular,

BEPS Action 13 introduces a

country-by-country reporting by


undertakings to national tax

authorities on a confidential

basis. On 27 January 2016, the

Commission adopted the ‘Anti-

Tax Avoidance Package’. One

of the objectives of that package

is to transpose into Union law,

the BEPS Action 13 by

amending Council Directive

2011/16/EU26. However, taxing

profits where the value is

created requires a more

24 Council Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation and repealing Directive

77/799/EEC (OJ L 64, 11.3.2011, p. 1). 25 Council Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation and repealing Directive

77/799/EEC (OJ L 64, 11.3.2011, p. 1). 26 Council Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation and repealing Directive

77/799/EEC (OJ L 64, 11.3.2011, p. 1).

8789/21 CDP/TB/MR/cb 23


comprehensive approach to

country-by-country reporting

that is based on public

reporting.

[Am. 8]

11a Recital 4a

(4a) The International

Accounting Standards Board

(IASB) should upgrade the

relevant International

Financial Reporting Standards

(IFRS) and the International

Accounting Standards (IAS) to

ease the introduction of public

country-by-country reporting

requirements.

[Am. 9]

Delete.

11b Recital 4b

(4b) Public country-by-country

reporting has already been

established in the Union for the

banking sector by Directive

2013/36/EU as well as for the

(4b) Public country-by-country

reporting has already been

established in the Union for the

banking sector by Directive

2013/36/EU as well as for the

8789/21 CDP/TB/MR/cb 24


extractive and logging industry

by Directive 2013/34/EU.

[Am. 10]

extractive and logging industry

by Directive 2013/34/EU.

11c Recital 4c

(4c) The Union has

demonstrated by an

unprecedented introduction of

public country-by-country

reporting that it has become a

global leader in the fight

against tax avoidance.

[Am. 11]

(4c) The Union has

demonstrated by an

unprecedented introduction of

public country-by-country

reporting that it has become a

global leader in the promotion of

financial and corporate

transparency.

11d Recital 4d

(4d) Since the fight against tax

evasion, tax avoidance and

aggressive tax planning can

only be successful with joint

action on international level, it

is imperative that the Union,

while continuing to be a global

leader in this struggle,

coordinate its actions with

international actors, for

Delete.

8789/21 CDP/TB/MR/cb 25


instance within the OECD

framework. Unilateral actions,

even if very ambitious, do not

have a real chance of being

successful, and, in addition,

such actions put at risk the

competitiveness of European

companies and harm the

Union’s investment climate.

[Am. 12]

11e Recital 4e

(4e) More transparency in

financial disclosure results in a

win-win situation as tax

administrations will be more

efficient, civil society more

involved, employees better

informed, and investors less

risk-averse. In addition,

undertakings will benefit from

better relations with

stakeholders, resulting in more

(4e) More transparency in

financial disclosure results in

advantages for all since civil

society becomes more involved,

employees are better informed

and investors less risk-averse. In

addition, undertakings will

benefit from better relations with

stakeholders, which leads to

more stability, along with easier

access to finance due to a clearer

8789/21 CDP/TB/MR/cb 26


stability, along with easier

access to finance due to a

clearer risk profile and an

enhanced reputation.

[Am. 13]

risk profile and an enhanced

reputation.

12 Recital 5 (5) Enhanced public scrutiny of

corporate income taxes borne by



Union is an essential element to

further foster corporate

responsibility, to contribute to

the welfare through taxes, to

promote fairer tax competition

within the Union through a

better informed public debate

and to restore public trust in the

fairness of the national tax

systems. Such public scrutiny

can be achieved by means of a

report on income tax

(5) Enhanced public scrutiny of





further foster corporate





better informed public debate






(5) In addition to the increased

transparency created by

country-by-country reporting to

national tax authorities,

enhanced public scrutiny of





promote corporate

accountability, and to further

foster corporate social





Delete.

8789/21 CDP/TB/MR/cb 27


information, irrespective of








better informed public debate,









group is established. Public

scrutiny, however, has to be

conducted without harming the

investment climate in the Union

or the competitiveness of Union

companies, especially SMEs as

defined in this Directive and

mid-cap companies as defined

in Regulation (EU)2015/101727,

which should be excluded from

27 Regulation (EU) 2015/1017 of the European Parliament and of the Council of 25 June 2015 on the European Fund for Strategic

Investments, the European Investment Advisory Hub and the European Investment Project Portal and amending Regulations (EU) No

1291/2013 and (EU) No 1316/2013 — the European Fund for Strategic Investments (OJ L 169, 1.7.2015, p. 1).

8789/21 CDP/TB/MR/cb 28


the reporting obligation

established under this Directive.

[Am. 14]

12a Recital 5a

(5a) The Commission has

defined corporate social

responsibility (CSR) as the

responsibility of enterprises for

their impact on society. CSR

should be company led. Public

authorities can play a

supporting role through a smart

mix of voluntary policy

measures and, where necessary,

complementary regulation.

Companies can become socially

responsible either by following

the law or by integrating social,

environmental, ethical,

consumer or human rights

concerns into their business

strategy and operations, or

(5a) The Commission has

defined corporate social

responsibility (CSR) as the

responsibility of enterprises for

their impact on society. CSR

should be company led. Public

authorities can play a supporting

role through a smart mix of

voluntary policy measures and,

where necessary,

complementary regulation.

Companies can go beyond

compliance with the law and

become socially responsible by

integrating social,

environmental, ethical,

consumer or human rights

concerns into their business

8789/21 CDP/TB/MR/cb 29


both.

[Am. 15]

strategy and operations.

13 Recital 6 (6) The public should be able to

scrutinise all the activities of a

group when the group has

certain establishments within the

Union. For groups which carry

out activities within the Union

only through subsidiary

undertakings or branches,

subsidiaries and branches should

publish and make accessible the

report of the ultimate parent

undertaking. However for

reasons of proportionality and

effectiveness, the obligation to


report should be limited to

medium-sized or large

subsidiaries established in the

Union, or branches of a

(6) The public should be able to








operating subsidiaries and

branches should publish and

make accessible the report of the

ultimate parent undertaking to

the extent that the requested

information is available to the

subsidiary or branch. If the

requested information is not

available the subsidiary or

branch should explain in the

report the reasons of this




certain establishments within

and outside the Union. For

groups which carry out activities

within the Union only through

subsidiary undertakings or

branches, subsidiaries and

branches should publish and

make accessible the report of the

ultimate parent undertaking.

However for reasons of

proportionality and














subsidiaries and branches should


report of the ultimate parent

undertaking and, if that

information or report is not

available or the ultimate parent

undertaking does not provide

them with all the required

information, the subsidiaries and

branches should publish a report

on income tax information

8789/21 CDP/TB/MR/cb 30


comparable size opened in a

Member State. The scope of

Directive 2013/34/EU should

therefore be extended

accordingly to branches opened

in a Member State by an

undertaking which is established

outside the Union.

omission. However for reasons

of proportionality and











accordingly to branches opened,

and still operating, in a Member

State by an undertaking which is

established outside the Union

and which has a legal form

which is comparable to the

types of undertakings listed in

Annex I of Directive

2013/34/EU.









outside the Union. Groups with

establishments within the

Union should comply with the

Union principles of tax good

governance. Multinational

undertakings are operating

worldwide and their corporate

behaviour has a substantial

impact on developing countries.

Providing their citizens access

to corporate country-by-country

information would allow them

and tax administrations in their

containing all information in its

possession and a statement

indicating that their ultimate

parent undertaking has not made

the necessary information

available. When all the required

information is not provided by

the ultimate parent undertaking,

the report on income tax

information drawn up by the

subsidiary undertaking or a

branch should contain all

information in its possession,

acquired or obtained. However

for reasons of proportionality

and effectiveness, the obligation

to publish and make accessible

the report should be limited to




8789/21 CDP/TB/MR/cb 31


countries to monitor, assess and

hold those companies to

account. By making the

information public for each tax

jurisdiction where the

multinational undertaking is

operating, the Union would

increase its policy coherence for

development and limit potential

tax avoidance schemes in

countries where domestic

resources mobilization has been

identified as a key component

of the Union development

policy.

[Am. 16]








outside the Union and which has

a legal form which is

comparable to the types of

undertakings listed in Annex I of

Directive 2013/34/EU. Branches

that have been closed within the

meaning of Art. 37 k) of

Directive (EU) 2017/1132 will

no longer be subject to the

reporting obligations set out in

Article 48b(4) of this Directive.

13a Recital 6a (6a) Multinational groups, and

where relevant, certain

standalone undertakings,

(6a) Multinational groups, and

where relevant, certain

standalone undertakings, should

8789/21 CDP/TB/MR/cb 32


should provide the public with a


information when they exceed a

certain size over a period of the

last two consecutive financial

years, depending on the

consolidated revenue of the

group or the revenue of the

standalone undertaking. Given

the wide array of financial

reporting frameworks with

which financial statements may

comply, in order to determine

the scope of application, such

revenue should be defined as

net turnover for undertakings

governed by the law of a

Member State and following

national financial reporting

framework of a Member State.

Article 43(2)(c) of Directive

provide the public with a report

on income tax information when

they exceed a certain size over a

period of the last two

consecutive financial years,

depending on the consolidated

revenue of the group or the

revenue of the standalone

undertaking. Symmetrically,

such obligation should cease to

apply when revenues cease to

exceed that size over a period of

two consecutive financial years.

In this case, the multinational

group or the standalone

undertaking should still be

subject to an obligation to report

on the first financial year

subsequent to the last financial

year when it exceeded the size.

Such multinational group or

8789/21 CDP/TB/MR/cb 33


86/635/EEC and Article 66(2)

of Directive 91/674/EEC

provide definitions as to the

determination of the net

turnover of a credit institution

or of an insurance undertaking,

respectively. For other

undertakings, the revenue

should be assessed in

accordance with the financial

reporting framework on the

basis of which these financial

statements are prepared. It

should be noted that "revenue"

has a different definition for

purposes of content of the

report.

standalone undertaking should

become subject again to the

reporting obligations when its

size exceeded again that size

over a period of two consecutive

financial years. Given the wide

array of financial reporting

frameworks with which financial

statements may comply, in order

to determine the scope of

application, such revenue should

be defined as net turnover for

undertakings governed by the

law of a Member State and

following national financial

reporting framework of a

Member State. Article 43(2)(c)

of Directive 86/635/EEC and

Article 66(2) of Directive

91/674/EEC provide definitions

as to the determination of the net

8789/21 CDP/TB/MR/cb 34


turnover of a credit institution or

of an insurance undertaking,

respectively. For other

undertakings, the revenue should

be assessed in accordance with

the financial reporting

framework on the basis of which

these financial statements are

prepared. It should be noted that

"revenue" has a different

definition for purposes of

content of the report.

14 Recital 7 (7) In order to avoid double

reporting for the banking sector,

ultimate parent undertakings

which are subject to Directive



(7) In order to avoid double


ultimate parent undertakings and

standalone undertakings which

are subject to Directive




which are subject to Directive





ultimate parent undertakings and

standalone undertakings which

are subject to Directive


28 Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and

the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives

2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338).

8789/21 CDP/TB/MR/cb 35


and which include in their report

prepared in accordance with

Article 89 of Directive

2013/36/EU all its activities and

all the activities of its affiliated

undertakings included in the

consolidated financial

statements, including activities

not subject to the provisions of

Chapter 2 of Title 1 of Part

Three of Regulation (EU) No

575/2013 of the European

Parliament and of the Council29,

should be exempted from the






2013/36/EU all its activities and,

where appropriate, all the

activities of its affiliated










2013/36/EU all its activities and

all the activities of its affiliated










Parliament and of the Council




2013/36/EU all its activities and,

where appropriate, all the

activities of its affiliated








32 Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and


2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338). 29 Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit

institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1). 30 Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and


2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338).

8789/21 CDP/TB/MR/cb 36


reporting requirements set out in

this Directive.





this Directive.


this Directive.

Parliament and of the Council ,



this Directive.

15 Recital 8 (8) The report on income tax

information should provide

information concerning all the

activities of an undertaking or of

all the affiliated undertakings of

a group controlled by an

ultimate parent undertaking. The

information should be based on

the reporting specifications of

BEPS’ Action 13 and should be

limited to what is necessary to

enable effective public scrutiny,

in order to ensure that disclosure

(8) The report on income tax





a group consolidated by an

ultimate parent undertaking or,

depending on the

circumstances, concerning all

the activities of a standalone

undertaking. The information

should be based on the reporting






a group controlled by an

ultimate parent undertaking. The

information should be based on

take into account the reporting

specifications of BEPS’ Action

13 and should be limited to what

is necessary to enable effective

public scrutiny, in order to




activities of all the affiliated

undertakings of a group

consolidated by an ultimate

parent undertaking or, depending

on the circumstances,

concerning all the activities of a

standalone undertaking. The

information should be limited to

what is necessary to enable

effective public scrutiny, in

33 Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit

institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1). 31 Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit

institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1).

8789/21 CDP/TB/MR/cb 37


does not give rise to

disproportionate risks or

disadvantages. The report should

also include a brief description

of the nature of the activities.

Such description might be based

on the categorisation provided

for in table 2 of the Annex III of

Chapter V of the OECD

“Transfer Pricing Guidelines on

Documentation”. The report

should include an overall

narrative providing explanations

in case of material discrepancies

at group level between the

amounts of taxes accrued and

the amounts of taxes paid, taking

into account corresponding

amounts concerning previous

financial years.

specifications of BEPS’ Action

13 and should be limited to what

is necessary to enable effective

public scrutiny, in order to

ensure that disclosure does not

give rise to disproportionate

risks or disadvantages for

undertakings. For this reason,

the list of required information

is exhaustive. The report should

be made accessible within 12

months after the balance sheet

date. Any shorter periods for the

publication of financial

statements should not apply

with regard to the report on

income tax information. The

provisions of Chapter 10a of

this Directive do not affect the

provisions regarding annual

financial statements and

ensure that disclosure does not

give rise to disproportionate

risks or disadvantages, in terms

of competitiveness or

misinterpretation for the

undertakings concerned. The

report should also include a brief

description of the nature of the

activities. Such description

might be based on the

categorisation provided for in

table 2 of the Annex III of





narrative providing explanations,

including in case of material

discrepancies at group level

between the amounts of taxes

accrued and the amounts of

order to ensure that disclosure

does not give rise to

disproportionate risks or

disadvantages for undertakings

in terms of competitiveness or

misinterpretations for the

undertakings concerned. For this

reason, the list of required

information is exhaustive. The

report should be made accessible

no later than 12 months after the

balance sheet date. Any shorter

periods for the publication of

financial statements should not

apply with regard to the report

on income tax information. The

provisions of Chapter 10a of this

Directive do not affect the

provisions regarding annual

financial statements and


8789/21 CDP/TB/MR/cb 38



statementsalso include a brief

description of the nature of the

activities. Such description

might be based on the

categorisation provided for in

table 2 of the Annex III of





narrative providing explanations

in case of material discrepancies

at group level between the

amounts of taxes accrued and the

amounts of taxes paid, taking

into account corresponding


financial years.

taxes paid, taking into account

corresponding amounts

concerning previous financial

years.

[Am. 17]

statements. It should also

include a brief description of the

nature of the activities.

15a Recital 8a (8a) In order to avoid

administrative burden, when

(8a) In order to avoid

administrative burden, when

8789/21 CDP/TB/MR/cb 39


preparing a report on income

tax information in compliance

with this Directive,

undertakings should be entitled

to prepare the information on

the basis of the reporting

specifications laid down in

Annex III, Section III, parts B

and C of Council Directive

2011/16/EU as amended. For

this reason, the report should

specify the reporting framework

used. The report might in

addition include an overall

narrative providing

explanations in case of material






preparing a report on income tax

information in compliance with

this Directive, undertakings

should be entitled to prepare the

information on the basis of the

reporting specifications laid

down in Annex III, Section III,

parts B and C of Council

Directive 2011/16/EU as

amended. For this reason, the

report should specify the

reporting framework used. The

report might in addition include

an overall narrative providing

explanations in case of material







8789/21 CDP/TB/MR/cb 40



years.

years.

15b Recital 8b

(8b) It is important to ensure the

comparability of data. To that

purpose, the Commission should

have implementing powers to

lay down a common template

and electronic reporting formats

[which are machine-readable].

16 Recital 9 (9) In order to ensure a level of

detail that enables citizens to

better assess the contribution of


welfare in each Member State,

the information should be

broken down by Member State.

Moreover, information

concerning the operations of

multinational enterprises should

also be shown with a high level

of detail as regards certain tax

(9) In order to ensure a level of











of detail as regards certain third





welfare in each Member State

jurisdiction in which they

operate, both within and outside

the Union, without harming the

undertakings’ competitiveness,

the information should be broken

down by Member State.













of detail as regards certain third

8789/21 CDP/TB/MR/cb 41


jurisdictions which pose

particular challenges. For all

other third country operations,

the information should be given

in an aggregate number.

country tax jurisdictions which

pose particular challenges. For

all other third country

operations, the information

should be given in an aggregate

number, unless the undertaking

wishes to present more detailed

information.




of detail as regards certain tax

jurisdictions which pose

particular challenges. For all

other third country operations,

the information should be given

in an aggregate number

jurisdiction. Reports on income

tax information can only be

meaningfully understood and

used if information is presented

in a disaggregated fashion for

each tax jurisdiction.

[Am. 18]

country tax jurisdictions which

pose particular challenges. For

all other third country

operations, the information

should be given in an aggregate

number, unless the undertaking

wishes to present more detailed

information.

16a Recital 9a (9a) It is recognised that

publicly disclosing data to be

included in report on income

tax information could in certain

(9a) When the information to be

disclosed could be considered

commercially sensitive

information by the undertaking,

(9a) It is recognised that publicly

disclosing data to be included in

report on income tax information

could in certain cases be

seriously prejudicial to

8789/21 CDP/TB/MR/cb 42


cases be seriously prejudicial to

commercial position of an

undertaking, since it would

make it possible for competitors

not subjected to similar

transparency to draw

significant conclusions about

its current activities. Therefore,

undertakings should have a

possibility to defer disclosing

certain information for a

limited number of years,

provided they clearly disclose

the deferral and give a reasoned

explanation for it in the report

and document the basis for the

reasoning.

To be read in conjunction with

Article 48c (3a).

the latter should be able to

request authorisation from the

competent authority where it is

established not to disclose the

full extent of information. In

cases in which the national

competent authority is not a tax

authority, the competent tax

authority should be involved in

the decision.

[Am. 82]

commercial position of an

undertaking, since it would

make it possible for competitors

not subjected to similar

transparency to draw significant

conclusions about its current

activities. Therefore,

undertakings should have a

possibility to defer disclosing

certain information for a limited

number of years, provided they

clearly disclose the deferral and

give a reasoned explanation for

it in the report and document the

basis for the reasoning.

17 Recital 10 (10) In order to strengthen

responsibility vis-á-vis third

(10) In order to strengthen (10) In order to strengthen

responsibility vis-á-vis third

(10) In order to strengthen


8789/21 CDP/TB/MR/cb 43


parties and to ensure appropriate

governance, the members of the

administrative, management and

supervisory bodies of the

ultimate parent undertaking

which is established within the

Union and which has the

obligation to draw up, publish

and make accessible the report

on income tax information,

should be collectively

responsible for ensuring the

compliance with these reporting

obligations. Given that members

of the administrative,

management and supervisory

bodies of the subsidiaries which

are established within the Union

and which are controlled by an


established outside the Union or


responsibility vis-à-vis investors,

creditors, other third parties and

the general public and to ensure

appropriate governance, the

members of the administrative,


bodies of the ultimate parent

undertaking or standalone

undertakings which are

established within the Union and

which have the obligation to

draw up, publish and make

accessible the report on income

tax information, should be

collectively responsible for

ensuring the compliance with

these reporting obligations.

Given that members of the



parties and to ensure appropriate

governance, the members of the




which is established within the

Union and which has the

obligation to draw up, publish



should be collectively

responsible for ensuring the

compliance with these reporting

obligations. Given that members

of the administrative,


bodies of the subsidiaries which

are established within the Union

and which are controlled by an



responsibility vis-à-vis investors,

creditors, other third parties and

the general public and to ensure

appropriate governance, the

members of the administrative,


bodies of the ultimate parent

undertaking or standalone

undertakings which are


which have the obligation to



tax information, should be

collectively responsible for

ensuring the compliance with

these reporting obligations.

Given that members of the



subsidiaries which are

8789/21 CDP/TB/MR/cb 44


the person(s) in charge of

carrying out the disclosures

formalities for the branch may

have limited knowledge of the

content of the report on income

tax information prepared by the

ultimate parent undertaking,

their responsibility to publish



should be limited.

subsidiaries which are


which are controlled by an









ultimate parent undertaking or

may have limited ability to

obtain such information or

report from their ultimate

parent undertaking, their

responsibility to publish and

make accessible the report on

income tax information should

be limited. In case this








ultimate parent undertaking,

their responsibility to publish



should be limited.


which are controlled by an










may have limited ability to

obtain such information or report

from their ultimate parent

undertaking, their responsibility

to publish and make accessible


information should be limited. In

case this information or report is

not provided, the subsidiary

undertakings should publish and

8789/21 CDP/TB/MR/cb 45


provided, the subsidiary

undertakings should publish

and make accessible a statement

as to why the report on income

tax information could not be

published and made accessible.

make accessible a statement as

to why the report on income tax

information could not be

published and made accessible.

18 Recital 11 (11) To ensure that cases of non-

compliance are disclosed to the

public, statutory auditor(s) or

audit firm(s) should check

whether the report on income tax

information has been submitted

and presented in accordance

with the requirements of this

Directive and made accessible

on the relevant undertaking’s

website or on the website of an

affiliated undertaking.

(11) To ensure public awareness

on the scope of and on

compliance with the reporting

obligations Member States

might require that statutory

auditor(s) or audit firm(s) state

whether an undertaking is

required to draw up a report on

income tax information has been

submitted and presented in

accordance with the

requirements of this Directive

and made accessible on the

relevant undertaking’s website

or on the website of an affiliated

(11) To ensure that cases of non-

compliance are disclosed to the

public, statutory auditor(s) or

audit firm(s) should check

whether the report on income tax

information has been submitted

and presented in accordance

with the requirements of this

Directive and made accessible

on the relevant undertaking’s

website or on the website of an

affiliated undertaking, and that

publicly-disclosed information

is in line with the audited

financial information for the

(11) To ensure public awareness

on the scope of and on

compliance with the reporting

obligations Member States

might require that statutory

auditor(s) or audit firm(s) state

whether an undertaking is

required to draw up a report on

income tax information.

8789/21 CDP/TB/MR/cb 46


undertaking. undertaking within the time

limits provided for in this

Directive.

[Am. 19]

18(-

a)

Recital 11

(-a)

(11)(-a)In order to determine

certain tax jurisdictions for

which a high level of detail

should be shown, the report on

income tax information should

always disclose the information

separately for each jurisdiction

which is included in the

Annexes of the Council

conclusions on the EU list of

non-cooperative jurisdictions for

tax purposes34, and their

subsequent updates which are

specifically approved every year

in February and published in the

Official Journal. Annex I regards

34 See Council conclusions on the revised EU list of non-cooperative jurisdictions for tax purposes and the Annexes thereto (OJ C 66, 26.2.2021, p. 40)

https://eur-lex.europa.eu/legal-content/EN/AUTO/?uri=OJ:C:2021:066:TOC

8789/21 CDP/TB/MR/cb 47


the EU list of non-cooperative

jurisdictions for tax purposes

while Annex II concerns the

State of play of the cooperation

with the EU with respect to

commitments taken by

cooperative jurisdictions to

implement tax good governance

principles. For Annex I, the

jurisdictions considered must

have been listed on the first of

March of the financial year for

which the report shall be drawn

up. For Annex II, the

jurisdictions considered must

have been mentioned on the first

of March of the financial year

for which the report shall be

drawn up for three years

consecutively.

8789/21 CDP/TB/MR/cb 48


18a Recital 11a

(11a) Cases of infringements by

undertakings and branches of

the requirements on reporting


giving rise to penalties by

Member States, under Directive

2013/34/EU, should be reported

in a public registry managed by

the Commission. Those

penalties could include, inter

alia, administrative fines or

exclusions from public calls for

tenders and from the awarding

of funding from the Union's

structural funds.

[Am. 20]

(11a) The obligations on

Member States to provide for

penalties and take all the

measures necessary to ensure

that those penalties are enforced

pursuant Directive 2013/34

apply to infringements of the

national provisions as regards

the disclosure of income tax

information by certain

undertakings and branches

adopted pursuant to this

Directive.

19 Recital 12 (12) This Directive aims to

enhance transparency and public

scrutiny on corporate income tax

by adapting the existing legal

framework concerning the

(12) This Directive aims to

enhance corporate transparency

and transparency and public


information by adapting the


enhance transparency and public


by adapting the existing legal

framework concerning the


enhance corporate transparency

and transparency and public


information by adapting the

8789/21 CDP/TB/MR/cb 49


obligations imposed on

companies and firms in respect

of the publication of reports, for

the protection of the interests of

members and others, within the

meaning of Article 50(2)(g)

TFEU. As the Court of Justice

held, in particular, in Case C-

97/96 Verband deutscher

Daihatsu-Händler35 , Article

50(2)(g) TFEU refers to the need

to protect the interests of

"others" generally, without

distinguishing or excluding any

categories falling within the

ambit of that term. Moreover,

the objective of attaining

freedom of establishment, which

is assigned in very broad terms

existing legal framework

concerning the obligations

imposed on companies and firms

in respect of the publication of

reports, for the protection of the

interests of members and others,

within the meaning of Article

50(2)(g) TFEU. As the Court of

Justice held, in particular, in

Case C-97/96 Verband deutscher

Daihatsu-Händler36, Article






ambit of that term. Thus, the

term "others" is broader than

investors and creditors, and

obligations imposed on

companies and firms in respect

of the publication of reports, for

the protection of the interests of

members and others, within the

meaning of Article 50(2)(g)

TFEU. As the Court of Justice

held, in particular, in Case C-

97/96 Verband deutscher

Daihatsu-Händler37 , Article






ambit of that term. Moreover,

the objective of attaining

freedom of establishment, which

is assigned in very broad terms

existing legal framework

concerning the obligations

imposed on companies and firms

in respect of the publication of

reports, for the protection of the

interests of members and others,

within the meaning of Article

50(2)(g) TFEU. As the Court of

Justice held, in particular, in

Case C-97/96 Verband deutscher

Daihatsu-Händler , Article






ambit of that term. Thus, the

term "others" is broader than

investors and creditors, and

35 Judgement of the Court of Justice of 4 December 1997, C-97/96 Verband deutscher Daihatsu-Händler ECLI:EU:C:1997:581 36 Judgement of the Court of Justice of 4 December 1997, C-97/96 Verband deutscher Daihatsu-Händler ECLI:EU:C:1997:581 37 Judgement of the Court of Justice of 4 December 1997, C-97/96 Verband deutscher Daihatsu-Händler ECLI:EU:C:1997:581

8789/21 CDP/TB/MR/cb 50


to the institutions by Article

50(1) TFEU, cannot be

circumscribed by the provisions

of Article 50(2) TFEU. Given

that this Directive does not

concern the harmonisation of

taxes but only obligations to

publish reports on income tax

information, Article 50(1) TFEU

constitutes the appropriate legal

basis.

extends to other interested third

parties, including competitors

and the general public.

Moreover, the objective of

attaining freedom of

establishment, which is assigned

in very broad terms to the

institutions by Article 50(1)

TFEU, cannot be circumscribed

by the provisions of Article

50(2) TFEU. Given that this

Directive does not concern the

harmonisation of taxes but only

obligations to publish reports on

income tax information, Article

50(1) TFEU constitutes the

appropriate legal basis.

to the institutions by Article

50(1) TFEU, cannot be

circumscribed by the provisions

of Article 50(2) TFEU. Given

that this Directive does not

concern the harmonisation of

taxes but only obligations to

publish reports on income tax

information, Article 50(1) TFEU

constitutes the appropriate legal

basis.

extends to other interested third

parties, including competitors

and the general public.

Moreover, the objective of

attaining freedom of

establishment, which is assigned

in very broad terms to the

institutions by Article 50(1)

TFEU, cannot be circumscribed

by the provisions of Article

50(2) TFEU. Given that this

Directive does not concern the

harmonisation of taxes but only

obligations to publish reports on

income tax information, Article

50(1) TFEU constitutes the

appropriate legal basis.

19a Recital 12a (12a) To ensure the full

functioning of the internal

market and a level playing field

between the European Union

(12a) To ensure the full

functioning of the internal

market and a level playing field

between the European Union

8789/21 CDP/TB/MR/cb 51


and third-country multinational

enterprises, the Commission

should continue to explore

possibilities of increasing

fairness and tax transparency.

and third-country multinational

enterprises, the Commission

should continue to explore

possibilities of increasing

fairness and tax transparency.

20 Recital 13 (13) In order to determine



should be shown, the power to

adopt acts in accordance with

Article 290 TFEU should be

delegated to the Commission in

respect of drawing up a common

Union list of these tax

jurisdictions. This list should be

drawn up on the basis of certain

criteria, identified on the basis of

Annex 1 of the Communication

from the Commission to the

European Parliament and

Council on an External Strategy

(13) In order to determine
















(13) In order to determine
















Delete.

8789/21 CDP/TB/MR/cb 52


for Effective Taxation

(COM(2016) 24 final). It is of

particular importance that the

Commission carry out

appropriate consultations during

its preparatory work, including

at expert level, and that those

consultations be conducted in

accordance with the principles

laid down in the

Interinstitutional Agreement on

Better Law-Making as approved

by the European Parliament, the

Council and the Commission

and pending formal signature. In

particular, to ensure equal

participation in the preparation

of delegated acts, the European

Parliament and the Council

receive all documents at the

same time as Member States'


(COM(2016) 24 final). It is of








laid down in the




Council and the Commission and

pending formal signature. In








(COM(2016)0024). It is of








laid down in the




Council and the Commission

and pending formal signature. In







8789/21 CDP/TB/MR/cb 53


experts, and their experts

systematically have access to

meetings of Commission expert

groups dealing with the

preparation of delegated acts.











[Am. 21]

20a Recital 13a

(13a) In order to ensure

uniform conditions for the

implementation of Article

48b(1), (3), (4) and (6) and

Article 48c(5) of Directive

2013/34/EU, implementing

powers should also be

conferred on the Commission.

Those powers should be

exercised in accordance with

Regulation (EU) No 182/2011

of the European Parliament

and of the Council38.

Delete. See row 15b.

38 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles

concerning mechanisms for control by the Member States of the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).

8789/21 CDP/TB/MR/cb 54


[Am. 22]

21 Recital 14 (14) Since the objective of this

Directive cannot be sufficiently

achieved by the Member States

but can rather, by reason of its

effect, be better achieved at

Union level, the Union may

adopt measures, in accordance

with the principle of subsidiarity

as set out in Article 5 of the

Treaty on European Union. In

accordance with the principle of

proportionality as set out in that

Article, this Directive does not

go beyond what is necessary in

order to achieve that objective.

(14) Since the objective of this









Treaty on European Union. In





order to achieve that objective.










Treaty on European Union.

Union action is thus justified

in order to address the cross-

border dimension where there

is aggressive tax planning or

transfer pricing arrangements.

This initiative responds to the

concerns expressed by the

interested parties about the

need to tackle distortions in the

single market without










Treaty on European Union.

This initiative responds to the

concerns expressed by the

interested parties about the need

to tackle distortions in the single

market without compromising

Union competitiveness. It

should not cause undue

administrative burden on

companies. In accordance with

the principle of proportionality

8789/21 CDP/TB/MR/cb 55


compromising Union

competitiveness. It should not

cause undue administrative

burden on companies, generate

further tax conflicts or pose the

risk of double taxation. In





order to achieve that objective,

at least with regard to greater

transparency.

[Am. 23]

as set out in that Article, this

Directive does not go beyond

what is necessary in order to

achieve that objective, at least

with regard to greater

transparency.

22 Recital 15 (15) This Directive respects the

fundamental rights and observes

the principles recognised in

particular by the Charter of

Fundamental Rights of the

European Union.

(15) This Directive respects the

fundamental rights and observes

the principles recognised in

particular by the Charter of


European Union.

(15) Overall, within the

framework of this Directive, the

extent of the information

disclosed is proportionate to the

objectives of increasing public

transparency and public

scrutiny. This Directive respects

(15) Overall, within the

framework of this Directive, the

extent of the information

disclosed is proportionate to the

objectives of increasing public

transparency and public

scrutiny. This Directive respects

8789/21 CDP/TB/MR/cb 56


is therefore considered to

respect the fundamental rights

and observes the principles

recognised in particular by the

Charter of Fundamental Rights

of the European Union.

[Am. 24]

therefore the fundamental rights

and observes the principles

recognised in particular by the

Charter of Fundamental Rights

of the European Union.

23 Recital 16 (16) In accordance with the Joint

Political Declaration of 28

September 2011 of Member

States and the Commission on

explanatory documents39,

Member States have undertaken

to accompany, in justified cases,

the notification of their

transposition measures with one

or more documents explaining

the relationship between the

components of a directive and

(16) In accordance with the Joint



























explanatory documents8 ,








39 OJ C 369, 17.12.2011, p. 14. 40 OJ C 369, 17.12.2011, p. 14. 41 OJ C 369, 17.12.2011, p. 14.

8789/21 CDP/TB/MR/cb 57


the corresponding parts of

national transposition

instruments. With regard to this

Directive, the legislator

considers the transmission of

such documents to be justified.










instruments, for example in the

form of a comparative chart.

With regard to this Directive, the

legislator considers the

transmission of such documents

to be justified to achieve the

objective of this Directive and to

avoid potential omissions and

inconsistencies regarding

implementation by the Member

States under their national

legislation.

[Am. 25]







24 Recital 17 (17) Directive 2013/34/EU

should therefore be amended

accordingly,

(17) Directive 2013/34/EU


accordingly,



accordingly,



accordingly,

25 Formula HAVE ADOPTED THIS

DIRECTIVE:

HAVE ADOPTED THIS

DIRECTIVE:

HAVE ADOPTED THIS

DIRECTIVE:

HAVE ADOPTED THIS

DIRECTIVE:

8789/21 CDP/TB/MR/cb 58


26 Article 1

Article 1

Amendments to Directive

2013/34/EU

Article 1


2013/34/EU

Article 1


2013/34/EU

Article 1


2013/34/EU

27 Article 1,

para. 1,

intro. part

Directive 2013/34/EU is

amended as follows:


amended as follows:


amended as follows:


amended as follows:

28 Article 1,

para. 1,

point 1

Article 1 -

para. 1a

(1) in Article 1, the following

paragraph 1a is inserted:







29 Article 1,

para. 1,

point 1

Article 1 -

para. 1a

‘1a. The coordination measures

prescribed by Articles 2, 48a to

48g and 51 shall also apply to

the laws, regulations and

administrative provisions of the

Member States relating to

branches opened in a Member



48e and 51 shall also apply to




branches opened and still



48g and 51 shall also apply to






prescribed by Articles 48a to 48e

and 51 shall also apply to the

laws, regulations and




8789/21 CDP/TB/MR/cb 59



not governed by the law of a

Member State but which is of a

legal form comparable with the


Annex I.’;

operated in a Member State by

an undertaking which is not





Annex I. Article 2 shall apply to

these branches to the extent

that Articles 48a to 48e and 51

are applicable to such

branches’;






Annex I.’;






Annex I. Article 2 shall apply to

these branches to the extent that

Articles 48a to 48e and 51 are

applicable to such branches’;

30 Article 1,

para. 1,

point 2

Chapter

10a

(2) the following Chapter 10a is

inserted:


inserted:


inserted:


inserted:

31 Article 1,

para. 1,

point 2

Chapter

‘Chapter 10a

Report on Income tax

information

‘Chapter 10a


information

‘Chapter 10a


information

‘Chapter 10a


information

8789/21 CDP/TB/MR/cb 60


10a - title

32 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48a

- title

Article 48a

Definitions relating to reporting


Article 48a



Article 48a



Article 48a



33 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48a

- para 1 -

intro. part

For the purposes of this Chapter,

the following definitions shall

apply:



apply:



apply:



apply:

34 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48a

(1) ‘ultimate parent undertaking’

means an undertaking which

draws up the consolidated

financial statements of the

largest body of undertakings;
















8789/21 CDP/TB/MR/cb 61


- para 1 -

point 1

35 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48a

- para 1 -

point 2

(2) ‘consolidated financial

statements’ means the financial

statements prepared by a parent

undertaking of a group in which

the assets, liabilities, equity,

income and expenses are

presented as those of a single

economic entity;








economic entity;








economic entity;








economic entity;

36 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48a

- para 1 -

point 3

(3) ‘tax jurisdiction’ means a

State as well as a non-State

jurisdiction which has fiscal

autonomy in respect of corporate

income tax.





income tax;





income tax.





income tax.

36a (4) ‘standalone undertaking’

means an undertaking which is

not part of any group within the

(4) ‘standalone undertaking’

means an undertaking which is

not part of any group within the

8789/21 CDP/TB/MR/cb 62


meaning of Article 2 paragraph

11.

meaning of Article 2 paragraph

11.

36b 2. For the purposes of Article

48b, the following definition

shall apply: ‘revenue’ has the

same meaning as:

2. For the purposes of Article

48b, the following definition

shall apply: ‘revenue’ has the

same meaning as:

36c (1) the ‘net turnover’, for


law of a Member State, and not

applying international

accounting standards adopted

on the basis of Regulation (EC)

No 1606/2002, or

(1) the ‘net turnover’, for


law of a Member State, and not

applying international

accounting standards adopted on

the basis of Regulation (EC) No

1606/2002, or

36d (2) the ‘revenue’ as defined by

or within the meaning of the

financial reporting framework

on the basis of which financial

statements are prepared, for

other undertakings.

(2) the ‘revenue’ as defined by

or within the meaning of the



statements are prepared, for

other undertakings.

8789/21 CDP/TB/MR/cb 63


37 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48b

- title

Article 48b

Undertakings and branches

required to report on income tax

information

Article 48b



information

Article 48b



information

Article 48b



information

38 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48b

- para. 1 -

subpara. 1

1. Member States shall require


governed by their national laws

and having a consolidated net

turnover exceeding EUR 750

000 000 as well as undertakings


that are not affiliated

undertakings and having a net


000 000 to draw up and publish

a report on income tax

information on an annual basis.




which on their balance sheet

date exceeded for each of the


years a total consolidated

revenue of EUR 750 000 000 as

reflected in their consolidated

financial statements to draw up,

publish and make accessible a


as regards the later of the last





and having a consolidated net

turnover of or exceeding EUR

750 000 000 as well as

undertakings governed by their

national laws that are not

affiliated undertakings and

having a net turnover of or

exceeding EUR 750 000 000 to

draw up and publish make

publicly available free of charge

a report on income tax







years a total consolidated

revenue of EUR 750 000 000 as

reflected in their consolidated

financial statements to draw up,



as regards the later of the last


8789/21 CDP/TB/MR/cb 64


information on an annual basis.

[Am. 26]

Member States shall provide for

an ultimate parent undertaking to

no longer be subject to the

reporting obligations set out in

the first subparagraph when the

total consolidated revenue on its

balance sheet date falls below

EUR 750 000 000 for each of

the two consecutive last

financial years as reflected in the


statements.

39 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48b

- para. 1 -

The report on income tax

information shall be made

accessible to the public on the

website of the undertaking on

the date of its publication.




website of the undertaking on

the date of its publication.

Member States shall require


information shall be published

in a common template available

free of charge in an open data

format and made accessible to

the public on the website of the

undertaking on the date of its

Member States shall require

undertakings governed by their

national laws that are standalone

undertakings and which on their

balance sheet date exceeded for

each of the last two consecutive

financial years a total revenue of

8789/21 CDP/TB/MR/cb 65


subpara. 2 undertakings governed by their

national laws that are

standalone undertakings and




years a total revenue of EUR

750 000 000 as reflected in their

annual financial statements to


accessible a report on income

tax information as regards the

later of the last two consecutive

financial years.

publication in at least one of the

official languages of the Union.

On the same date, the

undertaking shall also file the

report in a public registry

managed by the Commission.

EUR 750 000 000 as reflected in

their annual financial statements

to draw up, publish and make

accessible a report on income

tax information as regards the

later of the last two consecutive

financial years.


a standalone undertaking to no

longer be subject to the reporting

obligations set out in the first

subparagraph when the total

revenue on its balance sheet date

falls below EUR 750 000 000

for each of the two consecutive

last financial years as reflected

in the financial statements.

39a Article 1,

para. 1,

1a. Member States shall not

apply the rules set out in

Member States shall not apply

the rules set out in this

1a. Member States shall not

apply the rule set out in

8789/21 CDP/TB/MR/cb 66


point 2

Chapter

10a -

Article 48b

- para. 1 -

subpara.

2a

paragraph 1 to standalone

undertakings, ultimate parent

undertakings and their

affiliated undertakings where

such undertakings, including

their branches, have a legal

presence or a fixed place of

business or a permanent

business activity only within the

territory of one single Member

State and in no other tax

jurisdiction.

paragraph where such

undertakings are established

only within the territory of a

single Member State and in no

other tax jurisdiction.

[Am. 27]

paragraph 1 of this Article to a

standalone undertaking or an

ultimate parent undertaking and

its affiliated undertaking where

such undertakings, including

their branches, are established,

or have their fixed places of

business or permanent business

activity within the territory of a

single Member State and no

other tax jurisdiction.

40 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48b

- para. 2

2. Member States shall not apply

the rules set out in paragraph 1

of this Article to ultimate parent

undertakings where such

undertakings or their affiliated

undertakings are subject to



Parliament and of the Council*



of this Article to standalone

undertakings and ultimate

parent undertakings where such


undertakings disclose a report in

accordance with Article 89 of

Directive 2013/36/EU and



of this Article to ultimate parent



undertakings are subject to



Parliament and of the Council*


the rule set out in paragraph 1 of

this Article to standalone

undertakings and ultimate parent



undertakings disclose a report in


Directive 2013/36/EU and

8789/21 CDP/TB/MR/cb 67


and encompass, in a country-by-

country report, information on

all the activities of all the

affiliated undertakings included

in the consolidated financial

statement of those ultimate

parent undertakings.

* Directive 2013/36/EU of the

European Parliament and of the

Council of 26 June 2013 on access to

the activity of credit institutions and

the prudential supervision of credit

institutions and investment firms,

amending Directive 2002/87/EC and

repealing Directives 2006/48/EC and

2006/49/EC (OJ L 176, 27.6.2013, p.

338).

encompass, in that report,

information on all their activities

and all the activities of all the





and encompass, in a country-by-

country report, information on

all the activities of all the





encompass, in that report,

information on all their activities

and all the activities of all the





41 Article 1,

para. 1,

point 2

Chapter

10a -


the medium-sized and large

subsidiary undertakings referred

to in Article 3(3) and (4) which

are governed by their national




to in Article 3(3) and (4) that are





to in Article 3(3) and (4) which

are governed by their national




to in Article 3(3) and (4) that are


8789/21 CDP/TB/MR/cb 68


Article 48b

- para. 3 -

subpara. 1

laws and controlled by an


which has a consolidated net


000 000 and which is not


Member State, to publish the


of that ultimate parent

undertaking on an annual basis.

and controlled by an ultimate

parent undertaking which on its



financial years a total

consolidated revenue of EUR

750 000 000 as reflected in its


statements and which is not


Member State, to publish and

make accessible a report on

income tax information of that

ultimate parent undertaking as

regards the later of the last two

consecutive financial years, to

the extent that this information

or report is available to the

subsidiary undertaking. When

this information or report is not

available, the subsidiary

laws and controlled by an


which on its balance sheet in a

financial year has a

consolidated net turnover of or

exceeding EUR 750 000 000 and

which is not governed by the law

of a Member State, to publish


information of that ultimate

parent undertaking on an annual

basis.

[Am. 28]

and controlled by an ultimate

parent undertaking which on its






consolidated financial statements

and which is not governed by the

law of a Member State, to



of that ultimate parent

undertaking as regards the later

of the last two consecutive

financial years.

8789/21 CDP/TB/MR/cb 69


undertaking shall request its

ultimate parent undertaking not


Member State to provide it with

all information required to

enable it to meet its obligation.

42 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48b

- para. 3 -

subpara. 2




date of its publication on the

website of the subsidiary

undertaking or on the website of

an affiliated undertaking.

In case this information or

report is not provided, the

subsidiary undertakings shall


statement as to why the report


could not be published and

made accessible.






the public on the date of its

publication on the website of the

subsidiary undertaking or on the

website of an affiliated

undertaking in at least one of

the official languages of the

Union. On the same date, the




When this information or report

is not available, the subsidiary

undertaking shall request its



Member State to provide it with

all information required to

enable it to meet its obligation.

In case all the required

information is not provided, the

subsidiary undertakings shall



8789/21 CDP/TB/MR/cb 70


[Am. 29] tax information containing all

information in its possession,

obtained or acquired, and a

statement indicating that the

ultimate parent entity has not

made the necessary information

available.




to in the first subparagraph to no

longer be subject to the reporting

obligations set out in this

paragraph when the total


ultimate parent undertaking on

its balance sheet date falls below




8789/21 CDP/TB/MR/cb 71



statements.

42a Article 1,

para. 1,

point 2

Chapter

10a -

Article 48b

- para. 3a

3a. If a subsidiary undertaking

that was required to publish a

statement as referred to in

paragraph 3 subparagraph 2

exceeds the threshold set out in

paragraph 1 for each of the last

two consecutive financial years,

it shall also draw up, publish

and make accessible its own


information as regards the

latter of the last two consecutive

financial years as provided for

under paragraph 1 and 1a.

Delete.

43 Article 1,

para. 1,

point 2

Chapter

10a -


branches which are opened in

their territories by an

undertaking which is not



branches opened in their

territories and still operated by

an undertaking which is not



branches which are opened in

their territories by an

undertaking which is not



branches opened in their

territories by an undertaking

which is not governed by the law

of a Member State to publish and

8789/21 CDP/TB/MR/cb 72


Article 48b

- para. 4 -

subpara. 1

Member State to publish on an

annual basis the report on

income tax information of the


referred to in point (a) of

paragraph 5 of this Article.

Member State to publish and




the standalone undertaking

referred to in point (a) of this

paragraph as regards the later of

the last two consecutive

financial years,

to the extent that this

information or report is

available to the person(s)

designated to carry out the

disclosure formalities referred

to in Article 48e(2).


is not available, such person(s)

shall request the ultimate parent

undertaking not governed by

Member State to publish and

make publicly available free of

charge on an annual basis the


of the ultimate parent

undertaking referred to in point

(a) of paragraph 5 of this Article.

[Am. 30]






paragraph as regards the later of

the last two consecutive financial

years,


is not available, the person(s)


disclosure formalities referred to

in Article 48e(2)

shall request the ultimate parent

undertaking not governed by the

law of a Member State or the

standalone undertaking referred

to in point (a) of this paragraph

to provide them with all

information required to enable

8789/21 CDP/TB/MR/cb 73


the law of a Member State or



paragraph to provide all

information required to meet

their obligations. In case this


provided, the branches shall


statement as to why the report


could not be published and

made accessible.

them to meet their obligations.

In case all the required

information is not provided, the

branches shall draw up, publish



containing all information in its

possession, obtained or acquired,

and a statement indicating that

the ultimate parent entity or the

standalone undertaking has not

made the necessary information

available.


the branches referred to in first

subparagraph to no longer be

subject to the reporting

obligations set out in this

paragraph when the total

8789/21 CDP/TB/MR/cb 74




the total revenue of the

standalone undertaking on its

balance sheet date falls below





or in the financial statement

respectively.

44 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48b

- para. 4 -

subpara. 2





website of the branch or on the


undertaking.







undertaking.




in an open data format and

made accessible to the public on

the date of its publication on the




Delete.

8789/21 CDP/TB/MR/cb 75







[Am. 31]

45 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48b

- para. 4 -

subpara. 3

Member States shall apply the

first subparagraph of this

paragraph only to branches

which have net turnover

exceeding net turnover threshold

defined by the law of each

Member State pursuant to

Article 3(2).

Member States shall not apply

the first subparagraph of this

paragraph to branches which net

turnover did not exceed at least

for each of the last two

consecutive financial years the

net turnover threshold defined by

the law of each Member State

pursuant to Article 3(2).


first subparagraph of this

paragraph only to branches

which have net turnover

exceeding net turnover threshold

defined by the law of each

Member State pursuant to

Article 3(2).


the reporting obligations set out

in this paragraph 4 to apply only

to branches which have a net

turnover that exceeded for each

of the last two consecutive years

the net turnover threshold as

transposed pursuant to Article

3(2).


a branch subject to the reporting

obligations under this paragraph

4 to no longer be subject to those

8789/21 CDP/TB/MR/cb 76


obligations when its net turnover

falls below the threshold as

transposed pursuant to Article

3(2) for each of the last two

consecutive years.

46 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48b

- para. 5 -

intro. part

5. Member States shall apply the

rules set out in paragraph 4 only

to a branch where the following

criteria are met:


rules set out in this paragraph 4

only to a branch only where the

following criteria are met:


rules set out in paragraph 4 only

to a branch where the following

criteria are met:


rules set out in this paragraph 4

to a branch only where the

following criteria are met:

47 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48b

- para. 5 -

point a

(a) the undertaking which

opened the branch is either an

affiliated undertaking of a group

which is controlled by an



Member State and which has a

consolidated net turnover

(a) the undertaking that opened

and still operates the branch is

either an affiliated undertaking

of a group whose ultimate parent

undertaking is not governed by

the law of a Member State and

which on its balance sheet date

exceeded for each of the last

(a) the undertaking which

opened the branch is either an

affiliated undertaking of a group

which is controlled by an



Member State and which on its

balance sheet has a consolidated

(a) the undertaking that opened

the branch is either an affiliated

undertaking of a group whose

ultimate parent undertaking is


Member State and which on its



8789/21 CDP/TB/MR/cb 77


exceeding EUR 750 000 000 or

an undertaking that is not an

affiliated and which has a net

turnover exceeding EUR

750 000 000;

two consecutive financial years

a total consolidated revenue of

EUR 750 000 000 as reflected in

its consolidated financial

statements or an undertaking

that is not an affiliated

undertaking and which on its



financial years a total revenue

of EUR 750 000 000 as reflected

in its financial statements; and

net turnover of or exceeding

EUR 750 000 000, or an

undertaking that is not an

affiliated and which has a net

turnover of or exceeding EUR

750 000 000;

[Am. 32]





or a standalone undertaking

which on its balance sheet date

exceeded for each of the last two

consecutive financial years a

total revenue of EUR 750 000

000 as reflected in its financial

statements; and

48 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48b

- para. 5 -

point b

(b) the ultimate parent


(a) does not have a medium-

sized or large subsidiary

undertaking as referred to in

paragraph 3.






paragraph 3.






paragraph 3 already subject to

the reporting obligations.

[Am. 33]






paragraph 3 already subject to

the reporting obligations.

48a


8789/21 CDP/TB/MR/cb 78


a branch no longer to be subject

to the reporting obligations set

out in paragraph 4 when the

criterion provided for in point

(a) ceases to be met for two

consecutive financial years.

49 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48b

- para. 6


the rules set out in paragraphs 3

and 4 of this Article where a


drawn up in accordance with

Article 48c is made accessible to




Member State within a

reasonable period of time, which

shall not exceed 12 months after

the balance sheet date and where





drawn up consistently with

Article 48c and:





drawn up in accordance with

Article 48c is made accessible to




Member State within a

reasonable period of time, which

shall not exceed 12 months after

the balance sheet date and where





is drawn up by the ultimate

parent undertaking not governed

by the law of a Member State

consistently with Article 48c and

meets the following criteria:

8789/21 CDP/TB/MR/cb 79


the report identifies the name

and registered office of the

single subsidiary undertaking or

the single branch governed by

the law of a Member State which

has published the report in

accordance with Article 48d(1).

the report identifies the name

and registered office of the

single subsidiary undertaking or

the single branch governed by

the law of a Member State which

has published the report in


49a Article 1,

para. 1,

point 2

Chapter

10a -

Article 48b

- para. 6 -

point a

(new)

(a) is made accessible:

(a) is made accessible to the

public, free of charge and in an

electronic reporting format

which is machine readable;

49b Article 1,

para. 1,

point 2

Chapter

10a -

Article 48b

(i) to the public on the website

of the ultimate parent

undertaking not governed by

the law of a Member State or of

the standalone undertaking not

(i) on the website of the ultimate

parent undertaking not governed

by the law of a Member State or

of the standalone undertaking


Member State;

8789/21 CDP/TB/MR/cb 80


- para. 6 -

point a

(new) -

point i


Member State;

49c Article 1,

para. 1,

point 2

Chapter

10a -

Article 48b

- para. 6 -

point a

(new) -

point ii

(ii) in at least one of the official

languages of the Union;

(ii) in at least one of the official

languages of the Union;

49d Article 1,

para. 1,

point 2

Chapter

10a -

Article 48b

- para. 6 -

point a

(new) -

(iii) within 12 months after the

balance sheet date of the

financial year for which the

report is drawn up; and

(iii) no later than 12 months after

the balance sheet date of the

financial year for which the

report is drawn up; and

8789/21 CDP/TB/MR/cb 81


point iii

49e Article 1,

para. 1,

point 2

Chapter

10a -

Article 48b

- para. 6 -

point b

(new)

(b) identifies the name and the

registered office of a single

subsidiary undertaking or the

name and the address of a

single branch governed by the

law of a Member State which

has published a report in


(b) identifies the name and the

registered office of a single

subsidiary undertaking or the

name and the address of a single

branch governed by the law of a

Member State which has

published a report in accordance

with Article 48d(1).

50 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48b

- para. 7

7. Member State shall require

subsidiaries or branches not

subject to the provisions of

paragraphs 3 and 4 to publish



where such subsidiaries or

branches have been established

for the purpose of avoiding the


this Chapter.








branches have been established

for the purpose of avoiding the


this Chapter.








branches serve no other

objective except avoiding the


this Chapter.

8789/21 CDP/TB/MR/cb 82


50(-

a)

7. Without prejudice to

paragraph 1a of this Article,

Member States may require

subsidiaries and branches

governed by the law of that

Member State and being

controlled by one ultimate

parent undertaking to draw up,



where the sum of their revenues

as reflected on their financial

statements exceeds EUR 750

000 000 for each of the last two

consecutive financial years and

where no report on income tax

information has been drawn up,

published and made accessible

as required by this Article.

7a. Without prejudice to

paragraph 1a of this Article,

Member States may require

subsidiaries and branches

governed by the law of that

Member State and being

controlled by one ultimate parent

undertaking to draw up, publish

and make accessible a report on

income tax information where

the sum of their revenues as

reflected on their financial

statements exceeds EUR 750

000 000 for each of the last two

consecutive financial years and

where no report on income tax

information has been drawn up,


as required by this Article.

50a Article 1,

para. 1,

7a. For Member States which

have not adopted the euro, the

Delete.

8789/21 CDP/TB/MR/cb 83


point 2

Chapter

10a -

Article 48b

- para. 7a

amount in national currency

equivalent to the amount set out

in paragraphs 1, 3 and 5 shall

be obtained by applying the

exchange rate published in the

Official Journal of the

European Union and that is

effective as of the date of the

entry into force of this Chapter.

[Am. 34]

51 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- title

Article 48c

Content of the report on income

tax information

Article 48c


tax information

Article 48c


tax information

Article 48c


tax information

52 Article 1,

para. 1,

point 2

Chapter

1. The report on income tax

information shall include

information relating to all the

activities of the undertaking and




activities of the standalone




activities of the undertaking and




activities of the standalone

8789/21 CDP/TB/MR/cb 84


10a -

Article 48c

- para 1


including activities of all

affiliated undertakings

consolidated in the financial

statement in respect of the

relevant financial year.

undertaking or the ultimate

parent undertaking, including

those of all affiliated

undertakings consolidated in the

financial statement in respect of

the relevant financial year.


including activities of all

affiliated undertakings

consolidated in the financial

statement in respect of the


undertaking, or of the ultimate

parent undertaking, including

those of all affiliated

undertakings consolidated in the

financial statement in respect of

the relevant financial year.

53 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 2 -

intro. part

2. The information referred to in

paragraph 1 shall comprise the

following:


paragraph 1 shall be as follows:


paragraph 1 shall be presented

in a common template and shall

comprise the following, broken

down by tax jurisdiction:

[Am. 35]


paragraph 1 shall be as follows:

53a Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 2 -

point -a

(-a) the name of the ultimate

parent undertaking or the

standalone undertaking,

financial year concerned and

the currency used;

(-a) the name of the ultimate


standalone undertaking,

financial year concerned and the

currency used;

8789/21 CDP/TB/MR/cb 85


(new)

54 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 2 -

point a

(a) a brief description of the

nature of the activities;


nature of the activities;

(a) the name of the ultimate

undertaking and, where

applicable, the list of all its

subsidiaries, a brief description

of the nature of the their

activities and their respective

geographical location;

[Am. 36]


nature of their activities and,

where applicable, the list of all

its subsidiary undertakings;

54 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 2 -

point b

(b) the number of employees; (b) the number of employees

which is the average number of

employees during the financial

year;

(b) the number of employees on

a full-time equivalent basis;

[Am. 37]

(b) the number of employees on

a full-time equivalent basis;

54a Article 1,

para. 1,

point 2

Chapter

(ba) fixed assets other than

cash or cash equivalents;

[Am. 38]

Delete.

8789/21 CDP/TB/MR/cb 86


10a -

Article 48c

- para 2 -

point ba

55 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 2 -

point c

(c) the amount of the net

turnover, which includes the

turnover made with related

parties;

(c) the revenues which are: (c) the amount of the net

turnover, which includes

including a distinction between

the turnover made with related

parties and the turnover made

with unrelated parties;

[Am. 39]

(c) the revenues which are:

55a Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 2 -

point c -

point i

(i) the sum of the net turnover,

other operating income, income

from participating interests,

excluding dividends received

from affiliated undertakings,

income from other investments

and loans forming part of the

fixed assets, other interest

receivable and similar income

as listed in Annexes V and VI of

(i) the sum of the net turnover,

other operating income, income

from participating interests,

excluding dividends received

from affiliated undertakings,

income from other investments

and loans forming part of the

fixed assets, other interest

receivable and similar income as

listed in Annexes V and VI of

8789/21 CDP/TB/MR/cb 87


this Directive, or this Directive, or

55b Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 2 -

point c -

point ii

(ii) the income as defined by or

within the meaning of the



statements are prepared

excluding value adjustments

and dividends received from

affiliated undertakings;

(ii) the income as defined by or

within the meaning of the



statements are prepared

excluding value adjustments and

dividends received from

affiliated undertakings;

55ba

Delete.

56 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 2 -

point d

(d) the amount of profit or loss

before income tax;


before income tax;


before income tax;


before income tax;

57 Article 1,

para. 1,

(e) the amount of income tax

accrued (current year) which is


accrued during the relevant


accrued (current year) which is


accrued during the relevant

8789/21 CDP/TB/MR/cb 88


point 2

Chapter

10a -

Article 48c

- para 2 -

point e

the current tax expense

recognised on taxable profits or

losses of the financial year by


resident for tax purposes in the

relevant tax jurisdiction;

financial year which is the

current tax expense recognised

on taxable profits or losses of the

financial year by undertakings

and branches resident for tax

purposes in the relevant tax

jurisdiction;

the current tax expense

recognised on taxable profits or

losses of the financial year by




financial year which is the

current tax expense recognised

on taxable profits or losses of the

financial year by undertakings

and branches in the relevant tax

jurisdiction;

58 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 2 -

point f

(f) the amount of income tax

paid which is the amount of

income tax paid during the

relevant financial year by



relevant tax jurisdiction; and


paid on cash basis which is the

amount of income tax paid

during the relevant financial year

by undertakings and branches


relevant tax jurisdiction; and


paid which is the amount of

income tax paid during the

relevant financial year by





paid on cash basis which is the

amount of income tax paid

during the relevant financial year

by undertakings and branches in

the relevant tax jurisdiction; and

59 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 2 -

(g) the amount of accumulated

earnings.


earnings at the end of the



earnings;


earnings at the end of the


8789/21 CDP/TB/MR/cb 89


point g

59a Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 2 -

point ga

(ga) stated capital;

[Am. 40]

Deleted.

59b Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 2 -

point gb

(gb) details of public subsidies

received and any donations

made to politicians, political

organisations or political

foundations;

[Am. 65]

Deleted.

59c Article 1,

para. 1,

point 2

Chapter

10a -

(gc) whether undertakings,

subsidiaries or branches benefit

from preferential tax treatment,

from a patent box or equivalent

regimes.

Deleted.

8789/21 CDP/TB/MR/cb 90


Article 48c

- para 2 -

point gc

[Am. 41]

60 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 2 -

subpara 2

For the purposes of point (c) of

the first subparagraph the

revenues shall include

transactions with related

parties.

For the purposes of point (c) of


revenues shall include

transactions with related parties.

60a Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 2 -

subpara 2a

For the purposes of point (e) of

the first subparagraph the current

tax expense shall relate only to

the activities of an undertaking

in the current financial year and

shall not include deferred taxes

or provisions for uncertain tax

liabilities.








liabilities.








liabilities.








liabilities.

60b Article 1,

para. 1,

For the purposes of point (f) of

the first subparagraph taxes

For the purposes of point (f) of

the first subparagraph taxes paid

8789/21 CDP/TB/MR/cb 91


point 2

Chapter

10a -

Article 48c

- para 2 -

subpara 2a

paid shall include withholding

taxes paid by other

undertakings with respect to

payments to undertakings and

branches within a group.

shall include withholding taxes

paid by other undertakings with

respect to payments to


within a group.

60c Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 2 -

subpara 2a

For the purposes of point (g) of


accumulated earnings shall

mean the sum of the profits of

past financial years and the

relevant financial year not

decided for distribution. With

regard to branches,

accumulated earnings shall be

reported by the undertaking

which opened and still operates

a branch.

For the purposes of point (g) of


accumulated earnings shall mean

the sum of the profits of past

financial years and the relevant

financial year not decided for

distribution. With regard to

branches, accumulated earnings

shall be reported by the

undertaking which opened and

still operates a branch.

60d Article 1,

para. 1,

point 2

2a. Member States shall permit

the information listed in

paragraph 2 to correspond to

2a. Member States shall permit

the information listed in

paragraph 2 to correspond to the

8789/21 CDP/TB/MR/cb 92


Chapter

10a -

Article 48c

- para 2a

the reporting specifications

referred to in Annex III,

Section III, Parts B and C of

Directive 2011/16/EU.

reporting specifications referred

to in Annex III, Section III, Parts

B and C of Directive

2011/16/EU.

60e

2b. The information referred to

in paragraph 2 or 2a shall be

presented using a common

template and an electronic

reporting format which is

machine-readable. The

Commission shall, by means of

implementing acts, lay down

that common template and those

electronic reporting formats.

Those implementing acts shall

be adopted in accordance with

the examination procedure

referred to in Article 50(2).

61 Article 1,

para. 1,

3. The report shall present the

information referred to in







8789/21 CDP/TB/MR/cb 93


point 2

Chapter

10a -

Article 48c

- para 3 -

subpara 1

paragraph 2 separately for each

Member State. Where a Member

State comprises several tax

jurisdictions, the information

shall be combined at Member

State level.

paragraph 2 or 2a separately for

each Member State. Where a

Member State comprises several

tax jurisdictions, the information


State level.

paragraph 2 separately for each

Member State. Where a Member

State comprises several tax

jurisdictions, the information


State level presented separately

for each tax jurisdiction.

[Am. 42]

paragraph 2 or 2a separately for

each Member State. Where a

Member State comprises several

tax jurisdictions, the information


State level.

62 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 3 -

subpara 2

The report shall also present the


paragraph 2 of this Article

separately for each tax

jurisdiction which, at the end of

the previous financial year, is

listed in the common Union list

of certain tax jurisdictions drawn

up pursuant to Article 48g,

unless the report explicitly

confirms, subject to the

responsibility referred to in

Article 48e below, that the



paragraph 2 or 2a of this Article




listed in the EU list of non-

cooperative jurisdictions for tax

purposes, unless the report

explicitly confirms, subject to

the responsibility referred to in


affiliated undertakings of a



paragraph 2 of this Article




listed in the common outside the

Union list of certain tax

jurisdictions drawn up pursuant

to Article 48g, unless the report

explicitly confirms, subject to

the responsibility referred to in



information referred to in paragraph

2 or 2a of this Article separately for

each tax jurisdiction which, on the

first of March of the financial year

for which the report shall be drawn

up, is listed in Annex I of the

Council conclusions on the EU list

of non-cooperative jurisdictions for

tax purposes, and for each tax

jurisdiction which, on the first of

March of the financial year for

which the report shall be drawn up,

has been mentioned in Annex II of

8789/21 CDP/TB/MR/cb 94



group governed by the laws of

such tax jurisdiction do not

engage directly in transactions

with any affiliated undertaking

of the same group governed by

the laws of any Member State.














[Am. 43]

the Council conclusions on the EU

list of non-cooperative jurisdictions

for tax purposes, for 3 years

consecutively.

63 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 3 -

subpara 3

The report shall present the


paragraph 2 on an aggregated

basis for other tax jurisdictions.



paragraph 2 or 2a on an

aggregated basis for other tax

jurisdictions.



paragraph 2 on an aggregated

basis for other tax jurisdictions.

[Am. 44]



paragraph 2 or 2a on an

aggregated basis for other tax

jurisdictions.

63a Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

In order to protect

commercially sensitive

information and to ensure fair

competition, Member States

may allow one or more specific

items of information listed in

Delete.

8789/21 CDP/TB/MR/cb 95


- para 3 -

subpara 3a

this Article to be temporarily

omitted from the report as

regards activities in one or

more specific tax jurisdictions

when they are of a nature such

that their disclosure would be

seriously prejudicial to the

commercial position of the

undertakings referred to in

Article 48b(1) and Article

48b(3) to which it relates. The

omission shall not prevent a

fair and balanced

understanding of the tax

position of the undertaking.

The omission shall be indicated

in the report together with a

duly justified explanation for

each tax jurisdiction as to why

this is the case and with a

reference to the tax jurisdiction

8789/21 CDP/TB/MR/cb 96


or tax jurisdictions concerned.

[Am. 83]

63b Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 3 -

subpara 3b

Member States shall make such

omissions subject to prior

authorisation of the national

competent authority. The

undertaking shall seek each

year a new authorisation from

the competent authority, which

will take a decision on the basis

of a new assessment of the

situation. Where the

information omitted no longer

complies with the requirement

laid down in subparagraph 3a,

it shall immediately be made

publicly available. As from the

end of the non-disclosure

period, the undertaking shall

also retroactively disclose, in

the form of an arithmetic

Delete.

8789/21 CDP/TB/MR/cb 97


average, the information

required under this Article for

the preceding years covered by

the non-disclosure period.

[Am. 69/rev]

63c Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 3 -

subpara 3c

Members States shall notify the

Commission of the granting of

such a temporary derogation

and shall transmit to it, in a

confidential manner, the

omitted information together

with a detailed explanation for

the derogation granted. Every

year, the Commission shall

publish on its website the

notifications received from

Member States and the

explanations provided in

accordance with subparagraph

3a.

[Am. 47]

Delete.

8789/21 CDP/TB/MR/cb 98


63d Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 3 -

subpara 3d

The Commission shall verify

that the requirement laid down

in subparagraph 3a is duly

respected, and shall monitor the

use of such a temporary

derogation authorised by

national authorities.

[Am. 48]

Deleted.

63e Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 3 -

subpara 3e

If the Commission concludes,

after having carried out its

assessment of the information

received pursuant to

subparagraph 3c, that the

requirement laid down in

subparagraph 3a is not

fulfilled, the undertaking

concerned shall immediately

make the information publicly

available. As from the end of

the non-disclosure period, the

undertaking shall also

Deleted.

8789/21 CDP/TB/MR/cb 99


retroactively disclose, in the

form of an arithmetic average,

the information required under

this Article for the preceding

years covered by the non-

disclosure period.

[Am. 70/rev]

63f Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 3 -

subpara 3f

The Commission shall, by

means of a delegated act, adopt

guidelines to assist Member

States defining cases where the

publication of information shall

be considered seriously

prejudicial to the commercial

position of the undertakings to

which it relates.

[Am. 50]

Deleted.

64 Article 1,

para. 1,

point 2

Chapter

The information shall be

attributed to each relevant tax

jurisdiction on the basis of the

existence of a fixed place of



jurisdiction on the basis of a

legal presence, the existence of a



jurisdiction on the basis of the

existence of a fixed place of



jurisdiction on the basis of

establishment, the existence of a

8789/21 CDP/TB/MR/cb 100


10a -

Article 48c

- para 3 -

subpara 4

business or of a permanent

business activity which, arising

from the activities of the group,

can give rise to income tax

liability in that tax jurisdiction.

fixed place of business or of a

permanent business activity

which, arising from the activities

of the group or standalone

undertaking, can be subject to

income tax liability in that tax

jurisdiction.

business or of a permanent

business activity which, arising

from the activities of the group,

can give rise to income tax

liability in that tax jurisdiction.

fixed place of business or of a

permanent business activity

which, arising from the activities

of the group or standalone

undertaking, can be subject to

income tax in that tax

jurisdiction.

65 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 3 -

subpara 5

Where the activities of several

affiliated undertakings can give

rise to a tax liability within a

single tax jurisdiction, the

information attributed to that tax

jurisdiction shall represent the

sum of the information relating

to such activities of each

affiliated undertaking and their

branches in that tax jurisdiction.


affiliated undertakings can be

subject to income tax within a









affiliated undertakings can give

rise to a tax liability within a









affiliated undertakings can be

subject to income tax within a








66 Article 1,

para. 1,

Information on any particular

activity shall not be attributed







8789/21 CDP/TB/MR/cb 101


point 2

Chapter

10a -

Article 48c

- para 3 -

subpara 6

simultaneously to more than one

tax jurisdiction.


tax jurisdiction.


tax jurisdiction.


tax jurisdiction.

66a Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 3a -

subpara 1

3a. Information otherwise

required to be disclosed by

paragraphs 2 and 3 of this

Article may be omitted when its

disclosure would be seriously

prejudicial to the commercial

position of the undertakings to

which it relates. Any such

omission shall be disclosed in

the report together with

reasoned explanation regarding

its causes.

3a. Member States may allow

for one or more specific items of

information otherwise required

to be disclosed in accordance

with paragraphs 2 and 2a to be

temporally omitted from the

report when their disclosure

would be seriously prejudicial to

the commercial position of the

undertakings to which it relates.

Any omission shall be clearly

indicated in the report together

with a duly reasoned explanation

regarding its causes.

8789/21 CDP/TB/MR/cb 102


66b Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 3a -

subpara 2

Any information thus omitted

shall be made public in a later


information within no more

than six years from the date of

its original omission.

Member States shall ensure that

all information thus omitted is

made public in a later report on

income tax information within

no more than five years from the

date of its original omission.

66ba

Member States may allow for an

extension of the two years to

which the second subparagraph

refers of maximum two years in

which undertakings can keep the

information originally omitted

undisclosed. The undertaking

concerned shall seek an

authorisation from the

competent national authority,

which will take a decision after

having assessed if the disclosure

of that information would still be

seriously prejudicial to the

Delete.

8789/21 CDP/TB/MR/cb 103


commercial position of the

66c Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 3a -

subpara 3

Information pertaining to tax

jurisdictions listed in the EU list

of non-cooperative jurisdictions

for tax purposes may never be

omitted.

undertaking to which it relates.

After these two additional years,

the information omitted from the

reports relating to each of the

four years shall be made public

in the report on income tax

information relating to the year

subsequent to the last year for

which the omission was

authorised.


information pertaining to tax

jurisdictions included in Annex I

and Annex II of the Council

conclusions on the EU list of

non-cooperative jurisdictions for

tax purposes may never be

omitted.

67 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 4

4. The report shall include at

group level an overall narrative

providing explanations on

material discrepancies between

the amounts disclosed pursuant

to points (e) and (f) of paragraph

2, if any, taking into account if

appropriate corresponding


financial years.

4. The report may include,

where applicable at group level,


explanations on material

discrepancies between the

amounts disclosed pursuant to

points (e) and (f) of paragraph 2,

if any, taking into account if



4. The report shall include at

group level an overall narrative

providing explanations on

material discrepancies between

the amounts disclosed pursuant

to points (e) and (f) of paragraph

2, if any, taking into account if



financial years.

4. The report may include,

where applicable at group level,


explanations on material

discrepancies between the

amounts disclosed pursuant to

points (e) and (f) of paragraph 2,

if any, taking into account if



8789/21 CDP/TB/MR/cb 104


financial years. financial years.

68 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 5




website in at least one of the





website in at least one of the







the public on the date of its

publication on the website of

the subsidiary undertaking or

on the website of an affiliated







[Am. 51]

Delete.

69 Article 1,

para. 1,

point 2

Chapter

6. The currency used in the


shall be the currency in which

the consolidated financial













8789/21 CDP/TB/MR/cb 105


10a -

Article 48c

- para 6

statements are presented.

Member States shall not require

this report to be published in a

different currency than the

currency used in the financial

statements.

statements of the ultimate


annual financial statements of

the standalone undertaking are

presented. Member States shall

not require this report to be

published in a different currency

than the currency used in the

financial statements.

statements are presented.

Member States shall not require

this report to be published in a

different currency than the

currency used in the financial

statements.

statements of the ultimate parent

undertaking or the annual


standalone undertaking are

presented. Member States shall

not require this report to be

published in a different currency

than the currency used in the


69a However, in the case mentioned

in the second subparagraph of

Article 48b(3a), the subsidiary

undertaking shall publish the

report in the currency in which

it publishes its annual financial

statements.

However, in the case mentioned

in the third subparagraph of

Article 48b(3), the currency used

in the report shall be the

currency in which the subsidiary

undertaking publishes its annual


70 Article 1,

para. 1,

point 2

Chapter

7. Where Member States have

not adopted the euro, the

threshold referred to in Article

48b(1) shall be converted into

the national currency by




48b(1) may be converted into the




48b(1) shall be converted into

the national currency by



threshold of 750.000.000 euro

may be converted into the

national currency. Such

8789/21 CDP/TB/MR/cb 106


10a -

Article 48c

- para 7 -

subpara 1

applying the exchange rate as at

[Publications Office- set the date

= the date of the entry in force of

this Directive] published in the

Official Journal of the European

Union and by increasing or

decreasing it by not more than 5

% in order to produce a round

sum in the national currencies.

national currency. Such

conversion must apply the

exchange rate as at [Publications

Office- set the date = the date of

the entry in force of this

Directive] published in the


Union and may increase or

decrease the thresholds by not

more than 5 % in order to

produce a round sum in the

national currencies.


... [date of the entry in force of

this Directive] published in the


Union and by increasing or

decreasing it by not more than 5

% in order to produce a round

sum in the national currencies.

conversion must apply the

exchange rate as at [Publications

Office- set the date = the date of

the entry in force of this

Directive] published in the


Union and may increase or

decrease the thresholds by not

more than 5 % in order to

produce a round sum in the

national currencies.

71 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 7 -

subpara 2

The thresholds referred to in

Article 48b(3) and (4) shall be

converted to an equivalent

amount in the national currency

of any relevant third countries

by applying the exchange rate as

at [Publications Office - set the

date = the date of the entry in

force of this Directive], rounded





of any relevant third countries by


[Publications Office - set the









at ... [date of the entry in force of

this Directive], rounded off to

the nearest thousand.







at [Publications Office - set the



8789/21 CDP/TB/MR/cb 107


off to the nearest thousand. off to the nearest thousand. off to the nearest thousand.

71a Article 1,

para. 1,

point 2

Chapter

10a -

Article 48c

- para 8

(new)

8. The report shall specify

whether it was prepared in

accordance with paragraph 2 or

2a of this Article.

8. The report shall specify

whether it was prepared in

accordance with paragraph 2 or

2a of this Article.

72 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48d

- title

Article 48d

Publication and Accessibility

Article 48d


Article 48d


Article 48d


73 Article 1,

para. 1,

point 2

Chapter

10a -


information shall be

published as laid down

by the laws of each

Member State in

accordance with Chapter

2 of Directive

2009/101/EC, together


information or the statement

mentioned in Article 48b shall

be published within 12 months

after the balance sheet date of



as laid down by the laws of each

Member State in accordance

with Chapter 2 of Directive


information and the statement

mentioned in Article 48b shall

be published within 12 months

after the balance sheet date of

8789/21 CDP/TB/MR/cb 108


Article 48d

- para. 1

with documents referred

to in Article 30(1) of this

Directive and where

relevant, with the

accounting documents

referred to in Article 9 of

Council Directive

89/666/EEC**.

** Eleventh Council Directive

89/666/EEC of 21 December 1989

concerning disclosure

requirements in respect of


State by certain types of company

governed by the law of another

State (OJ L 395, 30.12.1989, p.

36).'

the financial year for which the

report is drawn up as laid down

by the laws of each Member

State in accordance with Chapter

2 of Directive 2009/101/EC and

where relevant in accordance

with Article 7 of Council

Directive 89/666/EEC.

2009/101/EC, together with

documents referred to in Article

30(1) of this Directive and

where relevant, with the

accounting documents referred

to in Article 9 of Council

Directive 89/666/EEC**.

the financial year for which the

report is drawn up as laid down

by the laws of each Member

State in accordance with Articles

14 to 28 of Directive (EU)

2017/1132 and where relevant in


Directive (EU) 2017/1132.

73a Article 1,

para. 1,

point 2

Chapter

10a -

Article 48d

- para. 1a -

intro. part

1a. The report or the statement

published in accordance with

paragraph 1 shall be made

accessible to the public within

12 months after the balance

sheet date of the financial year

for which the report is drawn

1a. Member States shall ensure

that the report and the statement

published by the undertakings in

accordance with paragraph 1 are

made accessible to the public in

at least one of the official

languages of the Union and free

of charge no later than 12

8789/21 CDP/TB/MR/cb 109


up: months after the balance sheet

date of the financial year for

which the report is drawn up:

73b Article 1,

para. 1,

point 2

Chapter

10a -

Article 48d

- para. 1a -

point a

(a) on the website of the

undertaking when Article

48b(1) applies, or

(a) on the website of the

undertaking when Article 48b(1)

applies, or

73c Article 1,

para. 1,

point 2

Chapter

10a -

Article 48d

- para. 1a -

point b

(b) on the website of the



undertaking when Article

48b(3a) applies, or

(b) on the website of the



undertaking when Article 48b(3)

applies, or

73d Article 1,

para. 1,

point 2

(c) on the website of the branch

or on the website of the

(c) on the website of the branch

or on the website of the

undertaking which opened the

8789/21 CDP/TB/MR/cb 110


Chapter

10a -

Article 48d

- para. 1a -

point c

undertaking which opened the

branch or on the website of an

affiliated undertaking when

Article 48b(4) applies.

branch or on the website of an

affiliated undertaking when

Article 48b(4) applies.

73e Article 1,

para. 1,

point 2

Chapter

10a -

Article 48d

- para. 1b

1b. Member States may exempt

undertakings from applying the

rules set out in paragraph 1a of

this Article where the report


paragraph 1 is simultaneously

made accessible to the public on

the website of the register

referred to in Article 3(1) of

Directive 2009/101/EC, free of

charge to any third party

located within the Union. The

website of the undertakings and

branches as referred to in

paragraph 1a shall contain

information on the exemption

1b. Member States may exempt

undertakings from applying the

rules set out in paragraph 1a of

this Article where the report


paragraph 1 is simultaneously

made accessible to the public in

an electronic reporting format

which is machine readable, on

the website of the register

referred to in Article 16 of

Directive (EU) 2017/1132, free

of charge to any third party

located within the Union. The

website of the undertakings and

branches as referred to in

paragraph 1a shall contain

8789/21 CDP/TB/MR/cb 111


and the reference to the website

of the relevant register.

information on the exemption

and the reference to the website

of the relevant register.

74 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48d

- para. 2

2. The report referred to in

Article 48b(1), (3), (4) and (6)

shall remain accessible on the

website for a minimum of five

consecutive years.


Article 48b(1), (3), (4) and (6)


relevant website for a minimum

of five consecutive years.


Article 48b(1), (3), (4) and (6)



consecutive years.


Article 48b(1), (3), (4) and (6)

and, where applicable, the

statement referred to in Article

48b(3) and (4), shall remain

accessible on the relevant


consecutive years.

75 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48e

- title

Article 48e

Responsibility for drawing up,

publishing and making


tax information

Article 48e




tax information

Article 48e




tax information

Article 48e




tax information

76 Article 1,

para. 1,

point 2

1. Member States shall ensure

that the members of the





1. To strengthen accountability

towards third parties and

ensure appropriate governance,




8789/21 CDP/TB/MR/cb 112


Chapter

10a -

Article

48e -

para. 1



referred to in Article 48b(1),

acting within the competences

assigned to them under national

law, have collective

responsibility for ensuring that


information is drawn up,


in accordance with Articles 48b,

48c and 48d.



the standalone undertakings

referred to in Article 48b(1), or

the subsidiary undertaking

exceeding for each of the last

two consecutive financial years

EUR 750 000 000 of total

consolidated revenue as

referred to in Article 48b(3a),







published and made accessible in

accordance with Articles 48b,

48c and 48d.


the members of the













48c and 48d.

[Am. 52]



the standalone undertakings










48c and 48d.

77 Article 1,

para. 1,









8789/21 CDP/TB/MR/cb 113


point 2

Chapter

10a -

Article 48e

- para. 2




to in Article 48b(3) of this

Directive and the person(s)


disclosure formalities provided

for in Article 13 of Directive

89/666/EEC for the branch

referred to in Article 48b(4) of

this Directive, acting within the

competences assigned to them

by national law, have collective

responsibility for ensuring that,

to the best of their knowledge

and ability, the report on income

tax information is drawn up,



48c and 48d.

















tax information is drawn up

consistently with Article 48c, is

published and made accessible in

accordance with Article 48d.

















tax information is drawn up,



48c and 48d.









(EU) 2017/1132 for the branch








tax information is drawn up

consistently with Article 48c, is


in accordance with Article 48d.

8789/21 CDP/TB/MR/cb 114


78 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48f

- title

Article 48f

Independent check

Article 48f

Statement by statutory auditor

Article 48f

Independent check

Article 48f

Statement by statutory auditor

79 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48f

- subpara.

1

Member States shall ensure that,

where the financial statements of

an affiliated undertaking are

audited by one or more statutory

auditor(s) or audit firm(s)

pursuant to Article 34(1), the

statutory auditor(s) or audit

firm(s) also check whether the


has been provided and made

accessible in accordance with

Articles 48b, 48c and 48d. The


firm(s) shall indicate in the audit

Member States may require that,


an affiliated undertaking


Member State are required to be










Member States shall ensure that,


an affiliated undertaking are











firm(s) shall indicate in the audit

Member states shall require that,


an undertaking governed by the

law of a Member State are

required to be audited by one or

more statutory auditor(s) or audit

firm(s), the statutory auditor(s)

or audit firm(s) shall state in the

audit report whether, for the

financial year preceding the one

for which the financial

statements under audit were

prepared, the undertaking was

required by Article 48b to draw

8789/21 CDP/TB/MR/cb 115


report if the report on income tax

information has not been

provided or made accessible in

accordance with those Articles.


firm(s) shall indicate state(s) in

the audit report whether, the

undertaking is required to draw

up a report on income tax



accordance with Article 48b.

report if the report on income tax



accordance with those Articles.

up a report on income tax

information and, if so, whether

the report was published in

accordance with Article 48d.

80 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48g

- title

Article 48g

Common Union list of certain

tax jurisdictions

Article 48g


tax jurisdictions

Article 48g


tax jurisdictions

Delete.

81 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48g

The Commission shall be

empowered to adopt delegated

acts in accordance with Article

49 in relation to drawing up a

common Union list of certain tax

jurisdictions. That list shall be













Delete.

8789/21 CDP/TB/MR/cb 116


- subpara

1 - intro.

part

based on the assessment of the

tax jurisdictions, which do not

comply with the following

criteria:




criteria:




criteria:

82 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48g

- subpara

1 - point 1

(1) Transparency and exchange

of information, including

information exchange on request

and Automatic Exchange of

Information of financial account

information;






information;






information;

Delete.

83 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48g

- subpara

1 - point 2

(2) Fair tax competition; (2) Fair tax competition;

(2) Fair tax competition; Delete.

84 Article 1, (3) Standards set up by the G20 (3) Standards set up by the G20

(3) Standards set up by the G20 Delete.

8789/21 CDP/TB/MR/cb 117


para. 1,

point 2

Chapter

10a -

Article 48g

- subpara

1 - point 3

and/or the OECD; and/or the OECD; and/or the OECD;

85 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48g

- subpara

1 - point 4

(4) Other relevant standards,

including international standards

set up by the Financial Action

Task Force.




Task Force.




Task Force.

Delete.

86 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48g

- subpara

The Commission shall regularly

review the list and, where

appropriate, amend it to take

account of new circumstances.









[Am. 53]

Delete.

8789/21 CDP/TB/MR/cb 118


2

87 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48h

- title

Article 48h

Commencement date for

reporting on income tax

information

Article 48h



information

Article 48h



information

Article 48h



information

88 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48h

- subpara

1



administrative provisions

transposing Articles 48a to 48f

apply, at the latest, from the

commencement date of the first

financial year starting on or after


= one year after the transposition

deadline].









= one year after the

transposition deadline].








...[two years after the entry into

force of this Directive].









= one year after the transposition

deadline].

89 Article 1,

para. 1,

point 2

Article 48i

Report

Article 48i Article 48i

Report

Article 48i

Review clause

8789/21 CDP/TB/MR/cb 119


Chapter

10a -

Article 48i

- title

Report

90 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48i

- subpara.

1

The Commission shall report on

the compliance with and the

impact of the reporting

obligations set out in Articles

48a to 48f. The report shall

include an evaluation of whether


information delivers appropriate

and proportionate results, taking

into account the need to ensure a

sufficient level of transparency

and the need for a competitive

environment for undertakings.









and proportionate results, taking

into account the need to ensure a

sufficient level of transparency

and the need for a competitive

environment for undertakings.









and proportionate results, and

shall assess the costs and

benefits of lowering the

consolidated net turnover

threshold beyond which

undertakings and branches are

required to report on income

tax information. The report

shall, in addition, evaluate any

By [OJ: please add date:5 years

after date of transposition of this

Directive] the Commission shall

submit a report on the

compliance with and the impact

of the reporting obligations set

out in Articles 48a to 48f and,

particularly, taking into account

the situation at OECD level, the

need to ensure a sufficient level

of transparency and the need to

preserve and ensure a

competitive environment for

undertakings and private

investment, it shall review and

assess whether it would be

appropriate to extend the

8789/21 CDP/TB/MR/cb 120


necessity to take further

complementary measures,

taking into account the need to

ensure a sufficient level of

transparency and the need for to

preserve and ensure a

competitive environment for

undertakings and private

investment.

[Am. 54]

obligation to report on income

tax information set out in Article

48b to large undertakings and

large groups as defined in

Article 3(4) and Article 3(7),

respectively, of this Directive,

and to extend the content of the


set out in Article 48c to include

additional items. The

Commission shall also assess the

impact that presenting the tax

information on an aggregated

basis for third tax jurisdictions

as provided for in Article 48c(3)

and the temporary omission of

information provided for in

Article 48c(3a) has on the

effectiveness of the Directive.

91 Article 1,

para. 1,

The report shall be submitted to

the European Parliament and to





The Commission shall submit

the report to the European

8789/21 CDP/TB/MR/cb 121


point 2

Chapter

10a -

Article 48i

- subpara.

2

the Council by [Publications

Office- set the date = five years

after the transposition date of

this Directive].’

the Council by [Publications

Office- set the date = five years

after the transposition date of

this Directive].’

the Council by ....[six years after

the entry into force of this

Directive].

Parliament and to the Council,

together with a legislative

proposal, if appropriate.

92 Article 1,

para. 1,

point 2

Chapter

10a -

Article 48i

- subpara.

2 -

footnotes

______________________

* Directive 2013/36/EU of

the European Parliament and of

the Council of 26 June 2013 on

access to the activity of credit

institutions and the prudential

supervision of credit institutions

and investment firms, amending

Directive 2002/87/EC and

repealing Directives

2006/48/EC and 2006/49/EC

(OJ L 176, 27.6.2013, p. 338).

** Eleventh Council

Directive 89/666/EEC of 21

NB : footnotes linked to correct

articles ( rows 40 & 73) - see also

in row 101

8789/21 CDP/TB/MR/cb 122


December 1989 concerning

disclosure requirements in

respect of branches opened in a

Member State by certain types

of company governed by the law

of another State (OJ L 395,

30.12.1989, p. 36).'

92a Article 1,

para. 1,

point 2a

Article

48ia

(2a) the following article is

inserted:

Delete.

See Article 48i rows 90 and 91.

92b Article 1,

para. 1,

point 2a

Article

48ia

‘Article 48ia Delete.

92c Article 1,

para. 1,

point 2a

No later than 4 years after the

adoption of this Directive and

taking into account the

situation at OECD level, the

Delete.

8789/21 CDP/TB/MR/cb 123


Article

48ia -

subpara. 1

- intro.

part

Commission shall review,

assess and report on the

provisions of this Chapter, in

particular as regards:

92d Article 1,

para. 1,

point 2a

Article

48ia -

subpara. 1

- first

indent

- undertakings and branches

required to report on income

tax information, particularly

whether it would be appropriate

to enlarge the scope of this

Chapter to include large

undertakings as defined in

Article 3(4) and large groups as

defined in Article 3(7) of this

Directive;

Delete.

92e Article 1,

para. 1,

point 2a

Article

48ia -

subpara. 1

- second

- the content of the report on

income tax information as

provided for in Article 48c;

Delete.

8789/21 CDP/TB/MR/cb 124


indent

92f Article 1,

para. 1,

point 2a

Article

48ia -

subpara. 1

- third

indent

- the temporary derogation

provided for in subparagraphs

3a to 3f of Article 48c(3).

Delete.

92g Article 1,

para. 1,

point 2a

Article

48ia -

subpara. 2

The Commission shall submit

the report to the European

Parliament and to the Council,

together with a legislative

proposal, if appropriate.’

[Am. 55]

Deleted

92h Article 1,

para. 1,

point 2b

Article

48ib

(2b) the following article is

inserted:

Delete.

8789/21 CDP/TB/MR/cb 125


92i Article 1,

para. 1,

point 2b

Article

48ib - title

‘Article 48ib

Common template for the

report

Delete.

92j Article 1,

para. 1,

point 2b

Article

48ib -

subpara. 1

The Commission shall, by

means of implementing acts, lay

down the common template to

which Article 48b(1), (3), (4)

and (6) and Article 48c(5) refer.

Those implementing acts shall

be adopted in accordance with

the examination procedure

referred to in Article 50(2).’

[Am. 56]

Delete.

See row 60e

93 Article 1,

para. 1,

point 3

Article 49

(3) Article 49 is amended as

follows:


follows:


follows:


follows:

94 Article 1,

para. 1,

(a) Paragraphs 2 and 3 are

replaced by the following

(a) Paragraphs 2 and 3 are (a) Paragraphs 2 and 3 are


Deleted.

8789/21 CDP/TB/MR/cb 126


point 3 -

point a

Article 49 -

paras. 2+3


95 Article 1,

para. 1,

point 3 -

point a

Article 49 -

para. 2

‘2. The power to adopt delegated

acts referred to in Article 1(2),

Article 3(13), Article 46(2) and

Article 48g shall be conferred on

the Commission for an

indeterminate period of time

from the date referred to in

Article 54.



Article 3(13) and Article 46(2)

and Article 48g shall be

conferred on the Commission for

an indeterminate period of time


Article 54.




Article 48g shall be conferred on

the Commission for an

indeterminate period of time


Article 54.

Deleted.

96 Article 1,

para. 1,

point 3 -

point a

Article 49 -

para. 3

3. The delegation of power

referred to in Article 1(2),


Article 48g may be revoked at

any time by the European

Parliament or by the Council. A

decision to revoke shall put an

end to the delegation of the

power specified in that decision.



Article 3(13) and Article 46(2)

and Article 48g may be revoked

at any time by the European







Article 48g may be revoked at

any time by the European





Deleted.

8789/21 CDP/TB/MR/cb 127


It shall take effect the day

following the publication of the

decision in the Official Journal

of the European Union or at a

later date specified therein. It

shall not affect the validity of

any delegated acts already in

force.’









force.’








force.’

97 Article 1,

para. 1,

point 3 -

point b

Article 49 -

para. 3a

(b) The following paragraph 3a

is inserted:


is inserted:


is inserted:


is inserted:

98 Article 1,

para. 1,

point 3 -

point b

Article 49 -

para. 3a

‘3a. Before adopting a delegated

act, the Commission shall

consult experts designated by

each Member State in


laid down in the






laid down in the






laid down in the






laid down in the

8789/21 CDP/TB/MR/cb 128



Better Law-Making of [date].’


Better Law-Making of 13 April

2016 10.’

Interinstitutional Agreement of

13 April 2016 on Better Law-

Making*, taking particular

account of the provisions of the

Treaties and the Charter of


European Union.

[Am. 57]


Better Law-Making of 13 April

2016 10.’

98a Article 1,

para. 1,

point 3 -

point b

Article 49 -

para. 3a -

footnote

___________

10 OJ L 123, p. 1.

___________

* OJ L 123, 12.5.2016, p.

1.’

10 OJ L 123, p. 1.

99 Article 1,

para. 1,

point 3 -

point c

Article 49 -

para. 5

(c) Paragraph 5 is replaced by

the following:


the following:


the following:

Delete.

8789/21 CDP/TB/MR/cb 129


100 Article 1,

para. 1,

point 3 -

point c

Article 49 -

para. 5

‘5. A delegated act adopted

pursuant to Article 1(2), Article

3(13) Article 46(2) or Article

48g shall enter into force only if

no objection has been expressed

either by the European

Parliament or by the Council

within a period of two months of

notification of that act to the

European Parliament and the

Council or if, before the expiry

of that period, the European

Parliament and the Council have

both informed the Commission

that they will not object. That

period shall be extended by two

months at the initiative of the

European Parliament or of the

Council.’



3(13) and Article 46(2) or

Article 48g shall enter into force

only if no objection has been

expressed either by the European













Council.’



3(13) Article 46(2) or Article

48g shall enter into force only if

no objection has been expressed

either by the European













Council.’

Delete.

101 Article 1,

para. 1,

______________________ Delete.

NB : footnotes linked to correct

8789/21 CDP/TB/MR/cb 130


point 3 -

point c

Article 49 -

para. 5 -

footnotes

* Directive 2013/36/EU of the

European Parliament and of

the Council of 26 June 2013 on

access to the activity of credit

institutions and the prudential

supervision of credit

institutions and investment

firms, amending Directive

2002/87/EC and repealing

Directives 2006/48/EC and

2006/49/EC (OJ L 176,

27.6.2013, p. 338).

** Eleventh Council Directive

89/666/EEC of 21 December

1989 concerning disclosure

requirements in respect of


State by certain types of

company governed by the law of

another State (OJ L 395,

30.12.1989, p. 36).'

articles ( rows 40 & 73)

8789/21 CDP/TB/MR/cb 131


101a Article 1,

para. 1,

point 3a

Article 51 -

para. 1

(3a) in Article 51, paragraph 1

is replaced by the following:

Delete.

See row 18a

101b Article 1,

para. 1,

point 3a

Article 51 -

para. 1 -

subpara. 1

‘Member States shall provide for

lay down rules on penalties

applicable to infringements of

the national provisions adopted

in accordance with this Directive

and shall take all the measures

necessary to ensure that those

penalties are enforced they are

implemented. The penalties

provided for shall be effective,

proportionate and dissuasive.

Delete.

See recital

101c Article 1,

para. 1,

point 3a

Article 51 -

para. 1 -

Member States shall at least

provide for administrative

measures and penalties for the

infringement by undertakings

of national provisions adopted

Delete.

8789/21 CDP/TB/MR/cb 132


subpara.

1a

in accordance with this

Directive.

101d Article 1,

para. 1,

point 3a

Article 51 -

para. 1 -

subpara.

1b

Member States shall notify the

Commission of those provisions

at the latest by ... [one year after

entry into force of this

Directive] and shall notify it

without delay of any subsequent

amendment affecting the

provisions.

Delete.

101e Article 1,

para. 1,

point 3a

Article 51 -

para. 1 -

subpara.

1c

By ... [three years after the

entry into force of this

Directive] the Commission shall

compile a list of the measures

and penalties laid down by each

Member State in accordance

with this Directive.’

[Am. 58]

Delete.

102 Article 2 -

title Article 2

Transposition

Article 2

Transposition

Article 2

Transposition

Article 2

Transposition

8789/21 CDP/TB/MR/cb 133


103 Article 2 -

para. 1 -

subpara. 1

1. Member States shall bring

into force the laws, regulations

and administrative provisions

necessary to comply with this

Directive by [Publications

Office - set the date = one year

after entry into force] at the

latest. They shall forthwith

communicate to the Commission

the text of those provisions.

1. Member States shall bring into

force the laws, regulations and



Directive by [Publications

Office - set the date = two years

after entry into force] at the

latest. They shall forthwith



1. Member States shall bring

into force the laws, regulations

and administrative provisions


Directive by ... [Publications

Office - set the date = one year

after the entry into force of this

Directive] at the latest. They

shall forthwith communicate to

the Commission the text of those

provisions.

1. Member States shall bring into

force the laws, regulations and

administrative provisions necessary

to comply with this Directive by

[Publications Office - set the date =

two years after entry into force] at

the latest. They shall forthwith



104 Article 2 -

para. 1 -

subpara. 2

When Member States adopt

those provisions, they shall

contain a reference to this

Directive or be accompanied by

such a reference on the occasion

of their official publication.

Member States shall determine

how such reference is to be

made.









made.









made.









made.

8789/21 CDP/TB/MR/cb 134


105 Article 2 -

para. 2

2. Member States shall


the text of the main provisions

of national law which they adopt

in the field covered by this

Directive.



the text of the main provisions of

national law which they adopt in

the field covered by this

Directive.






Directive.






Directive.

106 Article 3 -

title Article 3

Entry into force

Article 3

Entry into force

Article 3

Entry into force

Article 3

Entry into force

107 Article 3 -

para. 1

This Directive shall enter into

force on the twentieth day

following that of its publication

in the Official Journal of the

European Union.





European Union.





European Union.





European Union.

108 Article 4 -

title Article 4

Addressees

Article 4

Addressees

Article 4

Addressees

Article 4

Addressees

109 Article 4 -

para. 1

This Directive is addressed to

the Member States.

This Directive is addressed to This Directive is addressed to

the Member States.

This Directive is addressed to

the Member States.

8789/21 CDP/TB/MR/cb 135


the Member States.

110 Formula Done at Strasbourg, Done at Strasbourg,

Done at ..., Done at Strasbourg,

111 Formula For the European Parliament

The President

For the European Parliament

The President


The President


The President

112 Formula For the Council

The President

For the Council

The President

For the Council

The President

For the Council

The President

No. prev. doc.: 6399/21 To: Permanent Repr esentatives ...

Documents

Transcript of No. prev. doc.: 6399/21 To: Permanent Repr esentatives ...