European Parliament 2019-2024 Committee on Economic and Monetary Affairs 2020/2254(INL) 28.9.2021 DRAFT REPORT with recommendations to the Commission on fair and simpler taxation supporting the recovery strategy (EP follow-up to the July Commission’s Action Plan and its 25 initiatives in the area of VAT, business and individual taxation) (2020/2254(INL)) Committee on Economic and Monetary Affairs Rapporteur: Luděk Niedermayer (Initiative – Rule 47 of the Rules of Procedure) PR\1220506EN.docx EN PE662.076v01-00 United in diversity EN PR_INL CONTENTS Page MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION.............................................3 ANNEX TO THE MOTION FOR A RESOLUTION: RECOMMENDATIONS AS TO THE CONTENT OF THE PROPOSAL REQUESTED......9 PE662.076v01-00 EN 2/11 PR\1220506EN.docx MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION with recommendations to the Commission on fair and simple taxation supporting the recovery strategy (EP follow-up to the July Commission’s Action Plan and its 25 initiatives in the area of VAT, business and individual taxation) (2020/2254(INL)) The European Parliament, – having regard to Article 225 of the Treaty on the Functioning of the European Union, – having regard to the Commission Communication of 15 July 2020 on ‘An action plan for fair and simple taxation supporting the recovery strategy’ (COM(2020)0312), – having regard to the Commission Communication of 15 July 2020 on ‘Tax Good Governance in the EU and beyond’ (COM(2020)0313), – having regard to the Commission Communication of 7 April 2016 entitled ‘An action plan on VAT - Towards a single EU VAT area - Time to decide’ (COM(2016)0148), – having regard to the Commission Communication of 3 March 2021 entitled ‘One year since the outbreak of COVID-19: fiscal policy response’ (COM(2021)0105), – having regard to the Commission proposals pending for adoption, in particular on the Common Corporate Tax Base (CCTB) , the Common Consolidated Corporate Tax Base (CCCTB)1, and the digital taxation package2, as well as the European Parliament’s positions on these proposals, – having regard to the Commission communication of 15 January 2019 entitled ‘Towards a more efficient and democratic decision making in EU tax policy’ (COM(2019)0008), – having regard to the Commission communication of 19 February 2020 entitled ‘Shaping Europe’s digital future’ (COM(2020)0067), – having regard to the G20/OECD Inclusive Framework (IF) on the Base Erosion and Profit Shifting (BEPS) Action Plan of October 2015, – having regard to the G20/OECD IF interim report entitled ‘Tax Challenges Arising from Digitalisation’ adopted in 2018, and its Programme of Work to Develop a Consensus Solution to the Tax Challenges Arising from the Digitalisation of the 1 Proposal of 25 October 2016 for a Council Directive on a Common Corporate Tax Base (CCTB), COM(2016)0685 and of 25 October 2016 on a Common Consolidated Corporate Tax Base (CCCTB), COM(2016)0683. 2 The package consists of the Commission communication of 21 March 2018 entitled ‘Time to establish a modern, fair and efficient taxation standard for the digital economy’ (COM(2018)0146), the proposal of 21 March 2018 for a Council directive laying down rules relating to the corporate taxation of a significant digital presence (COM(2018)0147), the proposal of 21 March 2018 for a Council directive on the common system of a digital services tax on revenues resulting from the provision of certain digital services (COM(2018)0148) and the Commission recommendation of 21 March 2018 relating to the corporate taxation of a significant digital presence (C(2018)1650). PR\1220506EN.docx 3/11 PE662.076v01-00 EN Economy adopted in May 2019, – having regard to the Reports on the Pillar One and Pillar Two Blueprints adopted by the G20/OECD Inclusive Framework on 14 October 2020, as well as the results of an economic analysis and impact assessment carried out by the OECD, – having regard to the Commission Communication of 18 May 2021 entitled ‘Business Taxation for the 21st Century’ (COM(2021)0251), – having regard to the Annual report on Taxation 2021 - Review of taxation policies in the EU Member States, DG TAXUD, 18 May 2021, – having regard to the International Monetary Fund report entitled ‘Taxing Multinationals in Europe’, European and Fiscal Affairs Departments, 2021, No. 21/12, – having regard to the outcomes of the various G7, G8 and G20 summits held on international tax issues,