Changes from report parliamentary committee draft to report parliamentary committee draft

Change 34

ChangedArticle 65 – paragraph 1: 1. The competent authority of a Member State may initiate and coordinate audits of BEFIT group members that are resident for tax purposes or situated in the form of a permanent establishment in that Member State. TheThat competent authority shall notify the other BEFIT team members within aone month of the initiation of such an audit.

Article 67 – paragraph 1: 1. Until 30 June 2035, a BEFIT group member may appeal against the content of the individual tax assessment made pursuant to Article 64 before the competent authority of the Member State where that BEFIT group member is resident for tax purposes or situated in the form of a permanent establishment within two months after the assessment was notified to it. The administrative appeal shall be heard by an administrative body that, in accordance with the law of the Member State of the BEFIT group member, is competent to hear appeals at first instance. The administrative appeal shall be governed by the law of the Member State in which the BEFIT group member is resident for tax purposes or situated in the form of a permanent establishment. Where there is no such administrative body in the Member State where the BEFIT group member is resident for tax purposes or situated in the form of a permanent establishment, the BEFIT group member may lodge a judicial appeal directly.

Article 69 – paragraph 1: 1. Until 30 June 2035, where the decision pursuant to Article 67 has been confirmed or varied, a BEFIT group member shall have the right to appeal to the courts of the Member State where it is resident for tax purposes or situated in the form of a permanent establishment within two months after the decision of the administrative appeals body referred to in Article 67 was notified to it. The judicial appeal shall be governed by the law of the Member State in which the BEFIT group member is resident for tax purposes or situated in the form of a permanent establishment.

Change 35

ChangedArticle 70 – paragraph 1: Where the outcome of an administrative or judicial appeal requires amendments to the tax assessment of the BEFIT group or to the individual tax assessment of one or more members of a BEFIT group, Member States shall take the appropriate measures to ensure that such amendments remain possiblepossible, inwithin a time frametimeframe of 10 years.

Change 36

ChangedArticle 72 – paragraph 1: Member States shall lay down rules on penalties applicable to infringements of national provisions adopted pursuant to this Directive and shall take all necessary measures to ensure that they are implemented and enforced. Penalties and compliance measures provided for shall be effective, proportionate and dissuasive. Penalties shall be set at a minimum of 0,1 % of the turnover of the BEFIT group in casethe event of a failure to file the BEFIT information return in accordance with Article 59 and in casethe event of confirmeda intentionaldeliberate misreporting whenin filinga theBEFIT information return.

Change 37

ChangedArticle 74 – paragraph 2 a (new): 2a. The power to adopt delegated acts referred to in Article 45(i)45i shall be conferred on the Commission for an indeterminate period starting on 1 July 2035.

Change 38

RemovedArticle 77 – paragraph 2 a (new): 2a. The Commission shall include in its report an evaluation of the co-existence of distribution-based tax systems, as referred to in Article 49, with traditional corporate tax systems relying on annual taxes on corporate profits.

AddedArticle 77 – paragraph 2: 2. Member States shall communicate to the European Parliament and to the Commission relevant information for the evaluation of the Directive in accordance with paragraph 3, including aggregated data on BEFIT group members which are resident for tax purposes in their jurisdiction and permanent establishments thereof operating in their jurisdiction, in order to properly assess: / (i) the impact of the transition allocation rule; / (ii) the link with other legislative acts in the area of corporate taxation, namely Directive (EU) 2022/2523 as well as the situation regarding Pillar One of the Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy agreed by the OECD/G20 Inclusive Framework on BEPS on 8 October 2021; / (iii) the relevance of the scope of this Directive and notably its potential extension to large groups as referred to in Article 3(7) of Directive 2013/34/EU; / (iv) the relevance of removing the exclusion of shipping income from the preliminary tax result; / (v) the impact on double tax treaties; / (vi) the impact of the co-existence of two tax systems, at Union level and at national level, on the administrative burden for entrepreneurs and tax administrations resulting from the application of Section 5 of Chapter II; / (vii) the impact of the allocation of the tax base on the Member States’ revenues; / (viii) the impact of the co-existence of distribution-based tax systems, as referred to in Article 49, with t…

AddedArticle 77 – paragraph 2 a (new): 2a. From ... [two years after the date of application of Article 45a], the Commission shall examine and evaluate the relevance of the factors in the allocation formula and their impact on the distribution of corporate income tax revenues in Member States, and report to the European Parliament and to the Council to that effect. The report shall, where appropriate, be accompanied by a legislative proposal to amend this Directive.