Reporting obligations for non-EU companies in the Public CbCR Directive

Question for written answer
to the Commission
Rule 130
Alfred Sant (S&D)

E-003049/2017

Subject: Reporting obligations for non-EU companies in the Public CbCR Directive

The US has specific legislation on trade secrets and stricter rules on the confidentiality of information than the EU.

The Commission has proposed Directive 2016/0107 on the disclosure of income tax information by certain undertakings and branches, which would redefine the limits of the confidentiality of business information.

Article 48(e)(2) on responsibility for publishing the report on income tax information stipulates that members of subsidiary undertakings ‘have collective responsibility for ensuring that, to the best of their knowledge and ability, the report on income tax information is drawn up, published and made accessible […]’.

Can the Commission therefore answer the following questions:
1. If a US subsidiary operates in the EU and its parent company prohibits it from disclosing certain information under US law, through what legal channels can it be made to contravene the law in its country of origin and report the information?
2. If EU subsidiaries of non-EU companies have to comply with EU rules ‘to the best of their knowledge and ability’, how will the Commission ensure that subsidiaries of EU companies will not be de facto subject to stricter requirements?

Answer given by Vice-President Dombrovskis on behalf of the Commission
On 12 April 2016, the Commission adopted a proposal for a directive amending Directive 2013/34/EU as regards disclosure of income tax information by certain undertakings and branches.

The objective of the Commission’s proposal is to cover the operations of the largest multinational companies doing business in Europe, including both EU companies and non-EU companies operating in the EU. In the case of a non-EU group, the reporting requirement is put on their EU subsidiaries or branches. Should an EU subsidiary or branch of a non-EU group fail to obtain the necessary information from its ultimate parent, it would be subject to the sanctions according to Article 51 of Directive 2013/34.

By including both-EU and non-EU multinational groups in the scope of the proposal, the Commission had to take into account potential limitations in the availability of information from non-EU groups. As the report would have to be drawn by the ultimate parent company, the responsibility of EU subsidiaries or branches of non-EU groups would be limited to making sure that, to the best of their knowledge and ability, the report has been prepared, published and made accessible according to the reporting requirements.

The enforcement of the provisions of the directive in question, once it is transposed into the national legislation, is within the competence of the judiciary systems of the Member States. Besides the legal responsibility, companies seeking to conceal information might see their reputation tarnished.

The proposal puts EU and non-EU companies on the same footing as both types of companies would have the same reporting requirements. It will also help to create fairer competition between multinational companies and those trading only in one market.

Maltese Version
Suġġett: Obbligi ta’ rappurtar għal kumpaniji mhux tal-UE fid-Direttiva dwar ir-rappurtar pubbliku pajjiż b’pajjiż

L-Istati Uniti għandha leġiżlazzjoni speċifika dwar is-sigrieti kummerċjali u regoli aktar stretti dwar il-kunfidenzjalità tal-informazzjoni mill-UE.

Il-Kummissjoni pproponiet id-Direttiva 2016/0198 (2016/0107 (COD)) dwar id-divulgazzjoni tal-informazzjoni dwar it-taxxa fuq l-introjtu minn ċerti intrapriżi u fergħat, u b’hekk terġa’ tiddefinixxi l-limiti tal-kunfidenzjalità tal-informazzjoni kummerċjali.

L-Artikolu 48(e)(2) dwar ir-responsabbiltà għall-ippubblikar tar-rapport rigward l-informazzjoni dwar it-taxxa fuq l-introjtu jistipula li l-membri tal-intrapriżi sussidjarji “ikollhom responsabbiltà kollettiva biex jiżguraw li, fl-aħjar għarfien u kapaċità tagħhom, ir-rapport rigward l-informazzjoni dwar it-taxxa fuq l-introjtu jitfassal, jiġi ppubblikat u jsir aċċessibbli […]”.

Tista’ l-Kummissjoni għalhekk twieġeb għall-mistoqsijiet li ġejjin:
1. Jekk sussidjarja tal-Istati Uniti topera fl-UE u l-kumpanija prinċipali tipprojbixxilha milli tiddivulga ċerta informazzjoni skont id-dritt tal-Istati Uniti, skont liema mezzi ġuridiċi tista’ din tintalab tmur kontra d-dritt tal-pajjiż ta’ oriġini u tirraporta l-informazzjoni?
2. Jekk is-sussudjarji ta’ kumpaniji mhux tal-UE jkollhom jikkonformaw mar-regoli tal-UE “fl-aħjar għarfien u kapaċità tagħhom”, kif se tiżgura l-Kummissjoni li s-sussidjarji ta’ kumpaniji tal-UE ma jkunux fil-fatt suġġetti għal rekwiżiti aktar stretti?

Tweġiba mogħtija mill-Viċi-President Dombrovskis f’isem il-Kummissjoni

Fit-12 ta’ April 2016, il-Kummissjoni adottat proposta għal Direttiva li temenda d-Direttiva 2013/34/UE fir-rigward tad-divulgazzjoni tal-informazzjoni dwar it-taxxa fuq l-introjtu minn ċerti intrapriżi u fergħat. L-għan tal-proposta tal-Kummissjoni huwa li tkopri l-operazzjonijiet mill-ikbar il-kumpaniji multinazzjonali involuti fin-negozju fl-Ewropa, inklużi kemm kumpaniji tal-UE u kemm kumpaniji li mhumiex mill-UE li joperaw fl-UE. Fil-każ ta’ grupp mhux tal-UE, ir-rekwiżit ta’ rappurtar jitqiegħed fuq is-sussidjarji jew fergħat tiegħu fl-UE. Jekk sussidjarja tal-UE jew fergħa ta’ grupp mhux tal-UE jonqsu milli jiksbu l-informazzjoni neċessarja mingħand il-kumpanija prinċipali aħħarija tagħhom, huma jkunu soġġetti għal sanzjonijiet skont l-Artikolu 51 tad-Direttiva 2013/34.

Billi tinkludi gruppi multinazzjonali kemm tal-UE u kemm ta’ dawk li mhumiex fl-UE fil-kamp ta’ applikazzjoni tal-proposta, il-Kummissjoni kellha tqis il-limiti potenzjali fid-disponibbiltà ta’ informazzjoni minn gruppi li mhumiex fl-UE. Billi r-rapport jeħtieġ li jsir mill-kumpanija prinċipali aħħarija, ir-responsabbiltà tas-sussidjarji jew fergħat tal-UE ta’ gruppi li mhumiex tal-UE tkun limitata biex ikun żgurat li, fl-aħjar għarfien u l-kapaċità tagħhom, ir-rapport ġie ppreparat, ippubblikat u magħmul aċċessibbli skont ir-rekwiżiti tar-rappurtar. L-infurzar tad-dispożizzjonijiet tad-Direttiva inkwistjoni, ladarba tiġi trasposta fil-leġiżlazzjoni nazzjonali, huwa fil-kompetenza tas-sistemi ġudizzjarji tal-Istati Membri. Barra r-responsabbiltà legali, il-kumpaniji li jfittxu li jaħbu l-informazzjoni jistgħu jagħrqu r-reputazzjoni tagħhom.

Il-proposta tpoġġi lill-kumpaniji tal-UE u mhux fuq l-istess livell iż-żewġ tipi ta’ kumpaniji jkollhom l-istess rekwiżiti ta’ rapportar. Dan se jgħin ukoll biex tinħoloq kompetizzjoni aktar ġusta bejn kumpaniji multinazzjonali u dawk li jikkummerċjaw biss f’suq wieħed.