EBIT - European Business Initiative on Taxation

Transcription

1 EBIT - European Business Initiative on Taxation EBIT Light - Annual Work Programme

2 INTRODUCTION Dear Sir / Madam, In Europe there is still no single market on taxation. In practice, businesses need to navigate their way through up to 28 different sovereign national tax regimes and administrative requirements, and widely differing national interpretations of EU tax law and EU Directives. Direct tax policy-making in Europe is a hot and rapidly changing topic as a result of the last crisis, and in large part fuelled by the OECD s July 2013 BEPS Action Plan and parallel actions within the EU, heated public debate and relentless press coverage on alleged tax avoidance and aggressive tax planning by MNCs. Corporates and financial institutions are therefore strongly advised to closely monitor, manage and actively respond and input where needed to the politics-driven activities coming out of the EU, the G20/G8 and OECD, and even the UN, on issues such as: BEPS / aggressive tax planning Fight against tax fraud and tax evasion Harmful tax competition EU Directives EU case law C(C)CTB Transfer pricing EU Fiscal State Aid Cooperative Compliance Tax reporting, transparency, and exchange of information Enhanced co-operation in tax: EU FTT EU / Euro-zone politics & decision making. Do you also want to help modernise Europe s direct tax policy but don t find the time? Then joining EBIT may be exactly what you re looking for! Established in 2001 with the help of PwC at the request of a number of companies, EBIT is a high-level but informal cross-industry working group of 15+ VPs of Tax and Tax Directors from European based companies (see annex) whose aim is to help streamline and modernise Europe s direct tax policy. EBIT works to eliminate tax barriers and offer practical solutions to EU and OECD policy makers that help businesses operate more efficiently throughout Europe. EBIT joined the EU s voluntary Register of Interest Representatives in May PwC acts as EBIT s group secretariat but it is not a member of EBIT. Benefits of joining EBIT: A daily alert service enabling you to keep really up to date on the latest developments: a must for businesses, particularly in the current game-changing context of BEPS Being part of a well-regarded and influential business group helping large corporate taxpayers across industry sectors to monitor and input to EU / OECD tax policy initiatives Having easy and regular access to key EU and OECD direct tax policy makers Minimal time involvement required Cost-efficient approach (indicative fixed fee: 2,392 /per quarter - if 15 Members) Regular networking with your business peers Easy access to PwC technical experts. Joining EBIT is very easy. It suffices to send an e- mail to the EBIT Secretariat with your contact details, your company s VAT number and invoicing address. Your first meeting is free of charge and part of a 3-monthly trial membership. More information on EBIT can be found in the enclosed Work Programme. If you still have further questions, please contact the EBIT Secretariat via: Bob van der Made: Tel.: ; bob.van.der.made@nl.pwc.com, or Peter Cussons: Tel.: ; peter.cussons@uk.pwc.com I hope to see you soon in Brussels. Yours sincerely, Bob van der Made PwC EBIT Secretariat 2

3 TRIED AND TESTED APPROACH To achieve its mission, EBIT engages in ongoing technical dialogue & cooperation with EU Commission and OECD policy makers, entailing: Two round-table meetings per year in Brussels with keynote speakers from the EU and OECD Active EBIT representation and participation in EU and/or OECD organised public consultations, seminars and workshops Proactive submission of group Position Papers to the EU and OECD in key areas of interest. WAYS OF WORKING EBIT aims to be time and cost efficient and higly flexible, and informal - hence the name EBIT Light. EBIT works on the basis of a proposed annual Work Programme and an ex ante proposed budget which is prepared by PwC/the EBIT Secretariat and reviewed and collectively agreed by the Members in the month of January. EBIT membership is a corporate membership. EBIT operates on a consensus basis. The Members remain at all times in full control of the project. PwC is not a Member company of EBIT but acts as EBIT s Secretariat. EBIT output reflects the collective views of EBIT only and cannot be construed as an opinion or point of view of any individual Member company of EBIT or PwC. EBIT operates through regular communication and correspondence and two round table (plenary) meetings held in the Spring and in the Fall in Brussels at PwC s offices. The meetings are typically held from am pm (CET) to allow participants to travel in-and-out on the same day. From 2014, we will aim to have an EBIT dinner on the eve of the second meeting in Brussels. 3 Each Member contributes to EBIT as a function of their availability and interest. The EBIT Secretariat proposes the work and meeting agendas, invites guest speakers, submits position papers with the EU and OECD, and manages the relations with the EU, OECD, national fiscal attachés (and other non-governmental parties such as BIAC). What is required in practice from EBIT s Members is typically: co-drafting and reviewing EBIT position papers representing EBIT at EU/OECD workshops (on a voluntary basis, where relevant the EBIT Secretariat may join) and presence and active participation in the two round table meetings in Brussels. NB: If the designated EBIT Member contact cannot attend themselves, they should try to send an alternate to the EBIT meetings held in Brussels. This is crucial for meeting the high expectations existing among EU and OECD tax policy officials, and optimising on your EBIT Membership. Additional meetings and conference calls may be called or organised at the request of individual or all EBIT Members or at the request of the EBIT Secretariat. These additional meetings and calls are outside the scope of the present Work Programme and will be charged separately on an hours spent basis. The same applies to the time spent in connection with drafting and submitting EBIT Position Papers. PWC S ROLE: EBIT S SECRETARIAT Organising, preparing and coordinating all group activities on behalf of EBIT Ensuring the objectives and deliverables set in the annual Work Programme are met Building and managing relations with policymakers and officials at the EU s Institutions and the OECD, and any other relevant parties Providing general tax technical, quality control and assurance, and EU public affairs advice to the group as a whole EBIT Marketing and promotion (EBIT flyer, EBIT website); Group membership administration and targeting of interested companies.

4 OBJECTIVES & DELIVERABLES Building on EBIT s reputation and credibility as a leading business direct tax representative; Raising EU and OECD policymakers awareness and understanding of potential technical and legislative issues from the perspective of large corporate taxpayers on a cross-industry basis; e.g. in meetings, Position Papers, public consultations, and ad hoc coalitions with other business groups; Facilitating at least two productive meetings with key EU and OECD policymakers and officials, meeting dates: Wednesday 22 January 2014 and Thursday 20 March 2014 and poss. a 3 rd meet in November (tbc); Monitoring and regularly reporting on all relevant EU and OECD policy initiatives and developments in the area of direct taxation; Ensuring appropriate project coordination and communication with EBIT Members; Leveraging on PwC specialists and networks; Proactive targeting with a view to expanding EBIT s membership. EBIT ACHIEVEMENTS IN 2013 EBIT contribution to EU consultations EBIT participated in a limited stakeholder meeting "Addressing double taxation and Action Plan Initiatives on Parent Subsidiary Directive - Brussels 12 April 2013 EBIT submission to the Commission: additional comments on anti-abuse, 10 May 2013 EBIT submission to EC on public consultations re the EU Taxpayers code and the EU TIN - 17 May 2013 EBIT applied for Good Governance Platform - 8 May 2013 (on reserve list) EBIT contribution to OECD consultations EBIT submission on revised proposals on the interpretation and application of 4 Article 5 (PEs) OECD MTC - January 2013 EBIT participated in BIAC BEPS Discussion Day - Paris 26 March 2013 EBIT submission to BIAC (cc: OECD) on BEPS - 5 April 2013 EBIT submission to BIAC on 1 October 2013 on the OECD s 19 July 2013 BEPS Comprehensive Action Plan EBIT submission to OECD on OECD Memorandum on Transfer Pricing Documentation and Country-by-Country Reporting dated 3 October EBIT round-table meeting held on 7 June 2013, Brussels: EBIT project update and EU & OECD opportunities - Chair: Bob van der Made, EBIT Secretariat, Sr. Advisor EU Public Affairs, PwC EUDTG Brussels & Amsterdam Anti-abuse & EU directives: Frederik Boulogne, Tax Advisor, PwC EUDTG; Lecturer at VU University Amsterdam ECJ direct tax case law update - Peter Cussons, Tax Partner, PwC EUDTG, Chair CCCTB Working Group - London EC direct tax policy update: Dieter Kischel, Head of Sector A, Harmful Tax Practices, State aid and Transfer Pricing, Unit D1: Company Tax Initiatives, DG TAXUD, EU Commission Inside the Irish EU Presidency - Declan Kelly, responsible for Fiscal Affairs, Direct Tax Issues, incl. FTT, Irish EU Council Presidency Cooperative Compliance: towards a different relationship between taxpayers and tax administrations - Eelco van der Enden, Partner, PwC Global Tax Effectiveness Leader EBIT Breakfast Meeting on BEPS with Marlies de Ruiter held on 13 September 2013 Sheraton, Airport Amsterdam Other: EBIT participated in CFE Forum 2013 Brussels - 21 March 2013 EBIT daily alert service with regular EU policy intelligence updates Deepening and broadening relations with key EU and OECD tax officials Renewal and updating of EBIT information on the EU voluntary register of interest groups Regular EBIT website updates

5 PAYMENT TERMS & CONDITIONS Joining EBIT is very easy. Interested companies can join EBIT at all times. It suffices to send a confirmation to the Secretariat in which you state the name and job title of the designated EBIT contact(s), the name of your company/group, invoicing address and VAT number. Interested companies are offered a trial membership of 3 months with free access to the EBIT daily alert service and the first meeting (if it falls within those 3 months). PwC is happy to offer special, lower fees for the administration and support of EBIT. The EBIT membership fee is payable per quarter and has a fixed and variable part: 1. A fixed annual membership fee, estimated ex-ante based on the time likely to be spent by the Secretariat for running EBIT; 2. A variable fee: the Secretariat s expenses reasonably incurred in connection with achieving EBIT s objectives and deliverables as set out in the present Work Programme (e.g. travel and accommodation of guest speakers, relationship management (EU, OECD, national Perm Reps.) and regular EU networking lunches in Brussels, cooperation with other stakeholders and allies, etc.); 3. Also variable: Additional expertise commissioned to the Secretariat by the Members (outside annual Work Programme) is budgeted separately on a case-by-case and real-time spent basis (e.g. drafting and submitting Position Papers and extra conference calls, travel and accommodation of EBIT guests). This type of project needs to be flexible and is partly driven by external factors (e.g. policy agenda changes, availability of officials). There can be no guarantee of the final result. PwC accepts no liability in connection with EBIT. PwC will carry out this project to the best of its ability and strives to achieve the desired outcome in collaboration with you. In doing so, the following is assumed: The full commitment and cooperation of EBIT Members; If the real-time spent by the Secretariat is likely to exceed the budgeted fee significantly, PwC will inform Member companies of this in a timely manner and propose additional budget funding. Members can at all times comment on the use of the budget; Additional expertise commissioned by EBIT to the Secretariat outside the Work Programme is budgeted separately. It is PwC s current understanding of the SEC s rules that PwC s services performed through EBIT do not fall within the prohibited non-audit services identified by the SEC. This is PwC s current understanding (January 2014) of present SEC rules and not a legal opinion on this matter. PwC will notify audit clients who are a Member of EBIT immediately, if it considers that this relationship is no longer compatible with our position as their auditor. For 2014 the annual budget is ex ante estimated at 143,500 EURO. Indicative fixed membership fee per quarter per Member: 1,793 EURO if 20 Members, and 2,392 EURO if 15 Members. See the EBIT ex ante fee estimate and breakdown for 2014 on the next page. 5

6 EBIT SECRETARIAT RESOURCES AND BUDGET BREAKDOWN EBIT LIGHT 2014 Dedicated resources Responsibility / days Total / days Fees / days Total / Euro Bob van der Made, Head of the EBIT Secretariat, Senior Manager, PwC Netherlands Senior Advisor EU Public Affairs (direct tax & EU FTT) in Brussels EUDTG Network Driver for Europe Member of all PwC EU Direct Tax Group s (EUDTG) working groups Day-to day project coordination and EBIT daily alert service (16) Annual work programme (2) Preparing, hosting, chairing and follow up on Meetings and Conference Calls (5) Ongoing relationship management with the EU and the OECD and strategic communication advice to EBIT (5) EBIT promotion, flyer, website, Targeting (2) Membership administration (1) Leveraging on PwC s leading experts and networks 31 3, ,750 Peter Cussons, Tax Partner, PwC United Kingdom Chair, EUDTG UK Chair, PwC s CCCTB Working Group Member PwC s EU Law Technicial Committee Member PwC s State Aid Working Group Stef van Weeghel, Tax Partner, PwC Netherlands PwC Global Tax Policy Network Leader Preparation and participation in 2 Plenary Meetings (3) Regular ECJ case law updates (2) Quality control and assurance (2) Preparation and participation in meetings and conference calls (1) Quality control and assurance (0,5) PwC network support 7 3,500 24,500 1,5 3,500 5,250 Philip Greenfield, Senior Tax Manager, PwC United Kingdom Member PwC Global Tax Policy team Head of PwC UK s tax news and reference Sjoerd Douma, Senior Tax Manager, PwC Netherlands, Prof. of EU Law at Leiden University Co-chair, PwC s EUDTG Europe Chair, EUDTG Netherlands Chair, PwC s State Aid Working Group Member PwC s EU Law Technicial Committee Preparation and participation in meetings and conference calls (2) Quality control and assurance (1) Specialist EU direct tax Law analysis and tax technical support and advice (0,5) Quality control and assurance (0,5) 3 3,250 9, ,250 3,250 With additional support from other PwC Tax Partners and senior experts from PwC specialist networks. Total: 143,500

7 ANNEX: CURRENT EBIT MEMBERS EBIT s (corporate) Membership currently spans the following business sectors: aerospace and defence, aircraft engine manufacturers, airlines, global commodity merchandising, conference organisers, earth moving equipment, electronics, asset management, food & feed, food containers, healthcare equipment, oil & gas, publishing, and tobacco products: MEMBER COMPANY NAME POSITION AIRBUS GROUP Guillaume de la Villeguerin Head of Tax & Customs AIRBUS GROUP Axel Thiele VP, Head of Tax AIRBUS GROUP Keith Philpott International Tax Manager AIRBUS GROUP Sonja Hoelzel Head, International Tax Affairs AIRBUS GROUP Bénédicte Roue International Tax Affairs BP Paul D Allsop Regional Head of Tax, Europe & Tax Director R&M BP Harry Milde European Tax Planning & Advocacy Manager CATERPILLAR Giles A Parsons Director European Tax Policy DEUTSCHE LUFTHANSA Christian Lehmann Director Tax Policy and Procedural Law INFORMA GROUP Glyn Fullelove Group Tax Director INFORMA GROUP Owen O Hagan Senior International Tax Manager JTI Marco Ramaekers Tax Director LOUIS DREYFUS COMMODITIES LOUIS DREYFUS COMMODITIES Geert van der Molen Ruth Hemelaer Head of Tax, Europe & Black Sea Senior International Tax Manager MTU Udo Sommerfeld Tax Director MTU Bettina Czenia Senior Tax Manager NUTRECO Jacques van Hooij Head of Tax REED ELSEVIER Paul Morton Head of Group Tax REED ELSEVIER Jules Genee Tax Director ROLLS ROYCE Jason H. Luke Director of Tax ROLLS ROYCE Tom Astill Senior International Tax Manager SAMSUNG ELECTRONICS Simon Schofield Vice President - European Tax and Corporate Audit SCHRODERS Sue Cooper Group Head of Tax SCHRODERS Robert Breadman Head of Transfer Pricing TUPPERWARE Josef Hajek Senior VP, Tax & Government Affairs * * * 7

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