Issue link: https://maltatoday.uberflip.com/i/1490343
4 NEWS 19.1.2023 MEPS have proposed to widen the scope and toughen sanctions of pro- posed legislation aimed at clamping down on shell companies used for tax purposes. MEPs adopted their opinion on Tues- day in plenary by 637 votes in favour, 2 against and 6 abstentions amending the Commission's proposal for a directive setting out criteria for determining a shell company used for tax avoidance, the ensuing penalties as well as report- ing requirements. In their opinion, drafted by Lídia Pereira (EPP, PT), MEPs amend the Commission proposal, notably by slightly lowering the thresholds below which a company is exempt of the re- porting requirements of the directive, and by providing for penalties to be levied also on companies with zero or low revenue. ey also say that companies subject to the reporting requirements should be obliged to provide more detailed infor- mation. To allow a better distinction between legitimate shell companies and those existing for tax purposes, MEPs also amended the information sharing re- quirements between member states to ensure a better quality and complete- ness of data being exchanged. Specifically on penalties, MEPs say that these should amount to a minimum of 2% of an undertaking's revenue in the relevant tax year for failure to report correctly and 4% of revenue for making false declarations. In the case of zero or revenue falling below a threshold set by the national tax authority, the penalty should be based on the undertaking's total assets. During Monday's plenary debate, the rapporteur Lídia Pereira (EPP, PT) said: "e fight against tax fraud and tax eva- sion has never been as important as it is today for citizens. is house is unit- ed in wanting to fight this fraud and evasion. We must be uncompromising when it comes to tax abuse and, at the same time, avoid creating unnecessary barriers for companies to set up. is directive is essential for delivering tax policy which is just, fair and transpar- ent and the Parliament has proposed amendments to it aiming at balance, transparency and toughness." ON Wednesday, the European Parlia- ment called for gamers to be better pro- tected from addiction and other manip- ulative practices, while emphasising the potential of this innovative sector. e report - adopted with 577 votes in favour, 56 against and 15 abstentions - asks for harmonised rules to give par- ents a good overview of and control over what games their children play as well as how much time and money they spend playing. MEPs demand clearer information on the content, in-game purchase policies and target age group of games, possi- bly along the lines of the Pan European Game Information (PEGI) system al- ready used in 38 countries. ey also want to protect minors spe- cifically from prompts to make in-game purchases and from getting involved in so-called gold-farming, i.e. the practice of selling items obtained in a game for real money as this can be linked to fi- nancial crime and human rights abuses. Additionally, game developers should avoid designing games that feed addic- tion and should take into account chil- dren's age, rights and vulnerabilities. MEPs say video game developers should also prioritise data protection, gender balance and the safety of play- ers, and should not discriminate against people with disabilities. ey stress that cancelling game subscriptions has to be as easy as subscribing to them. Game purchase, return and refund policies have to comply with EU rules and national authorities must put an end to illegal practices that allow gam- ers to exchange, sell or bet on in-game sites. A new European video game award Parliament acknowledges the value and potential of the video games sector and wants to support its further devel- opment. To this end, MEPs propose setting up an annual European online video game award and ask the Commission to put forward a European Video Game Strat- egy that would help this creative and cultural sector unlock its full potential. "Our report highlights the positives of this pioneering industry, but also so- cial risks we need to bear in mind, like the impact of gaming on mental health. is is something that can particularly affect younger gamers", said rapporteur Adriana Maldonado López (S&D, ES) when introducing her report to the ple- nary. "We need to harmonise EU rules, en- suring strengthened consumer protec- tion and with a specific focus on mi- nors", she added. MEPs adopt position on legislation to clamp down on shell companies Protecting gamers and encouraging growth in the video games sector