Recital (5)

In order to be considered as comprehensive, a national relief-at-source system should contain a number of specific key features as set out in this Directive. It should provide natural persons or entities that are entitled to such relief broad access and should provide relief if the taxpayer is entitled to it, except in the case of failure to report the information that is required by the Member State. In principle, the required information should not go beyond the data referred to in Articles 12, 13 or 15. The national relief-at-source system should provide access both for direct and indirect investments and should not have additional entry barriers other than those provided in Article 11(2). Thus, the national relief-at-source system should not only provide the legal possibility of relief, but relief should also be de facto granted, in cases where the taxpayer is entitled to it. The national relief-at-source system should not impose an additional obligation such as a parallel system of reporting. The Member State should lay down rules on liability for the loss of withholding tax revenue and penalties applicable to infringements of national provisions on that relief-at-source system. With regard to the condition of the market capitalisation ratio, the European Securities and Markets Authority (ESMA) should provide the data that are required under regulatory technical standards. Where a Member State does not fulfil or no longer fulfils at least one of the two conditions concerning the comprehensive relief-at-source system and the market capitalisation ratio threshold, it should transpose into national legislation all provisions of this Directive.