4.2.33 Key 00508 financial expenses arising from debts with group entities (Article 15 h) LIS)

In accordance with the provisions of article 15 h) of the LIS , financial expenses incurred in the tax period and arising from debts with group entities according to the criteria established in article 42 of the Commercial Code, will not be deductible, regardless of residence and the obligation to prepare consolidated annual accounts, intended for the acquisition, from other group entities, of shares in the capital or equity of any type of entities, or for the realization of contributions to the capital or equity of other group entities, unless the taxpayer proves that there are valid economic reasons for carrying out such operations, such as cases of restructuring of the group, a direct consequence of an acquisition from third parties, or those cases in which there is authentic management of the acquired participating entities from Spanish territory.

For these purposes, in the tax period in which the aforementioned financial expenses considered non-deductible for tax purposes are recorded, an adjustment must be made to the accounting result in key [00508] for increases, completing, where appropriate, the corresponding breakdown boxes.