c.2 WHO ARE THE OTHER PARTIES INVOLVED IN THE TRANSACTIONS UNDER EXAMINATION AND HOW DO I IDENTIFY THEM?

When identifying the parties involved, the taxpayer must bear in mind:

1. If any of the parties to the transaction under examination belonged to a consolidated group during the fiscal years to which the mutual agreement procedure relates, the details of the group must be provided.

   The taxpayer must identify the parent company of the consolidated group (or whichever acted as its representative, in the case of a horizontal group) during the fiscal years to which the mutual agreement procedure relates.

   Example:

   During the fiscal years 2006 to 2012, the Spanish company SUBSIDIARY formed part of the consolidated group of which the company PARENT was the parent entity.

   In 2016, SUBSIDIARY is tax audited resulting in tax adjustments in its corporation tax for fiscal years 2011 to 2014, regarding transactions with an associated Belgian entity.

   In 2018, SUBSIDIARY, which has not been part of the consolidated group since 2013, requests the initiation of a mutual agreement procedure to eliminate the double taxation which the Spanish tax assessment could have given rise to.

   Even though it no longer forms part of the consolidated group, SUBSIDIARY must identify PARENT in the request, because during the fiscal years 2011 and 2012, which are covered by the mutual agreement procedure, it was a member of the consolidated group of which the parent company was PARENT.

2. The more information provided, the fewer delays there will be to the procedure.

   Therefore, in the interests of the speed of the procedure, it is advisable for the taxpayer to identify the parties in detail, in particular as regards foreign entities or persons.