Minutes of the meeting

MINUTES OF THE PLENARY MEETING OF THE FORUM OF ASSOCIATIONS AND
COLLEGES OF TAX PROFESSIONALS
HELD ON NOVEMBER 24, 2020

President of the Forum of Associations and Colleges of Tax Professionals

Director General of the State Agency for Tax Administration

Mr. Jesus Gascon Catalan

Members representing the Tax Agency

Director of the Tax Management Department

Mr. Gonzalo David García de Castro

Director of the Department of Financial and Tax Inspection

Mr. Javier Hurtado Puerta

Director of the Department of Aduanas and Excise Duties

Ms. Pilar Jurado Borrego

Director of the Revenue Department

Mr. Guillermo Barros Gallego

Director of the Tax Information Technology Department

Mr. Jose Borja Tome

Director of Legal Services

Mr. Diego Loma-Osorio Lerena

Director of the Planning and Institutional Relations Service

Mrs. Rosa Maria Prieto del Rey

Special Delegate of Catalonia

Mr. Isidoro Garcia Millan

Deputy Director General of Tax Technology of the Tax Management Department

Mrs. Mercedes Jordán Valdizán

Deputy Director General of Legal Management and Legal Assistance of the Department of Financial and Tax Inspection

Mr. Marcos Alvarez Suso

Deputy Director General of Coordination and Management of the Collection Department

Mrs. Virginia Muñoz Fernández

Members representing Associations and Colleges

Spanish Association of Tax Advisors

Member in charge of Studies and Research

Mr. Javier Gomez Taboada

Director of the Study Office

Mr. Arturo Javier Jimenez Happy

Professional Association of Accounting and Tax Experts of Spain

Secretary of the Board of Directors

Mr. José Antonio Fernández García-Moreno

Member of the Board of Directors

Mr. Antonio Ibarra Lopez

General Council of the Spanish Bar Association

Vice-Dean of the Balearic Bar Association

Mr. Rafael Gil March

General Council of Colleges of Administrative Managers of Spain

Head of the Tax Department of the General Council

Ms. Pilar Otero Moar

General Council of Official Colleges of Social Graduates of Spain

Member of the Fiscal Affairs Committee

Mr. Jose Castaño Semitiel

Spanish Federation of Professional Associations of Tax Technicians and Tax Advisors

Chairperson

Mr. Joan Torres Torres

Second Vice President

Mr. Adolfo Jimenez Ramirez

Office of Administrative Managers and Tax Advisors

Lawyer

Mrs. Raquel Cobos Casero

Registry of Tax Advisors Economists

Chairperson

Mr. Augustine Fernandez Perez

Vice president

Mr. Miguel Angel Ruiz Ayuso

Technical Secretariat of the Forum of Associations and Colleges of Tax Professionals

Deputy Director General of External Communications of the Planning and Institutional Relations Service

Mrs. Dolores Carreno Beltran

On November 24, 2020, the eighteenth plenary meeting of the Forum of Associations and Colleges of Tax Professionals is held by videoconference, attended by the people mentioned, and in accordance with the following

AGENDA

1. Opening by the Director General of the State Tax Administration Agency.
2. Approval of the minutes of the meeting held on July 7, 2020.
3. Information on the topics discussed in the working groups.
4. Other considerations, requests and questions.

1. Opening by the Director General of the State Agency for Tax Administration

The session was opened by Mr. Jesús Gascón Catalán, Director General of the State Tax Administration Agency and President of the Forum of Associations and Colleges of Tax Professionals, who, after welcoming and thanking everyone present for their attendance, apologized for not being able to attend the last plenary session due to scheduling problems. He also says that technological means are very useful and facilitate communication, but that they must nevertheless be used properly and that meetings, even if they are not in person, must be given the same attention as if they were. The Director General also stated that the Forum's working groups met on 5 November and discussed, among other issues, the new developments in the information declaration campaign, the regulations in process, particularly the Fraud Prevention Bill, and the new tax figures. Regarding the latter, he points out that these are two new taxes not only in Spain, but also in Europe, since the Tax on Financial Transactions only exists in France and, regarding the Tax on Certain Digital Services, it is also only in France where they are finalizing it and it will come into force at the end of the year. He added that the working group meeting also discussed the measures adopted as a result of the health crisis and addressed a number of issues in relation to the Code of Good Tax Practices. To conclude this point, Mr. Jesús Gascón indicates that these issues will be developed in the third point of the agenda.

2. Approval of the minutes of the meeting held on July 7, 2020

Mr. Jesús Gascón gives the floor to Ms. Rosa María Prieto del Rey, Director of the Planning and Institutional Relations Service, who states that the minutes of the seventeenth plenary session were sent to the Associations and Colleges prior to this meeting and that no comments had been received. Addressing the attendees, he asks if anyone has any objections. Since none is formulated, the minutes of the 17th plenary session held on July 7, 2020 are hereby declared approved and it is indicated that it will be published on the Tax Agency's website, in the space reserved for this Forum.

3. Information on the topics discussed in the working groups

The Director General of the Tax Agency then moves on to the third point on the agenda and gives the floor to Mr. Gonzalo García de Castro, Director of the Tax Management Department.

Mr. Gonzalo García de Castro, after greeting those present, reiterated what the General Director had said and pointed out that the videoconference format, so widely used during this special situation caused by the health crisis, allows us to stay in touch and continue with activities and meetings, which should be given the same value as if they were in person. He then said that the meeting of the working groups on 5 November was very extensive and productive and noted that during the meeting, an exhaustive analysis of the regulations in process, the information declarations, etc. was carried out. He added that, therefore, in today's plenary session he will briefly refer to what was discussed in the working groups, as he prefers to comment on the developments that have occurred since that meeting, as well as some issues that are being worked on for the fairly immediate future. Thus, it highlights the following issues:

• In relation to the Immediate Information Supply system ( SII ), it informs that the Order HAC/1089/2020 that modifies has been published in the BOE the information system and the keeping of the VAT record books through the electronic headquarters of the Tax Agency for those obliged to the SII . It contains three fundamental aspects:

  • SII is adapted with regard to operations related to sales of goods on consignment;

  • the possibility of identifying the quotas borne by the acquisition or importation of investment goods is introduced;

  • The possibility of identifying operations in which the right to deduction will be exercised at a time after that in which the tax is borne is added.

  Mr. Gonzalo García de Castro adds that the effort to improve the information of SII is aimed at advancing assistance services and facilitating voluntary compliance for taxpayers. Thus, the objective is to achieve “consolidated VAT books”, that is, that the information from the different record books (invoices received, invoices issued, investment goods and intra-community operations ) reaches the highest possible quality, so that, through the Pre303 help service, it can be transferred to a self-assessment in a practically automatic way. He also notes that the new validations of SII are now available to companies and developers in the test environment.

• Regarding the information statements, he reiterated that all models were discussed in great detail at the meeting held on 5 November. He added that throughout the month of December the various ministerial orders approving modifications, usually partial, to the different models will be published. On the other hand, it indicates that the Special Delegations will organize the traditional information sessions, although, due to the pandemic, with a different format, but trying, in any case, to maintain the same intensity in terms of communication and interrelation in order to serve to facilitate compliance with tax obligations and clarify any doubts and incidents that may arise. He also points out that a section with all the campaign documentation has already been published on the Tax Agency's website and that this year explanatory notes have been included on certain aspects of a certain impact, derived from the socio-economic contingency that is being experienced.

• In relation to the models of the two new tax figures (Tax on Financial Transactions and Tax on Certain Digital Services) it indicates that the regulations have not yet been published in the BOE and, consequently, neither have the ministerial orders. He added that, however, once the rules have been published, the Tax Agency will publish information notes with frequently asked questions in order to clarify and resolve any doubts that may arise.

• Regarding Council Directive (EU) 2018/822, of May 25, 2018 (DAC 6), Mr. Gonzalo García de Castro comments that he hopes that all the regulatory developments will be published in the short term and that it can also be published, the ministerial order that would approve models 234, 235 and 236.

• Regarding the priority established in the Strategic Plan of the Tax Agency 2020-2023 regarding the promotion of information and assistance services to taxpayers as a means of promoting voluntary compliance, the Director of the Tax Management Department points out that his Department is working decisively on the adoption of solutions that allow all the information available to the Administration to be made available to the taxpayer, prior to the submission of the declarations, and that facilitate their preparation. Thus, it highlights the following actions:

  • In Corporate Tax:

    • The previous campaign was the first time that tax data was communicated to interested parties, although only for viewing and comparison purposes. Access to the information became available from 1 July and 500,000 taxpayers had access to it.

    • In the next campaign, the data is expected to be available at least one week before the start of the campaign and the transfer to the declaration will be done automatically with the possibility of correction by the interested party. If the boxes corresponding to the breakdown of adjustments in the accounting result had been voluntarily filled in during the 2019 campaign, the data would also be transferred automatically. In addition, special emphasis will be placed on the census part of the declaration (identification data of the entity, representatives, tax domicile, etc.), but with flexibility, allowing progress in its preparation and allowing the returner to later complete the missing data.

  • In VAT :

    • Pre303 Help Desk: Given that VAT is a very complex tax, it should be noted that, however, 85% of taxpayers are subject to the general regime, which is simpler than the special regimes (special regime of used goods, art objects, antiques and collectibles, special regime for travel agencies, special regime for the group of entities, etc.). Thus, the improvements introduced in the SII allow progress in the assistance services for a large group of taxpayers, since, by having more reliable data, the Tax Agency can provide the taxpayer with higher quality information, in the form of consolidated books, which, through Pre303, will allow the self-assessment to be completed in a practically automatic way.

    • Integrated management VAT / censuses: Given that in the scope of VAT there are options linked to census-type modifications that must be carried out through form 036, it is that the self-assessment of form 303 for a specific period serves to make these modifications, which would be transferred to the census and would take effect in the self-assessments of the following periods.

    • Virtual Assistance Tools:

      • Differentiated Sector Calculator: In VAT the area relating to the differentiated sectors is somewhat complex, so the use of this tool can be very useful. It allows us to know, when more than one activity is carried out, whether they constitute differentiated sectors for the purposes of applying the prorata rules. Work is also underway to ensure that the response obtained with the tool becomes increasingly more personalised.

      • Locator of deliveries of goods and services: It is an instrument that allows you to determine where the provision of a service / delivery of a good is located and taxed in VAT and around 450 combinations can be made. The results it returns are constantly being checked and, internationally, it is a highly valued tool.

      • Property grader: It has a fairly simple operation and allows the taxpayer to know if a specific transaction for the sale or lease of real estate is subject to VAT or the Property Transfer Tax.

      • Calculator of deadlines for modifications of tax bases and other corrections: Returns as a result the deadline to issue a corrective invoice or modify the input VAT deducted.

      Finally, in relation to virtual tools, Mr. Gonzalo García de Castro adds that they are fundamental support instruments to increase legal security and that the objective being worked on is to achieve that, if a taxpayer accesses the tool by identifying himself, it returns a personalized response in his name.

  • In the IRPF : Progress continues to be made in improving information and assistance services in order to achieve greater transparency and a more collaborative environment. In this line of action, the technical compatibility between the regulations governing invoicing obligations, the keeping of registration books in Personal Income Tax, as well as those of the declaration itself, will make it possible that in the next campaign taxpayers who carry out an economic activity can automatically transfer to the corresponding boxes of the declaration the amounts recorded in the tax registration books (sales and income and purchases and expenses), in an aggregated manner, as long as the format of the books is the standard format of registration books published by the Tax Agency on its website. Furthermore, in this homogenization and standardization process, already in 2020, the Personal Income Tax record books can be used for VAT and, in 2021, They may also be used for IGIC . These actions will therefore simplify and facilitate compliance with the tax obligations of 1,400,000 taxpayers, individuals, by allowing them to comply with the formal obligations of two taxes with a single registration.

Mr. Jesús Gascón thanks Mr. Gonzalo García de Castro for his intervention and gives the floor to Mr. Javier Hurtado Puerta, Director of the Department of Financial and Tax Inspection, to comment on the part corresponding to the scope of his Department of the issues discussed at the meeting of the working groups.

Mr. Javier Hurtado begins his speech by stating that he will refer to the Bill on measures to prevent and combat fraud, but that, first, he will give the floor to Mr. Marcos Álvarez Suso, Deputy Director General of Legal Organization and Legal Assistance, who will present the issues relating to the transposition of Council Directive 2016/1164 of 12 July 2016. He adds that the Directive addresses five areas (establishment of a general anti-abuse rule, a new international tax transparency regime, the treatment of so-called hybrid asymmetries, the limitation of the deductibility of interest and the regulation of exit taxation), although the draft Law on Measures for the Prevention and Fight against Fraud has limited itself to transposing two of the issues on the grounds that the other sections have already been transposed or there is still time for future transposition.

Mr. Marcos Álvarez begins by pointing out that Directive 2016/1164 refers fundamentally to direct taxation and that, as the Director of the Department of Financial and Tax Inspection has commented, there are five aspects that Spain is obliged to transpose into its internal legal system, although only two are included in the draft Law. He added that the text of the draft law was published in the Official Gazette of the Cortes Generales on 23 October and is in the phase of submitting amendments until 25 November. The Deputy Director General for Legal Regulations also points out that the two issues being transposed are the following:

• Transposition of issues relating to a new international tax transparency regime: In short, the Directive includes various types of income that may be subject to imputation under this regime and which were not previously included in Spanish law. It also allows for the existence and application of national provisions aimed at establishing a higher level of protection, as is the case in Spain, where it has been decided that more income can be attributed than that derived from the strict transposition of the Directive.

• The imposition of exit or exit tax : The main novelty is that latent capital gains derived not only from the transfer of certain assets outside Spain will be taxed, but it will also affect the transfer of the taxpayer's own activity. In addition, the Directive provides for the right of the taxpayer to spread the payment of the exit tax over five years.

On the other hand, Mr Marcos Álvarez comments that, in relation to the aspects of the Directive that are not transposed in the Draft Law on measures to prevent and combat fraud, the issue of establishing a general anti-abuse rule is already included in articles 13, 15 and 16 of the General Tax Law and, with regard to the limitation of the deductibility of interest and the treatment of so-called hybrid asymmetries, the Directive itself allows a longer period for its transposition.

Mr. Javier Hurtado thanks Mr. Marcos Álvarez for his intervention and points out that he wishes to highlight two issues regarding the content of the Bill on measures to prevent and combat fraud:

• The first of these is included in the explanatory statement and refers to the aim of the regulation to establish a comprehensive strategy that, in addition to an appropriate legal framework, includes a tax administration equipped with the necessary means to face the challenges in terms of prevention and fight against tax fraud arising from the globalisation of the economy, new business models and the emergence of disruptive technological advances.

• The second question concerns the existence in the articles of provisions dedicated to cooperative administration as a means of avoiding litigation and controversies, clarifying, for example, the assessment of certain taxable events.

The Director of the Department of Financial and Tax Inspection then reviews the issues discussed at the meeting of the Forum's working groups in relation to the tax changes introduced by the Bill in various regulations:

• Tax havens: These types of territories are now called “non-cooperative jurisdictions.” The inclusion of a country or territory in this category will be carried out based on the following criteria:

  • territories with which there is no effective exchange of tax information;

  • or where there is low or no taxation;

  • or facilitate harmful or damaging tax practices.

  The list of non-cooperative jurisdictions will be constantly updated, taking into account the reviews carried out by both the EU and the OECD .

• Succession agreements: In the event of the transfer of the asset before the death of the deceased, the beneficiary of the succession agreement is subrogated in the position of the deceased with respect to the value and date of acquisition.

• Cryptocurrencies: New reporting obligations are established in relation to the holding and operation of virtual currencies, both in relation to the balances held by the holders of the same, as well as the operations in which they intervene (acquisition, transmission, exchange, etc.). These assets are expressly included in Form 720, the informative declaration on assets and rights located abroad.

• Insurance unit linked: They are included in the Wealth Tax, even when the policyholder does not have the power to exercise the right of redemption.

• In the Tax on Property Transfers and Documented Legal Acts and in the Tax on Inheritances and Donations, the term “real value” is replaced by “value”, equating this concept with market value. In the case of real estate, the reference value is the result of exhaustive work carried out by the General Directorate of Cadastre. This rule also applies to the Wealth Tax.

• Value Added Tax: The assumption of subsidiary liability for payment of tax debt is extended to the holders of fiscal warehouses other than customs warehouses when the goods are extracted by persons who are not included in the "register of extractors" established for this purpose. Mr. Javier Hurtado points out that this is a measure that arises from the detection of criminal organizations dedicated to fraud in the commercialization of hydrocarbons.

• Modifications to the General Tax Law:

  • Prohibition of the establishment of any extraordinary tax regularization mechanism that implies a reduction in the amount of the tax debt.

  • For reasons of proportionality and tax justice and to avoid the so-called “jump error”, the system of surcharges for late payment is modified, establishing a regime of increasing surcharges of 1% for each full month of delay without late payment interest until twelve months of delay have elapsed. Starting the day after the 12 months have elapsed, in addition to applying a 15% surcharge, late payment interest will begin to accrue. Likewise, those who voluntarily regularize a tax conduct that has been previously regularized by the Administration for the same tax concept and circumstances, but for other periods, without having been sanctioned and provided that it is done within 6 months from the day following notification of the liquidation, are exempt from the surcharge for late filing.

  • In order to prevent the production and possession of computer programs that in any way allow the manipulation of accounting and management data, it is required that computer or electronic systems that support accounting or business management processes comply with certain requirements that guarantee the integrity, conservation, accessibility, legibility, traceability and inalterability of the records. Mr. Javier Hurtado adds that it is clear that the tax authorities are not proposing these changes to the law with the intention of imposing sanctions, but that it is also clear that sanctions must be provided for in cases of non-compliance with them. Thus, a specific sanctioning regime is established. On the other hand, the Director of the Department of Financial and Tax Inspection points out that a self-certification system is planned to ensure that the requirements are met by the manufacturers, producers and distributors of software, so that, if non-compliance occurs, the sanction will fall on the producer and not on the client who could have purchased the product unaware that it did not comply with the standard.

  • Two changes are made to the list of debtors to the Treasury:

    • The amount of outstanding debt that would result in inclusion on the list is set at 600,000 euros.

    • In order to encourage voluntary payment of debts, it is established that the debtor may be excluded from the list provided that the debts and tax penalties have been fully collected before the end of the period for objections following the communication of their inclusion in the list.

  • A new case of suspension of the calculation of the period of inspection actions is established, motivated by the obligations established by the laws of the Basque Agreement and the Navarre Agreement in order to achieve cooperation and coordination between the central Administration and the regional Administrations.

  • The mandatory nature of the non-compliance report in the non-compliance reports is eliminated: Mr. Javier Hurtado points out that the deletion has no practical effect, since, currently and for quite some time, the word processors used allow the text of the minutes to have the necessary dimension so that the factual and legal grounds that motivate them can be incorporated into its content.

  • The list of possible infringing subjects is modified in order to give homogeneous treatment to offenders both in the corporate tax consolidation regime and in the special regime for the group of entities in VAT .

  • The reduction applicable to tax penalties arising from minutes of agreement is raised to 65%. In the case of conforming reports, the reduction remains at 30% and a reduction of 40% is established for prompt payment, so the reduction can reach 58% of the penalty.

  • The maximum period for the initiation of sanctioning proceedings is set at 6 months.

  • The limit on cash payments is reduced to 1,000 euros, although it remains at 2,500 euros in the case of transactions between individuals. The Director of the Department of Financial and Tax Inspection adds that the limitation of cash payments has proven to be a very useful measure in the fight against tax fraud and the black economy and that this reduction represents a step forward in prioritizing the use of electronic payment methods that allow, in some way, their traceability.

Mr. Jesús Gascón then thanks Mr. Javier Hurtado Puerta for his intervention and moves on to the next point on the agenda.

4. Other considerations, requests and questions

The President of the Forum offers the floor to those attending in case they wish to make any comments.

First of all, Mr. Rafael Gil March, representative of the General Council of the Spanish Bar Association, intervenes. He points out that, although it is true that the Tax Agency is devoting a great deal of effort to facilitating declarations for taxpayers, however, when responding to requests for information from both taxpayers and tax professionals, he has to say that when trying to contact an administration, it is very difficult to make inquiries. He therefore wants to know whether the Tax Agency plans to strengthen this service.

Mr. Gonzalo García de Castro replies that, as set out in the Tax Agency's Strategic Plan 2020 - 2023, the establishment of a channel for resolving information requests (Comprehensive Digital Assistance Administrations - ADI) is planned in the short term, in which attention and assistance to the taxpayer will be carried out exclusively by electronic and telephone means and which will be a complement to face-to-face administrations. It also points out that the aim is to establish a more orderly structure that contributes to providing greater agility and certainty to relations with the Administration, not only for the taxpayer in general but also for social collaborators, who have the permanent need, derived from the exercise of their profession, to contact the Tax Agency in relation to application issues, both material and procedural. The Director of the Tax Management Department adds that the ADI will have specialized personnel in the most complex tax figures, so that responses can be issued more immediately. On the other hand, the ADI will also contribute to physical administrations being able to reinforce face-to-face attention in those areas that are traditionally most in demand, allowing more staff to be allocated, for example, to dialogue in those cases in which a verification procedure or another nature has already been initiated. Finally, Mr. Gonzalo García de Castro comments that the Comprehensive Digital Assistance Administrations will soon be officially inaugurated.

Mr. Jesús Gascón then adds that face-to-face customer service and assistance is a very demanding activity that consumes a large part of the resources of traditional offices and that, therefore, the strategic bet is to open digital administrations that provide this type of service. He points out that we are not going to start with IRPF , since, precisely, in this tax there is a good taxpayer service. However, the Tax Agency understands that in the areas of censuses and VAT reinforcement actions can be developed that, gradually, would be extended to the rest of the taxes and areas of action. The Director General also reports that a ADI is currently operating in the testing phase in Valencia, with 60 employees and jurisdiction throughout the national territory. Finally, it indicates that the ADI are not only designed for care and assistance tasks, however important preventive activity is considered, but the idea is that they also have a prominent role in assistance in tax procedures and that the taxpayer or his representative can carry out procedures and procedures by videoconference or telephone.

Mr Rafael Gil intervenes again to comment that it would be good if this initiative were launched as soon as possible, since they are receiving many complaints about the impossibility of contacting the Tax Agency by telephone, especially in matters relating to collection, when trying to carry out some type of action in relation to fractioning or deferrals or to find out the procedures that must be carried out.

Mr. Jesús Gascón answers that, in parallel with the ADI project, telephone services in the collection area have been reinforced, but that it must be taken into account that, so far this year, one million additional deferral requests have been received in addition to those normally processed by the Tax Agency. He adds that, however, it is expected that the capacity to handle around one million calls per year will soon be reached, just from the collection area, and that other measures will be adopted depending on how economic activity evolves.

Mr. Guillermo Barros Gallego, Director of the Tax Collection Department, then intervened to point out that the information and assistance telephone line for citizens in the tax collection area has been answering all calls for several weeks now, although on specific days such as those on which a deadline expires, for example, October 20, it is possible that the percentage of calls answered drops somewhat and is around 85%.

Next, Mr. José Castaño Semitiel, representative of the General Council of Official Colleges of Social Graduates of Spain, takes the floor. He comments that he thinks the provision of tax data to taxpayers is very appropriate, since social collaborators are increasingly required to meet more requirements to access their clients' information due to regulations on personal data protection. He adds that having tax data provides them with security in the development of their activity, since it complements the information they have available. On the other hand, it indicates that, in relation to the informative declarations, liquidation proposals are being received directly based on an informative declaration from a third party, without having previously verified where the discrepancy came from. The Commission therefore requests that the Tax Agency, before issuing a settlement proposal, investigate what is causing the discrepancy, whether it is an error in the information declaration or in the self-assessment, and even that the necessary clarifications be requested. He added that, in relation to the requirements of the Tax Agency, he also wants them to be more specific and to clearly specify the data that is being requested.

Mr. Gonzalo García de Castro responds that, normally, in the event of a discrepancy between a taxpayer's self-assessment and an informative declaration submitted by a third party, the appropriate procedure is to be initiated, normally with a limited verification, with an initial communication in which the taxpayer is clearly informed of the reason for the communication and, where appropriate, the specific data considered appropriate are requested. From then on, if the data provided by the taxpayer does not allow the procedure to be resolved, the tax management body will have to contact the person who submitted the information return and request the necessary information. Once all the data has been compared, the evidence will allow the liquidation proposal or the filing of the case to be formulated. However, the Director of the Tax Administration Department indicates that it is possible that in some specific cases malpractice may have occurred, but that this is not the norm. He adds that, likewise, with the creation of the ADI and the support that they will provide to the physical offices, it will be possible to reorient the activities of the latter and offer a higher quality service, avoiding situations such as those described by Mr. Rafael Gil and Mr. José Castaño. On the other hand, in relation to the digital offices, he comments that their hours will be from 9 a.m. to 7 p.m., that is, they will have longer hours than the face-to-face administrations and, in addition, they will also provide services in the Customs area and possibly some specific aspects related to large companies.

Next, Mr. Javier Gómez Taboada, representative of the Spanish Association of Tax Advisors, took the floor and said that he would like the following statements to be included in the minutes of the plenary session: On the occasion of the publication on October 23 in the Official Gazette of the CCGG (Congress of Deputies) of the Agreement of the Chamber Board entrusting the Finance Commission with the approval of the “Draft Law on measures to prevent and combat tax fraud, transposing Directive (EU) 2016/1164, of the Council, of July 12, 2016, which establishes rules against tax avoidance practices that directly affect the functioning of the internal market, the modification of various tax rules and the regulation of gambling", the AEDAF wishes to make the following considerations:

• Although we are aware that the Tax Agency is not - at least not formally - the official promoter of the legislative initiatives of the Ministry of Finance, the truth is that it is the Agency, in its permanent contact with daily tax practice, that initially detects aspects susceptible to legal reforms. Proof of this is that Mr. Javier Hurtado (Director. The Tax Inspection Department has just stated that “the tax authorities are proposing (these) changes to the Law” (referring, precisely, to this Bill currently in parliamentary procedure).
• Furthermore, the objectives of this Forum include i) “deepen mutual understanding between the Tax Agency and the professionals represented in it, within a framework of cooperation, transparency, technical rigor, objectivity, proportionality and receptivity”, and ii) “increase legal certainty in the relations of taxpayers and tax professionals with the Tax Agency”.
• And, in any case, the Tax Agency will always be able to channel to the Ministry of Finance the concerns that are conveyed to it from the Forum in order to achieve these laudable objectives. This is acknowledged in the minutes of the Plenary Session of July 7: “Ms Rosa María Prieto (…) reiterates that she wishes to ensure that this Forum has served as a channel of communication with other bodies and that it has done so extensively during this period, conveying all issues and supporting those that it has deemed reasonable and viable.”
• For all these reasons, the AEDAF expresses its deep discomfort at the introduction in this Bill of several aspects (suspensions before the TEAs, regime of inheritance agreements, Market Reference Value, omission of any reference to the repeal of 720, ...) that would ignore repeated judicial pronouncements (not a few from the Supreme Court) and that, furthermore, have little or nothing to do with fraud and much to do with the defense of the rights and freedoms of citizens in their role as taxpayers.
• This practice, which had already been detected on previous occasions, is now becoming more acute, and the AEDAF considers it extremely serious due to the institutional deterioration it represents and also the undermining of the separation of powers (one of the bastions of any self-respecting State of Law).

Mr. Jesús Gascón answers that, indeed, the Forum serves as a communication channel with other instances of the Administration and that, perhaps, it would be convenient to reflect on its scope, as well as the objectives it pursues and, even, its composition. He adds that the question of whether it should be a forum for the managing tax authorities or whether the Ministry should participate, and specifically the General Directorate of Taxes, has been a hotly debated topic from the start, as has happened in the Large Companies Forum. Finally, it was concluded that if the General Directorate of Taxes was involved, the issues would always revolve around substantive law and the regulations pertaining to taxes and very little about tax administration. Thus, regardless of whether the regulatory process and the interpretation of the rules were considered to be areas of great importance, it was decided that only the Tax Agency would be represented, since there were also many incidents to be resolved in the area of application of the tax system. Mr Jesús Gascón adds that, however, representatives of the General Directorate of Taxes participate in the meetings of the working groups when it is considered appropriate. To conclude this matter, the Director General reiterates that this Forum serves as a communication channel and that the issues raised by the Associations and Colleges represented therein and which are not within the jurisdiction of the Tax Agency are forwarded to the Ministry as quickly and efficiently as possible.

Next, in relation to the draft Law on measures to prevent and combat tax fraud, Mr. Jesús Gascón highlights that it is of considerable scope since it includes everything from transpositions of directives to modifications proposed by the Tax Agency and other bodies, as well as by tax administrations other than the state, and which respond to very different purposes. Thus, it points out that, for example, in relation to the proposed modifications in the area of transferred taxes, the Tax Agency, through the Higher Council for the Direction and Coordination of Tax Management, has had little participation, its role having been limited, basically, to serving as a channel of communication for the CC.AA. with other bodies of the Administration. On the other hand, he adds that the Tax Agency is aware that the draft Law has not resolved certain problems, such as the one mentioned by Mr. Javier Gómez Taboada in relation to form 720, although in this case it seems quite clear that the official Spanish position is to wait for the ruling of the Court of Justice of the European Union.

To conclude his speech, Mr. Jesús Gascón reports that the only point mentioned by Mr. Javier Gómez Taboada in which the Tax Agency has had a more direct participation has been in relation to suspensions and has been motivated by the high current amount of the suspended debt.

Next, Mr. Arturo Jiménez Contento, representative of AEDAF, took the floor and commented that, in relation to the transposition of DAC 6 and, specifically, the obligation to report cross-border mechanisms whose first phase of execution was carried out between June 25, 2018 and June 30, 2020, he understood that the declaration date would be February 2021. He added that yesterday an amendment by the Socialist parliamentary group was published in the Bulletin of the Cortes Generales (Senate) in which it referred to the Regulations regarding the obligation to provide information for this period. He therefore wishes to know whether the Regulation is expected to introduce any changes to the submission deadlines.

Ms. Mercedes Jordán replied that she was unaware of the amendment submitted and that the expected deadline is January and February 2021.

Next, Mr. Joan Torres Torres, representative of the Spanish Federation of Professional Associations of Tax Technicians and Tax Advisors, intervenes. He comments that, in relation to tax queries, it is sometimes difficult to determine whether it is an interpretative issue or whether it is an application of the law and that, therefore, doubts arise about the body to which they should be addressed. He adds that it would be desirable for queries to be raised through the Forum and for the Tax Agency to be directly responsible for channelling those questions that were not within its scope to the competent body. Thus, Mr. Joan Torres asks whether progress is being made in this area.

Mr. Jesús Gascón answers that, unless a binding query is desired, tax queries can be submitted through the Forum, with the Tax Agency being responsible for analyzing whether they can be answered directly, because there is already an administrative criterion, or whether it is necessary for the General Directorate of Taxes to resolve. He adds that the model being worked on is that of a “single channel”, since with the existing technological advances it is becoming meaningless to require a taxpayer with little tax knowledge to know which body to contact with their queries. This is the model that virtual assistants are being developed with. The idea is to guide the taxpayer until he or she is provided with the information he or she needs, without requiring him or her to know who he or she is dealing with, and if he or she cannot be helped in this way, direct him or her to submit his or her query in writing, without him or her having to know to whom he or she must address it, since it will be the Tax Agency itself that redirects the request to the competent body. Thus, the General Directorate of Taxes will respond in those cases where there is no administrative criterion or where the taxpayer prefers a binding response and, in the rest of cases, the Tax Agency will inform the taxpayer that there is a criterion or a binding consultation that resolves their doubt.

Mr. Joan Torres comments that it would be a good way to facilitate and simplify tax consultations.

Next, Mr. Antonio Ibarra López, representative of the Professional Association of Accounting and Tax Experts of Spain, took the floor. He stated that the groups represented at this Forum were quite surprised to learn from the press on the afternoon of 5 November, just after the meeting of the working groups of this Forum in which a review of the regulatory projects was made, that the Director General of the Tax Agency announced that new regulations were going to be prepared in relation to the issue of entry into homes following the Supreme Court ruling.

Mr. Jesús Gascón then points out that on November 5 he appeared before the Budget Committee of the Congress of Deputies, on the occasion of the presentation of the draft General State Budget Law for 2021. He added that for these appearances the parliamentary groups request the attendance of people who they think can provide information on the subject and that the format consists of answering the questions posed by the representatives of the parliamentary groups. Indicates that if any of those present are interested, the transcript of the appearances will be recorded in the session journal. Thus, a Member of Parliament pointed out, in relation to the recent Supreme Court ruling on house searches, that it seemed absurd to him to have to warn someone that they were going to be investigated and asked whether the Tax Agency was studying how to provide inspectors with the necessary tools to be able to continue carrying out their activity effectively, in the face of a ruling that in some way limited their powers. The Director General of the Tax Agency added that he responded that this ruling dealt with a very complex issue since it concerned two rights that had to be reconciled, the inviolability of the home and tax verification as a means of guaranteeing the effectiveness of the tax system. Thus, the Supreme Court's ruling, based on a specific case, basically concludes that when the tax authorities request judicial authorization, they must provide evidence and sufficiently motivate their actions, so that the investigating judge can carry out a jurisdictional control of the provenance of the home entry, that is, it cannot be requested with poorly contrasted evidence, which is incontestable. Mr. Jesús Gascón points out that he commented that for the Tax Agency the critical point of the ruling was having to initiate an inspection procedure with notification to the interested party in order to request judicial authorization for a home entry, with the risk of destruction of evidence that this could entail and that it was possible that some regulatory modification would be necessary. He also stated that he considered that resorting to criminal proceedings on a recurring and systematic basis was not the solution and that the conclusion could not be that, if the cases that were normally resolved through administrative proceedings with judicial control became complicated, the criminal proceedings should automatically be resorted to. Finally, Mr. Jesús Gascón points out that on November 5 there was no premeditated decision to communicate in relation to the sentence, but that, nevertheless, the matter is being studied and a regulatory solution cannot be ruled out.

Next, Mr. Agustín Fernández Pérez, representative of the Registry of Tax Economists and Advisors (REAF), took the floor. He said that he was appointed President of REAF last June and that he only wanted to introduce himself and greet everyone present, as well as to point out that he will continue with the activity of REAF in this Forum, contributing the vision of the group he represents, in the matters that are considered appropriate.

The Director General of the Tax Agency welcomes Mr. Agustín Fernández to the Forum and asks him to convey to his predecessor, Mr. Jesús Sanmartín, the gratitude of all those present for his dedication during all these years of work.

Mr. José Castaño then intervened to make three comments: Firstly, it points out that the participation of the General Directorate of Taxes has been an issue requested by tax professionals since the beginning of the Forum, since in the meetings some topic within its area of competence almost always arises.

Mr. Jesús Gascón answers that the relations between the General Directorate of Taxes and the Tax Agency are very cordial and fluid and that there is no problem with their participation, if the associations and colleges represented in the Forum so request, when there is a matter of interest for them to present, whether in a working group or in a plenary session.

Mr. José Castaño continued his speech and pointed out that, secondly, he wishes to reiterate the existing concern among tax professionals, which was already raised at the working group meeting, in relation to taxation by the objective estimation method and that is, being at the end of the year, it is still unknown whether an exceptional waiver system will be enabled for 2021 and what will happen with the regularization of the fourth quarter and with the annual IRPF . Finally, the representative of the General Council of Official Colleges of Social Graduates of Spain comments that he has a client who did not pay the first installment of the IRPF declaration before June 30 and that, now, when he tries to pay it, the Administration tells him that it appears that he is up to date with the payment and that until the campaign ends they cannot provide him with the payment letter. Mr. José Castaño adds that this response surprises him and requests something that has already been raised previously in this Forum, which is that payment letters motivated by previous non-compliance can be obtained easily and quickly.

Mr. Guillermo Barros Gallego, Director of the Tax Collection Department, responded that he would need some additional information to be able to find out what happened to cause the error mentioned. The Tax Agency is also working on the issue of payment letters and is expected to have a tool available to taxpayers at the beginning of 2021 to speed up and facilitate the payment of tax obligations for those who wish to comply with them.

Mr Jesús Gascón then points out that, in relation to the other issue raised, that of the Modules, he does not know whether a decision has been taken, but he is aware that the Ministry is aware of the problem. He added that, in his opinion, it does not seem very reasonable that the measures adopted in relation to quarterly self-assessments will not be able to be transferred to annual declarations, but that, nevertheless, we must wait to see what is decided. On the other hand, Mr. Jesús Gascón adds that there is a lot of activity coming up in the first half of 2021, given the existence of several regulatory projects being processed (General Budget Law, Law on Measures for the Prevention and Fight against Tax Fraud, other regulations announced on environmental taxes, etc.), which will have to be adequately monitored. Furthermore, it indicates that the Strategic Plan of the Tax Agency 2020-2023 will be maintained in its terms, although, nevertheless, the annual planning will be affected since it is foreseeable that the beginning of the year 2021 will continue to be atypical. He added that, in order to ensure that the Tax Agency's planning is increasingly transparent, he hopes to be able to discuss at the next meetings which lines of action will be promoted and the projects in progress.

Since there are no new interventions, the Director General of the Tax Agency thanks everyone for their attendance and participation and closes the eighteenth plenary session of the Forum of Associations and Colleges of Tax Professionals.