Minutes of the meeting

MINUTES OF THE MEETING OF THE PLENARY SESSION OF THE FORUM OF ASSOCIATIONS AND
COLLEGES OF TAX PROFESSIONALS
HELD ON JULY 6, 2021

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 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 of Management and Intervention of Excise Taxes of the Department of Customs and Excise Taxes

Mr. Vicente Cillero Martinez

Deputy Director General of Special Procedures of the Tax Collection Department

Mr. Carlos Jose Dorrego Anta

Members representing Associations and Colleges

Spanish Association of Tax Advisors

President

Ms. Stella Raventós Calvo

Member in charge of Studies and Research

Mr. Javier Gomez Taboada

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

Member of the Fiscal Affairs Committee

Mr. Jose Ruiz Sanchez

Spanish Federation of Professional Associations of Tax Technicians and Tax Advisors

Chairperson

Mr. Joan Torres Torres

Second Vice President

Mr. Adolfo Jimenez Ramirez

Registry of Tax Advisors Economists

Chairperson

Mr. Augustine Fernandez Perez

Member of the Board of Directors

Mr. Jesus Fernandez-Bravo Pinto

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. Maria Dolores Carreno Beltran

On July 6, 2021, the nineteenth 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 November 24, 2020.
3. Planning and accountability of the Tax Agency.
4. Information on the topics discussed in the working groups.
5. Group of experts for tax reform.
6. New Headquarters of the Tax Agency.
7. Other considerations, requests and questions.

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

The session is opened by Mr. Jesús Gascón Catalán, General Director of the State Tax Administration Agency and President of the Forum of Associations and Colleges of Tax Professionals, who, after welcoming and thanking everyone for their attendance, comments that, finally, it seems that the data on COVID-19 infections are evolving favorably, although prudence advises continuing to apply preventive and protective health measures. He added that it was not considered appropriate to change the videoconferencing format used to conduct meetings since the start of the pandemic, which, moreover, is allowing them to be held at a fairly acceptable level. The Director General also said that the Forum's working groups met twice during the first half of the year, on 4 March and 3 June, and that item 4 of the agenda will present the most relevant issues discussed at the meetings.

2. Approval of the minutes of the meeting held on November 24, 2020

Mr. Jesús Gascón gives the floor to Ms. Mª Dolores Carreño Beltrán, Deputy Director General of External Communication of the Planning and Institutional Relations Service and Technical Secretary of this Forum, who states that the minutes of the eighteenth 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 18th plenary session that took place on November 24, 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. Planning and accountability of the Tax Agency

Mr. Jesús Gascón begins his presentation by commenting that he will use a presentation in Spanish during his speech. power point sobre los instrumentos de la Agencia Tributaria en planificación y rendición de cuentas. Señala que, en esta materia, la Agencia Tributaria está realizando un esfuerzo de transparencia, remitiendo sus informes al Parlamento y compartiéndolos con las comunidades autónomas, así como a través de su publicación en el portal de la transparencia y en la propia página web. Añade que, además, también se están compartiendo en todos los foros colaborativos en los que participa la Agencia Tributaria, y ello con el doble objetivo de, por un lado, dar a conocer la organización y, por otro, favorecer la recepción de comentarios y sugerencias, que siempre son una gran ayuda para mejorar. Así, indica que en este punto del orden del día va a realizar un resumen de los aspectos más destacados de los siguientes documentos: la adenda del Plan Estratégico de la Agencia Tributaria; las directrices generales del Plan Anual de Control Tributario y Aduanero de 2021 que fueron publicadas en el BOE del pasado 1 de febrero; el Plan de Objetivos 2021; el Componente 27 del Plan de Recuperación, Transformación y Resiliencia relativo a la prevención y lucha contra el fraude fiscal; la evaluación TADAT (Tax Administration Diagnostic Assessment Tool), promoted by the International Monetary Fund ( IMF ), to which the Tax Agency has submitted and which allows to know the degree of alignment of an Administration in relation to the considered best international practices; and, finally, two reports prepared by the Internal Audit Service ( SAI ) in compliance with Law 19/2013, of December 9, on transparency, access to public information and good governance, referring, respectively, to the evolution of the multiannual indicators of the Strategic Plan and the degree of compliance with the objectives in 2020.

Mr. Jesús Gascón then briefly develops the aforementioned documents:

1. Addendum for 2021 to the Agency's Strategic Plan: The Plan was published for general knowledge in 2020 and, despite the exceptional circumstances of recent months, well known to all, it remains in force, although, in order to adjust it to the new circumstances facing the organization, an addendum has been approved, from which the following lines of work can be highlighted:

   • New projects in the area of economic management:

     • Homogenization of public procurement specifications, as well as the development of an ethical code on this matter, which complements the principles of the ethical code of the organization as a whole.

     • Analysis of the current financing system: The Tax Agency has a series of particularities in this area that it does not share with other bodies of the Administration. Thus, it starts from an initial budget that is increased through credit generations based on the increase in income derived from the control actions it carries out. The review process is complex and the final decision on possible improvements to the financing model goes beyond the Tax Agency itself, as it affects the general State budget.

   • Technical assistance to the General Directorate of Taxes ( DGT ) and the Central Economic Administrative Court ( TEAC ): This action consists of the integration of these two bodies, which are so important for the application of the tax system, into the technological infrastructure of the Tax Agency, whose maintenance and development will be the responsibility of the Tax Information Technology Department. The objectives of this project include:

     • Reduction in response times to tax queries by the General Directorate of Taxes.

     • Streamline the processing of files in the economic-administrative courts, with the consequent reduction in pending cases. This project is complemented by the transfer of personnel that has been carried out in recent years by the Tax Agency.

   • Information and assistance actions for taxpayers:

     • Improvement and simplification of the procedure for correcting self-assessments, both in the submission of a correction request and in its subsequent management: The current processing of this type of procedure is more similar to that of appeals or claims than to that of declarations. On the other hand, in a generalised system of self-assessments, requests for rectification are becoming more and more numerous. For example, in 2019, the rectifications arising from the exemption from maternity/paternity benefits declared by the Supreme Court were more than one million, and, for its part, the declaration of unconstitutionality of Royal Decree-Law 2/2016 that affected the fractional payments of Corporate Tax, also meant that a very significant number of rectifications were reached in 2020. The Tax Agency therefore believes that streamlining this procedure is essential and is studying the problems involved, as it is a legally complex issue that will require regulatory changes.

     • Improvement of information and assistance services in the area of collection, both by telephone and through the use of the app .

   • Prevention actions:

     • Use of new technologies in the implementation of a predictive system for errors in the completion of the declaration, based on the experience of previous years, in which errors were observed on a recurring basis in certain items: It was launched in the last IRPF campaign. Thus, through warnings and pop-up messages, the taxpayer is warned of the possibility of making a mistake if he continues with the modification he is making. Since this is a self-assessment system, the taxpayer may ignore the notice. Since the IRPF campaign has just ended, it is too early to make an assessment, but it is expected that fewer incidents will be detected in the subsequent control phase.

     • Systematic exploitation of information from the Single Notarial Index ( IUN ): In February 2020, an Agreement was signed with the General Council of Notaries for the provision of information.

     • Implementation of a standardised channel for consultations through the electronic headquarters of the Tax Agency for Associations and Colleges adhering to the Code of Good Practices.

     • Implementation of the Tax on Financial Transactions and the Tax on Certain Digital Services.

   • Actions to control tax and customs fraud:

     • Final implementation of the virtual visit system (VIVI): Started in 2019 in the inspection area, the situation caused by the health crisis has contributed to its development. Thus, it constitutes a complementary relationship channel, characterized by its voluntariness. Initially it was used for proceedings, and more than 3,000 have already been signed. As for the minutes signed, given that these are acts of greater relevance and, furthermore, they were initiated later, the number is still small.

     • Improvement of the feedback system for information obtained on the reasons for regularisation of inspection actions, in order to assess the adequacy of the regularisation carried out with the reasons for selecting the taxpayers to be inspected.

     • Regulatory development and implementation of strategies to eradicate software for the suppression of sales or dual use, as provided for in the Law on measures to prevent and combat tax fraud.

     • E-commerce: The changes in this area are significant, with a very important case-by-case approach, which will require a great effort to adapt, both on the part of the taxpayers who carry out this type of operation, and on the part of the tax authorities, which will have to manage and control the entire regulatory package.

     • Nationalization of certain powers, such as customs clearance: Nowadays, document management is carried out by digital means, which allows document controls to be relocated in order to achieve greater efficiency in an area where streamlining is a transcendental value for promoting foreign trade.

2. General guidelines of the Annual Tax and Customs Control Plan for 2021: published in the BOE on February 1st are well known to all those present.

3. 2021 Goal Plan: Its purpose is to numerically reflect the activities planned by the Tax Agency, using, given their plurality, different magnitudes for their measurement (number of actions, percentages, days, etc.). The Plan is structured in three blocks:

   • Taxpayer assistance actions: It includes indicators of a wide variety of types, such as web support or streamlining of procedures. As an example, the following objectives can be cited:

     • Users of the Tax Agency app: 2,000,000;

     • average waiting time for telephone calls: 115 seconds;

     • average processing time for appeals: 30 days.

   • Actions to prevent tax and customs fraud:

     • Census: Of the potential census of taxpayers, the objective is to carry out some type of action on 70% of it.

     • Quality of international information: This subject is of great importance for tax authorities, since in recent times the exchange of information between countries has grown exponentially. However, its usefulness depends on the country of origin, with that from the European Union being greater than that from other parts of the world. Thus, in order to carry out systematic data exploitation, it is necessary that the data have a level of quality that allows its incorporation into the information systems of each country, that is, that the information can be assigned to a specific taxpayer. In the case of the Tax Agency, the objective set for 2021 is that 85% of the information received, after the corresponding purification has been carried out, is incorporated into its information systems. With the rest of the information, there is no choice but to contact the country of origin to try to get them to correct the problems detected and that could not be resolved. This is therefore a permanent work process for the international community and it will take some time to achieve a value close to 100%.

     • In the area of Customs and Excise, taking the customs clearance indicator as an example, the target planned for 2021 is 819,726 operations, taking into account the evolution of imports and exports.

     • Civic-tax education: measures the number of hours of training in schools and institutes on this subject. There is no reference for 2021 as the health situation is not conducive to in-person activities. The aim of the programme is to transmit a certain civic and tax culture, so that children and young people become familiar with the meaning of taxes, which are, basically, the source of funding for the state as a whole, including town councils and autonomous communities, with which public services are funded.

   • Actions to control tax and customs fraud: The Objectives Plan includes the number of nominal actions planned in each of the following areas:

     • Control of internal taxes: differentiates, in turn, the following types:

       • For checking: distinguishing between those aimed at large companies, multinationals and tax groups, those for asset and corporate analysis, those for control of the concealment of activity and abuse of corporate forms, those for economic activities and those for control of the application of regulations. It also groups the actions according to the body that carries them out: inspection, Large Business Management Units and tax management.

       • Other checks: It includes tax returns and benefits, formal ones, and information analysis ones.

       • Other actions: includes requirements, reports, complaints and analysis of taxpayers.

       • Research actions: difference between those initiated ex officio by the Tax Agency and those with judicial assistance. In the latter case, there is no “objective” but rather a reference, since the actions are carried out at the request of the courts and the Public Prosecutor's Office.

     • Customs, Special Tax and Environmental Control: It includes the number of verification actions that are planned to be carried out during the year, including those in the area of customs surveillance.

     • Collection control: Two indicators are established: tax control actions and tax investigation actions. The latter have a more selective nature and therefore their number is not very high.

     • Debt collection management: In this case, the objective is quantified by its amount.

4. Component 27 of the Recovery, Transformation and Resilience Plan on the prevention and fight against tax fraud: The package of measures submitted by the Spanish government to the European Commission contains 30 components, of which 27 is specifically related to the scope of action of the Tax Agency, although components 28 and 29 also have some relationship. Component 28 includes, among other measures, the creation of a Committee of Experts for tax reform, already in operation, which will deliver its report in February 2022; Component 29, on the other hand, relating to the improvement of public spending, incorporates the evaluation of the spending review, which is being carried out by the Independent Authority for Fiscal Responsibility ( AIReF ), as an important instrument for designing future fiscal policy. On the other hand, with regard to component 27, the measures it contains are already included in the Tax Agency's planning instruments, although, by including them in the Recovery, Transformation and Resilience Plan, they acquire the status of commitments of the Spanish Government, linked to obtaining the new European financing instruments. Thus, the following measures can be highlighted:

   • Law on measures to prevent and combat tax fraud: It is scheduled for publication in the BOE later this week.

   • Modernization of the Tax Agency: includes the following lines of action:

     • Increase in the workforce in order to recover the numbers that have been lost over the last 10 years and to encourage rejuvenation, since the average age currently exceeds 50 years.

     • Investments in technological means that enhance the IT modernization of tax management.

     • Investments to improve the energy efficiency of buildings, so that they comply with environmental standards.

     • Prioritise the fight against the black economy: It is correlated in the 2021 Objectives Plan with the actions planned in the control area related to the patrimonial and corporate analysis and the control of the concealment of activity and abuse of corporate forms, which are those that have the greatest connection with the tax gap.

   • Strengthening taxpayer assistance: It constitutes one of the fundamental axes of the Strategic Plan of the Tax Agency 2020-2023 and the following actions can be cited:

     • Implementation of Comprehensive Digital Assistance Administrations (ADI) aimed at providing information and assistance services by electronic means using non-face-to-face channels: At the Tax Agency, they have been configured as a complement to the face-to-face attention provided in the offices, whose maintenance is considered essential. The ADI are more directed towards the new generations and the strategy is that they will provide an increasingly comprehensive service, as technological advances allow.

     • Improvement of tax data provided to taxpayers within the framework of corporate tax: In this campaign, it will also be possible to automatically incorporate them through WEB Societies.

     • Advance the help service for completing form 303 (Pre303).

     • In IRPF , improve the automatic import of data recorded in the registration books.

   • Improvement of the system for exploiting information from international sources.

   • Promotion of the cooperative model, which includes:

     • Advance the development of the cooperative relationship with taxpayers: The Tax Agency has provided the European Commission with the number of transparency reports submitted by large companies adhering to the Code of Good Tax Practices as a follow-up indicator for this initiative.

     • Continue to provide assistance to judges and courts in the fight against the black economy and the tax gap: This measure shows that the fight against tax fraud is not just an administrative activity, but that sometimes it is necessary to prosecute the most reprehensible cases of tax fraud.

5. Evaluation TADAT (Tax Administration Diagnostic Assessment Tool): The Tax Agency has submitted to this diagnostic tool which, promoted by the International Monetary Fund ( IMF ), evaluates the performance of a tax administration in relation to the considered best international practices. However, divergence does not always mean that something is being done wrong; It may simply be that a different model has been adopted. What is interesting about this methodology is that it allows us to detect what is being done in a different way, encouraging reflection on whether there are reasons that justify it. Thus, the following can be highlighted from the results report:

   • In most of the areas evaluated, there is a high degree of alignment with international good practices, such as, for example, in information and assistance to taxpayers, censuses, tax control, etc.

   • There are areas in which the grades obtained indicate the need to reflect and work to overcome weaknesses in some aspects of the same. Examples include:

     • The evolution of the underground economy is not analysed in a systematic way. The evolution of the fiscal gap is only analyzed in VAT , within the framework of a European Union initiative, but not in direct taxes.

     • 11% of appeals are resolved within a period longer than the reference period.

     • Accounting for tax payments is carried out every two weeks, which differs from the procedure used by most countries, where the allocation occurs immediately. However, this matter affects budgetary accounting and therefore exceeds the scope of the Tax Agency.

     • Less than 70% of VAT refunds are made within 30 days, although in the case of the Immediate Information Supply system ( SII ) and the Monthly Refund Regime of VAT ( REDEME ), the term is less than the reference value.

     • There is a certain delay in the publication of plans and programs, although this "weakness" is being corrected not only in relation to publication, but also, in an effort to achieve transparency, by disseminating them in areas such as this Forum.

6. Report prepared by the Internal Audit Service (SAI) referring to the evolution of the multiannual indicators of the Strategic Plan of the Tax Agency 2020-2023:

   • Evolution of voluntary compliance: Comparing the evolution of the aggregate tax bases of the different taxes with that of nominal domestic demand, until 2019 the former were growing to a greater extent than the latter. For example, in 2019, tax bases grew by 3.9%, while domestic demand only grew by 2.9%, confirming the trend of the last 4 years. For its part, in 2020 there was a 7.9% drop in the aggregate tax bases compared to the previous year, although this is lower than that suffered by domestic demand ( %) or by nominal GDP ( %). Thus, it can be concluded that the behaviour of voluntary compliance over the last 5 years has been positive, even in a year as atypical as 2020, given that also in this year the fiscal magnitudes have behaved in a more favourable way than the macroeconomic ones.

   • Effects induced on voluntary compliance by the actions of the Tax Agency: Comparing the evolution of the amounts of self-assessments submitted by taxpayers in the three years following an inspection in relation to the three previous years, it can be seen that, for example, taxpayers inspected in 2017 have declared 30.3% more, while the increase for all taxpayers has been 17.8%. These data allow us to conclude that the effects of an inspection do not end at the moment in which the adjustment or collection of the amount occurs, but are projected over time, inducing the taxpayer to better fiscal behaviour. The Tax Agency is therefore studying the possibility of extending this type of analysis to the effects induced in the behaviour of the personal, family and corporate environment of the taxpayer inspected, and even in the economic sector, but at present this is very complex. On the other hand, it should be noted that companies and groups affiliated with the Central Delegation of Large Taxpayers have been exempted from the measurement, since they present a great variability of results between years due to internationalization and business restructuring, which makes it difficult to make comparisons between years homogeneous.

   • Evolution of the calculation base: This indicator reflects the results of the Tax Agency's control activities, although these should not be understood as actions aimed exclusively at combating tax fraud. Thus, the calculation base for the last few years remains stable, with a slight increase in 2020, basically due to the increase in the reduction of refunds. If extraordinary results are excluded from the calculation, which in 2020 were mainly motivated by the declaration of unconstitutionality of Royal Decree Law 2/2016, of September 30, in relation to the fractional payment of Corporate Income Tax, the amount of the calculation base is around 8.5 billion euros. These data are positive for the Tax Agency, since, when related to the first indicator, the improvement of voluntary compliance, the main axis of a modern tax administration, it is logical that as the latter increases, control actions also decrease.

   • Improve efficiency: This index is calculated by dividing, for a specific year, the budgetary cost of the Tax Agency by the taxes it manages. In 2020, the ratio worsened compared to the previous year, standing at 0.77%, due to the significant drop in revenue. However, the current increase in tax collection, together with the fact that the organisation's budget will remain stable, allows us to hope that a ratio of 0.7% will be recovered, which is the ratio presented by the tax authorities in our environment considered to be the most efficient.

   • Debt charge: Of the net manageable debt in executive, 30,569 million euros, 90%, 27,498 million euros, was managed in 2020, when the target set for such a complicated year was 80%. However, despite the positive data, we will have to wait to see if the trend consolidates. On the other hand, in order to carry out a proper analysis of the evolution of the debt, it is worth noting that around 5,000 million euros are paralysed by bankruptcy proceedings and around 12,000 million euros by appeal or claim. Regarding the debt suspended due to bankruptcy proceedings, this has been decreasing in recent years, but, given the special circumstances of 2020, an upturn is expected. The amount of debt suspended by appeal or claim in 2020 was somewhat lower than in 2019, although we will also have to wait to see if the trend is consolidated. It should also be noted that around 40% of the suspended debt is more than 5 years old, hence the effort that the Tax Agency is making to support the economic administrative courts with material and human resources, so that the time periods for resolving appeals and claims are expedited.

   • Litigation: This indicator aims to evaluate the behavior of two magnitudes. On the one hand, it measures the evolution of relative conflict, which in 2020 was 1.72%, very similar to the previous year. In the case of economic administrative claims (REA), the percentage has been 0.7 which, in absolute terms, translates into 132,000 REA filed, a figure lower than in previous years and justified by the lower number of acts issued by the Tax Agency as a result of the health crisis. On the other hand, the second magnitude evaluated by this indicator is the evolution of the number of resolutions that are partially or totally contrary to the Administration's criteria. In 2020, this percentage was 37% in the case of REA and 38% in the case of administrative litigation, although, in relative terms, it should be noted that of the total number of acts issued by the Tax Agency and which are appealable, only 0.29% are ultimately annulled by the courts, either through the economic-administrative route (0.27%) or the administrative-litigation route (0.02%). In any case, given the diversity of functions performed by the Tax Agency, the percentages of annulments of the acts issued vary according to the nature of the different acts being appealed, with there being areas where litigation is minimal, such as in census or tax collection matters. Thus, in the case of management liquidations and sanctions imposed by management bodies, the percentages reach 1.29% and 0.87% respectively. In the case of inspection actions, the percentage of cancellations is 4.48% and, in the case of non-compliance reports, 18.90%, although the latter have a low weight in the total number of reports signed. Finally, it should be noted that the data for this indicator are not presented in amounts due to the bias that extraordinary results could introduce in the comparison of years.

   • Late payment interest paid: Its origin has various causes, such as cancellations of administrative acts, delays in the management of refunds, requests for undue payments made by the taxpayer, etc. Thus, the evolution of this indicator in recent years shows a stable trend, at just over 200 million euros, although it must be taken into account that this amount has been eliminated from those derived from extraordinary results. On the other hand, taking 2014 as a reference year, if we compare the evolution of the amounts to be returned derived from the presentation of self-assessments and the interest rate with that of the interest paid, it can be seen that, despite the fact that the amount requested to be returned has increased by 23%, the late payment interest paid has decreased by around 40%, although the interest rate has dropped by 25%.

7. Report prepared by the Internal Audit Service ( SAI ) regarding the degree of compliance with the objectives in 2020: Mr. Jesús Gascón indicates that the report firstly highlights how atypical 2020 has been and the impact of the health crisis on the activity of the Tax Agency, with the closure of offices, suspension of procedural deadlines, etc. It is added that, in this context and given the uncertainty surrounding the evolution of the pandemic, the Directorate of the Tax Agency decided to reduce the references to be met in most of the indicators. The report states that, as of 1 June 2020, the number of notifications issued had decreased by 46.3% compared to the same period of the previous year. However, it also notes that the gradual recovery of activity allowed for high levels of compliance to be achieved in many of the indicators, although it was decided not to review the references again. In any case, it is noted that in 2020 there has been a drop in actions compared to 2019. In the cited case of notifications issued by the Tax Agency, they fell by 9.5%, although it is true that in 2019 more than two million notifications were issued in relation to the exemption from maternity benefit, which, if eliminated from the calculation, would make the drop 5%. On the other hand, by area the variations have been different:

   • In the extensive control procedures, the number of actions has been maintained, although some, such as those for the control of economic activities, have been reduced by 2.4% in the year-on-year comparison.

   • The number of inspections has decreased by 5.7% compared to the previous year.

   • In the area of Customs and Excise, the decline was 8%, as there was a significant drop in imports and exports.

   • In the area of Collection, the drop was 11% due to the weight in this indicator of the actions of personal appearance, which were drastically reduced.

   Likewise, Mr. Jesús Gascón points out that the report states that in 2020 the majority of indicators had a compliance level of over 100%. He adds that, however, this has not been the case in the following cases:

   • In the use of some virtual assistants, where VAT has acquired a hegemonic role to the detriment of other services on line .
   • In the percentage of calls answered, due to the increase in demand caused by the closure of the offices, which at first could not be attended to, although the situation gradually returned to normal.
   • In the area of internal tax control, in judicial assistance, due to the lower demand for this type of action received from judicial bodies.
   • In collection management actions, due to the difficulties in carrying out certain activities, such as those of appearance in person.

To conclude his presentation, Mr. Jesús Gascón reiterated that the Tax Agency is making an effort to be transparent and that, in case anyone wishes to consult them in more detail, the documents he has referred to have been published on the transparency portal and on the Tax Agency's website. The Forum also notes that planning instruments are subject to modification as needed and, in this regard, invites those present to submit, through the Forum's Technical Secretariat, any observations and proposals for improvement that they consider appropriate, as these are of great help in the review processes.

He then moves on to the next point on the agenda.

4. Information on the topics discussed in the working groups

The Director General of the Tax Agency then moves on to the fourth 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, said that he would briefly refer to the issues discussed in the working groups and to any new topics, from the point of view of attendance, after the meetings. Thus, it highlights the following issues:

• Financial Transactions Tax and Tax on Certain Digital Services: Following the approval of the regulations and ministerial orders that develop the declaration models, the first submissions have already been made: In the case of model 604, in the month of June, and in the case of model 490, they are being produced in the month of July. The Tax Agency's website has published a section where information on the two new tax figures is kept up to date in order to facilitate their application by taxpayers and to disseminate the Administration's opinion on such new taxes.

• Disclosure Statements on Certain Cross-Border Tax Planning Arrangements (DAC 6): Its regulations and the ministerial order that develops the models (234, 235 and 236) have also been approved. Furthermore, information on these declarations is constantly updated on the Tax Agency's website.

• Corporate Tax Campaign 2020: It is reiterated that one of the fundamental objectives of the organization is to encourage voluntary compliance. Thus, in the Corporate Tax, the model initiated in the Personal Income Tax more than twenty years ago is being followed, since the transfer of data prior to filing the declaration has proven to be a very useful tool for assisting taxpayers in improving voluntary compliance. In this regard, the Tax Agency is making an effort to improve the quality of information provided to taxpayers in the Corporate Tax, derived from data declared by the Agency itself and by third parties. Also worth highlighting as a new feature of this campaign is the automatic transfer to the declaration through Sociedades WEB of the imputations of income declared in form 347 and in the Immediate Information Supply system ( SII ).

• Help services in VAT : Since January 2021, Pre303 automatically incorporates into the declaration the census data, those from the aggregated books (LLAA), if they exist, the information from the Tax Agency, such as VAT on import , and amounts from previous declarations. Regarding the census data, a utility has been included that, from the 303 form itself, can be accessed and modified, which represents a simplification of bureaucratic procedures for the taxpayer, while facilitating a permanent updating census information on a tax as complex as VAT . On the other hand, the Tax Agency continues with the development of VAT tools and virtual assistants. The locator for deliveries of goods and services is now in its eighth version, as regulatory changes in this area have been very intense in recent years, especially in relation to Community law. Thus, on July 1, new regulations regarding electronic commerce came into force and, since that same day, the localization tool has been available on the Tax Agency's website, as well as an information section where you can consult the explanatory notes prepared by the European Commission, as well as support documentation containing the Tax Agency's opinion on the application of the regulations in this area. In this regard, Mr. Gonzalo García de Castro requests the collaboration of those present to communicate to the Tax Agency any incident they detect in the use of the tool or any doubts that may arise, since the subject is highly complex and affects many taxpayers, given the current context of economic globalization.

• Finally, the Director of the Tax Management Department reminds those present that virtual assistants are fully integrated with other assistance services such as chats with specialists from the ADI and INFORMA+, where a written response can be obtained, which results in greater legal security.

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 issues discussed in the meetings of the working groups, corresponding to the scope of his Department.

Mr. Javier Hurtado begins his speech by pointing out that the Forum's working groups held two joint virtual meetings during the first half of 2021, on March 4 and June 3, and that he will briefly refer to their content, highlighting the following issues:

• Note on full regularization in the case of VAT : It is published on the organization's website, in compliance with the commitment to transparency assumed by the Tax Agency regarding the dissemination of the criteria it uses in the application of the tax system. It includes current jurisprudence and is based on requiring administrative regularization actions to have this character of integrity, preventing, for example, the deduction of a input VAT that was unduly passed on by a third party, without having previously regularized the situation of the latter.

• Resolution of the Central Economic Administrative Court, of October 21, 2020, in relation to the tax base of VAT and discounts on car sales that are borne by the financial entity that grants the financing : concludes that the discount, to the extent that it is paid to the car seller by a third party, forms part of the taxable base of VAT for the delivery of the vehicle.

• Judgment of the Court of Justice of the European Union of 20 January 2021, on the transfer of cars to employees for their private use: establishes that, since there is no consideration, it is not a transaction subject to VAT . However, during the meeting, the representative of the Department of Financial and Tax Inspection clarified that the ruling did not affect the principle of self-consumption, which implies the acquisition and subsequent internal use of the vehicle by the company.

• Supreme Court ruling of February 8, 2021, regarding the deductibility of late payment interest in corporate income tax: declares that they do not have a character contrary to the legal system and that, therefore, they are deductible in Corporate Tax. The meeting highlighted the difficult reconciliation of this ruling with another ruling, also from the Supreme Court, dated December 3, 2020, which establishes that the late payment interest paid by the Administration in favor of the taxpayer is not included in the taxable base of IRPF , arguing, precisely, the fact that they are not a deductible expense in Corporate Tax.

• Judgment of the National Court of 11 December 2020, regarding the compensation of negative tax bases (BIN): allows the offsetting of negative tax bases in a request for rectification of a self-assessment. At the meeting it was reported that this ruling is contrary to the doctrine of the Central Economic Administrative Court, which has established that the use of a rectification of self-assessments to correct tax options, among which is the option for the compensation of the BIN , is not admissible because it was made out of term. It was also reported that the Administration had filed an appeal in order for the Supreme Court to rule on which doctrine should be applied.

• Law on measures to prevent and combat tax fraud: It has already been approved by Congress and its publication in the BOE is expected shortly. The following issues were addressed at the meeting held on 3 June:

  • Partially retroactive effect of certain changes in the regulations, with favourable effects for the taxpayer:

    • Surcharge for late filing of tax return or self-assessment (Article 27 of the General Tax Law): It consists of 1% plus an additional 1% for each full month of delay with which it is submitted, with respect to the end of the period established for submission and payment. If the submission is made after 12 months from the end of the deadline established for submission, the surcharge is 15% and late payment interest begins to accrue. This new regime applies to all surcharges that are not final on the date the Law comes into force. On the other hand, such surcharges will not be required if the taxpayer regularizes, by submitting a declaration or self-assessment corresponding to other periods of the same tax concept, facts identical to those regularized by the Administration, provided that the latter have not given rise to the imposition of sanctions and the rest of the requirements established in the Law are met.

    • Reduction of penalties under Article 188 of the General Tax Law: The reduction provided for prompt payment and failure to file an appeal or claim increases from 25% to 40% and applies to penalties agreed upon before the Law came into force that have not become final and have not been appealed. In the latter case, the new reduction will also apply if the interested party withdraws the appeal or claim filed against the penalty and, where applicable, against the settlement from which it derives, before January 1, 2022 and pays the remaining amount of the penalty within the voluntary payment period opened with the notification, after accreditation of the withdrawal.

    • Limitation on cash payments: The general limit is reduced from 2,500 to 1,000 euros when one of the parties acts as a businessman or professional. Likewise, the sanctioning regime is modified in order to adapt it to Law 39/2015, of October 1, on the Common Administrative Procedure of Public Administrations, and to Law 40/2015, of October 1, on the Legal Regime of the Public Sector, establishing a 50% reduction, provided that the payment of the sanction occurs prior to notification of the final resolution. In this regard, the new reduction in the penalty for voluntary payment applies to penalties imposed before the entry into force of the Law that have not become final and that have not been appealed. However, in the latter case, the interested party may benefit from a 50% reduction if he or she withdraws the appeal against the penalty before January 1, 2022 and pays the remaining amount of the penalty. On the other hand, the new regulations apply to all payments made after the entry into force of the Law, even if they refer to transactions entered into prior to the establishment of the new limitation.

  • Succession agreements: This issue has been raised by several associations at the working group meetings. Finally, the Law clarifies how it will apply to inheritance agreements signed prior to the entry into force of the law, establishing a transitional regime for the transfer of assets acquired for profit through this mechanism carried out prior to the entry into force of the Law.

  • Cryptocurrencies: Binding consultation 999/2018 of the General Directorate of Taxes has clarified that capital gains are calculated by the difference between the transfer value and the acquisition value and that the result is included in the taxable savings base. Likewise, the valuation on the last day of the year will be included in the Wealth Tax declaration. However, the association that proposed the inclusion of this matter in the agenda of the working group meeting stated that there was a need for regulatory development of the same, since the advance of this form of investment was increasingly gaining public acceptance and many problems were appearing when declaring capital gains and losses. For its part, the Department of Financial and Tax Inspection made an offer to Mr. Antonio Ibarra to participate as a speaker in a course on this new topic, where he would explain the problems he was encountering. Mr. Javier Hurtado also comments that this course is already being prepared by his Department and invites those present to participate.

  Finally, in relation to this point, it was reported at the meeting that, once the Law was in force, the Tax Agency planned to publish on its website a series of explanatory notes in PDF format. faq, in relation to the application of new regulations.

• Supreme Court ruling of 03/23/2021: It establishes that verification of compliance with the requirements for the application of the special tax regimes included in section "e)" of article 141 of the General Tax Law is the responsibility of the inspection bodies and cannot be carried out in the course of a limited inspection carried out by the tax management bodies. It was reported at the meeting that since the number of special regimes in VAT , Personal Income Tax and IS , was high and there was a very varied casuistry, it would be studied case by case. For their part, the associations proposed the extension of the Supreme Court's ruling to all sections of article 141, to which the Tax Agency replied that the ruling had to be framed in the case it was resolving and, therefore, its content, which only referred to point e) of article 141, would be fulfilled literally.

Next, Mr. Jesús Gascón thanks Mr. Javier Hurtado Puerta for his intervention and offers the floor to those present in case they wish to make any comments.

First, Mr. Joan Torres Torres, representative of the Spanish Federation of Professional Associations of Tax Technicians and Tax Advisors (FETTAF), intervenes, asking whether, following the entry into force of the Law on measures to prevent and combat tax fraud, the new wording of article 23.2 would apply to non-prescribed fiscal years or whether these would be governed by the Supreme Court ruling of October 15, 2020. He added that he had already submitted this query in writing previously.

Mr. Javier Hurtado answers that this is a controversial issue, but that the prudent interpretation of the regulatory modification is that it will be applied from the time the rule comes into force.

Mr. Joan Torres intervenes again to ask, in relation to another query that he has also made on previous occasions relating to succession agreements signed prior to the entry into force of the Law, whether the same also applies to them, that is, whether they will be affected by the new regulations that provide that if the beneficiary transfers the asset before the passage of 5 years from the signing of the succession agreement or the death of the deceased, if earlier, he is subrogated in the position of the latter, with respect to the value and date of acquisition of said asset, when this is lower than that which would have resulted from the application of the rules of the Inheritance Tax.

Mr. Javier Hurtado replied that the issue of inheritance agreements had been amended in the Senate and that, as he had read so many versions of the bill, he could not remember how the matter had finally been drafted.

Mr. Rafael Gil March, representative of the General Council of the Spanish Bar Association, takes the floor and comments that he had also raised the issue previously and that if the latest version is finally published, it provides that it will apply to agreements signed prior to the entry into force of the Law and that in those cases in which the transfer of the asset takes place before 5 years have passed since they were signed or the death of the deceased, if this fact were earlier, the beneficiary is subrogated in the position of the latter, with respect to the value and date of acquisition of said asset, when this is lower than that which would have resulted from the application of the rules of the Inheritance Tax. That is to say, it will have a certain retroactive character in the sense that it will affect the elements transferred after the entry into force of the Law, even if they derive from succession agreements signed before the entry into force.

Mr Joan Torres comments that we will have to wait for the publication of the Law and that, in his opinion, retroactive effects are very dangerous.

Mr. Jesús Gascón then gives the floor to Mr. Antonio Ibarra López, representative of the Professional Association of Accounting and Tax Experts of Spain (AECE), who thanks the proposal to organize a course on the taxation of cryptocurrencies, as well as the personal invitation to participate as a speaker in the same, which will allow him to contribute the vision of the AECE on this matter.

Since there were no further interventions, the Director General of the Tax Agency moved on to the next point on the agenda.

5. Expert group for tax reform

Mr. Jesús Gascón informs that, in relation to the recently formed Committee of experts for tax reform, both Ms. Inés Bardón Rafael, Secretary of State for Finance, and Mr. Jesús Ruiz-Huerta Carbonell, president of the Committee, have asked him to inform this Forum that, on the website of the Institute of Fiscal Studies, there is a link through which anyone who wishes to do so can send their observations and proposals to the Committee. This link will be available until July 15th. He added that the Tax Agency is in constant contact with the group of experts, providing them with support in everything they need, which is usually statistics and macroeconomic studies on the impact of the different measures they are considering, but also referring them to practical problems in the application of the tax system. The Director-General also notes that the committee has undertaken to submit its report in February 2022. To conclude this point, Mr. Jesús Gascón informs those present that, if they wish to send their proposals through the Technical Secretariat of this Forum, there is no problem on the part of the Tax Agency.

6. New Headquarters of the Tax Agency

The Director General of the Tax Agency gave way to the sixth point on the agenda and gave the floor to Ms. Rosa María Prieto del Rey, Director of the Planning and Institutional Relations Service, who informed those present that the Tax Agency has been working for some time on the creation of a new website that is expected to be operational in mid-July and that will integrate the current Tax Agency Portal and its electronic Headquarters. He adds that the new website will represent a step forward in usability, as it focuses on the taxpayer's point of view, so that on a single page they can carry out their procedures and find the information available on the subject, while facilitating navigation and allowing them to carry out their procedures in a more intuitive and faster way. It also states that, initially and for a period of approximately three months, to facilitate the transition, a link to the new headquarters will be offered from the current pages and that, after this period, the terms will be reversed and a link to the current ones will be offered from the new website, with the plan being to maintain coexistence until the end of the year, when only the new electronic headquarters will be operational. Finally, Ms. Rosa María Prieto asks those present to send any incident or omission they detect to the Technical Secretariat during the transitional period, as well as any aspects they consider to be improvable, in order to proceed with their assessment and, if possible, modification.

Mr. Jesús Gascón then thanks Ms. Rosa María Prieto for her presentation and moves on to the next point on the agenda.

7. 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, Ms. Stella Raventós Calvo, representative of the Spanish Association of Tax Advisors (AEDAF), intervenes. After thanking the representatives of the Tax Agency for their explanations during the plenary session, she points out that the AEDAF wishes to mention two issues, the first of which is considered to be of greater importance and the other, which Mr. Javier Gómez Taboada will later refer to, in relation to a series of practical cases that are causing no small amount of concern in the group they represent. Thus, in relation to the first question, Ms. Stella Raventós informs, so that the Director General of the Tax Agency has prior knowledge, that, at the end of this meeting of the Plenary of the Forum, the AEDAF will present complaints/claims to the Ombudsman, the Council for the Defense of the Taxpayer and the Council for Transparency and Good Government in relation to the following:

• That taxpayers (nowadays called taxpayers) have, among their increasingly numerous burdens, the duty to submit to the Tax Authorities in general, and to the Tax Agency ( AEAT ), in particular, a wide variety of forms (generally known as "models"), both as self-assessments (in the sense expressly provided for in article 120 of Law 58/2003, of 17/12, General Tax; LGT ) and for the mere purpose of providing information in order to provide the AEAT with data that it considers necessary for tax management and/or to request/communicate certain aspects of fiscal interest ( e.g. : census declarations).

• In recent years, the number of tax "models" has grown exponentially, so much so that it can almost be said that it is not strange that each legislative innovation - however insignificant it may be - brings with it some new formal obligation which, in turn, materializes in the completion and submission of a new form.

• That the "models", already considered in themselves, as well as their mere proliferation, are a clear example of the indirect fiscal cost that taxpayers bear, often without due respect to the "limitation of indirect costs derived from compliance with formal obligations" so pompously proclaimed in article 3.2 LGT .

• That, notwithstanding the above, in a State of Law all obligations - also, of course, those that are merely formal and, as such, accessory (in this case) to the main tax obligation - imposed on citizens must be preceded by the required guarantees in their creation; so that not only is its unavoidable need preserved but its requirement must also have the proper legal support, meaning that it has been approved through an appropriate regulatory instrument as well as formally published in the corresponding Official Gazette.

• That this requirement -quite basic, we must say- of approval and publication is not only applicable, moreover, to the "model" itself but, obviously, also to the instructions for its completion; and this for two basic reasons:

  • of simple coherence, since it is difficult to demand an obligation - even if it is merely formal - if its recipients are not instructed on how to duly comply with it; and

  • of regulatory support in the event of non-compliance, since it will be difficult to require the proper completion of these "models" if it is not specified how, and, in addition, the absence of such instructions would completely delegitimize the eventual imposition of sanctions (it would be completely unorthodox for there to be such, since if there are no instructions there could be no violations of them either; all this for elementary reasons of typicality).

• That notwithstanding the obviousness of all the above, the truth is that the AEDAF has observed that there are 42 (forty-two) tax "models" lacking officially published instructions (which, in turn, means that these - if they exist - have not been approved in the same regulatory instrument that sheds light on the "model" itself called to instruct).

• Furthermore, there are two other "models" (specifically, H100 "Request for refund payment to heirs" and 952 "Communication of the modification of the tax base in cases of bankruptcy and bad debt") that have not even been formally approved nor, therefore, officially published.

• That, despite the seriousness of the above, this does not prevent the AEDAF from being aware that the completion of any of these 44 forms (42 + 2) without following the instructions (neither formally approved nor -nor- officially published, if they exist) entails serious damages for taxpayers, either in the form of not seeing some of their legitimate interests met (precisely those that the "form" was called to comply with), or assuming the risk of the imposition of sanctions as a result of the alleged non-compliance with an obligation that, in reality, was not such.

Next, Mr. Jesús Gascón offers the floor to Mr. Javier Gómez Taboada, representative of the Spanish Association of Tax Advisors (AEDAF), who comments that, given that it is part of the nature of this Forum to share concerns regarding the different cases encountered by tax professionals in the performance of their professional activity, he wishes to comment on four cases detected since the last plenary session:

1.   The first is related to the dual treatment pointed out by Mr. Javier Hurtado regarding the two Supreme Court rulings existing in relation to late payment interest, one in the Personal Income Tax and the other in the Corporate Tax. In relation to the first ruling, it is noted that it has caught their attention that the Tax Agency does not share the interpretation of the Supreme Court when the interest is not paid by the Tax Agency itself, but is paid by another tax administration, such as the regional one. He added that this was surprising, since the nature of this concept is the same, regardless of the Administration from which the interest payment comes.

2.   The second case that you wish to comment on, without prejudice to the fact that the AEDAF has already pointed it out in other instances, is that the Tax Agency's web program gives a singular treatment, in your opinion, to the amortization of assets acquired free of charge, since it does not attribute to them, a priori, acquisition cost and, therefore, does not allow their amortization. He adds that he finds it quite worrying because it reflects, in a certain way, an alarming trend that a program's algorithm may in some way be interpreting a rule.

3.   The third issue is closely related to the previous one and is that in the Electronic Office of the Tax Agency certain administrative acts are identified as automatically non-appealable, displaying a notice to that effect. Thus, Mr. Javier Gómez Taboada points out that, beyond the fact that this fact may be legally more than debatable, the AEDAF is struck by the fact that the website itself prevents the interaction of a taxpayer who wishes to defend himself, not allowing him to advance, simply because an algorithm has introduced this criterion. He added that this is a worrying situation, as it could undermine the ability of millions of taxpayers who are required to submit their appeals and claims electronically.

4.   Finally, the AEDAF representative points out that his group has informed him of numerous problems with the splitting option that the self-assessment of the IRPF allows. Thus, taxpayers who opted for this option, when the data was saved in the program, it disappeared, and they found that on the day the filing deadline ended, they were charged the full amount.

Mr. Jesús Gascón asks Mr. Javier Gómez Taboada to send the Technical Secretariat an example of the third case he has mentioned in order to locate the problem more quickly, to which he replies that he will do so. The Director General of the Tax Agency also points out that, in any case, these errors and the fact that one warning or another appears are supported by people who are the ones who decide how the application behaves under certain circumstances and that, in no case, an algorithm interprets the regulations.

Next, in relation to the fourth point mentioned by the representative of AEDAF, Ms. Stella Raventós Calvo, representative of this same association, comments that the opposite case has also occurred, that is, taxpayers who did not wish to split/defer the amount of their self-assessment of IRPF , have found that the bank has only charged their account for 60%.

Other associations and schools also comment that they have also been aware of the splitting/deferral of the amount of the declaration, without this having been the chosen option.

Mr. José Borja Tomé, Director of the Tax Information Technology Department, replies that this case had indeed been detected, but not the one mentioned by Mr. Javier Gómez Taboada. He adds that a failure in the program under certain circumstances had caused the splitting/deferral option to be marked again, which is the one that is pre-filled by default in the self-assessment. He added that the Tax Agency is analyzing how to resolve this incident in the least damaging way for the taxpayer. The alternatives being considered are to issue a new direct debit for the remaining 40% or to inform the taxpayer that this incident has occurred and that the second instalment will be charged to the account within the established period.

Mr. Jesús Gascón Catalán asks those present to send the different cases of which they have become aware, in order to try to provide a quick solution.

Next, Ms. Stella Raventós Calvo intervenes, who comments that she thinks it is a good idea to organize a seminar on cryptocurrencies, but proposes that the work being carried out by the OECD on the subject be taken into account. , in order to incorporate future development standards in a global and international environment.

Ms. Pilar Otero Moar, representative of the General Council of Colleges of Administrative Managers of Spain, then takes the floor and, after thanking those present for the presentations made during the meeting, points out that, in relation to the increase in rectifications of self-assessments and in line with what was commented by Ms. Stella Raventós regarding the increasing number of forms, declarations, overlapping deadlines, etc., when an error occurs in the voluntary period, especially in the quarterly declaration of VAT , and an amount greater than that which would have corresponded is direct debited, it is now impossible to cancel it and the only solution is to present it correctly, but without failing to attend to the first, since otherwise it will be the subject of a claim by the area collection. Thus, tax professionals understand that the appropriate thing to do is to request a deferral of the original self-assessment while the rectification is being resolved, but this becomes complicated when the amount is higher than that established in order to avoid having to provide guarantees. For all these reasons, the group requests that the tax management area give priority to the resolution of these cases and that the Tax Collection Department paralyze, to some extent, these files, since no one is safe from making a mistake and proof of this is what happened with the problem mentioned regarding the fractionation/deferral in the IRPF declarations of 2020. He adds that there are cases where the error is very clear, for example, when extra zeros have been added. Finally, he indicates that he is aware that there are cases of self-assessments of VAT for the first quarter that remain unresolved and that, in some, despite having requested the postponement, compensation has occurred with the amount to be returned from the self-assessment of Personal Income Tax .

Mr. Gonzalo García de Castro answers that he agrees that the management of these cases must be improved and streamlined, since it is indeed possible to make a mistake and we must try to minimize its effects, sometimes resulting from internal coordination problems that must be resolved. On the other hand, in relation to what was commented by Mr. Javier Gómez Taboada regarding the amortization of rented properties that have been acquired free of charge, he wishes to remind that in this matter the doctrine applied by the Tax Agency is included in the manual of IRPF and supported by the General Directorate of Taxes, whose reports were sent to the AEDAF in response to a request made through the transparency portal. It also reiterates that the IRPF computer application replicates the reading carried out by the General Directorate of Taxes of the Law and the Regulations of the tax and that, in no case, does an algorithm interpret the regulations. He points out that in this matter it is also necessary to bear in mind that there are cases of taxpayers with very low acquisition values who have been depreciating for years based on the cadastral value. Finally, he insists that in this case the computer application for IRPF works correctly, although there is a discrepancy on the part of some taxpayers regarding the criteria used in this matter by the Administration, which, at this time, is pending a decision by the Supreme Court.

Ms. Stella Raventós takes the floor again to emphasize that it is an algorithm that prevents the taxpayer from stating in the declaration a value other than that calculated by the application. On the other hand, she states that she is convinced that the Supreme Court will rule in favour of the taxpayer's criteria and requests that the refunds be managed, when the time comes, with a certain diligence and speed.

Don Gonzalo García de Castro answers that, in his case, this will be done, since it does not represent any problem for the Tax Agency. In this regard, he reminded those present that the implementation of the Supreme Court ruling on the issue of exemption from maternity/paternity benefits meant that around 1,800,000 files were processed in just a few months.

Mr. Javier Gómez Taboada then spoke to thank the Tax Agency for its willingness to resolve the debate on this issue in the definitive manner established by the Supreme Court.

Next, Mr. José Castaño Semitiel, representative of the General Council of Official Colleges of Social Graduates of Spain, took the floor to comment that he found the presentation made by Mr. Jesús Gascón very interesting. In this regard, in relation to the simplification of the procedures for correcting self-assessments, she points out that she agrees with what was said by Ms. Pilar Otero and indicates that since the beginning of this Forum, the colleges and associations have demanded solutions in this matter, so the fact that it has become one of the priorities for action of the Tax Agency seems very important to her. He adds that the simplification in this area will entail regulatory changes and that he proposes including it in the matters to be dealt with in the working groups, since the social collaborators, given their experience in the presentation of rectifications of declarations, can contribute ideas and suggestions for the improvement of this procedure. On the other hand, in relation to the modifications introduced in the applications increasing the warnings when filing a self-assessment, Mr. José Castaño states that different errors have been occurring that prevented him from continuing with the declaration, for which reason he requests that the materials be sent to the development companies as far in advance as possible so that they can carry out the tests they need and thus, when the filing periods begin, the software is sufficiently tested and there is no need to be continually waiting for new versions and updates of it that greatly slow down the activity of tax professionals. On the other hand, the representative of the General Council of Official Colleges of Social Graduates of Spain, comments that he also found the presentation on civic-tax education very interesting, since on previous occasions he has commented that a good part of the activity of social collaborators is dedicated to educating the taxpayer in tax regulations and in the importance of fiscal contribution. He therefore believes that this initiative by the Tax Agency aimed at children and young students is essential and offers the collaboration and support of the group he represents in this activity. Likewise, Mr. José Castaño points out that, in relation to litigation, the data presented seem very high to him, being a cause for concern not only for the Administration, but also for tax professionals, since it represents an increase in their workload and reducing it would mean streamlining their activity. He adds that he has recently observed that the conflict is not only not decreasing, but is increasing and an example of this is that, if not 100%, 99% of the settlements carry with them a penalty, almost always due to late payment or other reasons, forcing the submission of objections, appeals, etc., that is, a greater workload for the advisors. In this regard, the Tax Agency would also like to request that the files on the imposition of sanctions be studied in advance, so that only the appropriate ones are issued. Lastly, he states that on behalf of the group he represents he wishes to thank Mr. Guillermo Barros for the attention he has given from the outset in relation to the incident discussed at this meeting regarding the errors in the payment of IRPF , and which, for the peace of mind of his members, allowed them to quickly offer an explanation to their clients.

Next, Mr. Jesús Gascón takes the floor and points out that the idea is to deal with the modifications that affect a procedure as massive as the rectification of declarations in the work group meetings, since in a generalized system of self-assessments it is normal for a series of incidents to occur that have to be resolved in an agile manner, without being processed as appeals or claims, since they are other types of issues. On the other hand, in relation to the civic-tax education program, he thanks José Castaño for his offer and states that he considers the participation of social collaborators to be essential in this task. He adds that the latest reform of the Organic Law on Education included teaching about the social function of taxes and fiscal justice, so that actions in this regard will be carried out through formal education, led by the autonomous communities, which are the ones with the authority in matters of education. In this regard, the Tax Agency wishes to carry out complementary activities not only aimed at children and young people, but at society as a whole. However, when it is a public administration that undertakes actions of this type, there will always be those who, rightly or wrongly, perceive a certain bias or hidden interests or a desire to increase income, and not exclusively training purposes. He adds that, however, what is at stake is simply to promote knowledge within society as a whole about how the tax system works and, perhaps, thanks to a better understanding of it, it will be possible to improve tax awareness. Mr Jesús Gascón reiterates that the Tax Agency is convinced that it is easier to achieve this objective if there is participation from other groups, such as those present here. Finally, he points out that other initiatives are also being studied in collaboration with the Institute of Fiscal Studies, which will soon be reported on at this Forum and in which the support and collaboration of those present will also be requested.

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