Minutes of the meeting

MINUTES OF THE PLENARY MEETING OF THE FORUM OF ASSOCIATIONS AND
COLLEGES OF TAX PROFESSIONALS
HELD ON JULY 7, 2020

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. Manuel Alfonso Castro Martínez

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

Members representing Associations and Colleges

Spanish Association of Tax Advisors

President

Ms. Stella Raventós

Research and Studies Committee

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 Customs Agents and Brokers

Chairman of the

Mr. Antonio Llobet de Pablo

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

Ms. Alicia Rodriguez Milestones

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

Vice President of the Board of Directors

Mr. Miguel Angel Ruiz Ayuso

Technical secretary

Mr. Luis del Amo Carbajo

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 July 7, 2020, the seventeenth 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 26, 2019.
3. Provisional balance of the 2019 Income Tax campaign.
4. Information on the topics discussed in the working groups.
5. Other considerations, requests and questions.

1. Opening by the Director of the Planning and Institutional Relations Service

The session was opened by Ms. Rosa María Prieto del Rey, Director of the Planning and Institutional Relations Service, who, after thanking everyone for attending, announced that the Director General of the Tax Agency would not be able to attend the plenary session due to unforeseen professional reasons.

The Director of the Planning Service then stated that she also had to thank all the tax professionals for the great effort they have made, as well as their willingness and collaboration in such difficult times for everyone, including, of course, the Administration. On the other hand, he points out that he will not dwell on the regulatory changes that have occurred during this period, since the representatives of the different Departments will deal with developing this matter when they present the activities carried out by the different working groups.

2. Approval of the minutes of the meeting held on November 26, 2019

The Director of the Planning Service gives the floor to Ms. 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 sixteenth plenary session were sent to the Associations and Colleges prior to this meeting and that, except for an assessment made by the Spanish Association of Tax Advisors (AEDAF) regarding an error relating to the person speaking at one point in the meeting, which has already been corrected, no other observations have been received. Addressing the attendees, he asks if anyone has any objections. Since none were formulated, the minutes of the 16th plenary session held on 26 November 2019 are hereby declared approved.

Finally, Ms. Dolores Carreño informs that the minutes approved at this Plenary Session will be published on the Tax Agency's website, in the space reserved for this Forum.

The Director of the Planning and Institutional Relations Service then gave way to the third point on the agenda and gave the floor to Mr. Gonzalo García de Castro, Director of the Tax Management Department.

3. Provisional balance of the 2019 Income Tax campaign

Mr. Gonzalo García de Castro begins his presentation by commenting that, as is known to all those present, the campaign began on April 1 and ended recently, on June 30. He adds that, although it must be kept in mind that these are provisional data, the following points can be highlighted:

• 79.7% of the refunds and 67.6% of the amounts requested have already been paid, meaning that 7.547 billion euros have been returned to 11,492,000 taxpayers.
• 20,991,000 tax returns have been submitted, of which 1,155,000 have been made through the personalized telephone filing service (“We will call you” plan) and 319,000 have been made in person at the offices of the Tax Agency.
• Filings via the Tax Agency's app totaled just over 363,000 and, combined with the sharp increase in returns filed via the Agency's website, have raised the number of returns filed via this route to 93% of the total.
• As for the declarations submitted, 14,410,000 have been with a refund request, while 5,593,000 have been for payment.

The Director of the Tax Management Department then points out the basic characteristics of the recently concluded Income Tax campaign:

• From April 1st to May 7th: There was a significant acceleration in the rate of filing returns, with around 27% more filed on that date than in the same period of the previous year, which means that, by that date, around a third of the total for the campaign had already been filed. At this point, Mr. Gonzalo García de Castro clarifies that this increase is not transferred to the total of the 2019 campaign, the increase of which has been around 2% compared to the previous year. It also points out that the most popular method of filing has been via the Internet, with 88% of returns filed via this method in the previous year increasing to 93% in the current campaign, which represents an increase of approximately one million returns. Furthermore, the Director of the Tax Management Department highlights that, during this period of increased filing of returns, the Tax Agency has also increased the number of procedures, so that there has been a perfect correlation, which has allowed the rates of the previous year to be maintained both in number of refunds and in amounts.

• From May 7th to June 30th:

  • Personalized telephone attention: On May 7, the telephone assistance service for preparing and filing tax returns (We'll Call You plan) began operating. In this campaign, as a consequence of the health crisis and the limitations imposed on face-to-face assistance, the Tax Agency has reinforced the personalized telephone service in order to cover the needs of taxpayers, without having to wait for the offices to reopen. Thus, with the aim of making this the personalized service most used by taxpayers until the end of the campaign, the service has been strengthened by multiplying by six the number of staff dedicated to it, which has allowed the preparation of declarations by this means to increase to 1,155,000, compared to the 239,000 of the 2018 Income Tax campaign. Furthermore, the supply of this service has been greater than its demand.

  • In-person attention: The Tax Agency has always been aware of the existence of a sector of taxpayers who traditionally demand face-to-face assistance. Thus, this service was also launched on June 8, although it was provided for half the number of days and with half the number of spaces than in previous campaigns. However, the Director of the Tax Management Department highlights that, despite the reduction in this assistance service, the supply of face-to-face assistance has been above demand, as has telephone assistance. He also added that 319,000 taxpayers opted to file their taxes in person.

Ms Rosa María Prieto thanks Mr Gonzalo García de Castro for his intervention and gives the floor to those present in case they wish to make any observations or questions.

Firstly, Mr José Castaño Semitiel, representative of the General Council of Official Colleges of Social Graduates of Spain, spoke. He reported that income tax returns are still being submitted and asked whether the Tax Agency has data on the number of taxpayers who have not submitted a return. He adds that this has been an exceptional year in terms of face-to-face assistance, both from the Administration and from the tax professionals themselves. Mr. José Castaño goes on to point out that, just as there is a group that has, to a certain extent, the means and knowledge to be able to file the declaration, it must be kept in mind that there is also a profile of taxpayers who, if they are not assisted in person, do not know how or cannot file it. The Tax Agency is therefore asked to take this into account when processing penalty proceedings and applying surcharges, especially in the case of negative tax returns that the taxpayer has submitted after the deadline, without having any obligation to do so. That is to say, penalties and surcharges should not be applied automatically, but rather each specific case should be assessed.

Mr. Gonzalo García de Castro replied that he had taken note of the issue raised and that, with regard to sanctions, they were not usually imposed automatically, but were analysed on a case-by-case basis and various circumstances were taken into account when processing the files.

Next, Mr. Joan Torres Torres, representative of the Spanish Federation of Professional Associations of Tax Technicians and Tax Advisors (FETTAF), takes the floor. He states that, in relation to the filing of declarations, from what was stated by Mr. Gonzalo García de Castro it can be seen that the Tax Agency has met his expectations. He adds that tax professionals are finally able to meet their clients' expectations, but at the cost of great extra effort. Thus, it points out that Royal Decree-Law 14/2020, which extended the deadlines for filing certain declarations, mentions the important role that tax professionals play in the application of the tax system, as well as the special difficulties they have been encountering when carrying out their activity during this period. In this regard, he states that social collaborators have missed greater empathy from the Administration in this complicated situation, because although, as he has already said, they are managing to meet their obligations, it is also true that many colleagues are now facing the Corporate Tax campaign quite exhausted. Finally, he indicates that this may not be the right time and that he does not know whether something more could have been done by this Forum or by the Tax Agency directly or by the Ministry itself, but that, in his opinion, some reflection on this issue should be carried out.

Ms. Rosa María Prieto comments that we must acknowledge the effort that tax professionals have made in these difficult and extraordinary times for everyone, including the Tax Agency, which, in the face of this new situation, has also had to make a great effort to reorganize. He adds that, however, as regards maintaining the duration of the Income Tax campaign, although this decision may have initially seemed like a risky option, it is likely that, in the end, it was a success, since in view of how the pandemic is evolving with constant outbreaks in certain areas, it is possible that face-to-face care could not have been provided under better conditions if its implementation had been delayed.

Mr. Gonzalo García de Castro then comments that, although he did not state it in his initial intervention, he wishes to thank the enormous effort made by the tax professionals to, as Mr. Joan Torres has commented, carry out the campaigns with a more than acceptable level. He adds that the Administration is well aware of this, as it has also had to make an extra effort to reorganise itself internally and be able to continue offering its services. He points out that the risk situation has been more than evident to all citizens and that, for this reason, he cannot fail to thank the work of social collaborators.

Next, since there are no further interventions, the Director of the Planning and Institutional Relations Service moves on to the next point on the agenda and gives the floor to Ms. Mercedes Jordán Valdizán, Deputy Director General of Tax Technology of the Tax Management Department, who will present the activity concerning the working group on New developments in regulations, models and campaigns.

4 . Information on the topics discussed in the working groups

Ms. Mercedes Jordán took the floor and indicated that the working groups of this Forum held two joint meetings during the first half of 2020, specifically on April 29 and June 18. He then points out that, among the issues discussed, he wishes to highlight the following developments relating to the current Corporate Tax campaign:

• News in information and assistance services: The working group announced that tax data held by the Administration would be available from 1 July and would include, among other things, information declared by third parties and by the taxpayer themselves, both in previous years and in other models. As for limitations of the new service, it was reported that in this campaign it would not be possible to automatically transfer data to WEB Companies and that, in addition, the information provided would refer to the calendar year 2019, so it would not be adjusted to the tax period of those entities that had it split.

• New in the models:

  • Regarding adjustments to the accounting result: It was reported that a greater breakdown of the information contained on pages 12 and 13 had been introduced, as well as on page 19, where the origin of the adjustments would have to be identified, whether they were from the current year or from previous years, whether they were temporary or permanent. It was also mentioned that this modification was intended to improve both control and assistance, since its objective was to be able to inform the taxpayer in the years following the one in which the declaration was made, of the pending adjustments. On the other hand, it was pointed out that this breakdown would be voluntary in the 2019 campaign, but that in subsequent years it would be mandatory.

  • Improvement in taxpayer identification and declaration characterization: It was reported that new characters had been introduced on page 1, mainly to improve the quality of the taxpayer's census data, as well as assistance when completing the form, so that the validations were more suited to the character that identified the declaration.

• Modifications introduced by Royal Decree-Law 19/2020: At the working group meeting, it was reported that, although the deadline for filing the tax established in article 124.1 of the Corporate Tax Law was maintained, Royal Decree-Law 19/2020 had modified Royal Decree-Law 8/2020, so that those entities that, at the end of the filing period, had not approved their annual accounts, could file the declaration with the available accounts. To do so, they would have to record this circumstance by checking the corresponding box on page 1 of the form, and if subsequently, as a result of the approval of the annual accounts, the self-assessment of the tax differs from that already submitted, they would have until November 30 to submit a new declaration. It was also reported that this deferral could consist of any of the accounting data declared, regardless of whether they affected the result. Furthermore, if the new declaration involves a higher income or a lower refund, it would be considered supplementary and this circumstance should be indicated on page 1 of the declaration. On the other hand, it was noted that the corresponding late payment interest would accrue, both in favour of and against the Administration.

Next, Ms. Stella Raventós, representative of the Spanish Association of Tax Advisors (AEDAF), asks about the “ratio legis"which underlies the fact that the start date for calculating late payment interest is different depending on whether it is a new declaration that represents a greater income for the Administration, or a new declaration that entails an amount to be returned to the taxpayer. That is, why in the first case interest accrues from the day after the end of the ordinary filing period and, in the second, from the date of filing the new declaration. He adds that he does not think it is fair, especially in a situation as special as that generated by the health crisis.

Ms. Mercedes Jordán responds that from the provisions of the Royal Decree-Law it appears that in the first case the new declaration is being identified with a complementary one and, in the second, with a request for rectification. He added that the issue would nevertheless be studied.

Ms. Rosa María Prieto then gives the floor to Mr. Antonio Ibarra López, representative of the Professional Association of Accounting and Tax Experts (AECE), who states that, instead of the Administration thanking them for their efforts once the Corporate Tax campaign has ended, there is still time to extend the deadline for submission. He adds that he wants to emphasise the fact that tax professionals are exhausted and that the offices are practically collapsed, since the Income Tax campaign has just ended, but they are already immersed in the Corporate Tax campaign and, in addition, in the presentation of the self-assessments for the second quarter. He points out that his consultancy firm has not yet formulated the accounts of a significant number of SMEs for which they do the accounting, which will inevitably lead them to having to present, before July 27, the declarations with the accounts not approved, simply with a balance sheet; This in turn will force them to subsequently submit a new declaration. He reiterates that, in his opinion, there is still time and wishes to record that AECE is requesting an extension of the deadline for filing Corporate Tax, a request that has been made previously to various bodies, as well as to other groups. Finally, it requests the Tax Agency to take this request into consideration and forward it to the appropriate authority.

The Director of the Planning and Institutional Relations Service replies that the request will be recorded in the minutes and forwarded to the competent body. He then gives the floor to Mr. Adolfo Jiménez Ramírez, representative of FETTAF, who asks whether it would be necessary, having submitted the Corporate Tax return marking the option that the accounts are not approved, to submit a new return even if the approval of the accounts did not entail any variation with respect to the one already submitted within the ordinary period.

The Deputy Director General of Tax Technology responds that, if there is no difference, it is not necessary to submit a new declaration. On the other hand, in relation to the request for an extension of the deadline for filing the Corporate Tax, we would only like to remind you that it is included in article 124 of Law 27/2014, so it is not possible to modify it by means of a ministerial order.

Next, Ms. Rosa María Prieto gives the floor to Mr. José Castaño, who asks whether refunds will be initiated in the case of corporate tax returns with a result to be refunded submitted within the ordinary period with the accounts not approved, or will it be necessary to wait until the new return is submitted for the refund procedures to be initiated.

Ms. Mercedes Jordán replies that the refund procedures will be initiated regardless of whether the declaration has been submitted with the accounts approved or not. It clarifies that, in the latter case, the new declaration that must be submitted before 30 November must include the amount of the refund already received or, where applicable, the amount for which refund was requested in the first declaration.

Since there are no more interventions, the Deputy Director General of Tax Technology continues with her presentation and indicates that she is going to refer to the developments that were addressed in the working group in relation to VAT :

• New “Pre303” help service: It was reported that, since February, a pilot project called “Pre303” was available on the Tax Agency website, consisting of a new help service for certain taxpayers included in the SII , specifically, those that were registered in the REDEME , that were not large companies or VAT groups and met the following requirements:

  • that were not included in the cash regime nor are they recipients of the same;

  • that were not in the special regime of used goods, works of art, antiques and collectibles, nor Travel Agencies, nor Investment Gold

  • that they did not have a pro rata or differentiated sectors.

  It was also noted at the working group meeting that one third of taxpayers included in the SII would benefit from this new service and that information had been provided about it both on the website and through the sending of information letters.

  In addition, it was indicated that there were two key dates in this project:

  • Starting July 1st: the details of the invoices included in the registration books could be consulted;

  • As of January 2021: It was reported that the group that would be able to use the “Pre303” help service was planned to be expanded, also including large companies with certain characteristics. It was also indicated that the service would allow consultation and review of census data, for which a specific authorisation would be required, and that it would also provide assistance in completing additional data.

    As an example, Ms. Mercedes Jordán cites the case of those taxpayers who have taken advantage of the possibility of deferring the VAT on import at customs and who have to enter it in the monthly self-assessment . Since the Tax Agency has this information, the corresponding box on the declaration will be filled in. Likewise, the information regarding the VAT pending compensation from previous periods will appear completed.

• Technical changes in the SII : The working group agreed that in order to be able to implement the improvements mentioned in relation to the support services, it was also necessary to introduce improvements in the validation of the data in the logbooks, being somewhat stricter with regard to the information supplied.

Ms. Mercedes Jordán then points out that, with regard to the regulations in process, as well as the regulatory provision, the following issues were discussed in the working group, among others:

• Council Directive (EU) 2018/822 of 25 May 2018 (Directive on Fiscal Intermediaries or DAC 6): It was reported that the Tax Agency had already processed the forms to comply with the information obligation, but that, nevertheless, the transposition of the Directive into national regulations was pending. It was also noted that the Tax Agency was aware that compliance with these obligations would require IT developments, so technical information would be provided on the Developers Portal in July.
• Draft Order on information declarations: It was announced that the public hearing and information process would be open until July 10.
• Regulatory changes in relation to the registration books of the SII : It was reported that they would likely come into force on 1 January 2021.
• Regarding the information declaration for expenses in authorized daycare centers or early childhood education centers: the modification regarding the registration books was commented on in order to allow compatibility of books between IRPF and IGIC .

To conclude her presentation, the Deputy Director General of Tax Technology points out that, in relation to the processing in Parliament of the bills that will foreseeably regulate the Tax on Financial Transactions and the Tax on Certain Digital Services, the deadline for making amendments has already ended.

Ms Rosa María Prieto thanks Ms Mercedes Jordán for her intervention and offers the floor to those present in case they wish to make any comments.

First of all, Mr. Rafael Gil March, representative of the General Council of Spanish Lawyers, takes the floor, asking if there is any provision in relation to the recent Directive of the EU that includes the need, due to the health crisis, to defer certain communication deadlines for cross-border mechanisms.

Ms. Mercedes Jordán replies that she has not expressly agreed to this, but that, tacitly, it can be understood that Spain has accepted the extension of the deadlines, since DAC 6 itself has not yet been transposed into domestic regulations. He added that, however, the Tax Agency has published the registration designs for the models, but, in any case, they are subject to the transposition of DAC 6 and Spain's option to extend the deadlines.

Ms. Stella Raventós then comments that she recently participated in some information sessions in which the representative of the General Directorate of Taxes had confirmed that Spain would opt for the extension of the deadlines, among other things, because DAC 6 had not been transposed. On the other hand, he adds that the rules must be explicit and that without the transposition of DAC 6 there is no standard that supports the presentation of information.

Mr. Luis del Amo Carbajo, representative of the Registry of Tax Advisors, then reported that the amendments had already been published on the Congress website.

Since there are no further interventions, Ms. Rosa María Prieto gives the floor to Mr. Javier Hurtado Puerta, Director of the Department of Financial and Tax Inspection, so that he can comment on the activity during this semester of the working group on Analysis of measures to promote legal certainty.

Mr. Javier Hurtado begins his presentation by stating that, first of all, he agrees with what has been expressed by both the Director of the Planning and Institutional Relations Service and the Director of the Tax Management Department and wishes to thank all tax professionals for the enormous effort they have made in such unprecedented times, also for the Administration. He adds that, for its part, the Tax Agency has also had to make a great effort, but that it is fair to recognize that the work of tax professionals has been contributing decisively to the development of the campaigns, not only to Personal Income Tax , but in general, in the VAT , in the Corporate Tax, whose campaign has just started, etc.

Mr. Javier Hurtado continued his intervention by pointing out that, of the issues discussed at the meeting of the working group on the Analysis of measures to promote legal certainty, he will briefly refer to the following:

• Royal Decree-Law 8/2020, of March 17, on extraordinary urgent measures to address the economic and social impact of COVID-19: In the tax area, it meant the suspension of the time limits for administrative procedures that were being processed on the date of entry into force of the Royal Decree-Law, as well as the expiration and prescription of any action and right. The measures adopted were subsequently supplemented by the approval of Royal Decree-Law 15/2020, of April 21, which extended the effects of the suspension until May 30, which meant an extension of the deadlines by 78 days. However, the working group pointed out that, although the general rule had been to apply the suspension of deadlines to all tax application procedures, as well as to penalty procedures and also to review procedures, there had been some exceptions, such as cases in which the acts were clearly beneficial to the taxpayer, such as refund procedures. It was noted that, in this regard, the Tax Agency had made a considerable effort to speed up these procedures. It was also mentioned that a second exception to the general rule had occurred when the taxpayer had voluntarily decided to complete a procedure or respond to a request.

  It was also indicated that a specific section, “COVID-19 tax measures”, had been published on the Tax Agency's website, where, in a faq format, the Departments of the Tax Agency had made an effort to systematize and clarify the information derived from the approval of the different regulations.

• Order HAC/530/2020, of June 3, which develops the tenth Final Provision of Law 34/2015, of September 21, partially modifying Law 58/2003, of December 17, General Tax, by which models 770 are approved, "Self-assessment of late payment interest and surcharges for voluntary regularization provided for in article 252 of the General Tax Law" and 771 "Self-assessment of fees for concepts and years without a model available at the Electronic Headquarters of the AEAT for voluntary regularization provided for in article 252 of the General Tax Law": At the working group meeting it was indicated that Article 252 extended the absence of liability to those cases in which the taxpayer, having not filed a declaration on time, spontaneously submitted a complete and truthful declaration and paid in full both the fees and the late payment interest and the corresponding surcharges. It was mentioned that form 770 was for the self-assessment of late payment interest and surcharges and form 771 for the self-assessment of fees for concepts and years for which a form was not available on the Electronic Office. In relation to this point, Mr. Javier Hurtado points out that these are very specific and unusual cases, since they are caused by irregularities of more than €120,000.

• As regards the activities of the Financial and Tax Inspection Department itself, three issues were highlighted at the working group meeting:

  • Regarding the suspension of deadlines: It was commented that the exceptions to the general rule had been limited to acts beneficial to the taxpayer, such as the execution of rulings from both an Economic-Administrative Court and an Administrative Litigation Court, tax refunds, as well as those cases in which the taxpayer himself had requested the continuation of the procedure. Mr Javier Hurtado points out that, however, the latter have been very insignificant and cannot be compared with what would have been a reasonably normal activity of the Department.

  • End of suspension period: It was noted that as of June 1, activity had been resumed in a gradual and progressive manner, but in an agile manner, in the sense of not understanding the 78 days of suspension of the deadlines as a way of automatically prolonging the procedures. Instructions in this regard had been issued by the Department's Central Services. On the other hand, the Director of the Department of Financial and Tax Inspection adds that, with the recovery of face-to-face assistance, the Tax Agency has had to make adaptations, in order to ensure compliance with the criteria established by the health authorities. Thus, ad hoc rooms have been prepared, with limited capacity and separated from the rest of the rooms, in which screens, hydroalcoholic gel dispensers, etc. have been installed. The report also indicates that, without prejudice to new outbreaks in certain geographical areas, the objective is to gradually increase the number of rooms that meet the safety standards recommended at any given time, in order to be able to continue with an activity as similar as possible to the usual one.

  • New techniques applied in the procedures of the Financial and Tax Inspection Department: At the proposal of the Associations, information was provided at the meeting on certain contingency solutions that had been applied in relation to the signing of documents by electronic means, that is, on the mechanism by which, while the taxpayer was in a certain province, he had remotely signed a document in another province. It was clarified that in order to use this system, the taxpayer had to travel to the Tax Agency Delegation in the province where its headquarters were located and, at the same time, an official was at the headquarters of the body that was instructing the file. During the process, the taxpayer would have been assisted by another official who would help him access the computer system where the text of the minutes to be signed would be stored. If everything was correct, the signature was made using digital cards or notebooks. It was stressed that it had been an exceptional instrument and had only been used with legal entities and in a voluntary context.

• Amendment of Articles 99 and 151 of the General Tax Law by Royal Decree-Law 22/2020, of June 16: Mr. Javier Hurtado comments that this is a very significant advance since it allows the actions of the Administration and the taxpayers in the procedures for applying taxes to be carried out through digital systems that, by means of videoconferencing or another similar system, allow bidirectional and simultaneous communication of image and sound, as well as visual, auditory and verbal interaction. He adds that, in relation to information and assistance services, this tool will be very useful, allowing taxpayers to interact directly with an official without having to go to an office and, within the framework established for this level of assistance, carry out the procedures for which they are authorised within the Tax Agency's own systems, which could include updating census data, changing activity, even filing a self-assessment, etc. Furthermore, it points out that this mechanism will have a great influence on the development of ADI (Comprehensive Digital Administrations), in which the Tax Agency wants to concentrate the digital or non-face-to-face customer service system, for the benefit of greater streamlining of procedures and better service to the taxpayer. On the other hand, in relation to the actions of the Financial and Tax Inspection Department itself, Mr. Javier Hurtado points out that the establishment of this videoconferencing system, voluntary for both parties, will result in the simplification of procedures, avoiding unnecessary travel. He added that it will be implemented in the conduct of the proceedings as deemed appropriate and provided that a secure transmission and reception of the documents can be guaranteed, ensuring their authorship, authenticity and integrity. He added that another possibility also arises, arising from the unique regional competence within the same Special Delegation. Thus, he points out as an example the Special Delegation of Andalusia, where if the headquarters of the inspection body is located in Seville and it has to attend to a taxpayer who is in Almería, the taxpayer or the actuary would necessarily have to travel from one place to another. The videoconferencing system would allow meetings to be held in a digital environment, at least for those actions that are not, in some way, definitive or involving the signing of minutes.

Ms. Rosa María Prieto thanks Mr. Javier Hurtado for his intervention and offers the floor to those present in case they wish to make any comments.

Ms. Alicia Rodríguez Hitos, representative of the General Council of Official Colleges of Social Graduates of Spain, takes the floor. She reiterates what has already been stated by the representatives of the Associations that have intervened previously and demands that the Administration actively listen to, addressing the more than justified demands of tax professionals. He also points out that a relationship has to be sustained by the mutual satisfaction of the parties, that is, there has to be a symbiosis that allows the relationship to endure and grow because, if not, it declines into a very unbalanced relationship. He added that he was grateful for all the information provided by the Tax Agency on the regulatory changes, but that his group did not understand why the deadline for self-assessments for the first quarter was extended on April 15, when practically all the work had already been done, and why the duration of the Income Tax campaign was not extended. In this regard, he reiterates the request made by Mr Antonio Ibarra and indicates that there is still time to extend the deadline for filing corporate tax returns. He adds that the Tax Agency should take charge of the multi-skilled work of social collaborators, who do not only deal with tax issues. Thus, he emphasizes that tax professionals are carrying out their work by working 14 and 15 hour days, at the risk of contracting COVID-19 and at the expense of their physical and emotional health.

Mr. Javier Hurtado answers that he fully sympathizes with tax professionals since he is fully aware of the development of the campaigns, which, without finishing one, are already beginning another. He added that, in his opinion, it is very important to align the work of the Tax Agency with that of social partners, for the benefit of the proper functioning of the tax system. However, he points out that the Tax Agency is not responsible for extending the corporate tax campaign period and that he is aware that the Ministry has received various proposals, some of which are contradictory. He also stressed that budgetary issues are very important in this type of decision, since any delay in a given period can lead to liquidity problems for the public sector.

Ms Rosa María Prieto then added that social collaborators must be aware that the Tax Agency has submitted numerous proposals to the Ministry. Furthermore, in cases where there has been agreement, such as the extension of the deadline for filing self-assessments for the first quarter, a unanimous proposal has been promoted by all participants in this Forum. However, he reiterates what was stated by the Director of the Department of Financial and Tax Inspection regarding the fact that there are matters in which the Tax Agency can only give its opinion, but that, ultimately, they are decided by whoever has the authority to do so and that, in addition, the solution adopted takes into consideration other factors that the Tax Agency is unaware of.

Next, Mr. Javier Gómez Taboada, representative of the Spanish Association of Tax Advisors (AEDAF), takes the floor. He states that his Association has been concerned in recent weeks with a situation that they consider to be aggravating the “pathology” of the hearing process prior to the signing of the minutes, and which consists of the fact that the Inspection is using this process to urge the taxpayer to express their agreement or disagreement with the regularisation proposal. He adds that, in his opinion, this procedure is, at the very least, unusual, given that the taxpayer undertakes it without having prior official knowledge of the inspection service's claims, and that, in addition, it is used to request the taxpayer to state his agreement or not with a regularisation proposal of which he is unaware. He added that the issue of the hearing procedure prior to signing the minutes has already been raised in previous meetings of this Forum, but that, nevertheless, he wishes to request the Tax Agency to promote the elimination of procedures, as well as communications, of this nature. Thus, it points out that, although the Tax Agency does not have the authority to draw up regulations, it does have the capacity to influence the bodies where these regulations are drawn up.

Mr. Javier Hurtado answers that he does not share his opinions on the inspection procedure, since this procedure requires the presence of the taxpayer from the very moment of its initiation. He added that, in his opinion, granting a hearing to a person who has been heard throughout the entire investigation of the procedure is an idle procedure. It indicates that said procedure was a guarantee that was added to the procedure at a given time, but that it does not contribute anything, since the taxpayer is in the presence of the actuary throughout the entire processing of the procedure and, as a consequence, the interested party or his advisor arrives at the process of signing the minutes with perfect knowledge of what the regularization proposal will contain. On the other hand, it points out that the General Tax Law has not provided for the existence of a formal act of informing the taxpayer of the content of the report prior to the process of signing it. Furthermore, it indicates that, once the regularisation proposal has been signed, a process of pre-agreement allegations is initiated, where the interested party already has knowledge of the entire inspection file, which has been heard, as well as the regularisation proposal, which has also been forwarded to him. He adds that this process of allegations covers the defence needs of any person, without prejudice to the fact that, prior to the hearing process prior to the signing of a record, all the information has also been provided to him, albeit informally. Likewise, Mr. Javier Hurtado points out that what would constitute a "pathology" in the procedure would be the fact that an actuary had requested that compliance be given to a disclosure that had not taken place because the taxpayer had not been able to appear as a result of the exceptional situation caused by the health crisis, and this, provided that it had not been made known to him previously. Finally, he reiterates that he does not agree with Mr. Javier Gómez's statement, since, in his opinion, the inspection procedure is a very guarantee-based procedure, which has numerous formalities that ensure that the taxpayer is aware at all times of the actions being carried out and that, furthermore, he does not understand what would be added by adding another procedure with a "pre-proposal", prior to the procedure for signing the minutes.

Mr. Javier Gómez intervenes again to point out that there is a general feeling among tax professionals that the inspection procedure, although on paper is full of guarantees, among others, the aforementioned hearing process, the reality is that many times, in its practical execution, said guarantees decline. He adds that his intention in commenting on the nonsense that has occurred in recent days, consisting of urging the taxpayer to express in writing his agreement or disagreement in relation to a proposal that, officially, he does not know, is none other than to highlight the need to reflect on how to arbitrate the final process of signing the minutes. Thus, it points out that, notwithstanding the fact that actions have been shared with the actuary for months, a mechanism should be established to provide the prior hearing procedure with real effectiveness. He adds that his purpose in sharing the anecdote, although serious, that happened to him, is to open a debate on this issue, since in his opinion this is an appropriate forum for it.

Next, Mr. Joan Torres intervenes, stating that he will not continue with the issue raised regarding the hearing process, but that the fact that all parties can give their opinion seems very enriching to him. He goes on to point out that he fully agrees with Mr. Javier Hurtado regarding the importance of harmonizing the work of the Tax Agency with that of tax professionals and that it would be wonderful if this Forum could serve to, in certain situations or matters, after a debate between all participants, the Tax Agency and social collaborators, present a consensual proposal to the Ministry. He adds that, however, that has not been the perception he has had during this difficult period, where the attitude of the Tax Agency has seemed to him to be somewhat neutral, that is, that, in response to the proposals of the tax professional groups, it could be understood as being in favour or against. He added that he was aware of all the problems that had to be faced, but that for the sake of cooperation and legal certainty, it would be very positive for the functioning of the tax system to be able to establish alliances between all the participants in this Forum.

Next, Mr. Miguel Ángel Ruiz Ayuso, representative of the Registry of Tax Economists and Advisors (REAF), takes the floor and states that he agrees with what Mr. Javier Gómez has said regarding the inspection procedure. He adds that, although it is true that various documents are signed and submitted during the process, in practice, when the day of signing the minutes arrives, the actual amount is unknown, since it is not known whether certain expenses have been admitted. He said that the procedure would improve with the establishment of some mechanism for assessing everything that has been collected in the proceedings, so that, prior to the day of signing the minutes, there would be certainty about what was going to be signed. On the other hand, the REAF representative indicates that the tax management services are requiring businessmen and professionals who are in the direct estimation regime, both normal and simplified, to provide the activity record books, preferably the purchase and expense books. Once submitted, notification of the processing of claims is received, with a provisional settlement in which it is reported that certain expenses are not admitted on the grounds that there is no correlation with the income or that they are not considered to be expenses of the activity. The supporting documents and invoices that were not previously requested are then provided and the Tax Agency rectifies the issued settlement. The Court therefore requests greater rigour in this procedure and not to rush the provisional liquidation, since it is not possible for the Administration, simply by reviewing the registration books, to determine which expenses are not part of the activity.

Mr. Gonzalo García de Castro replies that he is not wrong and that a solution will have to be found for these limited verification procedures which, in essence, are resolved after the provisional liquidation proposal is issued. However, the Director of the Tax Administration Department points out that what is important is that the contradictory nature, that is, the procedural dialogue between the Administration and the taxpayer, takes place before the administrative act with a final settlement is produced. He added that he appreciated the suggestion and that he would take note in order to analyse and improve the procedure.

Next, Mr. Javier Hurtado responds to Mr. Miguel Ángel Ruiz Ayuso that, with regard to the area of his Department, he is completely right and that he agrees that a social collaborator has the right to demand that the actuary provide him, in an informal manner, exact knowledge of what is going to be signed on the day of signing the minutes. He adds that he disagrees with regard to formalisation, but not with regard to the fact that the tax professional has the right to know what is going to be signed.

Next, Ms. Stella Raventós takes the floor and explains that she agrees with what Mr. Javier Gómez Taboada has said regarding the daily practice of the Inspection. He adds that there was a time when the prior hearing process did contribute something to the procedure and that, today, there are also inspectors who use it to communicate the result of the procedure. On the other hand, it indicates that it is not only a matter of knowing in advance the amount of the minutes, but also the reasoning underlying the calculation. He added that the fact that the taxpayer or his advisor participate in the inspection procedure does not mean that they know what the actuary is taking into consideration. He says that these days he has a presentation of an electronic file with 658 documents and he does not know what the inspector is evaluating in relation to them. He adds that he will obviously sign the minutes in disagreement as he believes that the file has not really been made public, as there is no information regarding the consideration that the Administration may have given to the actions taken. Finally, the AEDAF representative points out that this is an aspect of the General Tax Law that must be addressed and that if, really, the prior hearing procedure cannot be made effective, it would be better to eliminate it so that it does not lead to misunderstandings, since there are clients who think that something could still be found out in this procedure.

Next, Mr. Luis del Amo intervened, indicating that this matter was already discussed at the last meeting of the working groups. He points out that, since the relationship between the taxpayer or his advisor and the actuary must be fluid throughout the inspection procedure, it would be logical for them to be fully informed of both the amounts and the facts and legal grounds on which they are based. He adds that, however, in practice this does not happen and this gives rise to absurd situations in which the actuary, who logically wants to know whether the minutes are going to be signed in compliance or not, asks the interested party about the matter, without the latter knowing what is going to be signed. Finally, Mr. Luis del Amo points out that, to solve this problem, it would perhaps be enough to modify the operating methods through internal instructions.

Mr. Javier Hurtado takes the floor and states that he fully agrees with all those involved that at the time of signing the minutes the interested party must know the file in its entirety. He adds that, however, he has to reiterate his disagreement with the formalistic approach to this point, that is, with the one relating to establishing an additional procedure to those already existing in which something like a "pre-proposal" is carried out. The Director of the Department of Financial and Tax Inspection states that, however, he has taken note of the matter and will discuss it with the inspection staff, since from a practical point of view it is essential that there be greater transparency. On the other hand, he adds that he is so surprised by these situations that are being discussed because 90% of the minutes are signed in agreement, which, in his opinion, would indicate that there is not so much controversy and lack of transparency. To conclude his speech, Mr. Javier Hurtado reiterated that he would discuss with the staff of his Department the issue of the need to communicate the full regularisation proposal, since, even if there were only one case, he would find it worrying.

Next, Mr. Rafael Gil intervened, reiterating that this is an ideal framework for all participants to debate and seek solutions to issues such as this one that has been raised in the prior hearing process, which, moreover, has already been discussed in previous meetings. He adds that, as other participants have stated, in his opinion, this procedure is absurd, no matter how protective it may be. He also points out that he agrees that what is really important is that the entire file is known at that time, regardless of whether or not one wishes to make allegations. He therefore proposes using this Forum to, in a positive and cooperative manner, seek a truly useful solution and transfer it to the appropriate authority where it should be considered. He concludes his presentation by commenting that the procedure must be simplified by eliminating any formalities that are not useful, but that, for the time being, the aforementioned formality could be used to provide the interested party with specific knowledge about what is going to be signed, for the sake of greater transparency.

Next, Ms. Pilar Otero Moar, representative of the General Council of Colleges of Administrative Managers of Spain, took the floor. She stated that it was very gratifying that the Tax Agency had recognised the work that the social collaborators had been doing, as well as the pressure they had been under, and that she would pass this on to the members of the group she represents. He adds that, however, the situation generated by the health crisis has highlighted the existence of a problem consisting of the fact that tax professionals have not been able to find an appropriate channel where they can be heard and understood. He points out that he fully understands that the Tax Agency does not have regulatory authority, but it is the closest link that tax professionals have to bring their problems to the tax authorities. He therefore points out that this Forum should delve deeper into this matter and seek solutions in order to avoid such regrettable situations as the fact that, after nearly a month of requesting an extension of the deadline for submitting the first quarter's settlements, this was extended at the last minute, when everything had practically been resolved. Ms. Pilar Otero indicates that tax professionals have demonstrated that they fulfill their duties, even if it means spending many hours of work and dedication. He adds that, however, avenues or formulas must be investigated to ensure that when their claims are reasonable, as in the case discussed, they are met.

Ms. Rosa María Prieto replied that the Tax Agency has forwarded all the requests that have arrived through the Forum and that it has also supported many of them. He adds that, however, those who have the authority to make decisions do so based on different considerations. The Commission reiterates its wish 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, raising all issues and supporting those it has deemed reasonable and viable.

The Director of the Planning and Institutional Relations Service then moves on to the next point on the agenda.

5. Other considerations, requests and questions

Mr. José Castaño takes the floor and indicates that he wishes to ask about two issues: Firstly, in relation to the Code of Good Practice, he would like to know what plans the Tax Agency has to resume its development, after having been somewhat relegated due to the exceptional situation that has been experienced; and, secondly, whether the Strategic Plan of the Tax Agency 2020-2023, which was presented by the Director General at the last Plenary Session, will undergo modifications as a result of the pandemic.

Ms. Rosa María Prieto replies that, in relation to the first question, the Code of Good Practices has indeed been relegated due to the existence of other priorities whose immediate attention was more urgent, but that, nevertheless, work has been done on implementing the Tax Agency's commitment regarding the establishment of a channel for making inquiries. In this regard, he points out that it is possible that it will be launched at the end of the month, since the computer developments are very advanced. On the other hand, in relation to another of the commitments whose fulfillment was also planned for before the summer, that of enabling a special appointment system for tax professionals, he points out that this has been more affected, due, above all, to the fact that face-to-face attention has been one of the areas that has had to be restructured the most. He added that it is hoped to give it a boost starting in September. On the other hand, regarding the proposals regarding the Strategic Plan of the Tax Agency 2020-2023, the Director of the Planning and Institutional Relations Service states that it remains fully in force, although, as a consequence of the health crisis caused by COVID-19, the Tax Agency is making certain adjustments, especially for the year 2020, although both the strategic indicators and the main actions that were proposed remain fully operational.

Since there are no new interventions, the Director of the Planning and Institutional Relations Service thanks everyone for their attendance and participation and closes the seventeenth plenary session of the Forum of Associations and Colleges of Tax Professionals.