Plenary Sessions
The Plenary is composed of all its members, under the direction of the President and assisted by the Technical Secretary
Sixteenth session - November 26, 2019
MINUTES OF THE PLENARY MEETING OF THE FORUM OF ASSOCIATIONS AND
COLLEGES OF TAX PROFESSIONALS
HELD ON NOVEMBER 26, 2019
President of the Forum of Associations and Colleges of Tax Professionals
General Director of the State Tax Administration Agency
Mr. Jesús Gascón Catalán
Members representing the Tax Agency
Director of the Collection Department
Mr. Guillermo Barros Gallego
Director of the Customs Department and II. Excise Duties
Mrs. Pilar Jurado Borrego
Director of the Tax IT Department
Mr. Manuel Alfonso Castro Martínez
Director of the Planning and Institutional Relations Service
Mrs. Rosa María Prieto del Rey
Director of the Legal Service
Mr. Diego Loma-Osorio Lerena
Special Delegate of Catalonia
Mr. Isidoro García Millán
Deputy Director General of Tax Techniques of the Tax Management Department
Mrs. Mercedes Jordán Valdizán
Deputy Director General of Legal Regulation of the Department of Financial and Tax Inspection
Mr. Marcos Álvarez Suso
Members representing Associations and Colleges
Spanish Association of Tax Advisors
Director of the Studies Office
Mr. Arturo Jiménez Happy
Member Responsible for Studies and Research
Mr. Javier Gómez 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 López
General Council of Spanish Lawyers
Vice Dean of the Balearic Bar Association
Mr. Rafael Gil March
General Council of Colleges of Customs Agents and Commissioners
Secretary of the Board
Mr. Manuel López Frías
General Council of Colleges of Administrative Managers of Spain
Responsible for the Fiscal Area of the General Council
Mrs. Pilar Otero Moar
General Council of Official Colleges of Social Graduates of Spain
Member of the Fiscal Affairs Commission
Mr. José Castaño Semitiel
Member of the Fiscal Affairs Commission
Mr. José Ruiz Sánchez
Spanish Federation of Professional Associations of Tax Technicians and Tax Advisors
Chairperson
Mr. Joan Torres Torres
Second Vice President
Mr. Adolfo Jiménez Ramírez
Cabinet of Administrative Managers and Tax Advisors
Lawyer
Mrs. Raquel Cobos Casero
Registry of Tax Advisory Economists
Director of the Studies Service
Mr. Rubén Gimeno Frechel
Technical secretary
Mr. Luis del Amo Carbajo
Technical Secretariat of the Forum of Associations and Colleges of Tax Professionals
Deputy Director General of External Communication of the Planning and Institutional Relations Service
Ms. Dolores Carreño Beltrán
In Madrid, on November 26, 2019, the sixteenth plenary meeting of the Forum of Associations and Colleges of Tax Professionals is held, attended by the aforementioned people, and in accordance with the following
AGENDA
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Opening by the General Director of the State Tax Administration Agency.
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Approval of the minutes of the session held on July 2, 2019.
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Information on the topics discussed in the working groups.
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Procedure for adhering to the Code of Good Practices of Associations and Colleges of Tax Professionals and the Code of Good Practices of Tax Professionals.
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Other considerations, requests and questions.
1. Opening by the General Director of the State Tax Administration Agency
The session opens with 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 thanking everyone present for their attendance, reports on the points that will be discussed. at the meeting and adds that in the section dedicated to “Other considerations, requests and questions” he will make a presentation on the status of the “Strategic Plan of the Tax Agency 2020-2023” which, although it does not yet have a date for its publication, it is practically finalized.
2. Approval of the minutes of the session held on July 2, 2019
The President of the Forum 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 fifteenth session of the plenary session were sent to the Associations and Colleges prior to this meeting, having received observations from the General Council of Social Graduates. They were incorporated into the minutes and the objected part was communicated to the Associations and Colleges. He adds that, so far, no comments have been received. Addressing the attendees, he asks if anyone wants to make any comments. Since none is formulated, the minutes of the 15th plenary session that took place on July 2 are declared approved.
Finally, Ms. Dolores Carreño informs that the minutes approved in this Plenary Session will be published on the Tax Agency website, in the space reserved for this Forum.
Next, the General Director of the Tax Agency gives way to the third point on the agenda and gives the floor to Ms. Rosa María Prieto del Rey, Director of the Planning and Institutional Relations Service.
3. Information on the topics discussed in the working groups
Ms. Rosa María Prieto takes the floor and points out that, at the meeting of the working group on developments in regulations, models and campaigns, which took place on October 23, the topic of the adherence to the Code of Good Practices of Associations and Colleges of Tax Professionals, as well as the Code of Good Practices of Tax Professionals. Regarding the first of them, the Tax Agency stated that, given that both the organization and the operation and legal form of each Association and College is different, it was necessary for the entities to communicate which body in their organization would be competent to make the decision to join. Likewise, it was pointed out that the Tax Agency also needed to know the number of associates or members of each entity in order to establish sections, based on size, that would delimit the number of queries that each one could raise. The Director of the Planning and Institutional Relations Service adds that the Technical Secretariat of this Forum requested the information and that, at this time, some Associations and Colleges have already responded, but not all. On the other hand, regarding the procedure for adhering to the Code of Good Practices for Tax Professionals, at the meeting there was a unanimous position that a mandatory requirement had to be the professional's membership in the corresponding Association or College.
Ms. Rosa María Prieto gives the floor to Ms. Mercedes Jordán Valdizán, Deputy Director General of Tax Techniques of the Department of Tax Management, who begins her presentation by pointing out that she is going to comment on the activity of the working group on developments in regulations, models and campaigns that affect your Department. Thus, it indicates that the most outstanding issues were the following:
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Regulatory and technical modifications for the next information campaign: It was reported that most of the changes were essentially technical and fundamentally aimed at improving taxpayer assistance services, especially in the income tax campaign. Thus, in relation to the different models, without going into detail, it was highlighted that with respect to model 198, annual declaration of operations with financial assets and other securities, numerous observations had been received on the draft order, some of which had been incorporated into it, as was the case of the deferral of its entry into force until January 1, 2021. For its part, in relation to model 184, entities under the income attribution regime, it was reported that a greater breakdown of the information was going to be included, both for economic activities in direct estimation, and for the returns on real estate capital.
On the other hand, regarding the technical modifications, it was noted that the objective was to improve the quality of the information provided and the following were highlighted:
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TGVI system extension on line : It was commented that the system had not had major incidents in its first year of implementation, most of which had been resolved in the testing period. Thus, it was reported that for 2019 its use would be extended to the rest of the information statements. Ms. Mercedes Jordán adds that a testing portal has been available since the first week of November, so that the appropriate validations can be carried out and it can be verified that the completion of the models will be possible during the presentation period.
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Elimination of pre-declarations by SMS for models 190, 347 and 390: It was indicated that its deletion should not cause any problems, since it had very residual use. In fact, in the public information process no observations had been received in relation to the issue.
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Corporation tax: It was reported that the Tax Agency was addressing a series of works aimed at implementing in the 2019 campaign an assistance service for the taxpayer, consisting of the provision of certain tax data held by the Administration, in a manner analogous to what is done in the annual personal income tax campaign.
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Regulatory modifications that affect model 349, summary declaration of intra-community operations. The working group reported the following:
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The modifications are due to the transposition of community regulations to the VAT Law and Regulations, which causes the model to cease to have such a formal value, to acquire a more substantial role in terms of control.
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The annual presentation is eliminated (last presentation in January 2020 compared to the 2019 financial year).
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The tax rules for “consignment sales agreements for goods” are incorporated into the model.
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Chain operations are simplified (successive deliveries between different businessmen when there is a single intra-community transport).
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The requirements for the EIB to be exempt are highlighted (NIF-VAT, updating of the VIES, declarations of intra-community operations).
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Ms. Mercedes Jordán then comments that at the meeting of the working group to analyze measures to promote legal certainty, which also took place on October 23, the status of the transposition of the Directive (EU) was reported. ) 2018/822 of the Council, of 25 May 2018 (Directive on Fiscal Intermediaries or DAC 6). It points out that, regarding the draft order approving the models, the period for comments ended on November 11 and that many of those received exceeded the scope of the order itself, since they made reference to the Directive itself. However, he adds that some of the contributions received will be included in the order, since they affect issues within the management of the order itself, as has been the case with the deadline for submitting the models.
Finally, the Deputy Director General of Tax Techniques points out that, as everyone will remember, the Tax Agency published on its website an electronic format of VAT record books with the aim of guaranteeing standardized action adjusted to the procedures established for tax management. Thus, he adds that, as another measure of assistance and help to the taxpayer, this format has been extended to the personal income tax registration books and that on November 15, a standardized electronic format, of a voluntary nature, was published that allows joint compliance with both VAT and Personal Income Tax obligations.
Mr. Jesús Gascón thanks Ms. Mercedes Jordán for her intervention and gives the floor to Mr. Marcos Álvarez Suso, Deputy Director General of Legal Regulation of the Department of Financial and Tax Inspection, to comment on the meeting of the working group to analyze measures to favor legal certainty, which took place on October 23.
Mr. Marcos Álvarez begins his presentation by pointing out that, of the issues discussed at the meeting of said working group, he will briefly refer to the following:
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Note on the position of the AEAT in bankruptcy processes: The Director of the Tax Collection Department commented that the note on the position of the Tax Agency in the bankruptcy processes had been sent to the Associations and Colleges that are members of this Forum, so that they could make the observations they deemed appropriate. On behalf of the Collection Department, it is reported that various suggestions have been received, which are appreciated, and that they are being analyzed by the Tax Agency. He adds that the note will be published on the website for general knowledge as soon as possible, in order to comply with the commitment to make known the criteria used by the Administration in its actions.
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Application of the special regime of the VAT equivalence surcharge: It was recalled that, although this is a mandatory regime once the subjective and objective assumptions are presented, both for the retailer and the wholesaler, the Department of Financial and Tax Inspection was detecting cases in which the tax was not being passed on. surcharge. Thus, in order to avoid these situations, and given that some wholesalers had alleged that they were unaware of the nature of their clients as retailers, it was reported that the Tax Agency was working on the implementation of a public consultation with distributors, where By entering the customer's NIF, the wholesaler could know if he was dealing with a retailer and, thus, be able to apply the corresponding surcharge.
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Status of processing of the transposition of Council Directive (EU) 2018/822, of May 25, 2018 (Directive on Fiscal Intermediaries or DAC 6), as well as the draft order approving the relative declaration models to the information obligation established therein: The General Directorate of Taxes recalled the general lines of the obligation and reported that a definitive text did not yet exist, since the opinion of the Council of State was pending for approval by the Council of Ministers. For its part, the Department of Tax Management explained, in general terms, the new models (234, 235 and 236) that were going to be implemented for the declaration of information related to cross-border tax planning mechanisms by intermediaries or, in your case, the taxpayers.
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Issues raised by Associations and Colleges:
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Dissolution of communities of property: It was pointed out that it would be advisable for the Tax Agency to review its interpretation on this issue and clarify certain legal criteria, differentiating the dissolution of communities from exchanges, to which the Planning and Institutional Relations Service responded that the proposal would be studied.
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Checks relating to real estate capital returns in personal income tax: It was noted that verifications were being carried out by the Administration regarding the value to be considered as the basis for calculating the depreciation of properties, especially in the event that they had been acquired by inheritance, as well as the application of the reduction of 60%, using in this case, in the opinion of the Association, an incorrect criterion. The representative of the Department of Tax Management responded that she was taking note of the issue to take it into account for future verifications.
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Valuation of transfers of participations/shares not listed in personal income tax: It was commented that when these actions were carried out by the Department of Tax Management and not by the Department of Inspection, the taxpayer directly received a settlement proposal, causing him a certain helplessness, especially when the Superior Courts of Justice have already reiterated the situation in their rulings. exceptional situation in the country in recent years, in which there have not been favorable market conditions. For his part, the Deputy Director General of Legal Assistance indicated that these verifications used the data contained in the Corporate Tax declarations, since it is presumed that these reflect the financial reality of the entity.
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Progress in the collaboration procedure between the Tax Agency and the General Directorate of Taxes for the resolution of queries: It was reported that for both the Tax Agency and the General Directorate of Taxes it is a matter of great interest to offer legal certainty to whoever requests it and with the greatest possible proximity in time to the realization of the taxable event. Thus, it was reported that the two organizations were working on establishing a system that would speed up, to a certain extent, the response to certain types of queries, but that, for the moment, there were many aspects to consider.
In relation to this issue, Mr. Marcos Álvarez adds that the new developments that occur will be made known to the members of this Forum.
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Bankruptcy of creditors of the Thomas Cook entity: The possibility of rectifying VAT tax bases as a consequence of the bankruptcy of said company was raised, to which the Tax Agency responded that neither Spanish nor Community legislation allowed ad hoc flexibility for specific taxpayers.
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To conclude his intervention, the Deputy Director General of Legal Regulation comments that the concern of the Tax Agency in relation to certain news that appeared in the media, with biased information regarding the actions of the Tax Agency, was also discussed at the working group meeting. Administration. Likewise, he adds that he considers the cooperation and transparency function of this Forum to be of great importance and invites those present to use it as a forum to express any discrepancies or discomfort. On the other hand, he points out that he thanks the Associations and Colleges for all the issues they have contributed to the work of the Forum groups and urges them to continue doing so.
Mr. Jesús Gascón thanks Mr. Marcos Álvarez for his presentation and offers the floor to those present in case anyone wishes to make any observations or comments. Since there is no intervention, it moves on to the next item on the agenda.
4. Procedure for adhering to the Code of Good Practices of Associations and Colleges of Tax Professionals and the Code of Good Practices of Tax Professionals.
The Director General comments that, after the approval of the two Codes in the plenary session last July, in the Associations and Colleges, a period of reflection has necessarily had to be opened regarding the taking of a position in relation to the themselves. He points out that, for its part, the intention of the Tax Agency is to launch the accession procedures as soon as possible. Mr. Jesús Gascón adds that, in order to know the state of the situation in each of the groups, he wants to open a round of interventions.
Firstly, Mr. Joan Torres Torres, representative of the Spanish Federation of Professional Associations of Tax Technicians and Tax Advisors (FETTAF), takes the floor and explains that in his federation each entity has its particularities and that, regardless of whether the federation be the link with this Forum, what has been proposed is that each association can join individually. He adds that he knows that the majority have already discussed it in their boards of directors and that they are in favor of accession, that is, that they only need to complete the procedure, and that there are two or three who have not yet had time to debate it.
Next, Mr. Adolfo Jiménez Ramírez, also a representative of FETTAF, intervenes, adding that, although the addendum is approved, he does not share it, since, in his opinion, the Code should be one, to which each group adheres or not. , at your discretion. However, he points out that he understands that, in some way, entities reluctant to approve the Code had to have some mechanism that would allow their associates to adhere and not deprive them of this right.
Mr. José Castaño Semitiel, representative of the General Council of Official Colleges of Social Graduates of Spain, then takes the floor, stating that, first of all, he would like to clarify the question of whether tax professionals who were not members or associates would be able to join. on their own to the Code. He adds that his group has expressed its opposition on this point on previous occasions.
Mr. Jesús Gascón responds that one of the requirements to be able to adhere to the Code is that people who wish to do so must be associated or registered in an entity that has a code of ethics. He adds that, in the short and medium term time horizon, the Tax Agency is only considering a procedure open to the associations and colleges present here and their associates and members.
Next, Mr. José Castaño Semitiel comments that his group's approach is that the approval of the accession be carried out by the full National Council, made up of all the presidents of Spain. He adds that, subsequently, each provincial college, through an addendum to national approval, will manage its accession. Likewise, it indicates that it would be desirable for the operation to be similar to the social collaboration procedure, so that each College could deal, electronically, with processing the membership of its own members who wish to do so. That is, if a member wishes to join, they should do so through their school, so that, if they stop belonging to the school, the entity can, in some way, communicate this fact and have their membership cancelled. If, later, this person belongs to another association again, they must process the membership again through the same association. Finally, Mr. José Castaño points out that the national plenary session is scheduled for the end of December where he believes that accession to the Code will be approved without incident, since it has been an issue debated internally in depth.
Next, Ms. Raquel Cobos Casero, representative of the Cabinet of Administrative Managers and Tax Advisors (GESAF), intervenes, pointing out that her group is in a situation similar to that presented by the representatives of the General Council of Official Colleges of Social Graduates of Spain. He adds that at the end of the year it is expected that the Council will approve the accession and that the associate who wishes to join will process it through his entity.
Next, Ms. Pilar Otero Moar, representative of the General Council of Colleges of Administrative Managers of Spain, takes the floor and begins her presentation by pointing out that the General Council has already approved the adhesion to the Code and that, at this time, the issue in its twenty-two territorial colleges in order to raise the approval of accession in their respective governing boards. He adds that, in his opinion, the approval will be unanimous. On the other hand, he points out that, in terms of procedure, it would be desirable for the Council to be able to process the membership applications of the territorial colleges. Finally, ask if, at this time, it is possible to request adherence to the Code.
Ms. Rosa María Prieto answers that, given that each entity has a different way of operating, the procedure is being technically finalized and that in the month of December it will be communicated to those present, in addition to publishing a note on the website . He adds that the centralization of membership applications in the Council, for subsequent transfer to the Tax Agency, should not present any problem.
Mr. Luis del Amo Carbajo, representative of the Registry of Fiscal Advisory Economists (REAF), then intervenes, commenting that his entity plans to hold a plenary session in mid-December and that what they were considering was that, once the approval of the Code, a scheme similar to that of the social collaboration procedure would be followed, that is, each school would be in charge of processing its own membership and that of its members, although with some type of centralization in the General Council for information issues. with the attached tax professionals, whether they belong to your entity or another.
Next, Mr. Manuel López Frías, Secretary of the General Council of Colleges of Customs Agents and Commission Agents, takes the floor, pointing out that the Council of Customs Agents has already approved the adhesion to the Code of Good Practices and that, at this time , are transmitting their position to the schools they represent. He adds that the approach they have regarding the procedure is that applications for membership, whether from a college or its members, are centralized in the General Council and, from there, are communicated to the Tax Agency, that is, that This body is the means of communication, in order to control at all times the situation of the accession of all the members of its group. He adds that, however, each college will take care of approving the requests of its members and will forward them to the Council.
Mr. Antonio Ibarra López, representative of the Professional Association of Accounting and Tax Experts of Spain (AECE), then intervenes to point out that his entity has a national character and, since territoriality does not exist, it will be the Association itself that channels the accession of its members. members. On the other hand, it indicates that it wants to echo the question raised by the representative of the General Council of Official Colleges of Social Graduates of Spain regarding whether non-member or associate professionals could adhere to the Code. Thus, it requests that it be recorded in the minutes of this plenary session that the correct interpretation of the Code, as it is currently drafted, means that a professional who wants to adhere to the Code of Good Practices must necessarily have the protection of the Association or College to which it belongs. He adds that, practically, all the entities present have the same opinion.
Mr. Jesús Gascón responds that the Tax Agency has interpreted that there is unanimity regarding this issue on the part of all entities. He adds that the position of the Administration is that, regarding the Code for Associations and Colleges, it is a Code open to the adherence of any group, since there may be associations, present or future, that wish to do so. However, it indicates that, if any association wanted to join and was part of any of those present here, the Tax Agency would redirect it to process it through its entity, if this were the operating criteria adopted by the same. Thus, he cites, as an example, the Code of Good Tax Practices approved unanimously in the Large Business Forum, which is made up of 27 entities. However, it indicates that any other company that decides to do so can adhere to the Code of Good Tax Practices, as is in fact the case. At this time, more than 140 entities have joined, which, taking into account that many are groups, means that there are currently more than 1,300 members. On the other hand, the Director General points out that, regarding the Code of Good Practices for Tax Professionals, the point that makes its individual adherence impossible is that it would lack certification of its subjection to a code of deontology. That is, professionals who want to adhere to the Code must necessarily belong to an association or college that has a code of ethics to which they submit their activity.
Next, Mr. Javier Gómez Taboada, representative of the Spanish Association of Tax Advisors (AEDAF), states that his association has decided not to institutionally adhere to the Code for Associations and Colleges, without prejudice to full respect for all its associates who, individually , wish to adhere to the Code of Good Practices for Tax Professionals.
Mr. Rafael Gil March, representative of the General Council of Spanish Lawyers, then takes the floor, pointing out that, although his entity voted against the approval of the texts of the two Codes, this does not prevent members who want to adhere to , they can do it. He adds that it adds to what has already been discussed in this meeting and in previous ones in relation to not allowing the adhesion of people who are not associated or collegiate. On the other hand, he comments that at this time he is not aware that the Council plans to modify the position initially adopted, without prejudice to the fact that some college may decide to approve the accession, since the Council's opinion on this matter is not binding for the groups. represents. That is, the different colleges, or the members, individually, can decide to request adherence to the respective Code.
Once the interventions of the representatives of the Associations and Colleges have concluded, Mr. Jesús Gascón states that it has become clear where each one stands. It reiterates that for the Tax Agency there is no problem in the application for membership being at a central or territorial level, according to the criteria approved by the governing bodies of the entity, and that, at the time the association's membership occurs or college, the possibility would be opened for its members to join. He adds that, in the case of entities that do not wish to join, the addendum would have to be put into operation, so that their associates or members could do so on an individual basis.
Mr. José Castaño Semitiel takes the floor and asks if, in relation to the Codes, there is a scheduled date for the start of the accession procedure and if it can be done electronically.
Mrs. Rosa María Prieto answers that the calendar that the Tax Agency is considering is that in the month of December the Associations and Colleges that wish to do so can join and that at the end of January 2020 tax professionals can do so on an individual basis. . Regarding the procedure for adhering to the Codes, it will be processed through the Electronic Office. He adds that, however, once it is finalized, those present will be informed of it so that they can make any observations that they consider may contribute to improving it. Technically, it will be like the rest of the procedures collected in the Electronic Office, although it remains to be determined how the withdrawals will be articulated.
Next, Mr. José Castaño asks if the data on the number of associates or members should be sent to the Tax Agency with some breakdown, at the Council level or at the Association level.
Ms. Rosa María Prieto responds that the purpose of knowing the number of members is to size each association to know if it can be more or less representative in order to establish the number of monthly consultations that each group can make.
Next, Mr. Luis del Amo Carbajo suggests that, given that the associates and members of entities that are not going to adhere to the Code will be able to do so on an individual basis, in some way this will mean in practice the participation of these entities in the concretion and development of the commitments included in the Codes, such as the number of training hours, the quality standards considered acceptable, etc., as well as serving as a communication channel between the Tax Agency and the members of its groups. . Thus, Mr. Luis del Amo considers it somewhat incoherent that there are associations and schools that do not adhere to the Code, but, nevertheless, are directly involved in practical issues of its development.
Mr. Jesús Gascón answers that the Tax Agency assumes that all entities represented in this Forum have a code of ethics, as well as conduct manuals for their members. He adds that the purpose of the addendum is to guarantee that, precisely, a professional's application for membership has the support of the corresponding association or college, which will also serve as a channel of communication with the Administration for their queries. However, Mr. Jesús Gascón points out that the issue raised will be analyzed.
Mr. Javier Gómez Taboada, representative of AEDAF, takes the floor and states that he agrees with the observations made by Mr. Jesús Gascón and that he sees no incompatibility between the lack of institutional adhesion of an association and the function of serving as a channel of communication for its affiliated associates. Likewise, he comments that in the Special Delegation of Navarra there has been an information meeting about the Codes and that he would like to know if it is a particular initiative of this delegation or if information sessions are going to be promoted throughout Spain. On the other hand, he requests that the minutes of this meeting record his Association's displeasure with the format used by the Tax Agency in its response to AEDAF's request for the Legal Service report, relating to the extension of the exemption from the benefit. for maternity for firm situations. He adds that said response lacked letterhead, date and signature.
Mr. Jesús Gascón responds that, in relation to this last question, he must point out that when, internally, he requests a report that will be assumed by the General Directorate of the Tax Agency, he does not require any type of formalism, usually using the email electronic. However, when it has to be submitted to an external body, such as a court, the formal requirements are met. He adds that the fact that the aforementioned report was in that format responds to simple operational reasons, but that, however, in the future, in cases where there may be an external significance, other ways of completing the requests will be studied. On the other hand, regarding the information sessions on the Code of Good Practices, it indicates that there is no provision for this purpose, but that the specific demands that arise will be met.
Then, since there are no more interventions, the President of the Forum gives way to the next item on the agenda.
5. Other considerations, requests and questions
Mr. Jesús Gascón comments that, as he indicated at the beginning of this meeting, he wants to present the state of development of the Strategic Plan of the Tax Agency 2020 - 2023. Thus, he points out that it has not yet been presented and that some figures are being updated since, at first, it was intended for the period 2019 - 2022. He continues by pointing out that the Plan is a multi-year strategic planning document, prepared by the Tax Agency to highlight what its fundamental lines of action and priorities will be, as well as to establish a series of indicators that better reflect what the work is. that it carries out, while reinforcing the institution's own governance, transparency and accountability. Given that it is a document prepared by the Tax Agency for the organization itself, it has clear limitations, that is, it will not propose regulatory changes, beyond the self-government rules, nor does it affect the territorial financing system. He adds that this is not an exhaustive and detailed account of the work of the Tax Agency, since the document has more than 130 pages, in which it is intended to highlight only the essential and priority aspects. Mr. Jesús Gascón continues by pointing out that, first of all, an analysis of the context is included and that, although the environment may be very changeable, he must highlight that, in Spain, regardless of whether budgetary emergencies may arise, the current situation is different from that of recent years, where the impact of the economic crisis prioritized short-term actions. Thus, this new scenario has allowed the Tax Agency to provide itself with strategic planning for its activity in the medium and long term. On the other hand, it indicates that the international environment in the tax field is in a period of reflection both in indirect taxation and, especially, in direct taxation and that we will have to see what it leads to. Furthermore, it points out that the international environment may also be conditioned by the possible impact of Brexit , an aspect that will depend on the exit mechanism finally adopted, but which will necessarily have procedural and operational consequences. On the other hand, he comments that in the Strategic Plan special attention has been paid to tax sociology, given that the studies of the Sociological Research Center (CIS) and the Institute of Fiscal Studies have revealed very interesting issues in relation to the opinion of Spaniards about the tax administration, fraud, the help services of the Tax Agency, etc. Mr. Jesús Gascón indicates that it is very significant that a percentage greater than 70% of those surveyed respond that tax fraud does not fall within their way of seeing life. For this vast majority of citizens, it is necessary for the Tax Agency to strengthen the information and assistance mechanisms that facilitate compliance with their tax obligations. However, on the opposite side there are 8% of respondents who answer that tax fraud is inherent to the very existence of taxes, for which the Administration's response will have to be based on the establishment of control mechanisms. Finally, there is a percentage, around 25%, who believe that fraud is an option at certain times in personal or corporate life. Prevention measures should be reinforced against this group.
Mr. Jesús Gascón continues by pointing out that the Plan has also taken into account existing studies on the underground economy. Specifically, the studies carried out by the European Commission on the tax gap and other related indicators show that, in the case of Spain, compared to its surrounding countries, the figure of the underground economy is not very high. It points out, however, that many times the interannual variations are due more to methodological changes than to changes in the behavior of taxpayers. Studies on the underground economy sometimes present very alarmist data, but when international organizations commission these studies, these percentages fall drastically. Sometimes certain controversies arise in this regard that convey the idea that much more could be raised. However, he adds that not all of the underground economy can be subject to regularization since, for example, illegal activities are not likely to produce additional tax revenue. Furthermore, there is a very low intensity economy with very low amounts that would not be taxed taking into account the personal and family minimums, for example, in personal income tax. Likewise, he comments that, although it may seem contradictory, there is an underground economy that is carried out by paying taxes. He cites as an example the case of a place where a hidden activity takes place. That establishment is paying the IBI and, in addition, some energy supplies and, probably, it is being supplied in establishments in which it bears the VAT. However, Mr. Jesús Gascón indicates that the existence of an underground economy in a reality and discovering it is also an objective of the Administration.
On the other hand, the Director General comments that the results of the Tax Agency's control activities that are presented annually offer very high figures, around 15,000 million euros. However, it points out that this figure includes results of all kinds and not necessarily derived from actions to combat fraud. He adds that greater transparency is desirable to clearly report the concepts included in these results. For example, income derived from regularized returns with results to be entered, rectifications of self-assessments submitted by taxpayers that are rejected or reduced, etc. Furthermore, the Tax Agency carries out actions that are not included in the control results, such as reductions in negative tax bases, the fight against smuggling or the effects induced, for example, by the notices introduced in the tax return. Income Tax that results in the taxpayer directly declaring correctly. On the other hand, it points out that there may be extraordinary results, atypical files, which can make the result very high one year and the next year appear very low. Mr. Jesús Gascón indicates that the Plan introduces seven strategic indicators that better illustrate the work carried out by the Tax Agency from a multi-year perspective. Thus, in line with the objective of promoting tax compliance, the first indicator proposed focuses on measuring its evolution. To do this, a dynamic analysis is carried out comparing years in order to observe the evolution of the large macroeconomic magnitudes most directly related to tax revenues. The evolution of nominal GDP and that of national demand are compared, in order to determine whether fiscal indicators evolve better or worse than the main macroeconomic magnitudes. Mr. Jesús Gascón points out that the conclusion is that voluntary compliance has improved in recent years, to which, to some extent, everyone present has contributed with their activity. Thus, it indicates as reference data that in 2019 nominal GDP will grow around 3.6%, while the aggregate tax bases will be around 5%. On the other hand, the tax behavior of the inspected taxpayers is also being measured. Except for the companies and groups assigned to the Central Delegation of Large Taxpayers (in which there is a great variability of results between years due to internationalization and business restructuring that make it difficult for comparisons between years to be homogeneous), the General Director cites, As an example, it had been observed that the taxpayers inspected in 2015 had increased their declared income by 25.6% in the three years following the year in which the regularization was carried out with respect to what they had been declaring in the three previous years. , the average growth in tax revenue between said periods for all taxpayers being clearly lower: of 12.6%. Thus, this indicates that the inspections had a positive impact, resulting in an improvement in voluntary compliance. The Director General adds that it is necessary to expand studies on the induced effects to other areas, such as customs, special taxes, the actions of the Tax Management Department, etc. He points out as an example the notices in the personal income tax campaign on tourist leases or on accounts abroad. Thus, the Tax Agency must analyze how returns evolve in the following years. That is, indicators must be established that allow illustrating the results derived from preventive actions in the different areas of action, since an improvement in voluntary compliance necessarily translates into a decrease in the results of control activities. Thus, the indicators have to serve to explain to society the work that is being carried out and mark the priorities for action, since decreasing control results do not mean that work is being done worse, but rather they are a consequence of the effort made in prevention. On the other hand, Mr. Jesús Gascón highlights that when referring to control results, these are only computed if the effective income occurs, that is, the suspended debt is not included. Thus, another indicator that has been included in the Strategic Plan, in addition to the three mentioned (voluntary compliance, induced effects and control results), is the improvement of efficiency, which is closely related to tax conflict. Mr. Jesús Gascón points out that the Administration must act with transparency and be able to measure the litigation generated by its actions, in order to adopt measures to improve the situation. It clarifies that this matter has been analyzed both from the point of view of absolute conflictivity (number of appeals for replacement and economic-administrative claims), and in terms of relative conflictivity (percentage that represents what was appealed or claimed with respect to the totality). of the administrative acts dictated by the Tax Agency). Thus, it indicates that, although the relative conflict is low, it means that between 150,000 and 160,000 claims per year reach the Economic-Administrative Courts, which places them in a very complex operational situation, which shows the need for reinforcement in material resources. and personal, as has been done this last year, so that the resolutions are issued within a reasonable period of time. On the other hand, he adds that it is also necessary to analyze the rates of annulment of the Administration's acts in the courts, both in economic-administrative channels and in contentious-administrative channels, in order to improve the quality of the actions both in their content. as in its form. Thus, it stands out that total or partial annulments regarding the contested acts are around 30%. However, it points out that the Tax Agency dictates millions of administrative acts and that, given the diversity of functions it performs, studies of the annulment percentages of the dictated acts present variations depending on their nature, since there are procedures with a very low rate of conflict, such as in the census or tax collection sphere, compared to others that have a higher rate. Specifically, the assumptions of the minutes of non-conformity and the sanctions in the inspection procedures have been analyzed, keeping in mind that more than 80% of the minutes are in conformity or with agreement, which shows a very clear strategic line and that is, Within the current regulatory framework, if it is possible to reach agreements, this route is used as an instrument to reduce conflict. However, it points out that the Tax Agency does not have this legal tool in procedures other than the inspector. It indicates that the Taxpayer Defense Council (CDC) has been commissioned to carry out a study on possible avenues for conciliation, which could require regulatory changes.
The Director General continues by adding that, on the other hand, analyzing the conflict from the point of view of amounts, the main indicator is the debt suspended by appeal or claim. Thus, he comments on the existence of 41. 627 million euros of total outstanding debt, of which 12,763 correspond to debt suspended due to appeal or claim and 5,664 due to bankruptcy proceedings, with the Tax Agency's margin of action in terms of manageable debt being well below 41. 627 million euros mentioned. Thus, it has been considered important to include an illustrative indicator focused on what could be called manageable debt, that is, that part of the total debt over which the Tax Agency has full capacity, since there is another part over which it has no margin. of maneuver, except to collaborate with the courts so that they resolve as soon as possible.
Mr. Jesús Gascón continues his presentation by pointing out that another quality indicator that has been considered important to include in the Plan is the payment of late payment interest by the Administration to taxpayers. Thus, it indicates that the payment of interest is imposed by the regulations, but that, nevertheless, it is a field of action that can be improved by the Tax Agency, since, fundamentally, late payment interest originates from delays in the processing of refunds and by unfavorable resolutions or sentences from which a refund to the taxpayer is derived. There are also cases where the margin of action is less, as is the case with returns derived from rectifications of self-assessments. He adds that, like the other indicators, this will measure the trend over the years and, except in extraordinary situations, the interest paid is expected to decrease.
The Director General continues by pointing out that another efficiency indicator has also been introduced, used in international comparison, which is based on the comparison of the Tax Agency's budget with the income it manages. The operation shows a ratio below 0.7, which means that, for every 100 euros managed, the cost to the Public Treasury is 0.7 euros. It indicates that the intention is to keep this rate stable since the Tax Agency is located ahead of the average of the OECD, the European Union and neighboring countries, such as France, Germany and Italy. He adds that maintaining this ratio would allow the recovery of the 3,000 troops that the organization has lost in recent years. In addition, it reports that the Tax Agency is facing a truly worrying retirement scenario, since the average age of its employees is 53 years old. This implies that if you want to have a prepared and trained workforce, it is necessary to call the appropriate selection processes.
Next, the Director General points out that the Plan also defines some of the priority lines of action. In VAT, the pilot test of the pre-declaration of model 303 and the communication of tax data to companies in the Corporate Tax campaign stands out in a similar way to what is done in the Personal Income Tax, developments that have had a lot of echo media. He adds that, overcoming the existing differences between corporate taxation and that of a natural person with a simple personal income tax profile, the Tax Agency is analyzing how far it can go in making the information it has available to the taxpayer. Thus, in the Corporate Tax it has been decided to share the data available to the Administration regarding tax credits pending application, installment payments, withholdings, foreign accounts, etc., that is, all the information that has been transparent in the personal income tax for a few years. This change in strategy is also due to the objective of improving voluntary compliance, since, for example, the number of cases in which the pending tax credits declared in a previous year do not match what is declared in the year in question It is very high, tens of thousands of taxpayers. Thus, the Tax Agency believes that by providing this data to the taxpayer, it is helping them to complete their declaration correctly. In short, it would be about establishing communication channels with the taxpayer that are not limited to sending notifications related to verification procedures, but also launching initiatives that help them in voluntary compliance with their tax obligations. On the other hand, Mr. Jesús Gascón indicates that we must also advance in the development of virtual assistants. As an example, he comments that last year the Tax Agency assisted two million taxpayers in person for census issues. Thus, the implementation of a virtual assistant that would provide the taxpayer with the certainty that they have completed their census return without errors, in such a way that the Administration could send them a notice informing them of the deadline they have to submit a certain self-assessment if their situation has not changed, or that, if your situation has changed, through that same channel you could rectify your census data, which would free the physical offices of the Tax Agency from work. That is, it would be about implementing self-service information or digital administrations where taxpayer attention would be concentrated by telephone and telematic means.
Next, Mr. Jesús Gascón indicates that the sole objective of the inspection actions will not be to regularize a situation with the consequent payment of the resulting amount, but rather they are intended to have a positive future effect, that is, to influence the economic sectors and in the environment of the taxpayers inspected, as commented when referring to the induced effects. Thus, it informs that action will be taken in a very direct way against the underground economy, such as hidden activities and undeclared sales. He adds that the fight against fraud requires the participation of the entire society and that the role played by social partners is very important. Furthermore, the Tax Agency also believes that the main beneficiaries of effective actions against the underground economy are compliant companies, which, on the other hand, are the majority. In this sense, Mr. Jesús Gascón alludes to the growing requests for the development of codes of good practices from certain sectors, such as CEOE-CEPYME or self-employed workers' organizations, and reiterates what has already been discussed in previous meetings about the existence of a Code. of Good Tax Practices, but which, having been the result of the work of the Large Business Forum, the SME organizations believe that they are not specifically applicable to the groups they group together. Thus, in this field the Administration has to advance in the design of strategies together with business organizations. Furthermore, he adds that, in Europe, for example, issues are being debated about the future of VAT, and that it would be desirable to develop a "country position", the result of dialogue between all economic and legal agents and based on common interests.
Mr. Jesús Gascón, continuing with his presentation on the Strategic Plan, refers to the improvements included in the governance of the Tax Agency itself. Thus, it communicates that the Plan itself, its indicators and the annual objectives plan will be published on the Transparency Portal and will be sent to Parliament. In addition, upon expiration of the fiscal year, a report prepared by the Internal Audit Service will also be released that demonstrates the degree of compliance with the annual objectives and the evolution of the multi-annual indicators. These reports will also be published on the Transparency Portal and sent to Parliament. On the other hand, he adds that the organization's ethical infrastructure will also be improved, adapting it to new international requirements. He points out that the Spanish Administration has a code of conduct for public employees. However, it indicates that the specific characteristics of the Tax Agency, given its size and the close relationship of its activity with the management of public funds, make it advisable to declare an explicit commitment through an institutional declaration, as well as the development of a code. of principles and conduct applicable to its peculiarities. He adds that, in addition, a reporting channel for improper behavior will be put into operation and an ethics advisory commission will be created.
Finally, Mr. Jesús Gascón points out that the Strategic Plan is going to be an open document, since, as happens in companies, the strategy can be out of date due to the occurrence of certain events, whether favorable or unfavorable, as they could be the effects of Brexit or changes in international taxation. Therefore, it indicates that observations and suggestions will be well received and will serve to permanently adapt the plan to reality. Furthermore, the General Director adds that the Plan positively values the cooperative relationship model and explicitly refers to the codes of good practices, as well as the progress that transparency reports voluntarily submitted by companies have brought to the cooperative model. which allow the Tax Agency to have early knowledge of the tax policy and tax risk management of the entity, which, in turn, results in greater legal security for it.
Next, the President of the Forum addresses those present and opens a speaking turn.
First of all, Mr. Luis del Amo takes the floor, who proposes that, although it has nothing to do with taxes, bottled water in plastic containers be eliminated from the meetings of this Forum.
Mr. Jesús Gascón responds that, in his opinion, it is a great idea.
Next, Mr. Antonio Ibarra intervenes, who clarifies that he is speaking in a personal capacity, and points out that the issue of the Strategic Plan and its seven indicators seems to him to be a good initiative, as well as prevention based on the promotion of voluntary compliance. On the other hand, he indicates that in his professional experience “less is more” and, to explain this, he comments that a labor inspection, compared to those of the Tax Agency, lasts less time, since they are more repetitive, so the The resulting fees are lower and the number of taxpayers inspected is higher. That is, companies have a work review every one or two years. However, you can also say that 50% of your clients haven't had a tax inspection in 20 years. Thus, the taxpayer believes, as a general rule, that he will not be inspected. On the other hand, there is also the generalized thought that when a tax inspection takes place, it will last a year or a year and a half and the result will be that the taxpayer, practically, is left in ruin, that is, he will to be large. Thus, Mr. Antonio Ibarra believes that a greater frequency of verifications, ones that last less time and result in smaller amounts, would be more instructive and would have better effects on the taxpayer's behavior, while at the same time leading to less conflict. On the other hand, he points out as critical the fact that around 30% of the resources or claims are resolved in favor of the taxpayer in the economic-administrative courts, and that, of the rest, another 35% are resolved favorably in the contentious-administrative. Thus, he indicates that in order to reduce litigation, the resolutions of the reconsideration appeals could be improved, where, in his particular case, he has verified that of the 10 reconsideration appeals he presents, 9 are rejected administratively.
Mr. Jesús Gascón answers that, in relation to the first point, the possibilities of action that the Administration has are very broad and it has to diversify them. However, he points out that a preventive approach to the taxpayer has many positive aspects. Furthermore, he adds that he agrees that it is necessary to encourage verifications to be carried out as close as possible to the occurrence of the taxable event. On the other hand, in relation to the second issue raised, he comments that, of the approximately 70% of resolutions issued by the economic-administrative Courts in favor of the Administration, only between 15 and 20% reach the contentious-administrative route. , which means that 30% of the cases in which the taxpayer is found right in this way represents a very small percentage, since, directly, the taxpayer does not resort to said way. However, Mr. Jesús Gascón adds that, although it depends on the procedure, statistically at this time the estimates in favor of the taxpayer in the replacement resources exceed those that take place in the economic-administrative and contentious-administrative channels considered together. Furthermore, it indicates that taxpayers on numerous occasions ignore the procedure in which they can make allegations, presenting them later, in the appeal phase. This peculiar fact makes the Tax Agency consider that the taxpayer does not identify this procedure correctly, because the Administration is not communicating it properly. Thus, it is also being analyzed whether, for the sake of legal rigor, specific information is not being provided on the course of action that is open to the taxpayer with a certain notification.
Next, Mr. Javier Gómez intervenes, commenting that he found all the reflections that have been made very interesting and that he will be closely monitoring the progress of the Strategic Plan. On the other hand, he comments that he also wants to contribute, as a reflection regarding what was said about the fact that the suspended debt does not count in the results, that the percentage of the debt has always been missing, from a statistical or macroeconomic point of view. pending collection that is reflected in the assets of the national accounting. Ask if 100% is collected or if there is a decrease as time passes or certain incidents occur. He adds that it would be desirable for this information to be made transparent.
Mr. Jesús Gascón responds that the difficulty in this question lies in the fact that since the deadlines are so long, the filtering takes place over a very long period of time. Thus, the appealed debt is incorporated into the national accounting as the courts agree with the Administration and the corresponding income is produced. In some cases, the processes last more than a decade. However, he adds that it is being observed that to the extent that the actions are closer to the realization of the taxable event and the regularizations refer to a smaller number of years, the collection occurs more immediately. On the other hand, it indicates that there are items for which there are very few expectations of collection, such as the approximately 6,000 million of debt affected by bankruptcy processes. Thus, it indicates that on this issue we will try to be more transparent since it is a critical issue and that the fact of having identified the part of the debt affected by bankruptcy proceedings goes in that direction.
Next, Mr. José Castaño takes the floor and indicates that, in relation to what was commented on the cases in which, on occasions, taxpayers do not understand the notifications, he reiterates the request already made in previous meetings for a simplification of the language used in official communications, so that they are clearer for everyone. On the other hand, he points out that, regarding the publication of strategic indicators, it would be interesting to have them broken down by Delegations so that, within the framework of the cooperative relationship, they could be shared in this Forum, as well as, at the of Delegations, meetings could be called with the representatives of the forum to transmit the data of that delegation and solutions could be provided for specific situations that need correction.
Mr. Jesús Gascón answers that the publication on the Transparency Portal, as well as the referral to Parliament, will be national, aggregated information. However, he points out that when the data is territorializable, there would be no problem in sharing it in this Forum.
Mr. Antonio Ibarra then intervenes, who, in relation to what was mentioned about the approximately 6,000 million euros of outstanding debt derived from bankruptcy proceedings, points out that the so-called “second chance law”, in his opinion, has been a failure and which has not served to alleviate the effects that the hard years of the economic crisis had on the activity of many self-employed workers. Thus, he comments that there is a very large group that, due to the debts it owes, is developing its activity, at least in part, within a framework of the underground economy. He clarifies that they have to turn to family members and trusted people so that they appear as owners of the activity and they collect their remuneration, in “black money.” Mr. Antonio Ibarra adds that it would be desirable for the interpretation of the recent ruling of the Supreme Court of July 2, 2019 to be carried out in such a way that the “second chance law” was truly effective and allowed the activity of this group to be fully reincorporated. the Spanish economy. Finally, it indicates that, although the Tax Agency does not have regulatory competence, it could consider proposing in this matter a more flexible and favorable position on the exoneration of debts, given that the emergence of activities would lead to greater income for the state.
The General Director responds that the outstanding debt derived from bankruptcy processes affects, in terms of amounts, mostly Companies and, to a very small extent, individuals, so for this group a more possibilist approach could be considered. He adds that, however, the Tax Agency is still carrying out an analysis on this component concept of the outstanding debt.
Next, Mr. Rafael Gil March takes the floor, indicating that projects such as the Strategic Plan have a theoretical or principled approach that is very well received, but that, subsequently, they are not reflected in their practical application, from day to day. day. He adds that, for example, in the actions of the Department of Tax Management, with a greater volume of taxpayers affected than other Departments, such as the Inspection Department, there is no treatment towards the taxpayer that can be described as close. Thus, the real perception of the citizen is that when they receive a communication from the Tax Agency it is always to pay some amount. Furthermore, sometimes the small amount makes it surprising that the Administration allocates resources and time to regularize certain situations, instead of acting more completely in others that could have greater economic significance. Mr. Rafael Gil March adds that it is possible that the establishment of the indicators that have been discussed will allow for better identification of priorities. On the other hand, he reiterates that it would be essential to improve the treatment of the management bodies towards taxpayers, which, in his opinion, would contribute to generalizing an awareness of voluntary compliance and would improve the perception that citizens have, not only of the Administration, but also of tax professionals, making their work easier for the latter, especially when they want to convey that compliance has many more advantages than non-compliance or the concealment of income.
D. Jesús Gascón answers that, indeed, also in mass actions the bias has to be marked more by prevention than by repression. He adds that he has already commented that, for example, in the Corporate Tax the Tax Agency finds that the taxpayer in the declaration for a certain year does not maintain consistency with what was declared in previous ones. On numerous occasions, the economic significance is minimal, but, nevertheless, from the Administration it is very difficult to ignore a flagrant contradiction. Thus, in these cases the solution may consist of establishing a system of preventive notices that allow the taxpayer to check their own information and modify it where necessary. He adds that, in this way, the Tax Agency could dedicate more resources to other more important priorities such as the emergence of undeclared tax bases or the underground economy. On the other hand, Mr. Jesús Gascón reiterates that the Strategic Plan is based on greater regulatory simplification together with an effort in prevention, with the aim of causing changes oriented towards voluntary compliance in the taxpayer's tax behavior. However, he points out that a plan of this nature, with important strategic changes, cannot be implemented overnight, especially taking into account the size and complexity of an organization like the Tax Agency. Likewise, he comments that one of the purposes of the Plan is to open a debate on the tax administration that society wants for Spain.
Given that no new interventions are made, the Director General of the Tax Agency thanks everyone for their attendance and participation and concludes the sixteenth session of the plenary session of the Forum of Associations and Colleges of Tax Professionals.
The Technical Secretary of the Forum
Ms. Dolores Carreño Beltrán
The President of the Forum
D. Jesús Gascón Catalán