Minutes of the session

MINUTES OF THE PLENARY SESSION 1/2022

Minutes of the Plenary Meeting of the Forum of Federations and Associations of Self-Employed Workers
held on February 16, 2022

State Secretariat for Finance

President of the State Agency for Tax Administration - Secretary of State for Finance

Mr. Hector Fernando Izquierdo Triana

President of the Forum of Federations and Associations of Self-Employed Workers

Director General of the State Agency for Tax Administration

Mr. Jesus Gascon Catalan

Members representing the Tax Agency

Director of the Tax Management Department

Mrs. Rosa Maria Prieto del Rey

Director of the Department of Financial and Tax Inspection

Mr. Javier Hurtado Puerta

Director of the Revenue Department

Mr. Guillermo Barros Gallego

Director of the Tax Information Technology Department

Mr. Jose Borja Tome

Director of the Planning and Institutional Relations Service

Mr. Ignacio Fraisero Aranguren

Members representing Federations and Associations of Self-Employed Workers

National Federation of Associations of Self-Employed Workers (ATA)

Executive Vice President

Mrs. Celia Ferrero Romero

Adviser

Mr. Javier Martin Fernandez

Union of Self-Employed and Entrepreneurial Workers Associations (Unión de Asociaciones de Trabajadores Autónomos y Emprendedores - UATAE)

Technical coordinator

Mr. Miguel Angel Abejón Resa

Head of Tax Department

Mr. Antonio Garcia Gordo

Union of Professionals and Self-Employed Workers (Unión de Profesionales y Trabajadores Autónomos - UPTA)

Legal Officer

Mrs. Ines Mazuela Rosado

Tax Advisor

Mrs. Reyes Casabella Mouta

Technical Secretariat of the Forum of Federations and Associations of Self-Employed Workers

Deputy Director General of External Communication

Mrs. Maria Dolores Carreno Beltran

On February 16, 2022, the first plenary session of the Forum of Federations and Associations of Self-Employed Workers will be held, attended by the people mentioned, and in accordance with the following

Agenda

1. Opening by the Secretary of State for Finance and President of the State Tax Administration Agency. Objectives of the Forum of Federations and Associations of Self-Employed Workers.

2. Round of interventions by representatives of Federations and Associations of Self-Employed Workers.

3. Approval of the Forum's Operating Rules.

   • Composition of the Technical Secretariat.

4. Constitution of working groups:

   • Code of Best Tax Practices.

   • Regulatory analysis and digitalization project.

5. Next call: dates and topics to be discussed.

6. Other considerations, requests and questions.

1. Opening by the Secretary of State for Finance and President of the State Tax Administration Agency. Objectives of the Forum of Federations and Associations of Self-Employed Workers

The session was opened by Mr. Héctor Fernando Izquierdo Triana, Secretary of State for Finance and President of the State Agency for Tax Administration, who, after welcoming and thanking the attendees for their presence at this first session of the Forum of Federations and Associations of Self-Employed Workers, pointed out that both the Ministry of Finance and Civil Service and the Tax Agency are at the disposal of the group represented, with the aim of promoting the cooperative relationship model. He adds that everything that involves improving aspects such as regulations, good tax practices, the digitalisation process, etc. It is very positive for society as a whole, especially considering the weight that self-employed workers have in the Spanish economy, with nearly three and a half million people. On the other hand, he reports that shortly before this meeting, the constitutive session of the Forum of Small and Medium Enterprises took place, in order to also institutionalize a space for direct and permanent communication with this group.

He then gives the floor to Mr. Jesús Gascón Catalán, Director General of the Tax Agency, to make a brief presentation on the objectives of the Forum.

Mr. Jesús Gascón begins his speech by reminding those present that the Tax Agency, following the recommendations of the OECD regarding the best tax practices, has been implementing it for more than a decade. the Forum of Large Companies and the Forum of Associations and Colleges of Tax Professionals. He adds that, however, in recent times a deficiency has become apparent, which is the lack of a similar space for communication with self-employed workers and small and medium-sized companies, since, although it is true that both groups use the services of tax advisors and managers to comply with their tax obligations, although the role played by tax intermediaries in this regard is particularly relevant, the perspective and interests are not always the same. Thus, it is of great importance for the Tax Agency to have a permanent and direct channel of relationship with the Federations and Associations of Self-Employed Workers. On the other hand, Mr. Jesús Gascón points out that, regardless of the institutional relevance of the constitution of the Forum itself and the holding of two plenary sessions per year, the most important thing will be the launching of the working groups, which will meet in a more informal manner as soon as any of the parties consider it convenient to deal with a specific matter, thus ensuring effective dialogue. In this regard, he points out that two working groups are planned to be created from the outset; The first, with a very specific purpose, is the drafting of a code of good practices that can be subscribed to by the associations representing the group, as well as by the self-employed workers themselves. He points out that, although there is already a Code of Good Tax Practices, since it was approved within the framework of the Forum of Large Companies, although not limited to them, it includes references to issues, such as international taxation, with which the group of self-employed workers will not feel very identified. For this reason, it has been deemed appropriate that, based on the existing Code, the working group make the necessary adaptations so that it reflects the reality of the group. On the other hand, in relation to the second working group, the Director General of the Tax Agency indicates that this will have a more interdisciplinary nature and that, in the short term, it will be dedicated to the analysis of the digitalization project launched as a result of the regulatory development of the measures against the use of dual-use software included in Law 11/2021, which is expected to be published shortly on the website of the Ministry of Finance and Civil Service in order to comply with the public hearing and information procedure. He adds that the tax authorities are particularly interested in learning about the reactions to the project in different areas and that, in addition, the working group will also have to deal with its interrelation with European funds and the “Digital Kit” programme, as well as with the electronic invoicing project that the Ministry of Economic Affairs and Digital Transformation is promoting within the framework of the “Crea y Crece” bill, which is currently being debated in the Congress of Deputies. Likewise, Mr. Jesús Gascón comments that this working group, in addition to having a short-term focus on dealing with issues that may arise on a day-to-day basis, would also have a medium- and long-term orientation since in this era so prolific in terms of regulatory production, it will also be necessary to study more in-depth matters relating to the future of the taxation of self-employed workers. Thus, Mr. Jesús Gascón points out that, specifically, in a few days the Committee of experts will present the White Paper on tax reform and, although the taxation of self-employed workers and SMEs was not one of the priorities set by the Government, the taxation of these groups will be affected to some extent, so the meetings of the working group can serve to put the general recommendations of the Committee into practice and analyze the changes that could be implemented, distinguishing between the short, medium and long term. He added that the group's meetings will also have to deal with the transposition into domestic legislation of the directives with the greatest impact, as well as analysing and studying measures aimed at reducing indirect tax burdens arising from compliance with tax obligations. To conclude this point, the Director General of the Tax Agency points out that, given that there are matters of common interest for both self-employed workers and SMEs, the meetings of the working groups may be held jointly for both Forums and, if the matter requires it, the participation of representatives of the General Directorate of Taxes or the Institute of Fiscal Studies would be included.

2. Round of interventions by representatives of Federations and Associations of Self-Employed Workers

The Secretary of State for Finance then reiterated that, above all, the Forum must be established as a space for cooperation that is useful to the parties, in which matters that require it are raised and analysed and that, in those cases in which the issues are also of interest to SMEs, the meetings of the working group will be held jointly. In addition, representatives from the General Directorate of Taxes or the Institute of Fiscal Studies may participate when deemed appropriate.

Mr. Héctor Fernando Izquierdo then gives the floor to the representatives of the self-employed workers.

First to speak is Ms. Celia Ferrero Romero, Executive Vice President of the National Federation of Associations of Self-Employed Workers (ATA), who comments that she considers the creation of this Forum to be a great initiative since dialogue is essential for the parties to get to know each other and thus establish a relationship of trust that fosters among self-employed workers the vision of the Tax Agency as an ally and not an enemy. He also points out that, beyond bringing the diverse reality that exists within the group of self-employed workers closer to the Tax Agency, the Forum will be fundamental in promoting a regulatory framework that better adapts to this reality. Finally, Ms. Celia Ferrero is grateful for the creation of this Forum and its working groups and points out that the Federation she represents believes that this channel of permanent and periodic dialogue will be very useful in a time of so many transformations, such as digitalization and, above all, tax reform.

Next, Ms. Inés Mazuela Rosado, Legal Manager of the Union of Professionals and Self-Employed Workers (UPTA), spoke. After greeting those present, she pointed out that her association values the creation of this Forum positively, which will undoubtedly open up a space for collaboration that will allow for a rapprochement between the reality of self-employed workers and the Tax Agency and vice versa. Furthermore, it will be very useful, especially through the activity of the working groups, in terms of all the European regulations that will have to be adapted to such a heterogeneous group, with its different peculiarities and problems. Finally, Ms. Inés Mazuela is grateful for the creation of the Forum and indicates that UPTA is at its disposal in order to work and make progress in making life easier for the self-employed worker.

Next, Mr. Miguel Ángel Abejón Resa, Technical Coordinator of the Union of Associations of Self-Employed Workers and Entrepreneurs (UATAE), takes the floor. He points out that he joins the previous interventions in terms of gratitude for the creation of the Forum and adds that his association wishes to acknowledge the attitude shown by the Tax Agency in the previous work, since it has been very receptive in terms of finding the mechanism that could best serve to promote the cooperative relationship model; That is to say, although initially there was talk of creating a document that would collect good tax practices, as progress was made, the position of the Administration evolved to conclude that the creation of this Forum and the constitution of its working groups would be more appropriate and effective. Mr. Miguel Ángel Abejón adds that this space for collaboration is very important and necessary both for the representative organizations of self-employed workers in this country and for the Tax Agency, which, as its General Director has pointed out, can thus obtain direct knowledge of the peculiarities and difficulties of the group. She thus indicates that her association has no doubts regarding the parties' willingness to promote this framework for collaboration, especially at a time characterized by, as the ATA representative indicated, important transformations aimed at the economic recovery of the country, in which reforms are going to be undertaken as a result not only of the recommendations contained in the White Paper on tax reform, but also due to the transposition of European regulations into domestic law, as well as any legal developments that may arise. Finally, he said that this Forum will be a very useful tool, as will the provision of the necessary working groups based on the priorities that arise.

The Secretary of State for Finance then intervened to point out that he fully agrees that mechanisms must be sought to facilitate the fiscal life of the self-employed worker and to help change the image of the Tax Agency as an enemy within the group. He adds that the creation of a space for dialogue and relations where, with the good will and willingness of the parties, matters of interest can be analysed and debated, will undoubtedly contribute to the well-being of the self-employed and, therefore, to that of society in general.

3. Approval of the Forum's Rules of Operation

For the development of this point of the agenda, the Secretary of State for Finance gives the floor to Mr. Jesús Gascón, who communicates that the "Rules of operation" of the Forum of Federations and Associations of Self-Employed Workers were sent to its members prior to this call, no observations having been received, and that, if there were none at this time, they would be definitively approved. As no comments were made by those present, the “Rules of Operation” are declared approved.

4. Constitution of working groups

In relation to this point, the Secretary of State for Finance indicates that, as already mentioned, the planned working groups are two: One of these is aimed at developing a “Code of Good Tax Practices” and the other is dedicated to “Regulatory analysis and digitalization project.”

He then gives the floor to the Director General of the Tax Agency to make a brief presentation on the working groups.

Mr. Jesús Gascón reiterates what has already been said and points out that the working groups will be informal and flexible and that two will be set up from the outset: The first, with the specific purpose of developing a Code of Good Tax Practices, and the second group, with a broader content, so that any matter of interest to any of the parties can be referred to it. He added that the Tax Agency intends to convene a meeting of this group in the coming weeks to discuss the digitalisation project and, of course, any other issues that may arise.

Mr. Miguel Ángel Abejón then intervened to point out that in relation to the working group for the preparation of the Code of Good Tax Practices, in the previous meetings, the possibility was considered that the self-employed could join it through the representative associations and, even, that each organization could propose its own code respecting a common minimum content. In this regard, he adds that, although all these issues will be addressed in the working group, UATAE wishes to state in advance that it considers that the role of associations and federations is to participate in the development of the code, but that this must be unique and universally accessible, so that self-employed workers who so decide can adhere directly regardless of whether they belong to an organization or not. On the other hand, regarding the Regulatory Analysis and Digitalisation Project Working Group, he asked whether, as it is a permanent working group where regulatory changes and developments are dealt with, there would be any problem if the person designated to participate at any given time varies depending on the subject matter.

Mr. Jesús Gascón answers that the composition of the working groups will vary depending on the issues to be discussed, since they have a more technical, informal and flexible nature. On the other hand, in relation to the Code of Good Tax Practices, it points out that the Tax Agency is open to all proposals, since each one has its advantages and disadvantages, that is, channeling it through associations reinforces their presence in the group while ordering the process, but, on the other hand, universal access facilitates the adhesion of the self-employed who so decide. Likewise, Mr. Jesús Gascón comments that this dilemma was also raised with the codes approved within the framework of the Forum of Associations and Colleges of Tax Professionals and, finally, it was decided that the adhesions would be channeled through the associations; He added that, however, the Tax Agency was open, as it is now, to adopting the formula that was most in the interest of the group.

Mr Javier Hurtado then took the floor to point out that the Tax Agency also advocates a global consensus agreement for all associations.

Mr. Jesús Gascón then intervened again to point out that the Tax Agency is also in favour of adopting codes that are strictly necessary, as is the case, given that the existing codes do not reflect the reality of the group since the interests of a multinational or a tax advisor do not necessarily coincide with those of self-employed workers.

5. Next call: dates and subjects to deal with

The Secretary of State for Finance states that the intention is to hold a plenary session every six months in order to maintain the continuity of the Forum's work and that, in addition, the working groups that are considered appropriate will be convened, taking into account that the meetings of the same, given their technical nature, will be attended by the experts designated by the parties.

The Director General of the Tax Agency then takes the floor to add that the Technical Secretariat of the Forum will be based in the Planning and Institutional Relations Service, headed by Mr. Ignacio Fraisero Aranguren, and that its functions will be carried out by the General Subdirectorate of External Communication, specifically by its Deputy General Director, Ms. María Dolores Carreño Beltrán. It also notes that the approved Operating Rules state that organizations that wish to do so will collaborate on a rotating basis for annual periods in the Technical Secretariat. The Commission therefore requests that associations appoint a person to carry out the collaboration functions and to communicate their decision to the Technical Secretariat. Furthermore, it indicates that, although the institutional content of the Forum will be channelled through its Technical Secretariat, when there are specific issues, organisations may directly address the competent Departments. He added that this plenary session was attended by the heads of the Departments that are most closely involved in the day-to-day issues of the self-employed group, namely Ms Rosa María Prieto del Rey, Director of the Tax Management Department, Mr Javier Hurtado Puerta, Director of the Financial and Tax Inspection Department, Mr Guillermo Barros Gallego, Director of the Collection Department and Mr José Borja Tomé, Director of the Tax Information Technology Department.

6. Other considerations, requests and questions

The Secretary of State for Finance reiterates that it is time to promote the cooperative relationship model so that with the effort and work of everyone, the effects that the health crisis has had on the country's economic situation can be overcome.

Mr. Jesús Gascón then intervened to announce that a space will be set up on the Tax Agency's electronic headquarters, in the "Cooperative Relationship" section, where all those issues considered to be of general interest in relation to the Forum will be published (operating rules, working groups, minutes of plenary sessions, etc.).

Finally, the Secretary of State for Finance thanked all those who attended and closed the first plenary session of the Forum of Federations and Associations of Self-Employed Workers, saying goodbye until the next meeting.