Minutes of the meeting
Large Companies Forum
PLENARY MINUTES 1/2015
MINUTES OF THE PLENARY MEETING OF THE LARGE BUSINESS FORUM
HELD ON JUNE 24, 2015
Chairperson
President of the State Tax Administration Agency - Secretary of State for Finance
Miguel Ferre Navarrete
Vice-President of the Large Companies Forum
General Director of the State Tax Administration Agency
Mr. Santiago Menéndez Menéndez
Members representing the Tax Agency
Director of the Department of Financial and Tax Inspection
Mr. Luis María Sánchez González
Director of the Tax Management Department
D. Rufino de la Rosa Cordón
Director of the Collection Department
Ms. Soledad García López
Central Delegate of Large Taxpayers
Mr. Ignacio Huidobro Arreba
Deputy Director General of Inspection and Investigation of the Department of Customs and Excise
Mrs. Mª Ángeles Marín Ramírez
Members representing Large Companies
ACERINOX
General secretary
Mr. Luis Gimeno Valledor
ACS
Head of the Corporate Tax Department
Mr. José Miguel Moreno Pérez
AMADEUS IT HOLDING
Deputy Secretary of the Board of Directors
Mr. Jacinto Esclapés Díaz
BANCO SANTANDER
Managing Director
Mr. César Ortega Gómez
BANKIA
Tax Advice Director
Mr. Javier Mª Tello Bellosillo
BBVA
Director of the Tax Department
Mr. José María Vallejo Chamorro
LA CAIXA
Tax Advisory Director
Mr. Manuel Alfonso García Rodríguez
CEPSA
Fiscal Director
Mr. Alberto Martín Moreno
COFARES
Advisor Governing Council
Mr. Luis Valdeolmos González
EL CORTE INGLÉS
Deputy to Management
Mrs. Pilar Fernández Medina
ENDESA
Tax Affairs Manager
Mrs. María Muñoz Viejo
FCC
Director of the Tax Area
Mr. Daniel Gómez-Olano González
GAS NATURAL FENOSA
Tax Director
Mr. Jaume Menéndez Fernández
GENERALI ESPAÑA
CEO
Mr. Félix Bonet Sánchez
IBERDROLA
Tax Advisory Department
Mr. José Luis Jiménez Martínez
IBERIA
Deputy Director of Tax and Consolidation
Mr. José Luis Álvarez Ánderson
INDITEX
Director of the Tax Department
Mr. Andrés Sánchez Iglesias
MAPFRE
Tax Advice Director
Mr. Antonio Lafuente González de Suso
MICHELIN
Tax Manager
Mrs. Rosa María Peña García
NORFIN HOLDER
Fiscal Director
Mr. José Antonio Gibello Saiz
RENAULT ESPAÑA
Director of Tax and Customs Affairs
Mr. Félix Ruiz Madarro
REPSOL
General Economic and Fiscal Director
Mr. Luis López-Tello y Díaz-Aguado
SIEMENS
Director of Indirect Taxation
Mr. Emiliano Cuesta Escribano
TELEFÓNICA
Latin America Tax Director
Mr. Miguel Iglesias San Martín
VODAFONE
Tax Advice Director
Mr. Javier Viloria Gutiérrez
Technical Secretariat of the Large Companies Forum
Technical secretary
Mr. Ángel Rodríguez Rodríguez
In Madrid, on June 24, 2015, the tenth plenary session of the Large Business Forum is held, attended by the aforementioned people, and in accordance with the following
AGENDA
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Session opening
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Approval of the minutes of the meeting held on December 2, 2014
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Large Companies Forum: Current situation and proposals for improvement
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Relevant conclusions from the different working groups of the Forum
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Next call: dates and subjects to deal with
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Other considerations, requests and questions
1. Session opening
The session is opened by the Secretary of State for Finance and President of the State Tax Administration Agency, Mr. Miguel Ferre Navarrete, who welcomes the attendees, thanks them for their presence and since it has not been possible to adjust the agenda in any other way, apologizes to those who have had to travel from places where the day is a holiday. He then highlights the importance that the Large Business Forum has for the Tax Agency and shows his gratitude for the proven effort of all its members in improving compliance with its objectives.
2. Approval of the minutes of the meeting held on December 2, 2014
The President gives the floor to the head of the Technical Secretariat of the Forum, Mr. Ángel Rodríguez Rodríguez, who points out that the minutes of the 9th session of the Plenary Session of the Forum were sent to the members of the Forum and adds that having received no observations and, if If there were none at this time, it would be definitively approved. Since no observations were made by those present, the minutes of the plenary session of December 2, 2014 are declared definitively approved and indicate that the Technical Secretariat will promote its publication on the Tax Agency website as It is being done with all the minutes of the Large Business Forum.
3. Large Companies Forum: Current situation and proposals for improvement
The President gives the floor to the General Director of the State Tax Administration Agency, Mr. Santiago Menéndez Menéndez, who refers first of all to the draft addendum to the operating rules of the Forum, which in accordance with what was commented in the last Plenary Session, has been sent to companies for observations and contains some clauses related to new admissions and renewals of members. To date no comments have been received. This initiative is due to the fact that it has been found that there are many companies that would like to join the Forum but operational reasons and even physical space prevent expanding the number of members. The solution could be to make renovations. This would revitalize the Forum and would be interesting for its own functioning, for the Administration and for companies.
Below, Mr. Santiago Menéndez Menéndez provides a brief summary of the tasks that have been carried out in the different working groups of the Forum:
Cooperative Relationship Working Group
The Director begins the presentation by pointing out that the Group, which has held two meetings in the first half of the year, has carried out the following tasks:
- Informative work on the reorganization and new structure of the Tax and Customs Control Unit of the Central Delegation of Large Taxpayers, in which a risk analysis and planning area has been created. In short, one more step has been taken, in this case of an organizational nature, to promote, enhance and develop a cooperative relationship model.
- Information initiatives on the operation and application of other cooperative compliance models existing in other countries. It is planned to organize a few days within the FISCALIS Program with the participation of European countries other than those that already participated in 2014. In addition, financed with EUROSOCIAL funds, it is planned to organize in Madrid a conference with Ibero-American countries and Portugal, in which the Forum companies will be offered the possibility of participating.
- Exchange of various documents between members of the Group to advance the objective of cooperative compliance. The aim is to analyze compliance with the Code of Good Tax Practices by establishing a catalog of conduct for both companies and the Tax Agency and establishing permanent monitoring and evaluation practices of compliance with the recommendations of the Code. In this regard, the intention of the Tax Agency is to maintain a balanced position, since the commitments are both for the companies and for the Agency itself. In short, it is about providing greater content to the Code and going deeper into the obligations assumed therein by reinforcing good practices of corporate tax transparency and the dissemination and publication of the commitments acquired between companies and the Tax Agency.
Working Group for Analysis of Tax Regulations and Conflict Reduction
The Director of the Agency refers to a series of issues that, among others, have been discussed in this Group:
- The obligation to provide country-by-country information included in the draft Corporate Tax Regulation, as established in the conclusions of the Action Plan
BEPS . This information will be required from 2016 and will be mandatory for Spanish parent companies of multinationals with a net turnover of at least 750 million euros. There is a commitment on the part of the Tax Agency and on the part of all the tax administrations of the countries involved in this action plan that this information cannot be used to make transfer pricing adjustments. - The main novelties of the project to modify the General Tax Law that may affect large companies. These are, fundamentally, those relating to the modifications that affect the conflict in the application of the rule, which allows sanctions to be imposed in a certain case. It is indicated that the important thing about these rules is that they are applied with due prudence and balance. Other modifications of the Law addressed in the Group were those concerning the extension of the deadlines for the inspection procedure, the institution of prescription and the obligation to preserve documentation.
- The future objectives of the group and the need for delimitation with the lines of work of the Cooperative Relationship Working Group to avoid duplications between the two.
SII Project Working Group (Immediate Supply of Information)
Mr. Santiago Menéndez points out that we are facing a project that is being refined by everyone and that is moving forward, since it is of great interest to both the Tax Administration and companies. The Working Group has met three times during the first half of 2015 and its tasks have focused on the exchange of working documents based on the observations made by the companies on the registration design to which the sending of the invoice information. In this sense, a series of indications have been revealed from the companies that have been subject to analysis and assessment, relating to the deadlines for sending information and the way of providing it through the web service, forms and files in XML format. , etc.
Other possible incidents have also been addressed, such as the obligation to report receipts, the keeping of record books for investment assets and the status of corrective invoices. He adds that he will be personally involved in everything else that may arise so that the Tax Management Department acts in a receptive manner to the companies' observations, so that they are studied and an adequate and reasoned response is given.
Excise Working Group
The Director points out the most relevant issues that have been debated within this Working Group, which has met once during the semester:
- The registration of new identification codes and presentation of self-assessments in the new Electricity Tax, since it establishes registration obligations for taxpayers, for beneficiaries of exemptions and for beneficiaries of the reduction in the tax base of the tax. In addition, the new self-assessment model includes a breakdown of fees that must be entered for the first time in the self-assessments to be submitted in July 2015.
- Issues related to the new Tax on the value of gas, oil and condensate extraction, which will come into force on January 1, 2016.
- Obligations for registration in the special tax registry of retail distributors who supply hydrocarbons to other retail distributors
- The regulatory requirements in relation to the application of the exemption in the Hydrocarbon Tax for using the products for air navigation other than private recreational navigation.
Next, Mr. Miguel Ferre Navarrete thanks the General Director and proceeds to open a floor for comments from the companies, if any. Since there is no intervention, the President comments that he assumes that there is compliance with what was stated by the Director.
4. Relevant conclusions from the different working groups of the Forum
The President comments that at this point on the agenda the tasks and progress of the Forum's working groups will be discussed. He points out that with regard to the Working Group of Project SII , it is a really important project, which although in some media it has been commented that it will constitute an increase in loads, in In reality it is an improvement in the management of Value Added Tax.
In relation to the Cooperative Relations Working Group, it states that it is a transversal group, which affects all the functional areas of the Agency and that in the medium term will have a very important impact on the relationships between companies and the Tax Administration. He adds that this is a trend that we all have to embrace with great conviction. Currently, a catalog of listed performances is being discussed so that we all have very clear references. There are commitments of the Tax Agency also in this sense and commitments of the Ministry of Finance through the modification of the General Tax Law so that at the request of the Agency or any of the companies represented here, resolutions of a general, interpretative, giving a public information procedure so that on a doubtful issue all views can be had and the Director General of Taxes establishes that criterion with a general, interpretative and binding nature. This is a modification of the General Tax Law about which little is being said, but it will constitute a very important step. This entire set of measures must be understood as a global package that also includes the modification of the Capital Companies Law, already in force, in which a greater assumption of responsibility by the board of directors and the shareholders has been considered timely and necessary. audit committees of listed companies with regard to political-fiscal strategy and fiscal risk management. On the other hand, the Code of Good Tax Practices should reasonably be the reference that serves us all. In this sense, the will of the Tax Agency is that in the corporate governance report model, periodically approved by a circular from the CNMV , a reference to the Code is made in some way, more or less extensive. The Central Delegate of Large Taxpayers will later explain what type of practices it is advisable to notify or reflect in the report. For example, there could be a presence in a tax haven, as long as this is due to the development of a real economic activity there. Currently there is a trend towards corporate governance with transparency that cannot be reversed. Therefore, it is better to get to work as soon as possible to apply it. In the medium term, the mechanisms to reinforce the Code of Good Practices should also help to reinforce preventive action against a posteriori controlling action, two years after the taxable events occur.
Next, the President encourages those present to incorporate the Code of Good Practices voluntarily and enthusiastically because added value can be generated if there is a prior monitoring and evaluation capacity. That is to say, a prior assessment of the application of the catalog of good practices in companies will avoid being at the mercy of criteria and interpretations and having to explain two years later the reason for carrying out a certain operation. This will benefit everyone and will allow a considerable reduction in the high figure of suspended debt that currently exists, which harms companies since it must be provisioned, and which harms the Tax Administration since it increases the coefficient of uncertain collection in the income computed by the State. Hence the importance of the conclusions that the Central Delegate of Large Taxpayers will present below. If on the part of the companies there is any reservation regarding the confidentiality of the data that would have to be provided in advance to the Tax Administration, we can ensure that all this information is perfectly protected so that the relationship between the Agency and the company, in which the latter communicates its business model, does not put this information at risk. He concludes by encouraging those present to adhere to all these initiatives that are so beneficial for everyone.
With regard to the Working Group for Analysis of Tax Regulations and Reduction of Conflict, the President emphasizes that the country-by-country information obligation included in the draft Corporate Tax Regulations will not be used. to make transfer pricing adjustments.
Next, the President gives way to the different speakers who will dedicate their interventions to presenting the relevant tasks and conclusions of the different Working Groups.
Project Working Group SII
Mr. Rufino de la Rosa Cordón, Director of the Tax Management Department, first of all thanks the collaboration of the companies that have participated in the Group, eight in total, representative of different types of activity, including those aimed primarily at final consumption and intermediary companies. The group has met three times. In the first meeting, participation was equal between those responsible for tax and those responsible for the IT or technology areas of the companies. In the other two sessions, participation was much greater on the part of the technology areas. In addition to the meetings, there has been permanent communication with the members of the Group to be able to learn about the different particularities of each of the concepts that will be the subject of the information provision. Currently, an almost definitive description of the registration designs has been reached. The project will come into force in 2017, but work is being done to make it transparent soon and in this way companies will already have the necessary information on what the registration designs will be like so that their IT departments can carry out the necessary IT developments. with sufficient notice. The intention is that in 2017 the obligations of 390, 340 and 347 will begin to be eliminated and conclude by offering taxpayers, in a first phase, tax data and in a second phase, the draft VAT . We must not forget that project SII is not an electronic invoice project, but rather goes further, since additional data will be provided such as those that affect the accounting of the operation, its nature as exempt or non-exempt, subject or not subject, whether VAT is deductible or not deductible, etc. The records that invoices must contain have been detailed depending on each of the record books in which they are included - record book of invoices issued, of invoices received, of investment goods or of certain intra-community operations.
The Director of the Tax Management Department continues to point out that another of the advantages of the model is that companies will be able to know if the invoices they have issued have been properly recorded by their corresponding recipients. To do this, it is necessary that both the invoices issued and those received be correctly identified. This will be based on the identification of the invoice made by the issuer, with its serial number and invoice number, so that the record book of invoices received will have to collect these same data from the issuer. Assuming that there may be errors, the idea is that the invoices of all operators can be matched one by one. Likewise, it indicates that all the cases relating to the corrective and replacement invoices have also been the subject of intense work.
It ends by communicating that one last meeting is pending to carry out the closing of the registration designs and that the regulatory modifications necessary for the implementation of the project are being finalized, with the idea that it can be submitted to public information as soon as possible.
Working Group for Analysis of Tax Regulations and Reduction of Conflict
Mr. Luis María Sánchez González, Director of the Department of Financial and Tax Inspection, comments first of all that this Group was created as a succession of the Transfer Pricing Working Group and that it has coexisted with a regulatory process that is still underway.
First was the approval of the Corporate Tax Law, right now the Agency is working on the future approval of the Corporate Tax Regulation and on the draft General Tax Law. In this context, the Working Group is basically being an information mechanism by the Tax Administration on how these regulatory initiatives are evolving and at the same time receiving concerns and doubts generated in companies regarding how they are going to be applied. certain rules.
He continues by pointing out that the Department of Financial and Tax Inspection, the Deputy Director General of Legal Regulation and himself have participated in the Group meetings. In addition, the Head and Deputy Head of the National Office of International Taxation, the Central Delegate of Large Taxpayers and Ms. Begoña García Rozado, Deputy Director General of Taxes on Legal Entities of the General Directorate of Taxes.
In the last meeting of the Group, matters related to related-party transactions and also related to the new General Tax Law were addressed. With regard to related-party transactions, the most current issue is the “country by country reporting“, que va a incorporarse al nuevo Reglamento del Impuesto sobre Sociedades, tratando que sea lo más fiel posible a las conclusiones de la Acción 13 de BEPS. Some concern was expressed on the part of the companies regarding the way in which this matter will be treated by the Tax Administration, that is, if there will be an aggressive approach on the part of the Administration regarding the sanctions in this subject. The Tax Agency commented that it must be taken into account that this new obligation in Spanish matrices affects a small group of recipients. In this sense, the possibility of approving a Ministerial Order was raised for further development of the content of the obligation and its compliance rules, in the preparation of which companies could intervene through a Working Group.
At the meeting it was also commented that we are currently in full development of the Project's actions.
Next, Mr. Luis María Sánchez comments that in second place the issue of the General Tax Law was raised, fundamentally issues related to the new regulation of the conflict in application of the tax law, the deadlines, the related obligations, the liquidation in case of crime, to the modification of article 66.bis and article 115 in relation to the powers of the Administration to verify prescribed exercises. One of the issues where perhaps the greatest concern was raised by companies was the imposition of sanctions regarding conflict. The Administration's comment was that it is not fundamentally about sanctioning in this matter, but rather about greater transparency, aligning ourselves with the transparency initiatives within the framework of
Finally, he points out that the issue of the delimitation of the Working Group was also addressed, mainly with the Cooperative Relationship Working Group. The conclusion reached is that the procedural issues are being assumed by the Cooperative Relationship Working Group, and that the Regulatory Analysis Group should remain fundamentally focused on the location of regulatory elements that can be considered by companies as doubtful in a general way or that require some clarification. Subsequently, an analysis must be carried out as to whether it is necessary to resort to the consultation mechanism or if we are in a scope of application of the standard that justifies that a report could be issued by the Tax Agency through the General Subdirectorate that in each case appropriate depending on the matter. This requires an effort on the part of companies to compile these generally doubtful issues that are not sufficiently resolved either by the consultations of the General Directorate of Taxes, or by Jurisprudence, or by the criteria that the Administration is applying, and study which is the most appropriate formula for clarification.
Excise Working Group
Ms. Mª Ángeles Marín Ramírez, Deputy Director General of Inspection and Investigation of the Department of Customs and Excise, comments on the following conclusions addressed in the Working Group:
- Management aspects of the new Electricity Tax: The new Electricity Tax establishes registration obligations for taxpayers, beneficiaries of exemptions and beneficiaries of reductions in the tax base of the tax. The members of the working group have been informed about the particularities of registration presented by the new tax regulation with an ex officio conversion of the old Activity and Establishment Codes to Electricity Identification Codes and with a transitional period until 1 October 2015 to adapt the registrations in the territorial registry of the Electricity Tax. Regarding the new self-assessment model, it should be noted that it includes a breakdown of fees and that, in particular, the self-assessments to be submitted in July 2015 must include the breakdown of fees corresponding to the self-assessed fees up to that date from January 1 to 30. June 2015.
- Tax on the Value of Gas, Oil and Condensate Extraction: The issues that may arise regarding this new tax created by Law 8/2015, of May 21, which modifies Law 34/1998, of October 7, of the Hydrocarbons Sector, have been reported and debated, the entry into force is January 1, 2016.
- Obligations for registration in the Special Tax Registry of retail distributors who supply hydrocarbons to other retail distributors: Law 8/2015, of May 21, has also introduced various modifications to the Hydrocarbon Sector Law, including the possibility for retail distributors to supply hydrocarbons to other retailers as long as they carry out any of the activities provided for in the regulations. sectorial. In this case, they must be previously registered in the Special Tax Registry in accordance with tax regulations. The Working Group has been informed about the registration obligations of retail distributors of petroleum products as bonded warehouses or reshippers.
- Regulatory requirements in relation to the application of the exemption in the Hydrocarbon Tax for using the products for air navigation, other than private recreational navigation: Cases have been raised that may hinder the application of this exemption in cases of supplies to aircraft from non-member countries of the European Union in which the recipient of the supply lacks NIF Spanish or community and solutions have been proposed that, without hindering supplies to aircraft from third countries, allow for control of the exemption.
Cooperative Relationship Working Group
Mr. Ignacio Huidobro Arreba, Central Delegate of Large Taxpayers, firstly points out that the Group has met twice throughout the semester. The first meeting was based on a document prepared by the AEAT in which 30 proposals were made regarding the development and effective implementation of the Code, in four fundamental action plans: verify compliance with the commitments assumed in the Code of Good Tax Practices, completion of different commitments, entry and exit of companies from the scope of the Code and expansion of information commitments related to listed companies in line with the transparency requirements that it introduced the reform of the Capital Companies Law.
After this, observations were received from the companies participating in the Group and this has led to a compilation of all the contributions, both from the Administration and from the companies, with the idea of organizing the debate in a document in a structured and simpler than the initial one, called “Draft conclusions”, aimed at the implementation and factual and practical development of the Code.
The Central Delegate stated that the experience in the application of the Code has been useful and fruitful, it has been an effective instrument to improve the relationship between the Tax Agency and the participating companies, but that it is necessary to address actions that produce significant and effective progress. . On the one hand, it is about achieving greater effectiveness of the Code in the area of the relationship between the Tax Administration and companies. In this aspect, there is great interest in anticipating as much as possible the analysis of the fiscal situation of companies, so that based on the information that they voluntarily provide, initiate a control cycle that makes the actions to verify the situation more contemporary. tax of the company with the conclusions of the Tax Agency on them. On the other hand, it is about taking into account the external and reputational valuation of companies. The way to reflect all these issues would be to incorporate as an annex to the Code of Good Practices the conclusions that are finally reached.
He goes on to note that these conclusions encompass the following key aspects:
- Monitoring and assessment of behavior in compliance with the Code. To this end, a synthetic catalog form of compliance behaviors on the part of the Agency and on the part of the companies should be established, permanent monitoring and evaluation practices of compliance with the Code should be determined during the development and completion of the procedures, and Practices for dealing with cases of compliance and non-compliance with the Code should be defined.
- Reinforcement of good corporate tax transparency practices.
- Other commitments related to strengthening compliance with the Code.
In relation to the monitoring and assessment of the conduct of compliance with the Code and the catalog of conduct by companies, the following can be highlighted, among others:
- Non-use of opaque structures.
- Collaboration in the detection of fraudulent tax practices.
- The board of directors determines the tax policy, the tax strategy and the approval of operations and investments with special tax risk.
- Quick and complete provision of the information and documentation requested by the Agency in the inspection procedure.
- Demonstration at the beginning of the inspection procedure of the commitment to comply with the recommendations of the Code.
Reciprocally, the Tax Agency would assume, among others, the following commitments:
- Application of administrative and jurisprudential criteria in their actions.
- Facilitation of the criteria applied quickly in the case of taxpayer doubt.
- Communication, as soon as possible, of knowledge of the facts susceptible to regularization.
- Facilitation of knowledge and discussion of the issues and facts relevant to the liquidation. It is considered good practice of the Tax Agency to hold meetings prior to the disclosure of the file.
- Delimitation as concrete as possible of the object of your requirements.
- Avoidance of excessive duration of the inspection procedure.
In the area of monitoring and evaluating compliance behaviors, what the draft proposes is the possibility of requesting the evaluation of compliance with the Code's recommendations through the communication channel already established in the conclusions document approved on October 29. of 2013. The company's tax manager, the Head of the Tax and Customs Control Unit, the corresponding Chief Inspector and the Team or Unit Head must participate in these monitoring actions and, in the event of discrepancies or appreciation of non-compliance with Code commitments, , the Team or Unit Leader will transfer it to his hierarchical superiors who will make the appropriate decisions.
There is also an aspect that has to do with the cases of compliance and non-compliance with the Code and that is that both the Administration and the companies may record the assessment of compliance with the Code of Good Practices in the field of tax application procedures. . It is also relevant to reflect on the possibilities of action in the event of serious non-compliance by one of the parties.
Regarding the reinforcement of new business transparency practices, two general objectives have been contemplated. One is the early and adequate knowledge and mutual evaluation of the fiscal policy and fiscal risk management of companies, and another is the improvement of the external and public, that is, reputational, evaluation of companies. With respect to the information to be provided, it should be noted that it is not about sending it to the Agency, but about having it at its disposal. It may be, for example, an explanation of the presence in tax havens, the group's financing structure, the management of intellectual or industrial property, significant changes in holding structures, the most significant corporate operations, the group's tax policy, etc. All this would allow the Agency to anticipate many of the actions and accommodate its control actions at an earlier time.
It is worth highlighting, as an example in this sense, the practical experience of carrying out some approach action with a certain company, before starting the inspection procedure, to learn about its business model and its tax risk identification and control systems. This is an activity that should preside over future actions with companies that meet these transparency standards. Another initiative consisted of a visit to one of the most representative companies in the industrial sector, in which the operation of its business was explained and more than 50 inspectors from the Central Delegation of Large Companies were present. Taxpayers.
Finally, and in relation to other commitments to reinforce and comply with the Code, as a third line of action, special mention deserves the dissemination by the Tax Agency of the general criteria applied in its control procedure, the establishment by the Agency of standardized documentation referring to all companies that have adhered to the Code of Good Practices and are in these conditions and also internal communication actions in the Tax Agency. In this sense, periodic meetings are being held with companies to assess how all these matters are going.
Next, Mr. Miguel Ferre Navarrete highlights the interest in carrying out the specific experiences that have been noted in the Central Delegate's presentation, which constitutes a good practice to follow, voluntarily by companies, of course, which gives value to the relationship between companies and the Administration, potentially eliminating costs for both parties.
Next, a period of interventions opens so that the representatives of the member companies of the Forum can make the comments they consider appropriate.
Mr. Jacinto Esclapés Díaz, representative of Amadeus It Holding, SA, intervenes first, asking if the degree of adherence to the Code is being contemplated at the level of an individual company or at the level of a consolidated tax group, since if the adherence of the parent company to the Code and the acceptance of the practices automatically implies the adherence of your entire group, this should be clearly reflected. Mr. Ignacio Huidobro answers this, pointing out that when we talk about a group, we are talking about the fact that the adhesion in principle has to be comprehensive of all the participants in the group. However, in some cases the specificities of the group's operation could justify considering an exception to this principle. The latter is supported by the President, who adds that very rigid borders should not be set and that if in a specific case individual accessions are desired and it is clear that, therefore, the commitments in both directions only affect those who adhere , there should be no problem with it.
Mr. Jacinto Esclapés Díaz then adds that his company has recently gone through a long and hard process related to a friendly procedural agreement and I would like to express that it would be interesting to consider the creation of a figure or an organization in the Administration that would carry out carried out a follow-up of the procedure so that the company could know which Administration body is processing the procedure at a given time and that in this way its duration would not be more than one year, which is what has happened in your company .
In this regard, the President indicates that there is a desire to concentrate the powers of the mutual agreement procedures in the liquidating body or in the organization that liquidates, which in this case is the Tax Agency and that there is no longer any distribution of powers with the General Directorate. of Taxes. We will work on it, with the idea that the main role and monitoring of this procedure will be the responsibility of the National Office of International Taxation.
Mr. Luis María Sánchez adds that this is also how it is understood by the Department of Financial and Tax Inspection.
Finally, Mr. Jacinto Esclapés points out that the modification relating to granting retroactive character to these agreements is an absolutely essential modification within the procedure and greatly facilitates it.
Mr. Miguel Iglesias San Martín, representative of Telefónica, later intervenes, praising all the progress that has been made within the Large Business Forum and adding that we must continue to evolve in the objective of transparency and also in the intention that All those compliant companies that provide all this information can have greater security in their actions.
The President comments in this regard that the Tax Agency's will is to respect the commitments that have been discussed in this meeting, as long as, logically, the same circumstances are maintained. The Central Delegate adds that international trends in this matter are related to voluntariness rather than a codification of the system. That is, on the basis of a voluntary action by the company, the Administration can modify its traditional control systems and access advance, more contemporary control of things. This means, both for the Administration and for companies, assuming an important cultural change.
The President intervenes to corroborate what was stated by the Central Delegate and points out that only benefits can be obtained from this voluntary exercise of transparency.
Mr. Luis López-Tello and Díaz Aguado, representative of Repsol, then ask to speak, reporting on the experience they have had with the Tax Agency in this regard. It consisted of informal but very rigorous meetings, with a large presence of people from both the company and the Agency. Information of interest has been provided to the Agency regarding the verification of compliance with tax obligations. Among other aspects, the structures of the company outside Spain and the “rulings” that they have with other countries, and they were simply writing down information so that the Agency could ask.
He adds that in relation to the SII project, this is going to be deeply transformative for companies and even for the economy in general. Therefore, he points out that it should be considered that there is sufficient flexibility and reasonableness when carrying out the first implementation. He also states that a commitment is now necessary that the project will continue moving forward in any case.
The President then intervenes and thanks the information about Repsol's experience regarding the cooperative relationship.
Rufino de la Rosa adds that regarding SII , it is a project that will come into force in 2017, after a pilot test in 2016 and that will also be deeply transformative for the Agency, since there will be a shortening of returns times, verification times, reduction of information requirements, etc. The commitment that exists is that everything is approved as soon as possible. The Agency is also working together with software companies, with the idea of anticipating it as much as possible.
The latter is ratified by the President who adds that he wants to begin the public information process of the corresponding Royal Decree as soon as possible, which is expected to take place, at the latest, before the end of July. For his part, Mr. Santiago Menéndez Menéndez reports that the Tax Agency has already made the necessary investments to carry out the project, both in hardware and data transmission capacity, and the remaining investments are planned.
Mr. Javier Viloria Gutiérrez, representative of Vodafone, then intervenes and indicates that the effort to implement the project is great and represents a significant investment. He also comments on his concern that everything translates into excessive control, down to the smallest detail, which results in an increase in the requirements made by the Agency.
Mr. Santiago Menéndez Menéndez indicates in this regard that it is an investment that will be very profitable, and in relation to the requirements he points out that the idea is that the opposite occurs, that is, a decrease in them by existing greater transparency, more clarity and quality of information. Mr. Rufino de la Rosa adds that the desire is to provide the greatest flexibility to the project and invites those present to communicate any additional matter that has not been raised in the Working Group and that they consider should be taken into account.
Mr. Antonio Lafuente González de Suso, representative of Mapfre, asks to speak, expressing a concern regarding the future of the Forum, given the period of political change in which we find ourselves, and requests that in relation to the “famous 5% average taxation of Spanish multinationals” that has been so commented on in various media, there is help at an institutional level so that the true reality of things is communicated.
In this regard, the President indicates that he takes note and that they have full institutional support. With regard to the information provided by the Agency, what it does is provide objective data and what it cannot do is control what the media makes of that information. He adds that everything that is being done in relation to transparency will also serve to promote, on an institutional and permanent basis, the protection of the image and reputation of companies. Regarding the concern regarding how possible political changes may affect the Forum, he points out that it must be taken into account that all these initiatives respond to a global trend, so the Forum will surely continue its trajectory.
Mr. Santiago Menéndez then intervenes and informs that the Tax Agency has numerous relationships at an international level. One could mention, for example, the active participation in the Inter-American Center of Tax Administrations (CIAT), which brings together all Latin American countries, the USA, France, Canada and Spain, with the desire to help in the development of tax administrations in Latin America. CIAT , which emerged 50 years ago, has grown and evolved and countries from all five continents participate in the annual Assemblies and Technical Conferences (last year's was in Santiago de Compostela). On the other hand, the Agency participates in the
The President then intervenes to remember that the Ministry of Finance has provided positions for directors in Mexico, Brazil and Argentina, an area in which the multinational company based in Spain has a growing presence strategically. He encourages those present to request their help since they are here to support the Spanish company in the face of, for example, problematic interpretation situations.
Next, Mr. José María Vallejo Chamorro, representative of BBVA, comments that, based on recent experiences, he can confirm that the network of directors that has been created will indeed be very useful for Spanish companies with subsidiaries in these areas, since These are very prepared people, with a very good disposition, very good ideas and a great desire to work. He then refers to the already mentioned problem of the reputation of large companies and ratifies the request of the representative of Mapfre regarding the institutional support that would be necessary.
In relation to the latter, the President reiterates what was previously stated and indicates that precisely the deepening of transparency will constitute a reinforcement for the good image of large companies.
5. Next call: dates and subjects to deal with
The President points out that the next Plenary Session of the Large Business Forum is scheduled to take place in November 2015. The meeting will address, among other matters, the monitoring of the tasks of the different Working Groups.
6. Other considerations, requests and questions
The President indicates that, without prejudice to some reflections that may additionally be raised at this time, the fundamental issues have already been debated in the fourth point of the agenda.
He comments below that the Technical Secretariat of the Forum has already informed the companies of the opportunity to renew the position of collaborator of said Secretariat, which is currently held by Mr. Ángel Martín, representative of Telefónica, who has passed in these tasks the period that had been initially contemplated. He also points out that he takes this opportunity to thank him for his effort and dedication and adds that he hopes to receive proposals from those representatives of the companies who wish to perform these functions.
Mr. Miguel Iglesias San Martín, representative of Telefónica, in relation to the network of directors created in Latin America, points out that as a result of the fruitful meetings held with them in Brasilia and Mexico, the holding of some type of more meeting should be considered. generic in some of these countries, with the presence of company representatives in these areas. He adds that we must think that the access that these directors may have to the administrations is much greater than that which companies may have in particular and that it would be very useful for them to access, in these countries, a more cooperative type of relationship, similar to the one that is maintained with the Spanish Administration, thanks for example to this Forum.
The President indicates that it would be interesting for the members of this Forum who have a presence or may have an interest in these jurisdictions, to propose meetings of this type on a regular basis, in order to share the problems that arise, and for the Minister of Finance and the Embassy, by extension, can carry out institutional defense action before whomever corresponds.
Finally, the President, after thanking everyone, concludes the 10th plenary session of the Large Business Forum and says goodbye until the next meeting.
THE TECHNICAL SECRETARY
ANGEL RODRÍGUEZ RODRÍGUEZ
Vº Bº
THE PRESIDENT OF THE FORUM
MIGUEL FERRE NAVARRETE