Minutes of the meeting

Large Companies Forum

MINUTES OF THE PLENARY SESSION 1/2015

Chairperson

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

Miguel Ferre Navarrete

Vice-President of the Large Companies Forum

Director General of the State Agency for Tax Administration

Mr. Santiago Menéndez Menéndez

Members representing the Tax Agency

Director of the Department of Financial and Tax Inspection

Mr. Luis Maria Sanchez Gonzalez

Director of the Tax Management Department

Mr. Rufino de la Rosa Cordon

Director of the Collection Department

Mrs. Soledad Garcia Lopez

Central Delegate of Large Taxpayers

Mr. Ignacio Huidobro Arreba

Deputy Director General of Inspection and Investigation of the Customs and Excise Department

Mrs. Mª Ángeles Marín Ramírez

Members representing Large Companies

ACERINOX

General secretary

Mr. Luis Gimeno Valledor

ACS

Head of Corporate Tax Department

Mr. Jose Miguel Moreno Perez

AMADEUS IT HOLDING

Deputy Secretary of the Board of Directors

Mr. Jacinto Esclapés Diaz

BANCO SANTANDER

Managing Director

Mr. Cesar Ortega Gomez

BANKIA

Tax Advice Director

Mr. Javier Mª Tello Bellosillo

BBVA

Director of the Tax Department

Mr. Jose Maria Vallejo Chamorro

LA CAIXA

Director of Tax Advisory

Mr. Manuel Alfonso García Rodríguez

CEPSA

Fiscal Director

Mr. Alberto Martin Moreno

COFARES

Advisory Board of Directors

Mr. Luis Valdeolmos Gonzalez

EL CORTE INGLÉS

Assistant to the Management

Ms. Pilar Fernandez Medina

ENDESA

Head of Tax Affairs

Mrs. Maria Muñoz Viejo

FCC

Director of the Tax Department

Mr. Daniel Gómez-Olano González

GAS NATURAL FENOSA

Director of Taxation

Mr. Jaume Menendez Fernandez

GENERALI ESPAÑA

CEO

Mr. Felix Bonet Sanchez

IBERDROLA

Tax Advisory Department

Mr. José Luis Jiménez Martínez

IBERIA

Deputy Director of Fiscal and Consolidation

Mr. Jose Luis Alvarez Anderson

INDITEX

Director of the Tax Department

Mr. Andres Sanchez Iglesias

MAPFRE

Tax Advice Director

Mr. Antonio Lafuente Gonzalez de Suso

MICHELIN

Fiscal Manager

Mrs. Rosa María Peña García

NORFIN HOLDER

Fiscal Director

Mr. Jose Antonio Gibello Saiz

RENAULT ESPAÑA

Director of Tax and Customs Affairs

Mr. Felix Ruiz Madarro

REPSOL

Director General of Economic and Fiscal Affairs

Mr. Luis Lopez-Tello and Diaz-Aguado

SIEMENS

Director of Indirect Taxation

Mr. Emiliano Cuesta Notary

TELEFÓNICA

Tax Director for Latin America

Mr. Miguel Iglesias San Martin

VODAFONE

Tax Advice Director

Mr. Javier Viloria Gutierrez

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 Companies Forum was held, attended by the persons mentioned above, and in accordance with the following:

AGENDA

1. Session opening

2. Approval of the minutes of the meeting held on December 2, 2014

3. Large Companies Forum: Current situation and proposals for improvement

4. Relevant conclusions from the different working groups of the Forum

5. Next call: dates and subjects to deal with

6. Other considerations, requests and questions

1. Session opening

The session was opened by the Secretary of State for Finance and President of the State Tax Administration Agency, Mr. Miguel Ferre Navarrete, who welcomed the attendees, thanked them for their presence and, given that it was not possible to adjust the agenda in any other way, apologized to those who had to travel from places where the day is a public holiday. He then highlights the importance that the Large Business Forum has for the Tax Agency and expresses his gratitude for the proven efforts of all its members in improving the fulfilment of 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 of the Forum were sent to the members of the same and adds that no observations have been received and, if there were none at this time, it would be definitively approved. As 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 is 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 Director General of the State Tax Administration Agency, Mr. Santiago Menéndez Menéndez, who first refers to the draft addendum to the Forum's operating rules, which, in accordance with what was discussed at the last Plenary Session, has been sent to companies for comments and contains some clauses relating to new admissions and renewals of members. No comments have been received to date. This initiative is due to the fact that it has been found that there are quite a few companies that would like to join the Forum, but operational reasons and even physical space reasons prevent the number of members from being increased. The solution could be to make renovations. This would revitalise the Forum and would be of interest to the Forum itself, to the Administration and to companies.

Next, Mr. Santiago Menéndez Menéndez briefly summarizes the tasks that have been carried out in the different working groups of the Forum:

Cooperative Relations Working Group

The Director begins his presentation by pointing out that the Group, which held two meetings in the first half of the year, carried out the following tasks:

• Information 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, a further step has been taken, in this case of an organizational nature, to promote, enhance and develop a model of cooperative relationship.
• Information initiatives on the operation and application of other cooperative compliance models existing in other countries. It is planned to organise a series of conferences within the FISCALIS Programme with the participation of European countries other than those that participated in 2014. In addition, financed with EUROSOCIAL funds, plans have been made to organise a series of events in Madrid with Latin American countries and Portugal, in which companies participating in the Forum will be offered the opportunity to participate.
• Exchange of various documents between members of the Group to advance the goal of cooperative compliance. The aim is to analyse compliance with the Code of Good Tax Practices by establishing a catalogue of conduct for both companies and the Tax Agency and by establishing practices for the ongoing monitoring and evaluation of compliance with the Code's recommendations. In this regard, the Tax Agency's intention is to maintain a balanced position, since the commitments are for both companies and the Agency itself. Ultimately, the aim is to provide the Code with greater content and to go into greater depth regarding the obligations assumed therein by reinforcing good practices in corporate tax transparency and by disseminating and publishing the commitments made between companies and the Tax Agency.

Working Group on Tax Regulation Analysis and Conflict Reduction

The Director of the Agency refers to a number of issues that, among others, have been dealt with 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 by the Tax Agency and by 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 new features of the draft amendment to 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 norm, which allows sanctions to be imposed in a specific case. It is indicated that the important thing about these rules is that they are applied with due prudence and balance. Other amendments to the Law addressed by the Group were those concerning the extension of the time limits for the inspection procedure, the institution of prescription and the obligation to retain documentation.
• The future objectives of the group and the need for delimitation with the lines of work of the Cooperative Relations Working Group to avoid duplications between both.

SII (Immediate Supply of Information) Project Working Group

Mr. Santiago Menéndez points out that this is a project that is being refined by everyone and that is moving forward, as 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 companies regarding the registry design to which the sending of invoice information must conform. In this regard, a series of indications from companies have been made clear and have been subject to analysis and assessment, relating to the deadlines for sending information and the way in which it is supplied through the web service, forms and files in XML format, etc.

Other possible incidents have also been discussed, such as the obligation to report receipts, the maintenance of investment asset registration books and the status of corrective invoices. He added that he will be personally involved in any other matters that may arise so that the Tax Management Department can act responsively to the observations of the companies, so that they are studied and an appropriate and reasoned response is given.

Excise Tax Working Group

The Director points out the most relevant issues that have been discussed within this Working Group, which has met once during the semester:

• The registration of new identification codes and submission 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 form includes a breakdown of the amounts that must be entered for the first time in the self-assessments to be submitted in July 2015.
• Issues relating to the new tax on the value of gas, oil and condensate extraction, which will come into force on 1 January 2016.
• The obligations of registration in the excise tax registry of retail distributors that supply hydrocarbons to other retail distributors
• Regulatory requirements regarding the application of the exemption from the Hydrocarbon Tax for products intended for air navigation other than private recreational use.

Mr. Miguel Ferre Navarrete then thanked the General Manager and opened the floor for comments from the companies, if any. Since no intervention was made, the President commented that he assumed that there was agreement with what the Director had stated.

4. Relevant conclusions from the different working groups of the Forum

The President said that under this point of 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 it has been commented in some media that it will constitute an increase in charges, in reality it is an improvement in the management of the Value Added Tax.

Regarding the Cooperative Relations Working Group, he states that it is a cross-cutting group that affects all functional areas of the Agency and that in the medium term it will have a very important impact on the relations between companies and the Tax Administration. He adds that this is a trend that we all have to follow with great conviction. A list of actions is currently being discussed so that we all have very clear references. There are commitments from the Tax Agency in this regard as well as commitments from 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 nature can be issued, giving a public information process so that in a doubtful matter all views can be had and the Director General of Taxes establishes this criterion with a general, interpretative and binding nature. This is a modification of the General Tax Law that is not being talked about much, but it will be a very important step. This set of measures must be understood as a global package that also includes the modification of the Capital Companies Act, already in force, in which it has been considered appropriate and necessary for the board of directors and audit committees of listed companies to assume greater responsibility with regard to political-fiscal strategy and management of fiscal risks. Furthermore, the Code of Good Tax Practices should reasonably be the reference that serves us all. In this sense, the Tax Agency's intention is that in the corporate governance report model, periodically approved by a circular of the CNMV , a reference to the Code is made in some way, more or less extensive. The Central Delegate for Large Taxpayers will later explain what type of practices should be reported or reflected in the report. For example, there could be a presence in a tax haven, provided that this is due to the development of a real economic activity there. There is currently a trend towards transparent corporate governance that cannot be reversed. Therefore, it is better to get to work as soon as possible to implement it. In the medium term, the mechanisms for strengthening the Code of Good Practices should also help to strengthen preventive action against subsequent control action, two years after the taxable events have occurred.

The President then encouraged those present to join the Code of Good Practices voluntarily and enthusiastically, because added value can be generated if there is a capacity for monitoring and evaluation beforehand. In other words, a prior assessment of the application of the catalogue 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 for a considerable reduction in the high amount of outstanding debt that currently exists, which is detrimental to companies because it has to be provisioned, and which is detrimental to the Tax Administration because it increases the coefficient of uncertain collection in the income computed by the State. Hence the importance of the conclusions that the Central Delegate for Large Taxpayers will now present. If companies have any reservations regarding the confidentiality of the data that must be provided in advance to the Tax Administration, we can assure you that all this information is perfectly protected, so the relationship between the Agency and the company, in which the latter communicates its business model, does not put this information at risk. He concluded by encouraging those present to join all these initiatives that are so beneficial to everyone.

As regards the Working Group on Tax Legislation Analysis and Conflict Reduction, the President emphasises that the country-by-country reporting obligation included in the draft Corporate Tax Regulations will not be used to make transfer pricing adjustments.

The President then gives way to the various speakers who will dedicate their interventions to presenting the relevant tasks and conclusions of the various Working Groups.

Project Working Group SII

Mr. Rufino de la Rosa Cordón, Director of the Tax Management Department, would first like to thank the eight companies that participated in the Group for their collaboration, representing different types of activity, including those aimed primarily at final consumption and intermediary companies. The group has met on three occasions. At 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 ongoing communication with the members of the Group in order to understand the different particularities of each of the concepts that will be the subject of the information supply. A nearly definitive description of the record designs has now been reached. The project will come into force in 2017, but work is underway to make it transparent in the near future, so that companies will have the necessary information on what the registry 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 specified depending on each of the registration books in which they are included - the registration book of issued invoices, the registration book of received invoices, the registration book of investment goods or the registration book of certain intra-community operations.

The Director of the Tax Management Department goes on to point out that another advantage of the model is that companies will be able to know whether 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 are correctly identified. To do this, the invoice will be identified by the issuer, with its serial number and invoice number, so that the register of invoices received will have to include the same data from the issuer. Assuming that there may be errors, the idea is that invoices from all operators can be matched one by one. He also indicated that all the cases relating to corrective and replacement invoices have also been the subject of intense work.

He concluded by announcing that a final meeting is still pending to carry out the closing of the registration designs and that the regulatory modifications necessary for the implementation of the project are being finalised, with the idea that it can be submitted to public information as soon as possible.

Working Group on Tax Regulation Analysis and Conflict Reduction

Mr. Luis María Sánchez González, Director of the Department of Financial and Tax Inspection, first comments that this Group was created as a successor to the Transfer Pricing Working Group and that it has coexisted with a regulatory process that is still ongoing.

First, the approval of the Corporate Tax Law was carried out. Right now, the Agency is working on the future approval of the Corporate Tax Regulations and on the draft General Tax Law. In this context, the Working Group is basically a mechanism for the Tax Administration to provide information on how these regulatory initiatives are evolving and at the same time to receive concerns and doubts generated in companies regarding how certain regulations will be applied.

He goes on to point out that the meetings of the Group were attended by the Department of Financial and Tax Inspection, the Deputy Director General of Legal Regulations and himself. In addition, the Head and Deputy Head of the National Office of International Taxation, the Central Delegate for Large Taxpayers and Ms. Begoña García Rozado, Deputy Director General of Taxes on Legal Entities of the General Directorate of Taxes.

At the Group's last meeting, matters relating to related-party transactions and also those related to the new General Tax Law were addressed. As regards 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. Companies expressed some concern about the way in which this matter will be handled by the Tax Authority, that is, whether there will be an aggressive approach on the part of the Administration regarding sanctions in this area. The Tax Agency has commented that it must be taken into account that this new obligation in Spanish parent companies affects a small group of recipients. In this regard, the possibility of approving a Ministerial Order for further development of the content of the obligation and its compliance rules was raised, in whose preparation companies could participate through a Working Group.

At the meeting it was also mentioned that we are currently in full development of the Project's actions. BEPS , which are used as an interpretive element of national regulations in the field of related-party transactions. The transfer pricing policy is currently coordinated internally by the Administration due to the significant role played by the National International Tax Office, since its specialists are participating in the checks that are being carried out and that are related to this matter. This guarantees a homogeneous treatment of these operations and will therefore contribute in the future to significantly reducing conflicts with companies.

Mr. Luis María Sánchez then comments that secondly, the issue of the General Tax Law was raised, mainly issues relating to the new regulation of the conflict in application of the tax law, the deadlines, the related obligations, the liquidation in case of crime, the modification of article 66.bis and of article 115 in relation to the powers of the Administration for the verification of prescribed years. One of the issues that perhaps raised the greatest concern among companies was the imposition of sanctions in relation to conflict. The Administration's comment was that it is not fundamentally about sanctioning in this matter, but rather about greater transparency, aligning ourselves with transparency initiatives within the framework of   BEPS  which includes some action aimed at making tax planning schemes mandatory to disclose, following the experience of the United Kingdom, the United States and some other countries. This transparency is also proposed by publicizing the conflicts and the conclusions of the Advisory Commission on the Conflict. As regards possible sanctions, it was stated that this case will occur at a lower rate than other types of behaviour, and that the proposal in Article 206.bis has nothing to do with the offence. He also pointed out that the modification of the definition of the crime does not mean that it is easier to process crimes, but rather that it makes it easier to collect debts.

Finally, he noted that the issue of the delimitation of the Working Group was also addressed, primarily with the Cooperative Relations Working Group. The conclusion reached is that procedural issues are being taken on by the Cooperative Relations Working Group, and that the Regulatory Analysis Group should focus primarily on locating regulatory elements that companies may consider to be generally dubious 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 whether we are in a scope of application of the rule that justifies the possibility of issuing a report by the Tax Agency through the General Subdirectorate that corresponds in each case depending on the subject matter. This requires an effort on the part of companies to compile these doubtful issues in general terms, which are not sufficiently resolved either by the consultations of the General Directorate of Taxes, or by Jurisprudence, or by the criteria being applied by the Administration, and to study what is the most appropriate formula for their clarification.

Excise Tax Working Group

Ms. Mª Ángeles Marín Ramírez, Deputy Director General of Inspection and Investigation of the Customs and Excise Department, comments on the following conclusions addressed by 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. The members of the working group have been informed about the particularities of registration presented by the new regulation of the tax with an automatic conversion of the old Activity and Establishment Codes to Electricity Identification Codes and with a transitional period until October 1, 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 contributions and, in particular, the self-assessments to be submitted in July 2015 must include the breakdown of contributions corresponding to the contributions self-assessed up to that date from January 1 to June 30, 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, on the Hydrocarbon Sector, which comes into force on January 1, 2016, have been reported and discussed.
• Registration obligations 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 provided that they carry out any of the activities provided for in the sector regulations. In this case, they must first register 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 re-shippers.
• Regulatory requirements in relation to the application of the exemption from the Hydrocarbon Tax for products intended for air navigation, other than private recreational navigation: The case law that may make it difficult to apply this exemption has been raised in cases of supplies to aircraft from countries that are not members of the European Union, in which the recipient of the supply does not have a Spanish or Community NIF and solutions have been proposed that, without hindering supplies to aircraft from third countries, allow control of the exemption.

Cooperative Relations Working Group

Mr. Ignacio Huidobro Arreba, Central Delegate of Large Taxpayers, first points out that the Group has met twice during 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 areas of action: Check compliance with the commitments made in the Code of Good Tax Practices, specification 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 introduced by the reform of the Capital Companies Act.

Following this, comments 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 structured and simpler document 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 applying the Code has been useful and fruitful, it has been an effective instrument for improving the relationship between the Tax Agency and the member companies, but that it is necessary to undertake 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 regard, there is great interest in anticipating the analysis of the tax situation of companies as far as possible, so that, based on the information they voluntarily provide, a control cycle can be initiated that makes the verification actions of the company's tax situation more contemporary with the conclusions of the Tax Agency on the same. On the other hand, it is about taking into account the external and reputational assessment of companies. The way to reflect all these issues would be to incorporate the conclusions finally reached as an annex to the Code of Good Practices.

He goes on to point out that these conclusions include the following key aspects:

• Monitoring and assessment of compliance behaviors with the Code. To this end, a synthetic form-catalogue of compliance conduct by the Agency and by the companies should be specified, practices for permanent monitoring and evaluation of compliance with the Code should be determined during the development and at the end of the procedures, and practices for dealing with cases of compliance and non-compliance with the Code should be defined.
• Strengthening good practices in corporate tax transparency.
• Other commitments related to strengthening compliance with the Code.

In relation to the monitoring and assessment of compliance with the Code and the catalogue of conduct by companies, the following can be highlighted, among others:

• No use of opaque structures.
• Collaboration in the detection of fraudulent tax practices.
• The Board of Directors determines the tax policy, tax strategy and the approval of operations and investments with special tax risk.
• Rapid and complete provision of the information and documentation requested by the Agency in the inspection procedure.
• Declaration 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.
• Providing the criteria applied quickly in case of doubt by the taxpayer.
• Communication, as soon as possible, of knowledge of the facts susceptible to regularization.
• Facilitating knowledge and discussion of issues and facts relevant to the settlement. It is considered good practice for the Tax Agency to hold meetings prior to the disclosure of the file.
• Delimitation of the object of your requirements as specifically as possible.
• Avoiding excessive length of the inspection procedure.

In the area of monitoring and assessment of compliance behaviour, the draft proposes the possibility of requesting an assessment of compliance with the Code's recommendations through the communication channel already established in the conclusions document approved on 29 October 2013. The company's tax officer, the Head of the Tax and Customs Control Department, the corresponding Chief Inspector and the Team or Unit Leader must participate in these monitoring actions and, in the event of discrepancies or the detection of non-compliance with the Code's commitments, the Team or Unit Leader will report this to his or her hierarchical superiors who will take the appropriate decisions.

There is also an aspect that has to do with the assumptions of compliance and non-compliance with the Code, and that is that both the Administration and the companies will be able to record the assessment of compliance with the Code of Good Practices in the area of tax application procedures. It is also important to consider the possibilities of action in the event of serious non-compliance by one of the parties.

With regard to strengthening new corporate transparency practices, two general objectives have been considered. One is the early and adequate knowledge and mutual evaluation of the fiscal policy and fiscal risk management of companies, and the other is the improvement of the external and public evaluation, that is, the reputation of companies. Regarding the information to be provided, it should be noted that it is not a matter of sending it to the Agency, but rather of having it at its disposal. This may include, 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 regard, the practical experience of carrying out some approach action with a certain company, before starting the inspection procedure, in order to understand 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, where the operation of its business was explained and more than 50 inspectors from the Central Delegation of Large Taxpayers were present.

Finally, and in relation to other commitments to reinforce and comply with the Code, as a third line of action, special mention should be made of the dissemination by the Tax Agency of the general criteria applied in its control procedure, the establishment by the Agency of standardised documentation referring to all companies that have adhered to the Code of Good Practices and are in these conditions, and also internal communication actions within the Tax Agency. In this regard, regular meetings are being held with companies to assess how all these issues are progressing.

Mr. Miguel Ferre Navarrete then highlights the interest in carrying out the specific experiences that have been pointed out in the presentation by the Central Delegate, which constitutes a good practice to be followed, voluntarily by companies, of course, which gives value to the relationship between companies and the Administration, potentially eliminating costs for both parties.

The floor will then be opened for comments by representatives of the Forum's member companies.

First to speak was Mr. Jacinto Esclapés Díaz, representative of Amadeus It Holding, SA, who asked whether the degree of adherence to the Code is being considered at the level of the individual company or at the level of the 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 its entire group, this should be clearly reflected. Mr. Ignacio Huidobro responds by pointing out that when we talk about a group, we are talking about the fact that membership must in principle be comprehensive for all the participants in the group. However, in some cases the specificities of the group's operation could justify considering some exception to this principle. The latter is supported by the President, who adds that there should not be too rigid boundaries and that if in a specific case individual adhesions are desired and it is clear that, therefore, the commitments in both directions only affect those who adhere, there should be no objection to this.

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. Work will be carried out on this matter, 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 the Department of Financial and Tax Inspection understands it.

Finally, Mr Jacinto Esclapés points out that the amendment to grant retroactive character to these agreements is an absolutely essential amendment to the procedure and greatly facilitates it.

Mr. Miguel Iglesias San Martín, representative of Telefónica, then spoke. He praised all the progress that has been made within the Forum of Large Companies and added that we must continue to evolve in the objective of transparency and also in the intention that all those companies that comply and provide all this information can have greater security in their actions.

The President comments in this regard that the Tax Agency's intention is to respect the commitments that have been discussed at this meeting, provided that the same circumstances are maintained, of course. The Central Delegate adds that international trends in this area are related to voluntariness rather than to a codification of the system. That is to say, based on voluntary action by the company, the Administration can modify its traditional control systems and access advance, more contemporary control of things. This means that both the Administration and companies must take on a significant cultural change.

The President intervenes to corroborate what the Central Delegate has said and points out that only benefits can be obtained from this voluntary exercise of transparency.

Next, Mr. Luis López-Tello y Díaz Aguado, representative of Repsol, takes the floor and reports on the experience he has 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. The Agency has been provided with information of interest 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 pointing out information so that the Agency could ask questions.

He adds that in relation to the SII project, this will be deeply transformative for businesses and even for the economy in general. For this reason, it is noted that it should be considered that there is sufficient flexibility and reasonableness when carrying out the first implementation. He also suggests that a commitment is now needed to ensure that the project will continue to move forward in any case.

The President then intervened and thanked the President for the information on Repsol's experience with regard to cooperative relations.

Rufino de la Rosa adds that as regards the SII , this is a project that will come into force in 2017, following a pilot test in 2016, and which will also be deeply transformative for the Agency, as it will lead to a shortening of the return periods, verification periods, reduction of information requirements, etc. The commitment is that everything will be approved as soon as possible. The Agency is also working together with software companies to anticipate this as much as possible.

The latter was confirmed by the President, who added that the public information process for the corresponding Royal Decree was to be started as soon as possible, and is expected to take place before the end of July at the latest. 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 in data transmission capacity, and the remaining investments have been planned.

Next, Mr. Javier Viloria Gutiérrez, representative of Vodafone, spoke and indicated that the implementation effort of the project is great and requires a significant investment. He also expressed his concern that everything could lead to excessive control, down to the smallest detail, which would lead to an increase in the requirements made by the Agency.

Mr. Santiago Menéndez Menéndez indicates in this regard that this is an investment that will be very profitable, and in relation to the requirements he points out that the idea is for the opposite to occur, that is, a reduction in them due to greater transparency, clarity and quality of information. Mr. Rufino de la Rosa added that the aim is to provide the greatest flexibility to the project and invited those present to communicate any additional matters that have 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 for the floor. He expresses his 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 tax rate for Spanish multinationals” that has been so widely discussed in various media, there be help at an institutional level to communicate the true reality of things.

In this regard, the President indicated that he had taken note and that he had full institutional support. As regards the information provided by the Agency, it only provides objective data and cannot control what the media make of that information. He added that everything that is being done in relation to transparency will also serve to promote the institutional and permanent protection of the image and reputation of companies. As for the concern about how possible political changes could affect the Forum, he said that it should be noted that all these initiatives respond to a global trend, so the Forum will surely continue on its path.

Mr. Santiago Menéndez then intervened and reported that the Tax Agency has numerous relations at an international level. Examples include active participation in the Inter-American Centre of Tax Administrations (CIAT), which brings together all Latin American countries, the United States, France, Canada and Spain, with the aim of helping to develop tax administrations in Latin America. The CIAT , which was founded 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). Furthermore, the Agency participates in the IOTA  which brings together all the countries of the EU and the countries of the East. It also participates in the OECD , in the Global Forum, in the Tax Administration Forum, etc. In all these forums, when people talk about tax administrations, they always talk about assistance, help, cooperative relationships and, of course, transparency. Therefore, there should be no concern about the continuity of the Forum and the initiatives discussed.

The President then spoke out to remind the Treasury that it has created advisory positions in Mexico, Brazil and Argentina, areas where the multinational company based in Spain has an increasingly important strategic presence. He encourages those present to ask for his help, since they are there to support the Spanish company in situations of problematic interpretations, for example.

Next, Mr. José María Vallejo Chamorro, representative of BBVA, comments that, based on recent experiences, he can confirm that the network of advisors that has been created will indeed be very useful for Spanish companies with subsidiaries in these areas, since they are highly 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 confirms the request of the Mapfre representative with regard to the institutional support that would be necessary.

The President reiterates what he has already said and indicates that the deepening of transparency will be a reinforcement of the good image of large companies.

5. Next call: dates and subjects to deal with

The President said that the next plenary session of the Forum of Large Companies is scheduled to take place in November 2015. The meeting will focus, among other matters, on monitoring the tasks of the various Working Groups.

6. Other considerations, requests and questions

The President said that, without prejudice to any additional considerations that may be raised at this time, the fundamental issues had already been discussed under the fourth point on the agenda.

He then comments 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 exceeded the deadline initially contemplated in this task. He also said that he would like to take this opportunity to express his gratitude for his efforts and dedication and added that he hopes to receive proposals from company representatives who wish to perform these functions.

Mr. Miguel Iglesias San Martín, representative of Telefónica, in relation to the network of advisors 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 generic meeting in some of these countries should be considered, with the presence of representatives of the companies in these areas. He adds that it is necessary to consider that the access that these advisers may have to the administrations is much greater than that which companies may have in particular and that it would be very useful for these to access, in these countries, a more cooperative type of relationship, similar to that 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 are present 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 that the Minister of Finance and the Embassy, by extension, can take institutional defense action before whomever is appropriate.

Finally, after thanking everyone, the President closed the 10th plenary session of the Large Business Forum and said goodbye until the next meeting.