Minutes of the meeting

Large Companies Forum

MINUTES OF THE PLENARY SESSION 1/2019

Vice-President of the Large Companies Forum

Director General of the State Agency for Tax Administration

Mr. Jesus Gascon Catalan

Members representing the Tax Agency

Director of the Tax Management Department

Mr. Gonzalo David García de Castro

Director of the Department of Financial and Tax Inspection

Mr. Javier Hurtado Puerta

Director of the Department of Aduanas and Excise Duties

Ms. Mª Pilar Jurado Borrego

Central Delegate of Large Taxpayers

Mr. Manuel Trillo Alvarez

Members representing Large Companies

ACS

Director of Tax Advisory

Mr. Alfonso Moreno Garcia

AMADEUS IT GROUP SA

Deputy Secretary of the Board of Directors

Mr. Jacinto Esclapés Diaz

BANCO SANTANDER

Group Executive Vice President

Mrs. Carmen Alonso Peña

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

Director of Taxes

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

Director of Tax Planning

Mr. Baltasar Gomez Febrel

GENERALI

Director of Accounting Area

Mr. Martí Jo Ruiz

IBERDROLA

Global Director of Tax

Mrs. Begoña Garcia-Rozado Gonzalez

IBERIA

Spanish Tax Lead

Mrs. Elena Sanchez Llorente

INDITEX

Director of Tax Advisory

Mr. Andres Sanchez Iglesias

MAPFRE

Tax Advice Director

Mr. Antonio Lafuente Gonzalez de Suso

MERCADONA

Tax Manager

Mr. Rafael Hilario Lopez Villanueva

NORFIN HOLDER

Director of Tax Advisory

Mr. Jose Antonio Gibello Saiz

REPSOL

Director General of Economic and Fiscal Affairs

Mr. Luis Lopez-Tello and Diaz Aguado

SEAT

Director of Taxes

Mr. Francisco Javier Baulenas Setó

SIEMENS

Director of Taxes

Mrs. Ana Maria Moreda Galante

TELEFÓNICA

Tax Director Latin America

Mr. Miguel Iglesias San Martin

VODAFONE

Tax Advice Director

Mr. Javier Viloria Gutierrez

Technical Secretariat of the Large Companies Forum

Technical secretary

Mrs. Rosa Maria Prieto del Rey

In Madrid, on June 18, 2019, the eighteenth plenary session of the Large Companies Forum is held, attended by the people mentioned above, and in accordance with the following

AGENDA

1. Session opening
2. Approval of the minutes of the meeting held on November 20, 2018
3. Results of the different working groups of the Forum
4. Next call
5. Other considerations, requests and questions

1. Session opening

The session was opened by Mr. Jesús Gascón Catalán, Director General of the State Tax Administration Agency and Vice President of the Large Business Forum, who, after thanking those present for their presence, pointed out that he would have liked to bring to this plenary session the presentation of the strategic planning of the Tax Agency for the coming years, in order to make known what the lines of action will be, as well as the implications for large companies. He added that, if necessary, once the legislature is consolidated, he does not rule out calling a meeting to make such a presentation. Furthermore, it indicates that, as regards the repeated question about the presentation of statistical data in such a way that it reflects the true image of the contribution of economic agents, the Tax Agency is analysing the information contained in Reports CbC in order to carry out a statistical exploitation of them, guaranteeing the confidentiality of the data of the entities. He goes on to present the most relevant data deduced from the reports: In terms of taxes accrued from the declarations of the 134 economic groups based in Spain, the overall contribution is 14.25 billion euros, which, in relation to the profit declared in the models, represents an effective rate of 15.5%. In terms of taxes paid, the contribution is 11.594 billion euros and the effective rate on global profit is 12.6%. Furthermore, 30% of groups have declared an effective rate higher than 25%; Approximately 33% reported an effective rate between 10 and 25% and the rest below 10%. This is the only information that can be published without risk of losing confidentiality. The data, with their corresponding methodological notes, have now been sent to the Ministry of Finance for a decision on the appropriateness of their publication.

On the other hand, Mr. Jesús Gascón continues his intervention by pointing out that in 2018 the Government commissioned the Independent Authority for Fiscal Responsibility (AIReF) to review certain expenditure policies ( Spending Review ) and, in 2019, the same task was carried out, but with the collaboration of the Tax Agency, the General Directorate of Taxes and the Institute of Fiscal Studies, in order to evaluate certain tax incentives. It clarifies that the analysis is not global, it does not refer to all the incentives, but some of those that are going to be evaluated and that may affect the companies represented in the Forum are those intended for R&D&I and also some VAT incentives . He added that this work will be carried out throughout the year and the results will be presented at this Forum.

Mr. Jesús Gascón then gave way to the second point on the agenda.

2. Approval of the minutes of the meeting held on November 20, 2018

Mr. Jesús Gascón gives the floor to Ms. Rosa María Prieto, who points out that the minutes of the 17th session of the Plenary Session of the Forum were sent to its members and adds that, since 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 November 20, 2018 are declared definitively approved.

3. Results of the different working groups of the Forum

At this point on the agenda, the Director General of the State Tax Administration Agency gives the floor to Mr. Javier Hurtado Puerta, Director of the Department of Financial and Tax Inspection, who will comment on the activity of the working group on the Analysis of Tax Regulations and the Reduction of Conflicts.

Mr. Javier Hurtado begins his presentation by pointing out that before commenting on the issues discussed at the last meeting of the working group, held on May 22, he would like to highlight three ideas that he considers important in order to understand the position of the Tax Agency in relation to the “cooperative administration”. Firstly, he points out that since the “Cooperative Administration” began its journey, with many doubts at the beginning, it has only grown and increased its influence on the activity of the Tax Agency and, in particular, on that of the Department of Financial and Tax Inspection, counting on more and more people who believe in the possibility of a new working model with large companies, a new relationship based not on conflict, but on understanding and cooperation for the fulfillment of the respective interests. Secondly, he points out that it must be stressed that progress in this cooperative relationship will require an effort of empathy from everyone, that is, it will be necessary to put oneself in the other's shoes and understand their interests, understanding that we are all part of the same society, to whose development each one contributes from his responsibilities and with his work. Finally, he comments that the third idea, in relation to the two already stated, is that in the Tax Agency the development of this empathy involves ensuring tax compliance, that is, without detriment to tax collection, since this element will be a key indicator when assessing the functioning of the cooperative model.

Regarding the last meeting of the working group on the Analysis of Tax Regulations and the Reduction of Conflicts, the Director of the Department of Financial and Tax Inspection indicates that the points on the agenda discussed therein were contributed by the Administration, and it is desirable that for the next meetings companies also submit the topics of interest to them. Below, Mr. Javier Hurtado outlines the issues discussed at the meeting:

1. Regarding the “Note from the Tax Agency on the interposition of companies” published on the website, it explains that it arose as a consequence of the existing controversy on the street regarding a possible change in criteria in the treatment of this type of entities. At the meeting it was clarified that there had been no such change in criteria and that for the Tax Agency, when a company assumes functions, risks or assets or adds value to the service it provides, it is dealing with a legitimate entity. To the extent that such contribution of value does not occur, the Tax Agency considers that a tax adjustment is appropriate using either the system of lifting the veil or the system of valuing the benefits at market prices. In any case, he adds that this has been a constant concern for the Tax Agency and that is why it is included in the Tax Control Plans of recent years, and can be consulted in the Resolutions that approve them.

2. Regarding the status of the transposition of the Council Directive (EU) 2018, of May 25, 2018 (Directive on Fiscal Intermediaries or DAC 6), the General Directorate of Taxes indicated that there had been a prior consultation process in which very useful comments had been collected from taxpayers and intermediaries. He added that it had been a very rewarding process and that the technical work was about to come to fruition. As regards the possible extension of the obligation to domestic operations, it was indicated that this issue would be resolved with the transposition. On the other hand, with regard to the sanctioning regime, it was pointed out that it would be desirable for it to be an applicable, reasonable and proportional regime. Finally, the DGT indicated that the Directive seeks tax planning operations of a certain importance and that it seeks a transposition in which all parties feel comfortable. Mr. Javier Hurtado adds that it is not very typical of the Spanish legal system to have this type of directives, but that, in an increasingly internationalized world, the EU has decided that this has to be the line of work and, therefore, it will be necessary to integrate the new concepts provided by this framework into legal-tax relations.

3. Thirdly, the late submission of evidence in tax application proceedings was discussed: The Inspection Department expressed its concern about the conduct of taxpayers who do not provide the evidence requested during the course of the inspection procedure, in order to subsequently provide it in the administrative litigation process. Reference was made to a Supreme Court ruling which establishes that the administrative litigation jurisdiction, as a reviewing body, has the power to assess new evidence, even if it was not made public during the inspection procedure. The Inspection Department pointed out that this ruling was causing changes in the work habits of the Inspection staff, the main measure adopted being the exact completion of everything requested and what has been provided, noting, where appropriate, the lack of documents, and instructing sanctioning proceedings when an omission is considered to be intentional or deliberate, in application of article 203.6 of the General Tax Law (breach of the duty of collaboration).

4. Regarding the principle of legitimate trust in tax law and the changes in criteria in the Administration, the Inspection Department stated that it is the interpretative bodies that must interpret the norm. However, the principle of legitimate trust is subsidiary to the principle of legality, since the first thing to do is to apply the Law, knowing what it says in order to interpret it correctly. Thus, in the interpretation process there may be criteria that vary due, for example, to an interpretive decision by a higher authority. Reference was made to the Supreme Court ruling of 13 June 2018, which sets out an exposition of the principle of legitimate expectations. They understand that it could arise when the Administration has ruled on certain facts and their legal consequences (through binding consultations of the General Directorate of Taxes or resolutions of the TEAC ) and subsequently changes its criteria without the regulations having been modified. Having produced this change in criteria, the question arises as to whether it should be projected only into the future or whether it could also be applied retroactively. In this regard, the Supreme Court has been stating that it is from the moment the law was approved and not from the moment the ruling was issued. Thus, controversy arises when a taxpayer has adjusted his actions to a criterion clearly externalized by the Administration and an interpretive body, not as high as the Supreme Court, at a given moment changes said interpretation. It is at this point that, based on the principle of legitimate trust, it should be understood that the effects occur from the change of criteria and not backwards and, in addition, it should go in both directions, that is, the principle of legitimate trust must be bilateral, with a balanced legal position on both sides, the Tax Agency and the taxpayer. This is the criterion that the National Court has recognized in recent jurisprudence and coincides with the approach of the Tax Agency, taking into account that each case must always be analyzed on a case-by-case basis.

5. Regarding the taxation of dividends paid by companies holdings, la Oficina Nacional de Fiscalidad Internacional comentó las recientes sentencias del Tribunal de Justicia de la Unión Europea y los aspectos conflictivos respecto a la utilización de entidades holdings . Thus, the CJEU issued two judgments on 26 February that have provided relevant elements for the interpretation of the Parent-Subsidiary Directive and the Interest and Royalties Directive, in which it rules on the invocation of the general principle of prohibition of abusive practices, the concept of abuse of rights and its indications, the concept of "effective beneficiary" as an autonomous clause to deny the benefits of the directives and effective taxation as a condition to be able to benefit from the exemption.

To conclude his speech, the Director of the Department of Financial and Tax Inspection points out that, in relation to the last point discussed in the working group meeting, at this time the Tax Agency is not giving this jurisprudence an immediate and direct application, but is studying it in depth, in order to have a clear line of action.

Mr. Jesús Gascón thanks Mr. Javier Hurtado Puerta for his intervention and gives the floor to Mr. Gonzalo García de Castro, Director of the Tax Management Department, in order for him to comment on the activity of the working group for the Analysis and Rationalization of Indirect Tax Burdens.

Mr. Gonzalo García de Castro indicates that at the meeting of this working group on May 23, the first thing discussed was the improvement of the quality of the information in the Immediate Information Supply system; Secondly, the results of the processing in the TGVI environment online in the latest campaign of information statements; Thirdly, aspects related to the Ministerial Order approving the 2018 Corporate Tax return model; fourthly, the format of VAT Registration Books and the perspectives of the Tax Agency regarding the Personal Income Tax Registration Books ; and finally, some considerations related to tax residency certificates.

He continued his presentation by pointing out that, in relation to the SII , a meeting with more than two hundred attendees is scheduled to be held on June 20, in which all the problems of this system will be analyzed in order to try to implement a scheme that allows, in turn, the introduction of new validations that grant greater consistency to the information held by the Administration, in such a way that it can be used by the Tax Agency to improve assistance to the taxpayer and, at the same time, that it is useful to identify risk behaviors. The Director of the Tax Administration Department points out that during the course of the meeting the technical specifications will be shared in detail, in an attempt to generate a certain consensus, since they will not imply modifications to the registration designs. He also said that the “frequently asked questions” section will be adapted. As for the changes that will be required by the introduction of the new validations, these consist of messages that are currently only warning messages becoming rejection messages and the information not being accepted until it is corrected. They will only affect the record books of invoices issued and received. To conclude this point, Mr. Gonzalo García de Castro reiterates that the aim is to improve the quality of information and that the participation of everyone is necessary.

In relation to the TGVI onlineThe Director of the Tax Management Department thanks the companies for their collaboration in the effective development of the informative declaration campaign, since without the important cooperation of those obliged to provide the information and their constructive attitude, it would not have worked. He adds that the Tax Agency has been able to process the information very quickly and that, to date, the greatest impact has been in the declaration of IRPF , with the transfer to taxpayers of the data held by the Administration in order to facilitate the preparation of their declarations.

Mr. Gonzalo García de Castro goes on to point out that the following issues were also discussed at the working group meeting:

1. Regarding the Ministerial Order approving the 2018 Corporate Tax return model: It was reported that the help program had changed to a web submission form (Web Societies). It was also noted that there had been few regulatory changes this year and that they had been incorporated into Order HAC/554/2019, of April 26, approving models 200 and 220. Other new features incorporated into the 200 model were also discussed.

2. Regarding the format of VAT Registration Books : It was commented that the subjective scope refers to taxpayers who are not obliged to SII and who are involved in a verification procedure for VAT 2018. The objective is to standardize the electronic format to standardize the VAT record books requested by the Tax Agency, not only in the management field but also in the inspection field. This allows for faster processing of procedures. It was also noted that the format of the Books is published on the Tax Agency's website and has been provided to IT development companies so that, if they so decide, they can use it as a basic platform for preparing registration books.

3. Regarding tax residency accreditations for non-residents: It was commented that this matter has a very heterogeneous problem, including coordination between Administrations, since some operate with a still very traditional scheme, while the Spanish tax Administration has implemented a system of issuing certificates, including those of tax residence for the purposes of the agreement, characterized by its immediacy and the possibility of verification from anywhere in the world at any time. Mr. Gonzalo García de Castro concludes his speech by pointing out that tax residency accreditations have a very substantial impact on the financial sphere, which is why it is necessary to open a process of reflection, open to receiving proposals and comments, with the aim of guaranteeing the robustness of the Spanish accreditation system and the effectiveness of the certificates it issues, before other tax authorities or other taxpayers.

Mr. Jesús Gascón thanks Mr. Gonzalo García de Castro for his intervention and gives the floor to Ms. María Pilar Jurado Borrego, Director of the Customs and Customs Department II.EE. , in order to comment on the activity of the Special Taxes working group.

Ms. Pilar Jurado begins her presentation by pointing out that the Special Taxes working group met on May 24 and addressed the following issues:

• Regarding the procedure for sales en route and fuel supplies to vessels and aircraft, information was provided on the new applicable regime, which will involve the electronic transmission to the Tax Agency of the files containing the information. At the meeting, companies expressed concern about the possibility of not having their IT systems ready for 1 July. Since this concern had also been raised during the public information process, Ms. Pilar Jurado comments that the Tax Agency has published an information note stating that the application of the new system will be delayed until 1 October.

• On the other hand, it was also reported at the meeting that the Tax Agency had had to address an update of the internal EMCS to adapt it to the Ministerial Order and that a specific section had been enabled in the Electronic Office (portal SIANE - Integrated System of Supplies and Delivery Notes) where all the information and documentation relating to the new system was being collected in order to facilitate compliance with their tax obligations to the affected entities. The publication of technical instructions and a test environment was also reported. The Director adds that the actual opening has already taken place, although without legal consequences until the regulations come into force.

• Regarding the keeping of accounts for excise taxes in the Tax Agency's electronic headquarters, the so-called SILICIE (Immediate Supply of Excise Tax Accounting Books), which comes into force on January 1, 2020, thanks companies for their collaboration and their effort to adapt to the new system. At the meeting it was mentioned that information sessions had been held with the main associations of the affected sectors, in which detailed information had been provided on the content and models of books. It was also reported that companies, both large and small, had been visited to learn about the specific problems, and that the Tax Agency had made an effort to adapt as much as possible to the production processes of the three main tax groups (hydrocarbons, alcohol and tobacco), in order to achieve a valid model for companies. Ms. Pilar Jurado adds that the technical specifications have already been published and that a “frequently asked questions” section will be published shortly. He also expressed his gratitude for all the suggestions received and said that the Tax Agency intends to continue with the information sessions.

• As regards tax marks for derived beverages, it was reported at the meeting that work was being done on a more powerful tax seal, consisting of a self-adhesive model, equipped with a point code to which is associated information that is transmitted to the Tax Agency at the time of bottling. A round seal has also been introduced to facilitate reading or subsequent distribution processes.

• Finally, in relation to the Electricity Tax, he comments that the reductions and exemptions of this tax are the subject of analysis by the EU . He points out that the codes have had to be adapted due to the information that Spain must provide for the purposes of State aid. Thus, the recipients of these reductions and exemptions will have to change their code, which suppliers will have to take into account.

Mr. Jesús Gascón thanks Ms. Pilar Jurado for her intervention and gives the floor to Mr. Manuel Trillo Álvarez, Central Delegate for Large Taxpayers, so that he can comment on the activity of the Cooperative Relations working group.

The Central Delegate takes the floor and states that he agrees with the proposal made by the Director of the Department of Financial and Tax Inspection, in that proposals and initiatives submitted by companies to be discussed in the working groups would be welcomed.

Mr. Manuel Trillo goes on to point out that the Cooperative Relations working group met on May 24 and basically five topics were discussed: transparency reports, the program ICAP , the issuance by the Tax Agency of criteria for applying the standard in specific situations, the UNE 19.602 Standard and, finally, some comments were made in relation to facts of tax relevance.

The Central Delegate then details each of the points:

Regarding transparency reports, he says that, since this is a tool for which there is no regulation, many hours of work are being devoted to it, but important conclusions are being drawn. He believes that this is a very satisfying path and appreciates the interest shown by companies and the clear improvement in the content of the reports. He said that it was decided to study all the reports received, unlike what had been done previously, where only a portion of them were selected. He adds that this year there has been a better, but still manageable, performance. Specifically, there are twenty-two reports that are being addressed, with the presenters as interlocutors. In this regard, he indicates that to date meetings have been held with sixteen entities, in which the Tax Agency staff who have studied the report raise the issues raised after reading it, discuss them with the entity and, where appropriate, request additional documentation. Mr. Manuel Trillo thanks the companies for the speed with which they provide the additional information requested, as reported to him by the Tax and Customs Control Department, which is the one that attends these meetings and has indicated to him that they are extremely interesting. On the other hand, the Central Delegate states that having the possibility of carrying out a certain risk analysis on site with the entity itself is a great advantage for everyone. Thus, transparency reports are a decisive element when deciding on the actions to be taken in the short and medium term in terms of the risk analysis that the Tax Agency carries out permanently, since they allow for greater and very close knowledge of the reality that, otherwise, in order to know it, it would be necessary to formally initiate a procedure, with all that this implies. The companies, for their part, requested that, as a result of these meetings, some document be issued that they could present to their respective Boards. The Central Delegate reports that the proposal is being studied.

Regarding the program ICAP Mr. Manuel Trillo points out that its implementation was approved at the OECD Tax Administration Forum in 2017 and represents a cooperative relationship at the international level. In ICAP I, which ran from late 2017 through 2018, eight countries (Japan, Italy, Canada, the Netherlands, Australia, the United States, the United Kingdom and Spain) participated and its objective was to launch an international risk analysis, such that several Administrations could better understand a particular business group, i.e., with the group present and from a multinational point of view, all countries could focus all their control expectations on said group and could discuss them at a multilateral level, taking into account that each country would obviously have its own interests and would want to influence certain aspects of the group's activity. Thus, basically, the risk analysis focuses on two issues, transfer pricing and permanent establishments, although the financing branch is also addressed, since it is closely related to the first issue. On the other hand, as regards the working methodology, firstly, countries undertake a certain obligation to propose a national group which, in turn, has volunteered to participate in the programme. Mr. Manuel Trillo reports that a preparatory meeting is planned for next week and Spain will present two groups, from which, depending on the interests of the participating countries, one will be chosen, since each country can only propose one candidate, and later, in September, the first meeting will be held in Paris, where it will be decided which groups will participate in the Program. From there, working groups are formed in which four or five Administrations, depending on their interests, participate in the risk analysis. Within each work group, a steering group is formed, a management committee, which is responsible for promoting the group's activities and resolving any doubts that arise in each of the subgroups that are formed.

At this point the Director General of the Tax Agency leaves the meeting.

The Central Delegate continued his intervention by pointing out that from then on, meetings are held with a certain frequency, where each country focuses its attention based on its concerns, although all Administrations have the sole purpose of determining from a multilateral point of view the level of risk assessed. Basically, there are two ratings, "low risk" or "not low risk", which are included in a "performance letter" justifying the rating, as well as any reservations that a country may have. The validity of the document extends to two years after its issuance, provided that the circumstances that have been evaluated do not change. Mr. Manuel Trillo adds that much can be learned from this document for transparency reports. Continuing with the ICAP He added that Spain has participated in the risk analysis of two multinational groups, one from the Netherlands and the other from the United States, which were very interested in knowing certain aspects of their operations.

When it comes to ICAP II, in which Spain is also participating, the Central Delegate comments that there will be nine more countries, including Germany, Norway, Poland and, probably, France and Mexico. He added that, as he had already indicated, Spain will present two groups and at the September meeting it will be decided which one will participate, as there can only be one. To conclude on this point, he points out that, as he has stated when dealing with transparency reports, although this programme requires a lot of work and effort, participation is worthwhile, since, in addition to strengthening ties with other Administrations, one can learn a lot from them, while at the same time allowing one to learn about the internal functioning of a multinational group without having to initiate a formal procedure. For the companies, the Central Delegate believes that it is also a good experience, as it allows them to explain themselves in a framework in which all the actors are present and to obtain a document of results with significant value, given its validity for the following two years.

The Central Delegate continued his presentation and pointed out that, with regard to queries on criteria applicable to specific operations, he fully understands that companies, when faced with certain operations with significant tax implications, want to compare opinions. Thus, at the meeting last May, the Head of the Tax and Customs Control Unit offered companies adhering to the Code of Good Tax Practices the opportunity to raise any tax questions they wished. He added that the General Subdirectorate of Legal Regulation and Legal Assistance clarified that the issuance by the Tax Agency of interpretative criteria in specific cases could not in any case replace the General Directorate of Taxes in the issuance of binding consultations, since, as has been repeated on numerous occasions, each organization has its own powers. The Central Delegate adds that this route is intended to be faster, but not a substitute, and that, in collaboration with the Department of Financial and Tax Inspection, the issues raised by companies can be resolved.

The Central Delegate then reported that the fourth topic discussed at the working group meeting was the UNE 19.602 Standard. He points out that, although the tax administration positively values this Standard, as well as other initiatives that have arisen in the context of the compliance, no constituye una propiamente norma jurídica. Añade el matiz de que la Agencia Tributaria no participó en la elaboración de dicha Norma y se está creando la falsa expectativa de que someterse a los procedimientos de auditoría que la Norma UNE establece y obtener el sello por parte de los autorizadores, va a proporcionar una especie de “blindaje” frente al régimen sancionador. Aclara que la Administración tributaria siempre realizará, de acuerdo con el procedimiento establecido, las valoraciones que estime pertinentes, al margen de que la empresa se haya adherido voluntariamente al cumplimiento de la Norma UNE. Por su parte, en la reunión también se informó que la due diligence that any business group could adopt would receive the same treatment as the UNE Standard.

The Central Delegate continued his presentation by pointing out that at the meeting, companies were asked to provide the Tax Agency with early knowledge of certain significant facts from the point of view of their tax relevance, such as the presentation of rectified declarations of considerable importance.

Finally, Mr. Manuel Trillo indicated that the collaboration of companies was also requested to inform the Tax Agency when they became aware that a third party could cause damage to both the companies themselves and the Administration.

The Technical Secretary then thanked Mr. Manuel Trillo and the other Directors for their intervention and moved on to the next point on the agenda.

4. Next call

Regarding the next meeting, Ms. Rosa María Prieto expressed her intention to maintain the semi-annual frequency of the meetings, noting in this regard that the next meeting would likely be held in November. He added that, however, it is likely that, as announced by the Director General, an extraordinary meeting will be convened prior to the next plenary session.

5. Other considerations, requests and questions

The Technical Secretary then moves on to point 5 of the agenda, “Other considerations, requests and questions” and before giving the floor to the attendees, comments that the Technical Secretary has been receiving new requests for participation in the different working groups for some time now. Thus, it is reported that, in accordance with the operating rules of this Forum, through the collaborator of the Secretariat representing the companies, the consultation will be formally carried out and, if there is no opposition from the companies, the possibility of expanding the members of a working group will be considered, depending on the sectors that comprise it and to provide greater dynamism, always within certain limits and in such a way that the working groups can continue to be operational.

Next, Ms. Begoña García-Rozado González, representative of Iberdrola, took the floor and reported that the Provincial Council is considering regulatory changes so that all invoices are issued electronically and subsequently sent to the Administration. To this end, a pilot project is being carried out in which your organisation is participating. The idea of the Foral Treasury is, possibly, to replace the SII . It seems that it will be applied first to cash registers and will be extended to all invoices. Thus, Ms. Begoña García-Rozado asks whether something similar is planned in the common territory and, if so, whether this would affect companies that file SII and, if so, requests that the adjustments that have to be made to the company's billing system to adapt to the regional regulations be useful if something similar is implemented in the rest of the territory in the future.

Ms. Rosa María Prieto replies that there is no project in this regard at the moment.

The Director of the Department of Financial and Tax Inspection then took the floor and reported that the “invoice-BAI” project of the Basque Regional Treasuries initially affects the control of cash register invoicing and then extends it to the control of all invoicing. He adds that in the common territory there is a project for the control of cash registers that would also be supported by a change in the General Tax Law regarding compliance with certain requirements such as authenticity, conservation, non-mutability of invoices once issued, etc. However, changes would have to be made to the billing regulations and only simplified invoices would be affected, which would have to meet some validation requirement such as providing them with a QR code. On the other hand, the cash register system would not affect companies required to comply with SII , since, although they have cash registers, it is understood that the company's own control systems are sufficient. However, Mr. Javier Hurtado points out that, although there is no such project at the moment, it cannot be ruled out that it will be addressed in the future, since it could be pointless for companies that are in the SII to be required to provide the accumulated tickets on a daily basis, while the rest of the companies have to do it ticket by ticket. The Director of the Inspection Department also points out that the billing regulations are common to the entire territory.

Next, Mr. Andrés Sánchez Iglesias, representative of Inditex, intervenes, who comments that when the SII was just a project, in its beginnings, the question of being able to request the ticket by ticket arose, which did not prosper due to the technical and management difficulties that it entailed, and it was decided that it would be done cumulatively. He added that if any changes were to be made to this issue, he would appreciate it if companies were informed so that they could respond in a timely manner and initiate a debate on the suitability of the changes.

The Director of the Planning and Institutional Relations Service responds that, indeed, with the SII system, the accumulated presentation was finally chosen. He adds that, however, in the future, with some technological and regulatory changes, it may be possible to value it differently.

Next, Ms. Carmen Alonso, representative of Banco Santander and collaborator of the Technical Secretariat, takes the floor and requests that, before the publication of the statistical data, even in aggregate form, the Tax Agency informs companies about the objectives pursued by publishing the data and the way in which they will be supplied.

Ms. Carmen Alonso goes on to point out that, on the other hand, the majority of the topics discussed in the working groups have indeed been proposed by the Tax Agency and have subsequently been supplemented by the companies. He adds that it is important to understand that companies have the disadvantage of being large and that it is a task to reach an agreement before each meeting. However, he said that they would make an effort and try to send a list of the issues that concern them. He goes on to point out that, to highlight a matter of great interest, this would be that of “legitimate trust” and comments that it would be desirable for the Administration to know the opinion of companies, even if this is not fully agreed upon, before making a news release public.

The representative of Banco Santander continued her intervention by commenting that she was grateful for the meetings arising from the transparency reports and that, as a collaborator of the Technical Secretariat, she could say that, in general, they are valued very positively and that they show that, in terms of transparency, companies and the Administration are on the same page. He added that he would also like to thank the Technical Secretariat for the effort it has made in sending the summaries of the working group meetings, as this is the only way for all companies to be informed and be able to make their comments.

Finally, Ms. Carmen Alonso comments that the efforts being made by companies and the management of the Tax Agency in terms of transparency can be appreciated, but points out that she has still received some complaints about the actions of the inspection teams, and therefore requests that, in order to reduce conflict as far as possible, just as transparency is being promoted in companies and information is provided without the need for a request from the Administration, the Tax Agency should promote attitudes of cooperation in the same sense.

Ms. Rosa María Prieto took the floor and, after thanking the companies for their collaboration in the work of this Forum, indicated that she would forward the proposals made to the General Director. Then, since there were no further interventions, the Technical Secretary concluded the session by thanking all those present for their presence.