Minutes of the meeting

Large Companies Forum

MINUTES OF THE PLENARY SESSION 1/2024

Vice President of the Forum of Large Companies

Director General of the State Agency for Tax Administration

Ms. Soledad Fernandez Doctor

Members representing the Tax Agency

Director of the Tax Management Department

Mrs. Rosa Maria Prieto del Rey

Director of the Department of Financial and Tax Inspection

Mr. Manuel Trillo Alvarez

Director of the Department of Aduanas and Excise Duties

Ms. Nerea Rodríguez Entremonzaga

Deputy Director General of Special Procedures - Tax Collection Department

Mr. Carlos Jose Dorrego Anta

Deputy Central Delegate

Mr. Joan Cano Garcia

Members representing Large Companies

ACS

Tax Advice Director

Mr. Alfonso Moreno Garcia

SABADELL BANK

Deputy Director General Tax and Labor Advisory

Mr. Carlos Augusto Lazaro Rico

BANCO SANTANDER

Global Head of Taxes

Mrs. Carmen Alonso Peña

BBVA

Director of Direct Taxation

Mr. Jose Maria Vallejo Chamorro

LA CAIXA

Director of Direct Taxation

Mr. Gonzalo Mendizábal Carredano

CEPSA

Fiscal Director

Mr. Alberto Martin Moreno

COFARES

Advisory Board of Directors

Mr. Luis Valdeolmos Gonzalez

EL CORTE INGLÉS

Director of the Tax Department

Mr. Luis Maria Sanchez Gonzalez

ENDESA

Head of Tax Affairs

Mrs. Maria Muñoz Viejo

FCC

Director of the Tax Department

Mr. Daniel Gómez-Olano González

GENERALI ESPAÑA

Director of Accounting Area

Mr. Martí Jo Ruiz

IBERDROLA

Global Director of Tax

Mrs. Begoña Garcia-Rozado Gonzalez

IBERIA

Spanish Tax Lead

Mrs. Cristina Santana Negrin

MAPFRE

Attorney at the Tax Department

Mrs. Lucia Martin de Bustamante

MERCADONA

Fiscal Director

Mr. Rafael Hilario Lopez Villanueva

MICHELIN

Fiscal Manager

Mrs. Rosa María Peña García

RENAULT ESPAÑA

Tax specialist

Mrs. Almudena Fernández Miguélez

REPSOL

Director General of Economic and Fiscal Affairs

Mr. Luis Lopez-Tello and Diaz Aguado

SEAT

Director of Taxes and Customs

Mrs. Susana Sanchez Arenas

SIEMENS

Director of Taxes

Mrs. Ana María Moreda Galante

TELEFÓNICA

Tax Director Latin America

Mr. Miguel Iglesias San Martin

VODAFONE

Director of Tax Advisory

Mr. Javier Viloria Gutierrez

Technical Secretariat of the Large Companies Forum

Technical secretary

Mr. Ignacio Fraisero Aranguren

The twenty-eighth plenary session of the Large Companies Forum will be held on July 3, 2024, with the attendance of the persons listed, and in accordance with the following:

AGENDA

1. Opening of the session.
2. Approval of the minutes of the meeting held on November 27, 2023.
3. Planning 2024.
4. Summary of the different working groups of the Forum.
5. Approval of the document proposing modifications to CBPT and FGE.
6. Next call.
7. Other considerations, requests and questions.

1. Session opening

The Director General of the State Tax Administration Agency welcomes attendees to the plenary session of the Large Business Forum and celebrates the fifteen years since the first session, as well as the progress achieved within the cooperative relationship.

The Director of the Tax Agency then provides a reminder of the topics to be discussed at this session. Firstly, the minutes of the previous session will be approved, if applicable. Secondly, the Director of the Planning and Institutional Relations Service will present the Strategic Plan of the Tax Agency 2024-2027. The results of the working groups over the past few months are summarized below. The proposed changes to advance the cooperative relationship will also be voted on, a decision will be made on whether to hold the next meeting, and the usual round of questions and requests will be opened.

Ms. Soledad Fernández gives the floor to the technical secretary of the Forum and Director of the Planning and Institutional Relations Service, Mr. Ignacio Fraisero.

2. Approval of the minutes of the meeting held on November 27, 2023

Mr. Ignacio Fraisero thanks those present and points out that, once the draft minutes of the meeting of November 27, 2023 were sent, no comments were received.

There were no observations or suggestions for modifications to the content of the minutes during the session, and the minutes are approved.

3. Planning 2024

The Director of the Planning and Institutional Relations Service briefly reviews the general lines included in the Strategic Plan 2024-2027, as well as those of the Agency's Control Plan.

The Strategic Plan is structured into seven sections. The first of them, “ Key elements”, collects the basic aspects that articulate the Plan. These include redefining the information and assistance model based on the centrality of the citizen.

One of the basic principles that must govern the actions of all Public Administrations is transparency and accountability, as well as the optimization of the organizational model.

It is also necessary to address external challenges in terms of e-commerce, new business models and globalisation, cybersecurity and data protection, and artificial intelligence.

Another objective of the Tax Agency is to promote the use of preventive measures to avoid or limit errors by taxpayers, in order to improve voluntary compliance.

Finally, with regard to this first section, the Tax Agency aims to tackle more complex fraud with greater effectiveness and efficiency and to collaborate in continuing to increase social awareness of fraud.

The second section, “ The environment ”, refers to the need to take into account the economic and budgetary environment (GDP growth, price developments, deficit reduction, etc.) and the international environment, as well as the commitments made within the OECD or the EU (VIDA, BEPS, etc.). The framework for action and the conditions are: the social perception of fraud, voluntary compliance and measurement of fraud, management by objectives and performance indicators, and the relationship with common regime Tax Administrations and with regional treasuries.

The third section “ Backbone axes ” is divided into four parts, the first under the heading “ Taxpayer assistance ” requires the definition of the model of information and comprehensive assistance to the taxpayer, the implementation of the project of corrective self-assessments (starting with the Value Added Tax), the updating of the censuses (with special emphasis on non-commercial entities and the development of a web census application in line with the concept of web income), the simplification of the language, the creation of a system of assistance for non-residents without permanent establishment and the creation of the specialized appointment for tax professionals.

The second part, “A preventive actions ”, covers the streamlining of personal income tax refunds (by making available to taxpayers a draft supplementary declaration when an error is detected, so that it can be corrected), as well as the implementation of preventive campaigns to promote voluntary compliance and the strengthening of preventive actions in the area of collection to avoid collection risk. The SEPRI director also points out that it is also necessary to evaluate and improve cooperative compliance with large companies, tax professionals, public companies, SMEs and the self-employed. Another challenge would be the implementation of the VIDA package on Value Added Tax and the need to work on developing applications that guarantee the inalterability, legitimacy and potential exchange of the billing record, in order to fundamentally avoid dual-use software. On the other hand, it indicates that new supplies of information will be received (mainly regarding cryptoassets, ecommerce platforms, etc.).

The third part or backbone would be “ Fraud control ”, the objective being to reorient the control model, reinforce controls and assistance tools for fiscal consolidation groups and reinforce the control of economic activities by granting greater review powers to Management. In the area of large companies, work will be done on creating a unit that can serve as support for the processing of certain files that are dispersed within the management units of large companies. Certain actions are also planned to strengthen the fight against fraud in the areas of inspection and investigation activities. Finally, in the area of international direct taxation, the 360° strategy is promoted to achieve a joint vision of all procedures in the area of international taxation.

Within the framework of fraud control, the possible renewal of the jurisdictional system is planned, as well as the improvement of the application of the sanctioning procedure, the improvement of the quality of the customs clearance process, the implementation of new environmental taxes, the prevention of clandestine activity of manufacturing tobacco products and the illicit trade of tobacco leaves, the reinforcement of the security of seaports against cocaine trafficking and, finally, the strengthening of the procedural position of the Tax Agency in the Courts.

The fourth part or backbone of the third section of the Plan deals with “ Institutional communication” , creating an external and internal institutional coordination committee, attempting to improve internal communication, considering the possible presence on social networks and intensifying the Civic Tax Education Plan and the relationship with universities. Another objective in the area of communication is to improve citizens' tax awareness and to collaborate with other social institutions.

The fourth section of the Strategic Plan, after the backbone axes, refers to “ human and material resources”, highlighting the need for growth in the number of staff and evaluation of the structure of jobs, improving the measurement of workloads, establishing a professional career, promoting evaluation and training, facing the reality of teleworking and a new collective agreement, and promoting selective processes and internal promotion.

As regards material resources, one of the objectives is to reduce rents, promote relocations and provide aeronautical and technological resources to Customs Surveillance. Of particular importance are the technological means for the development of the private cloud in the DIT data processing centre and the neutral seizure point and for promoting resilient unified communications.

In the media, work has been done on the artificial intelligence strategy, as well as on cybersecurity, protection of tax data, dissemination of the ethical code, strengthening of the Ethics Advisory Committee and strengthening of the sectoral security and control committees.

Regarding the fifth section, “ Strategic Indicators”, the aim is to broaden the tax bases, promote the measurement of the induced effects of control actions, measure the impact of data transparency and assistance actions, and monitor the evolution of the calculation base (the results of the fight against fraud and the decrease in refund requests). The strategic indicator also includes improved efficiency, managed debt is measured, tax conflicts are monitored and strategic indicators are established in terms of information and assistance.

The sixth section is dedicated to “ Actions for other bodies and other powers ”, requiring the reinforcement of the international presence of the Tax Agency, and highlighting the management of aid and the assistance provided by the Tax Information Technology Department to the Economic Administrative Courts and the General Directorate of Taxes. The Tax Agency also collaborates in the Minerva project, in the challenge of electronic invoicing, collaborates through the SETE with other organizations and continues to formalize different agreements, with the transfer of information becoming increasingly important.

The seventh and last of the sections, the “ Planning instruments” groups the following instruments: the Annual Tax and Customs Control Plan, the Annual Objectives Plan and the Plan for Intensification of Actions. The main objective is to monitor, assess whether plans are being met, create a checklist and determine for each project a list of tasks and milestones that must be completed by certain dates.

The Director of SEPRI continues his presentation by referring to the 2024 Annual Tax Control Plan, which refers, in terms of information and assistance, to the new information and assistance model, to the Non-Resident Income Tax (informant, chat, informa+ and the telephone channel with appointment), and to the development of new virtual tools for virtual assistance in customs (import and export declarations).

In terms of promoting voluntary compliance, it is planned to adapt the computer systems derived from the billing services, and to promote the implementation of preventive campaigns for non-declarants, expanding the groups covered by personal income tax and including the informative part. Assistance will also be provided to correct incidents (filing a supplementary income tax return), new reporting obligations will be created and some administrative documents will be simplified.

Finally, in terms of control, a unified model is proposed, taking into account the ruling of the Constitutional Court of January 19, 2024, and, in terms of Value Added Tax, action will focus on cross-border operations, on the control of fraud in investment goods or on the use of related persons for the deductibility of incurred contributions. Other guidelines on control include the review of the operational criteria for applying the sanctioning regime, the control of e-commerce platforms and neobanks, and the control of cash and virtual currency movements to prevent money laundering. The port security plan is being given a new boost and, in terms of tax collection, information on the ownership of POS terminals will be improved, civil actions will be promoted and the new protocol for preventive actions will be followed.

The FCC representative then asks what specific action exists to improve citizens' tax awareness and whether it would be possible to broaden the tax bases.

The Director of SEPRI responds that improving tax awareness requires a wide range of activities, actions by the Tax Agency and also educational actions that make society itself progress. He also announced that the Agency will continue with its advertising campaigns, will promote the civic tax education programme aimed at the new generations and will reinforce the presence of universities, making it necessary to act in all areas, act with the Forum of professionals, act through seminars, etc.

As regards the indicator of expansion of tax bases, the actions of the Tax Agency may be determined by the fact that the amount of the tax bases increases by a greater percentage than certain economic variables. As an example, the Director mentions the possibility that the taxable base declared in direct taxes may increase by a greater percentage than the increase in employee remuneration, or in the case of Value Added Tax, that the base may increase by a greater amount than nominal internal demand. Other organizations have opted for the tax gap, but given the difficulties in measuring it, the Director of SEPRI clarifies that the decision was made to choose the broadening of the bases as a strategic indicator, that is, to grow by a percentage higher than certain macroeconomic variables.

The Director General of the Tax Agency adds that, since these are declared tax bases, it would demonstrate that voluntary compliance is improving.

The representative of Telefónica asked if anything was being worked on following the ruling of the Constitutional Court, whether there were inspections underway or how the financial years that have not been closed are considered, to which Mr. Ignacio Fraisero replied that this question would be dealt with later, when summarising the working groups.

4. Summary of the second semester working groups

Ms. Soledad Fernández gives the floor to the Director of the Tax Management Department, who begins the presentation of what was discussed in the working group for the Analysis and Rationalization of Indirect Tax Burdens, which was held on May 7.

Ms. Rosa Prieto begins the summary of the working group with the status of the project on corrective self-assessments and comments that the Deputy Director General of Tax Technique recalled the regulatory changes that had been carried out, the status of the figure of corrective self-assessments, and the maintenance of the traditional procedure for requesting rectification of self-assessments for certain cases (when there had been a violation of a higher-ranking rule, of the Constitution, of European Union law or of international treaties). It was also recalled that for its implementation it was necessary to modify the regulations governing each of the taxes and approve the corresponding ministerial orders, being effective in VAT for the third quarter of the year or the month of September, depending on whether the declaration is quarterly or monthly. As regards the income model and the corporate model, the new model is expected to be applied next year.

New developments in the corporate tax campaign were also discussed, such as the change in tax rates from 23% for companies with a turnover or net turnover of less than 1,000,000 euros and 15% for start-ups.

The adaptation of the declaration model to the Constitutional Court ruling 11/2024, of January 18, was also reported, except in the case of cooperatives, as the General Directorate of Taxes confirmed that the ruling includes eliminating the modifications with the limits provided for companies in general, but not for cooperatives.

New adjustments to the accounting result are also included, specifically in relation to temporary liens and certain cases of accelerated depreciation. Information is included for applying the special tax regime of the Balearic Islands, and, with regard to the members of the AEIEs and UTEs, it has been decided to maintain said information as voluntary.

Finally, the Director of the Management Department pointed out that the modification regarding the maximum amount of the returns on investments in film productions, the reductions to encourage events of exceptional public interest and the schedule provided for by the ministerial order, which was approved a few days later, were also discussed, since the meeting was on May 7 and the ministerial order was approved on May 27.

Regarding the modifications related to the UTEs and the identification of the participants, the Deputy Director General of Studies, Methods and Procedures reported that the purpose of requesting said information was to improve the fiscal data, but finally Ms. Rosa Prieto reiterates that this year this information is requested on a voluntary basis.

In the questions and requests of the working group, certain problems were reported that occur in relation to models 296 and 190 regarding the presentation of these models to the Tax Agency and the Provincial Treasuries, and it was reported that work would be done to try to correct these incidents.

The Director General of the Tax Agency thanks the Director of the Management Department for her intervention and gives the floor to Mr. Manuel Trillo.

The Director of the Inspection Department summarizes what was discussed in the working group on the execution of the judgment of January 18, 2024, which declares certain provisions of Decree Law 3/2016 unconstitutional (limitation of the compensation of negative tax bases, automatic reversal of impairments and losses in securities portfolios).

The effects of the ruling are ex tunc, so the rule is excluded from the legal system from the beginning, although the Director commented that some nuances in the ruling raise certain doubts.

In any case, the judgment should not affect consolidated situations, meaning consolidated situations are final settlements, settlements not appealed as of that date and self-assessments whose rectification had not been requested as of the date of the judgment (January 18, 2024).

The Inspection Department wondered what was happening with the rest of the situations, so it turned to the Legal Service, which reported that, as of January 18, 2024, that rule no longer exists in the legal system and, therefore, those three limitations that existed in the rule are no longer applicable in any liquidation that is issued, regardless of when the procedure was initiated.

One of the problems, says Mr. Manuel Trillo, arises in the compensation of Taxable Bases, since it is not an option but a right and, therefore, executing the sentence requires interacting with the taxpayer to see how he wants to apply them. He points out that the Department has begun to work on the verification procedures and the requests for rectification of self-assessments submitted previously and which were not resolved, considering them, and with respect to the requests for rectification submitted subsequently, they have been rejected for processing.  In the case of lawsuits, requests for rectification that had already been denied and appealed, and in cases where one of the grounds for appeal was hypothetical unconstitutionality, a conditional acquiescence has been assessed, provided that the effects of the acquiescence are allowed to be quantified and that the amount requested is correct.

The Director of the Inspection Department comments that the working group was asked about an alleged increase in the derivations of liability, to which it was answered that there was no such increase, but rather an acceleration of the period as a result of the recent jurisprudence of the Supreme Court, which distinguished the limitation period of the right to derivation and the right to demand the debt, thus restricting the period to demand the debt that existed previously.

The Deputy Director General of Special Procedures of the Tax Collection Department, Mr. Carlos Dorrego, adds that although actions are being anticipated, fewer appeals or economic-administrative claims are being filed in response to the derivations of liability.

The Director General of the Tax Agency then gives the floor to Ms. Nerea Rodríguez, who proceeds to summarise what was discussed in the working group on Special Taxes, where the future modification of the ministerial orders on the electricity tax and SILICIE was addressed.

The Director of the Customs Department explains that the purpose of the modification of the electricity order is to incorporate additional data in the settlement tables with a greater breakdown of the information, and that of the SILICIE is to close the accounting, establishing a declaration of opening of accounting and closing of accounting and fiscal year.

Ms. Nerea Rodríguez reports that both orders have already completed the consultation process and that it is expected that the public information process can be carried out, with the objective of them coming into force on January 1, 2025.

On the other hand, in relation to the tariff classification of fuel, he points out that the criterion of the Court of Justice of the European Union has been clarified, according to which fuel becomes a product of the second tariff and, therefore, non-sensitive, with its circulation not being subject to special requirements.

Regarding the cooperative relations working group, the Director General gives the floor to the Director of SEPRI, who explains that two meetings have been held: one in person and one virtual. Firstly, Mr. Ignacio Fraisero refers to the evaluation of the cooperative relationship model, having carried out both a quantitative assessment and a qualitative assessment.

Among the assessment methods, surveys were prepared for officials of the Tax Agency and for representatives of Large Companies adhering to the Code of Good Tax Practices or forming part of the Large Companies Forum.

The main conclusion reached through this evaluation was that the model enjoys good acceptance in general. However, there were some general lines of improvement that should be worked on, making it necessary to move forward and continue with the cooperative relationship model. The need for Tax Administration officials to improve their knowledge of the cooperative relationship was appreciated.

The Director insists on the importance of promoting training activities in the courses that will be held at the School of Public Finance and which will be attended by both representatives of the Administration and representatives of large companies, so that new civil servants who are joining the company can learn in greater detail how the cooperative relationship works.

The need to improve the functioning of the working group and the Plenary Session of the Large Business Forum was also raised, and the need to establish a mechanism for serious breaches of the principles that inspire the Code of Good Tax Practices was noted.

As regards the revitalization of the Large Companies forums, both the plenary and the working groups, there are new proposals from companies that want to be part of the Plenary of Large Companies, so the possibility of establishing a rotating shift was raised. Finally, the Director announced that this solution has not been chosen, but that a way will be made available for them to work in the working groups and, after a certain period of time, they will be given the possibility of joining as another member of the plenary session of Large Companies.

In the event of serious non-compliance with the principles inspiring the Code of Good Tax Practices, it was agreed by both the Administration and the Large Companies that said company will be eliminated from the list on the electronic site where the companies adhering to the Code of Good Tax Practices are listed. In this case, the Administration would no longer have any kind of commitment to it and exclusion from this list would mean immediate withdrawal from the Large Business Forum.

Finally, the Central Delegation of Large Taxpayers indicated that there were multiple transparency reports, not all with the same degree of breadth or intensity or information, considering the possibility of carrying out a pilot test by reducing the scope of the inspection with the most complete and less complex transparency reports.

A representative of large companies expressed the need for the Administration to be more specific on how to improve transparency reports, a proposal that was shared by the Central Delegation of Large Taxpayers.

5. Approval of the document proposing modifications to CBPT and FGE

The Director of the Tax Agency continued with the next point on the agenda, giving the floor again to Mr. Ignacio Fraisero, who pointed out that a document agreed upon with the Large Companies that form part of the Cooperative Relationship group has been sent and in which some modifications are proposed regarding the cooperative relationship.

As regards the procedure for entities to adhere to the Code of Good Tax Practices, the Agency will publish the list of companies that have adhered to the Code of Good Tax Practices on its website, and may exclude from the list those companies that, after a prior analysis, it considers have seriously breached the commitments assumed with their adhesion. Exclusion will entail suspending compliance with the Administration's commitments with respect to the entity in question and, in the event that the entity is a member of the Large Business Forum, its exclusion from the same.

When the Agency considers that the company is in breach of the regulations, the Central Delegate for Large Taxpayers or Special Delegate will raise the matter to the Director General of the Tax Agency, who, if deemed necessary, will forward it to the head of the Technical Secretariat of the Forum of Large Companies, who will inform the company representative and the Board of Directors of the serious breach.

The entity will have a period of 15 days to make any allegations it deems appropriate, and may present the commitment of the Board of Directors not to repeat the cases that gave rise to the aforementioned communication. If exclusion is agreed, it will be valid for a minimum of 2 years, and the entity may reapply for inclusion on the list if the circumstances that led to the exclusion change and it does not incur in other breaches that could lead to it.

Regarding the inclusion of new entities, the Director of SEPRI reports that it is not necessary to modify any document, but it should be noted that when a company wants to be part of the Plenary, in addition to being a member of the Code of Good Tax Practices, it will be included in the working groups and after 2 years, after assessing the participation and involvement of the entity, it will be submitted to the Plenary so that this incorporation can be considered by all.

Thirdly, it was agreed that if any of the entities included in the Large Business Forum is excluded from the list of entities adhering to the Code of Good Tax Practices, the Administration's commitments to said entity will be suspended and it will also be excluded from the Large Business Forum.

The FCC representative asks what is meant by serious non-compliance, whether it is defined or is intended to be defined. Mr. Ignacio Fraisero answers that this question was debated in the Cooperative Relations group. Although the need to expressly determine when a breach is serious and when it is not was initially raised, it was finally concluded that each case would be dealt with, being a very exceptional thing, with the Director of SEPRI reiterating that a serious breach has to be something flagrant.

Manuel Trillo adds that, if one were to try to define what a serious breach is in accordance with legal standards, any breach would be serious 10 or 12 years after it had occurred, because it would be necessary to wait for finality. But, in addition, in the working group it was mentioned that we are in an environment of Soft law, for better or worse, since to adhere to the Code or be part of this forum no one has to pass a reliability test.

The Director General of the Tax Agency asks if there are any further questions and approves the document read by the Director of SEPRI.

The representative of Banco Santander comments that the working group was asked whether there could be an independent committee to assess what could be considered a breach, to which the Agency replied that the specific data that generates such a breach cannot be shared. The representative suggests that, in the event of any possible breach, the type of conduct considered a serious breach should be reported in future meetings, without identifying the company.

The Director General of the Agency believes that this can be worked on in working groups, looking at the situations and defining what is understood as serious non-compliance.

The Director of Inspection once again emphasises that these are very serious breaches which he does not expect to occur in companies that form part of a working group on cooperative relations. The Director distinguishes the legal world regulated in articles 191 and following of the General Tax Law 58/2003, from this exclusion procedure, which he hopes will not need to be processed. However, Mr. Manuel Trillo reiterates that he considers it important that this procedure exists, so that just as the company is not examined to join the CBPT, there is a possible exit of said company from it.

The BBVA representative said that he considers it positive that there is dynamism in the working groups, that the cooperative relationship is evolving and that the number of participants is growing. The Agency also believes it is important to continue working on institutional communication of all these types of initiatives as a form of relationship parallel to the legal and procedural relationship that the Agency has with taxpayers.

The Director of the Tax Agency thanks the speaker for his intervention and moves on to the next point on the agenda.

6. Next call

The Director General is expected to set November as the date for the next Large Business Forum.

7. Other considerations, requests and questions

The Iberdrola representative began the question and answer session with the proposal that this progress in the cooperative field not stop here, but that several meetings be held to continue further along this line. On the other hand, the representative reports that a company submitted the price documentation and that an inspection was opened and understands that it is not necessary to submit the documentation again.

Manuel Trillo points out that, in this case, it will be necessary to confirm that it is the same documentation and that it is considered to have been provided within the voluntary period.

The Vodafone representative refers to a Supreme Court ruling which considers that income must be disclosed in cases where tax regulations are annulled due to a violation of EU law. According to the Supreme Court, the criterion must be applied extunc, so that the adjustment must be made in the years in which the tax has been accrued, and it does not seem reasonable, in its opinion, for the Administration to try to open very old years. The representative points out that he is aware that the Legal Department is reviewing this and that it would be reasonable that if he recovers money he should pay taxes today, but that they should not open the year for 2010.

The Director of Inspection answers that if the rule is excluded from the legal system and the effect of this rule occurred 15 years ago, let us go back 15 years and undo what happened. Although this reasoning has a logic, the Director acknowledges that when this logic is applied to the world of accounting and taxation, problems arise in practice, and double taxation may arise, so work will continue on possible alternatives.

The Iberdrola representative proposes creating a working group on Pillar 2 since there are many practical doubts, especially regarding the CBC, an element that is very relevant to determining whether there is a safe harbor or not.

Manuel Trillo answers that a first working group has been set up in the Inspection Department and although the first declaration must be submitted in June 2026, doubts must be resolved and work must be done given the difficulty.

The Telefónica representative added that it is necessary to anticipate problems and their resolution in order to ensure greater security and certainty.

The Director of Inspection proposes that the Iberdrola representative draw up a list of topics to be discussed, so that work can begin with all those involved on the most pressing issues.

The representative of Banco Santander also asked when the law would be in force and reported that they were working on the hypothesis that it would be in force in 2024, to which the Director of the Inspectorate replied that it should be in force in 2024, otherwise there could be a fine from the European Union.

The Director General of the Tax Agency confirms that the intention of the State Secretariat and the Ministry of Finance is to have the regulation approved in 2024.

There being no further interventions, Ms. Soledad Fernández closed the twenty-eighth plenary session of the Large Business Forum.