Minutes of the meeting
Large Companies Forum
PLENARY MINUTES 1/2023
MINUTES OF THE PLENARY MEETING OF THE LARGE BUSINESS FORUM
HELD ON JUNE 8, 2023
Vice President of the Large Business Forum
General Director of the State Tax Administration Agency
Mrs. Soledad Fernández Doctor
Members representing the Tax Agency
Director of the Tax Management Department
Mrs. Rosa María Prieto del Rey
Director of the Collection Department
Mrs. Virginia Muñoz Fernández
Director of the Department of Aduanas and Excise Duties
Mrs. Mª Pilar Jurado Borrego
Central Delegate of Large Taxpayers
Mr. Manuel Trillo Álvarez
Deputy Central Delegate
Mr. Joan Cano García
Deputy Director General of Legal Regulation and Legal Assistance - Department of Financial and Tax Inspection
Mr. Manuel Luis Martínez Cabeza
Head of the National Office of International Taxation - Department of Financial and Tax Inspection
Mr. Luis Ramón Jones Rodríguez
Members representing Large Companies
ACERINOX
General secretary
Mr. Luis Gimeno Valledor
ACS
Tax Advice Director
Mr. Alfonso Moreno García
AMADEUS IT GROUP SA
Secretary to the Board of Directors
Mr. Jacinto Esclapés Díaz
SABADELL BANK
Deputy Director General Tax and Labor Consulting
Mr. Carlos Augusto Lázaro Rico
BANCO SANTANDER
Global Head of Taxes
Mrs. Carmen Alonso Peña
BBVA
Director of the Tax Department
Mr. José María Vallejo Chamorro
LA CAIXA
Tax Advisory Director
Mr. Manuel Alfonso García Rodríguez
CEPSA
Fiscal Director
Mr. Alberto Martín Moreno
COFARES
Advisor Governing Council
Mr. Luis Valdeolmos González
EL CORTE INGLÉS
Director of the Tax Department
Mr. Luis María Sánchez González
ENDESA
Tax Affairs Manager
Mrs. María Muñoz Viejo
FCC
Director of the Tax Area
Mr. Daniel Gómez-Olano González
GENERALI ESPAÑA
Accounting Area Director
Mr. Martí Jo Ruiz
IBERDROLA
Global Tax Director
Mrs. Begoña García-Rozado González
IBERIA
Spanish Tax Lead
Mrs. Cristina Santana Negrín
MAPFRE
Tax Advice Director
Mr. Antonio Lafuente González de Suso
MERCADONA
Fiscal Director
Mr. Rafael Hilario López Villanueva
MICHELIN
Tax Manager
Mrs. Rosa María Peña García
NATURGY ENERGY GROUP
Tax Planning Director
Mr. Baltasar Gómez Febrel
REPSOL
General Economic and Fiscal Director
Mr. Luis López-Tello and Díaz Aguado
SEAT
Director of Taxes and Customs
Mrs. Susana Sánchez Arenas
SIEMENS
Tax Director
Mrs. Ana María Moreda Galante
TELEFÓNICA
Fiscal Director
Mr. Ángel Martín Gómez
VODAFONE
Tax Advisory Director
Mr. Javier Viloria Gutiérrez
Technical Secretariat of the Large Companies Forum
Technical secretary
Ignacio Fraisero Aranguren
On June 8, 2023, the twenty-sixth plenary session of the Large Business Forum will be held, attended by the aforementioned people, and in accordance with the following
AGENDA
- Opening of the session.
- Approval of the minutes of the meeting held on November 15, 2022.
- Evaluation and progress in the cooperative relationship: survey and information on transfer pricing.
- Approval, if applicable, of the document prepared in the Cooperative Relationship working group “Proposal for the voluntary contribution of documentation on related-party transactions within the Code of Good Tax Practices”.
- Summary of the Working Groups of the first semester.
- European Presidency: issues in the field of Customs and Excise Taxes.
- Next call.
- Other considerations, requests and questions.
1. Session opening
The session opens Ms. Soledad Fernández Doctor, General Director of the State Tax Administration Agency (hereinafter, Tax Agency), in her capacity as Vice President of the Large Business Forum, who, after greeting the attendees and thanking them for their presence and support for this meeting framework, apologizes for the absence of Mr. Jesús Gascón Catalán, Secretary of State for Finance and President of the Forum, who was prevented from attending the plenary session by scheduling problems. Likewise, he congratulates the new representatives of Renault and SEAT, Mr. Jesús Pérez Esquide and Ms. Susana Sánchez Arenas, respectively, for their new positions and thanks their predecessors, Mr. Félix Ruiz Madarro and Mr. Javier Baulenas Setó, for the work carried out and collaboration provided in support of the work of this Forum. Likewise, it also informs that the NORFIN HOLDER entity has announced its withdrawal as a member of the Large Companies Forum, since they have considered it appropriate to make way for other entities to form part of the Forum and be able to make their contributions in this space of cooperative relationship. Thus, he also thanks his representative, Mr. José Antonio Gibello Saiz, for his dedication and collaboration.
On the other hand, the Vice President of the Forum points out that, as is known by everyone present, in compliance with the commitments assumed by Spain in Component 27 of the Recovery, Transformation and Resilience Plan, it is planned to carry out a evaluation of the application of Law 11/2021, on measures to prevent and combat tax fraud. Thus, once again, it requests the collaboration of the entities represented in the Forum so that they can transmit to the Tax Agency, through the Technical Secretariat, their observations on the different measures contained in Law 11/2021, both those consider correct as those that are susceptible to improvement and even those whose results have not been as expected and that would be desirable to redirect. Ms. Soledad Fernández Doctor thanks in advance for the collaboration that companies will undoubtedly provide in this task.
Next, the General Director of the Tax Agency comments that in this plenary session, after approving, where appropriate, the minutes of the previous meeting, the Central Delegate and the Deputy Central Delegate will present a series of considerations in relation to the evaluation and the progress in terms of cooperative relationship, with special reference to the survey carried out on the model, as well as the information on transfer prices and, subsequently, the approval of the document prepared in the Cooperative Relationship working group “Proposal” will be submitted to the Plenary Session. for the voluntary contribution of documentation on related-party transactions within the Code of Good Tax Practices.” Ms. Soledad Fernández Doctor indicates that, basically, the purpose of this proposal is to advance the cooperative model between the Tax Agency and the companies adhered to the Code of Good Tax Practices, promoting transparency and legal security in compliance with obligations. tributary. He adds that, of course, the provision of documentation will be voluntary.
Finally, the Vice President of the Forum indicates that the Director of the Department of Tax Management, the Deputy Director General of Legal Planning and Legal Assistance of the Department of Financial and Tax Inspection and the Director of Customs and Special Taxes, will present the results and perspectives of the different Working Groups and, to conclude the plenary session, the Director of the Department of Customs and Excise Taxes will make a brief presentation on the main projects in the area of her department in relation to the Spanish presidency of the European Union in the second half of this year .
2. Approval of the minutes of the meeting held on November 15, 2022
Ms. Soledad Fernández Doctor gives the floor to Mr. Ignacio Fraisero, Director of the Planning and Institutional Relations Service and Technical Secretary of the Forum, who points out that the minutes of the 25th session of the Plenary Session of the Large Business Forum were sent to the people members of the same as documentation attached to the call for the present plenary meeting and adds that, having not received observations and if there were none at this time, it would be definitively approved. Since no observations were made, the minutes of the plenary session of November 15, 2022 are declared approved.
3. Evaluation and progress in the cooperative relationship: survey and information on transfer pricing
The General Director of the Tax Agency gives the floor to the Central Delegate of Large Taxpayers, Mr. Manuel Trillo Álvarez, who recalls that in the last plenary session of the Forum, two initiatives were proposed that were intended to be launched by articulating them through the working group of Cooperative Relationship:
1) carrying out a survey on the situation of the cooperative relationship in which the Administration and the companies adhered to the Code of Good Tax Practices participated, since, given the time that has elapsed since its approval, it seemed reasonable to carry out an analysis of the situation of the model;
2) approval, if applicable, of the document prepared in the Cooperative Relationship working group “Proposal for the voluntary contribution of documentation on related-party transactions within the Code of Good Tax Practices”.
Next, Mr. Manuel Trillo comments that, comparing the current situation and that existing in 2010, in his opinion, there is no doubt that progress has been made. Likewise, he points out that as a conclusion to the results of the survey it can be said that it was necessary to review and reconsider what has been done in terms of cooperative relationships. He adds that these results must be taken as a turning point, from which to work on promoting the model, if that is the will of all those involved. Finally, he gave the floor to the Deputy Central Delegate, Joan Cano García, who was responsible for fundamentally directing the design of the survey and giving it shape through a computer application that guaranteed anonymity.
Mr. Joan Cano begins his speech by pointing out that almost all the cooperative relationship models existing in the world have been subject to evaluation and, in some cases, their implementation has even been preceded by a test phase, after which they have decided go ahead with the project or not. In Spain, after almost 15 years since its inception, everything advised launching this evaluation process. Thus, in the last meetings of the Cooperative Relationship working group, work had been done on the creation of an instrument that would allow us to see the situation of the model. In the first phase, a series of quantitative data (number of disputes, consultations, etc.) were taken into consideration, in case it was possible to make an approximation of that nature that was relevant, but it was discarded, since it was found that offered insufficient results. Finally, it was decided that, to obtain a more global vision in relation to the current situation of the model, it was convenient to prepare four surveys that would collect the opinion of the participants, that is, on the part of the companies, the members of this Forum and those adhered to the Code of Good Tax Practices and, on the part of the Administration, the Chief Inspectors of the Tax and Customs Control Units and the Heads of National Inspection Teams, since the former hold interviews in relation to the transparency reports and the latter are those who will most easily have come into contact, during their actions, with taxpayers adhering to the Code. The Deputy Central Delegate adds that, regarding the content, the Administration prepared the drafts that were completed with the comments and proposals of the entities participating in the working group. Likewise, in order to guarantee the anonymity of the respondents, the corporate application of the Government of Spain FORMA was used, whose technical characteristics have not allowed the survey to be available for a long period of time. Although the working group decided that 5 business days seemed sufficient, it should be noted that there have been two cases in which the respective entities requested, outside the established period, to be able to complete the survey, which logically was no longer possible. On the other hand, regarding the conclusions derived from the surveys received, the Cooperative Relationship working group is also working on a document that, when finalized, will be transferred to all members of the Forum, so that they can issue the comments they consider appropriate
Next, the Deputy Central Delegate makes a brief comment in relation to the questionnaires received from the four groups:
- Survey addressed to the Heads of National Inspection Teams: Participation has been slightly less than 60%, which for the Administration is not satisfactory data that will have to be analyzed. Without going into detail, the responses provide the following data:
- A large majority of officials exhibit good knowledge of the model and, specifically, of the Large Business Forum and the Code of Good Tax Practices.
- Asked about the verifications that may have been carried out on entities that are members of the Forum or adhered to the Code of Good Tax Practices, a substantial part of the respondents answered that they had carried them out, confirming a high level of knowledge of all the previous actions carried out with those taxpayers.
- Regarding the general tax behavior of the inspected entities, the majority of Team Leaders have expressed a good opinion regarding the conduct of said companies. Only in one specific case has unsatisfactory behavior been reported. The majority have also responded that they do not see any distinctive characteristics in the fulfillment of tax obligations between the entities that are members of the Forum or adhered to the Code of Good Tax Practices and the rest of the inspected companies.
- In relation to the question about whether there was any modification in the behavior of the entities following their incorporation into the Forum or their adherence to the Code, the majority response was not affirmative. In the case of those who answered that they did see differences, these alluded to greater rigor, reliability, transparency and collaboration on the part of the companies.
- The majority respond that the attitude of the representatives of the entities in terms of collaboration and transparency during an inspection procedure is good, although some Team Leaders warn about delays in the delivery of documentation.
- Regarding the entities that present the transparency report, the majority of officials have answered that they are correct, but very general, delving relatively little into the aspects of strategy and fiscal risk. However, there are some cases in which it has been answered that the transparency report was especially well prepared, highlighting its quality.
- The majority have responded that they are in favor of continuing to carry out in-depth general verification procedures on entities during the following years.
- Regarding the question of whether there should be exclusion mechanisms for entities that do not meet the requirements of the cooperative relationship model, the almost unanimous answer has been affirmative.
- The overall assessment of the model is positive, and it is generally considered useful to promote voluntary compliance with tax obligations. However, a significant part of those surveyed do not see specific advantages for the Administration.
- Survey addressed to the Heads of the Tax and Customs Control Units: In this case the participation has been 100% and the answers have been quite similar to those provided by the Team Leaders. Thus, only the following particularities stand out:
- They demonstrate good knowledge of the mechanisms of cooperative relationships, although they are more familiar with the Code of Good Tax Practices than with the Large Business Forum. Likewise, they also have a high level of knowledge of the background of previous actions carried out with these entities.
- They agree with the Team Leaders that the transparency reports do not go into too much detail regarding fiscal risk. Likewise, given that the Chief Inspectors are the ones who hold meetings with the representatives of the entities on the occasion of the transparency report presented, they point out that, although they are positive in general terms, the meetings do not descend to such a level of detail. that allows definitive decisions to be taken regarding tax risk in relation to said companies. That is to say, although they express that it is a useful instrument, they also believe that it can be improved.
Regarding the answers provided by these two groups, the Deputy Central Delegate points out that he was surprised that in both cases a good assessment of the model is made, but that, however, a significant part of those surveyed do not appreciate that it is derive concrete advantages for the Administration.
- Survey addressed to members of the Large Business Forum: 10 entities have participated, and in all cases the questionnaire has been completed by a person who regularly participates in the Forum sessions on behalf of their entity. From the responses, without going into detail, the following data can be highlighted:
- In relation to the time they dedicate to preparing the Forum meetings, 80% of the entities state that they have prepared some document for them.
- Regarding communication, companies maintain a greater number of contacts among themselves, before or after meetings, than with the Administration.
- The majority value the functioning of the Forum positively, although 30% state that it does not contribute much to member companies.
- 60% of the entities are in favor of establishing some renewal mechanism for the entities that participate in the Forum.
- When asked if there should be mechanisms for the exclusion of those entities that fail to comply with the requirements of the cooperative compliance model, 80% answered affirmatively, although, regarding the circumstances that could give rise to said exclusion, a great variety is evident. of opinions.
- 30% of those surveyed express that they wish to participate in one of the established working groups of which they are not a part, with greater interest in those in which news and regulatory issues are addressed.
- Regarding the control actions to which the entity has been subjected, the majority has answered that the actuaries are familiar with the Code of Good Tax Practices, but that, nevertheless, they act against a company adhered to the Code in the same way as before. another that is not.
- In relation to the question about whether the Administration uses reasonable criteria in the interpretation of tax regulations, the answer is mostly negative, alleging a desire for collection, a lack of knowledge and sensitivity about the real functioning of the company in question or that the Tax Agency interprets non-fiscal regulations, which other ministries should do.
- When asked about their own conduct during the verification procedures, the majority answer that it is basically unbeatable, although in some cases they admit to having incurred delays in the delivery of documentation due to certain administrative difficulties of the company.
- Regarding the general relationship with the Tax Administration, 50% indicate that, after joining the Forum, it has improved, and the other 50% indicate that it remains the same. Likewise, 60% state that they have made notable changes in the management of their tax obligations after joining the Forum.
- The majority responds that the dialogue with the Administration is good, although some entities indicate that it would be desirable for it to be centralized in a single person.
- The entities that have responded that they use prior valuation agreements point out that they are a positive instrument, although they demand greater agility and speed in their processing.
- Six entities currently have disputes with the Administration, although only two of them state that it affects structurally relevant aspects of the company's operation.
- In relation to whether litigation has decreased, 80% of those surveyed responded negatively, expressing a considerable variety of opinions regarding possible solutions to achieve a reduction in conflict.
- Finally, all entities value the cooperative relationship model positively, although 40% believe that their company does not obtain any advantage from the application of the model.
The Deputy Central Delegate points out that, as with the recipients of the Administration who have been surveyed, he has been surprised that also in the case of the member entities of the Forum a good assessment of the model has been made, but that, without However, an important part of those surveyed do not appreciate that it will derive advantages for their group. Likewise, Mr. Joan Cano comments that it has also caught his attention that 80% of the entities state that litigation has not decreased, when the empirical data managed by the Tax Agency indicate that it has.
- Survey aimed at entities adhered to the Code of Good Tax Practices: The Deputy Central Delegate indicates that, given that it has been longer than expected with the data of the three previous groups, in this case it will be much shorter. Thus, he adds that 10 entities have completed the survey and, in general, they have been less critical of the Administration's actions. For example, the majority have stated that the criteria used by the Administration are reasonable, although they do not share them. However, there are responses that coincide with those of the Forum member entities, such as those related to the lack of agility of the procedures, the need for a single interlocutor or the use of some of the mechanisms of the model, such as transparency report, concrete consequences are derived.
Finally, Mr. Joan Cano offers the floor to those present in case they wish to make any comments or observations or clarify any questions.
Firstly, Mr. Carlos Lázaro, representative of Banco de Sabadell, takes the floor and, after thanking him for the work done, points out that in his opinion the completion of the survey is a success, since it represents a process of internal reflection for all members. of the Forum, companies and the Tax Agency, on how to improve the cooperative relationship model which, as the Central Delegate of Large Taxpayers has indicated on previous occasions, is bilateral.
Next, Mr. Javier Viloria Gutiérrez, representative of Vodafone, points out that he agrees that the exercise involved in the survey had to be carried out. He adds that, however, he is convinced that it will be complex to reach conclusions, since there are many nuances. On the other hand, he comments that all companies and not just the members of the Forum benefit from the advances in the cooperative relationship model and that is the idea that has always guided his actions in the Forum's work. He adds that Vodafone of course wants to remain a member of the Forum, but that, in his opinion, rotation is a good idea. Likewise, he indicates that in relation to conflict he feels that there is too much of it, although objective data indicate that it has decreased. It also points out that the reasonableness of the Administration's actuary on a specific issue and its impact on judicial disputes can be seen in different court rulings.
Mr. Joan Cano responds that he agrees that it is going to be a very complicated process. He adds that the working group already has a provisional document prepared, but that, for the moment, it has not been commented on because the Tax Agency needs to do a more in-depth analysis and compare it again with the companies. Likewise, he reiterates that he agrees that an instrument of this nature is always difficult to interpret, but he believes that, at least, from the aspects that are clearer, conclusions can be drawn that, without a doubt, will be positive for the functioning of the model. .
Next, Mr. Antonio Lafuente González de Suso, representative of Mapfre, thanks that the survey was carried out and adds that, in his opinion, the positive part is that the recipients of the survey value the model positively, although they are aware that there are possibilities for improvement. On the other hand, he comments that in the English model, large companies have an official from the
Ms. Begoña García-Rozado González, representative of Iberdrola and Collaborator of the Technical Secretariat of the Forum on behalf of the companies, then intervenes, who thanks the work done, adding that it has been a very instructive exercise. Likewise, it indicates that the working group has been analyzing the results of the survey and that, on the part of the companies, the following aspects can be highlighted, although they are very general:
- It is necessary to continue with the cooperative relationship model, regardless of its possibilities for improvement.
- Greater training is required in relation to the model, especially by the Administration's actuaries, since companies are deeply involved in cooperative compliance and it would be desirable to appreciate the same in the day-to-day activity with the personnel of the Administration. Administration and not only in the scope of this Forum.
- The fundamental objective is to reduce litigation, with the consequent cost savings for all parties involved, in addition to its reputational effects.
- On the part of the Administration, little relevance is given to transparency reports, without taking into account the effort that their preparation entails for companies.
- It is surprising that the Administration continues to support the traditional verification model.
- Regarding the Forum and its working groups, it is necessary to reflect on its operation and the possible improvements that could be introduced.
- Some type of legal coverage is necessary, which, on the other hand, companies have been demanding for some time.
- Regulation of exclusion mechanisms is required, which, on the other hand, would be for exceptional cases.
- Finally, the main conclusion is that we must carry out a deep reflection on the cooperative relationship model and decide where to continue evolving.
Ms. Carmen Alonso Peña, representative of Banco Santander, indicates that, indeed, what Begoña García-Rozado pointed out are the first impressions that the survey data have produced in the companies. He adds that, in coordination with the Tax Agency, it will be necessary to draw conclusions from the questionnaire data and decide where to move forward, determining which specific aspects can be improved. On the other hand, he indicates that, in his opinion, greater training in the business world is very necessary for new inspectors, so that they know not only the theoretical part, but also acquire an early knowledge of the economic reality of the entities. In this sense, Ms. Carmen Alonso reiterates the offer that companies have made on previous occasions to participate in the courses that since IEF have been given to new personnel, so that this group You can get to know the business world more closely.
Next, the General Director of the Tax Agency thanks the members of the Cooperative Relationship group for the work carried out, as well as the data they have presented. He adds that he agrees with what was said by several of the people who have intervened in that it is necessary to carry out a process of deep reflection and self-criticism, and decide how to improve the model in order to achieve more positive results, both for entities and for the Administration.
Next, Mr. Manuel Trillo reiterates what was commented at the beginning of his intervention in that the survey has served to review and reconsider what has been done in terms of cooperative relationships in recent years. Likewise, he points out that it is normal for respondents to have highlighted, in some way, the aspects of the model that are working worse, but that, in their opinion, there are others that are working very well. Thus, the Central Delegate also reiterates what he has already commented on previous occasions in relation to the fact that the cooperative relationship model is bilateral, so its development must be carried out by both parties. In this sense, he adds that, in his opinion, transparency reports are the best tool that has been used in terms of cooperative relationships and that, currently, their effects are beginning to manifest clearly, given that verification checks are already being carried out. exercises in which there are companies that voluntarily presented it. He adds that there are reports that are very well prepared and of high quality, but, however, there are also others that are not so good. Thus, Mr. Manuel Trillo points out that, although there has been improvement in the field of the cooperative relationship, in his opinion, it has not yet reached a point where it can be stated that it has already met all expectations and that there are to go one step further. Lastly, the Central Delegate comments that the result of the survey will be collected in a document where the vision of the model of both the companies and the Administration is reflected, as well as a statistical analysis of the data.
4. Approval, if applicable, of the document prepared in the Cooperative Relationship working group “Proposal for the voluntary contribution of documentation on related-party transactions within the Code of Good Tax Practices”
Mr. Manuel Trillo begins the development of this agenda item by commenting that, as everyone present knows, the Cooperative Relationship working group has also been working on drafting a document that would establish the possibility of contributing, strictly voluntarily, the information related to transfer prices, that is, that contained in article 18 of law 27/2014, of November 27, on Corporate Tax and articles 13 et seq. of the Corporate Tax Regulation, approved by Royal Decree 634/2015, of July 10. The Central Delegate adds that obtaining this information early would provide the Tax Administration with a greater understanding of the taxpayer's activities and, in particular, would greatly complement the content of tax transparency reports. Likewise, it indicates that the voluntary contribution of documentation would be made once six months have elapsed from the end of the Corporate Tax declaration period and would affect both groups whose parent company resides in Spain, as well as those that belong to non-resident business groups. , and in the first case the documentation included in article 15 of the IS Regulations must be presented as regards the group (masterfile) y la prevista en el artículo 16 respecto de las entidades residentes y, en el segundo caso, la documentación sería exclusivamente la prevista en el artículo 16 del Reglamento (oclalfile). Finally, Mr. Manuel Trillo once again insists that transparency reports are a set of information that is very useful to the Tax Administration, but that, however, not even the best of them reaches a level of depth such that it allows for the Administration to achieve absolute certainty on certain aspects, although it does contribute, in principle, to ruling out some risks. Thus, it highlights that the objective of the proposal that is submitted today for approval by the members of the Forum is to continue advancing in transparency, its main advantage being that the documentation to be provided does not have to be prepared specifically to fulfill the commitment, since the entities are legally obliged to prepare them.
Next, Mr. Daniel Gómez-Olano González, representative of FCC, indicates that, in relation to the survey on the cooperative relationship model, in his opinion, the period of five days to participate has been short, given that many of the recipients have had other issues that needed their full attention. On the other hand, he points out that he agrees with what was stated by Ms. Begoña García-Rozado and that, in addition, he wishes to emphasize the importance of specific incentives in promoting the model. Thus, the FCC representative believes that it would be necessary to redistribute personnel and dedicate part of the existing resources to experts in cooperative relations, with a different perspective, in such a way that the analysis of the documentation provided by the companies would allow the Administration to reach a high degree of certainty, which, on the other hand, would imply a reduction in the personnel that would have to be allocated to traditional verification activities. Likewise, he adds that the proposal for the voluntary provision of transfer pricing documentation, in the abstract, seems like a good initiative as a means to reduce litigation, achieve a higher level of certainty, etc., but that, as with transparency reports, it is necessary that there be specific incentives and that entities receive feedback in relation to the documentation provided, although with the limitations and precautions that the Tax Agency deems appropriate.
Next, the General Director of the Tax Agency asks the members of the Cooperative Relationship working group that, once the survey data are analyzed and the conclusions derived from them are drawn, possible avenues or solutions be studied in depth. that allow progress in transparency on both sides, thus favoring security and legal certainty.
Next, Mr. Jacinto Esclapés Díaz, representative of AMADEUS IT GROUP, comments that, in his opinion, the fact that the initial members of the Forum maintain their participation in it, with the exception of the recent withdrawal, is indicative that, in To some extent, we are aware of the advantages that the cooperative relationship model implies, which, without a doubt, supports the possibility of continuing to work, at least with regard to AMADEUS IT GROUP, in the search for solutions to the problems. challenges that arise. On the other hand, in relation to the proposal to provide documentation of related operations, Mr. Jacinto Esclapés points out that there are entities, such as AMADEUS IT GROUP, in which this information is essential to know their business model, which is why it constitutes a complement to the transparency report, being essential to understand its content. Thus, he indicates that it seems more logical to him that the deadline for submitting the transfer pricing documentation coincides with that of the transparency report, thus reinforcing their link, and insists that the case of AMADEUS is one more, but essential, aspect of the same. Finally, he points out that, on the other hand, there are companies in which the information on transfer prices is not particularly relevant, so, perhaps, it would have been advisable to include in the document the profile of the entities concerned, although always keeping in mind voluntariness regarding their contribution.
The Central Delegate answers that, indeed, he agrees with the relevance that this documentation has for certain entities, but that it was not considered appropriate to explain that the proposal was aimed exclusively at these, having preferred to establish voluntariness regarding its contribution for all companies. Likewise, regarding the submission deadline, it points out that what is stated in the document can be considered indicative, but that, even if some entity does not comply with it, the Tax Agency will take into consideration the documentation provided. On the other hand, in reference to the quid pro quo derived from the contribution of this documentation, Mr. Manuel Trillo reiterates what was commented on previous occasions regarding the transparency report, that is, the absence of legal coverage for the issuance of this type of reports and that, however, the information voluntarily provided by a specific entity allows the Tax Agency to have greater knowledge in relation to it, which has a positive effect on a subsequent verification process. . Likewise, it adds that in no case can the Administration give favorable treatment to entities that voluntarily provide documentation, from which some type of privilege is derived, in relation to other taxpayers who do not do so.
For his part, Mr. Daniel Gómez-Olano points out that no type of privilege is being claimed, but that it would be a matter of doing what is already being carried out in other tax administrations, especially in common law jurisdictions, which have procedures As the fast track. Así, al igual que la Agencia Tributaria está facilitando respuestas ad hoc a consultas concretas realizadas por las empresas, sería conveniente que se pudiera recibir información de retorno, probablemente desde la ONFI, en cuanto a lo consignado, por ejemplo, en el masterfile of the entity, so that it could have some appreciation in this sense in relation to the bases of its model.
Ms. Begoña García-Rozado adds that in terms of cooperative relationships it would be positive to determine objective criteria that would allow companies to be classified based on their compliance and that, from there, differentiated treatments could be established.
Next, Mr. José María Vallejo Chamorro, representative of BBVA, points out that, in his opinion, progress has been made in the cooperative relationship, although there is room for improvement. He adds that it also coincides with the interventions that have been made in that the survey should serve to carry out a reflection on the model and together look for ways to promote it.
Since there are no more interventions, the Vice President of the Forum submits to the decision of the people present the document prepared in the Cooperative Relationship Working Group “Proposal for the voluntary contribution of documentation on related operations within the Code of Goodwill.” Tax Practices”, which is approved unanimously. Likewise, Ms. Soledad Fernández Doctor points out that the document will be published on the electronic headquarters of the Tax Agency, in the section dedicated to this Forum.
5. Summary of the first semester work groups
First of all, the General Director of the Tax Agency gives the floor to Ms. Rosa María Prieto del Rey, Director of the Tax Management Department, so that she can comment on the activity of the working group for the Analysis and rationalization of tax burdens indirect.
Ms. Rosa María Prieto comments that the working group met on June 1 and that the Deputy Director General of Tax Techniques participated on behalf of her Department, whose intervention the following can be briefly highlighted:
- In relation to the Corporate Tax campaign, it was reported that the ministerial order was published in the BOE of May 29, although the technical specifications and the practical manual had been published on the same day. 23 of said month. Likewise, the new features introduced in the declaration models were analyzed in order to include the new boxes approved as a consequence, fundamentally, of the regulatory modifications, highlighting:
- In the section that includes agricultural and/or livestock activities, the net amount of the turnover must be entered so that the Tax Agency can inform the Ministry of Agriculture, Fisheries and Food, thus facilitating the management of the aid. the PAC .
- The information on the special dissolution and liquidation regime for SICAVs must be completed.
- Certain entities under the income attribution regime are included as taxpayers of Corporate Tax in order to correct hybrid asymmetries.
- In the Special Regime for ships and shipping companies in the Canary Islands, the information is broken down so that the compensation of the negative tax bases derived from the activities that generate the right to apply the special regime can be monitored, thus avoiding compensate with the positive bases generated by the rest of the entity's activities.
- Emerging companies must enter the net amount of turnover for the twelve months prior to the start date of the tax period.
- The first page of the model identifies the entities that, without being credit institutions, use the account statements applicable to them.
- Finally, the modifications that affected deductions were also discussed, among others, in order to allow carryover to subsequent years, and those related to minimum taxation.
- Regarding the issues related to the entry of withholdings in different territories depending on the volume of the group's operations, the companies highlighted the existing problems, insisting that to reduce administrative burdens it should be possible to present the information annually before the Tax Agency and that it, through exchanges of information, sends it to each provincial treasury. For their part, the representatives of the Administration responded that they were aware of the difficulties, the solution being complex, but that they had to act in accordance with the criteria established by the Arbitration Board.
Next, the General Director of the Tax Agency gives the floor to Mr. Manuel Luis Martínez Cabeza, Deputy Director General of Legal Planning and Legal Assistance, who, after apologizing for the absence of the Director of the Department of Financial and Tax Inspection, indicated that in the meeting of the working group for Analysis of tax regulations and reduction of conflict, which took place on May 17, the “Note relating to the application by the tax consolidation group of negative tax bases and deductions from previous years”, published on the electronic headquarters of the Tax Agency. Thus, Mr. Manuel Martínez indicates that at the meeting it was explained that the purpose of the note, in the preparation of which various bodies of the Administration had participated, was to serve as a tool of assistance to the taxpayer, in line with other instruments such as WEB Companies, the objective of which is to explain the criteria that inform the form for the completion and presentation of model 220, that is, the rules on which its validations are based. For their part, after the explanations given by the Tax Agency about these rules, some of the participating entities expressed their disagreement with some of the criteria contained in the note. Likewise, they raised a series of questions, of which the following can be highlighted:
- In relation to the terminology used, it was indicated that from the references made in the note to an "artificial use of tax credits" the existence of abusive conduct could be deduced in the case of not sharing the Administration's criteria, to which the representatives of the Department of Financial and Tax Inspection responded that they understand that this is a discrepancy in the interpretation of the Law.
- The sending of the reports from the General Directorate of Taxes cited in the note was required.
- They were asked about the temporal scope and application of said criteria, to which the representatives of the Department of Financial and Tax Inspection responded that, although they were not structuring any type of control plan, they had been applied in the procedures of the area. of inspection, in which, on the other hand, the records held by the Administration relating to the taxpayer in question were also taken into consideration.
To conclude his intervention, the Deputy Director General of Legal Regulation indicates that it was also clarified that, as in the previous year, when completing form 220 there will be the possibility of not applying the Administration's criteria.
Ms. Soledad Fernández Doctor then gives the floor to Ms. Pilar Jurado Borrego, Director of the Department of Customs and Special Taxes, so that she can comment on the activity of the Special Taxes working group.
The Director of the Department of Customs and Excise Comments that, since the last plenary session, the working group has met twice, on December 1, 2022 and on February 23, extending the invitation to attend. to the meetings to all member entities of the Forum, given the interest expressed by several companies in relation to the Special Tax on non-reusable plastic containers. Thus, Ms. Pilar Jurado points out that the last meeting was structured based on a document prepared by the companies with the issues that the application of the Tax posed to them on a day-to-day basis, of which, broadly speaking, the following can be highlighted: the following:
- In relation to the objective scope of the tax, the companies indicated that, despite the effort made by the Administration to clarify doubts, since there was no assessed and permanently updated list, the delimitation of the products subject to the Tax generated doubts and legal uncertainty.
- Regarding the determination of the tax base, fundamentally, the problem with secondary and tertiary packaging was revealed (packaging) and it was pointed out that in the United Kingdom this type of packaging was not taxed. In general, companies were in favor of an objective estimation method.
- An increase in the kilos of non-recycled plastic affected by the exemption was requested, indicating that in the United Kingdom it was 10 tons in the last twelve months.
- Difficulty in obtaining information from the supplier regarding the amount of non-recycled plastic was noted. Likewise, an extension of the possibility of issuing the responsible declaration was requested, since the certification of recycled plastic by an accredited entity had a high cost.
Ms. Pilar Jurado indicates that during the meeting, issues were also raised in relation to accrual, traceability, refunds and tax management, among others. Likewise, it points out that the representatives of the Department of Customs and Excise Taxes and the General Directorate of Taxes were informed that at that time it was not feasible to make regulatory changes and the convenience of presenting tax queries was indicated, providing specific data. . Likewise, companies were also asked to send their specific proposals in relation to the Tax for analysis by the Administration and, in particular, those related to the establishment of an indirect estimation method or the increase in exempt kilos.
Finally, the Director of the Department of Customs and Excise Taxes comments that she has already stated in previous meetings that the Administration is aware of the complexity involved in this tax and its management, adding that it is also new for the Tax Agency. Likewise, he reiterates the request to those present so that they send specific proposals that they consider could simplify and facilitate the management of the tax.
6. European Presidency: issues in the field of Customs and Excise Taxes
The General Director of the Tax Agency gives the floor again to Ms. Pilar Jurado so that she can comment on the files regarding customs and special taxes that will be processed during the Spanish presidency of the European Union.
The Director of the Customs Department and II. EE. indicates that, fundamentally, there are two projects and that he is going to comment on them very briefly.
- Review of the Energy Taxation Directive: It must be remembered that the current Directive dates back to 2003 and that the previous review proposal was raised by the Commission in 2011, and was shelved due to lack of agreement between the member states in 2015. The current proposal is from 2021 and the following can be highlighted:
- It is framed within the “Fit for 55”, which includes a set of measures aimed, basically, at reducing emissions into the atmosphere by at least 55% by 2030, as well as making the European Union climate neutral by 2050.
- It aims to homogenize the matter, eliminating exemptions and establishing the repeal of various exceptions.
- Tax rates are built based on the heating power of the product and are updated according to an index of evolution of consumer prices.
- The products covered by the Directive are expanded.
- Review of the Customs Code: Among the proposals of the current European Commission at the beginning of its activity in 2019 was that of advancing in the area of the Customs Union. In order to promote this proposal, in 2021 a group of experts was established that, already in 2022, presented a series of conclusions, among which the lack of homogeneity in terms of the actions of the customs of the member states stood out, as well as that of adapting its procedures to the new requirements demanded by the advancement of electronic commerce. Thus, the following aspects can be highlighted from the current review project:
- Creation of a single customs data center, “
EU Data Hub ”, to which all companies will directly provide the information, that is, they will only have to interact with a single portal to present their customs documentation. For its part, the data center will be under the supervision of a single Customs Authority of the EU . - Reinforcement of the current program of authorized economic operators for trusted operators (new “
Trust and Check "). - With regard to electronic commerce through online platforms, they will be the ones who acquire the status of importers and, therefore, will be exclusively responsible for ensuring that customs duties and VAT are paid at the time of purchase, as well as that the products comply with the regulations.
- The exemption from customs duties for goods whose value is less than 150 euros is eliminated.
- Regarding the deadlines, the data center will be operational for e-commerce shipments in 2028, followed on a voluntary basis by other importers from 2032, being mandatory from 2038.
- Creation of a single customs data center, “
7. Next call
The Director General states that the intention is to maintain the semiannual frequency of the meetings and that the next one would foreseeably be held in the month of November. Likewise, it reiterates what was commented at the beginning of the session and indicates that the Technical Secretariat of the Forum will send you an email requesting your collaboration in order to prepare the final report on the results of the application of Law 11/2021, on safety measures. prevention and fight against tax fraud. Likewise, it indicates that, in relation to the Special Tax on non-reusable plastic containers, it also reiterates the request made by the Director of the Department of Customs and Excise Taxes for the specific proposals that companies consider would make the management of the tax more feasible. .
8. Other considerations, requests and questions
Ms. Soledad Fernández Doctor offers the floor to those attending in case they wish to ask any questions or make any comments.
Firstly, Ms. Carmen Alonso intervenes, who asks about the status of pillar two and recalls that in the previous plenary session she proposed establishing a specific working group for this topic, to which the General Director of the Tax Agency answers that this is a moment of imapasse legislative, but which, nevertheless, will convey to the Secretary of State for Finance the proposal to create said working group, with the participation of the General Directorate of Taxes.
Mr. Javier Viloria then takes the floor to ask about the situation of electronic invoicing, to which Ms. Soledad Fernández Doctor responds that work is being done on regulatory development with the Ministry of Economic Affairs and Digital Transformation and that it is very advanced. , but that, nevertheless, everything seems to indicate that its approval will have to wait until after the summer. On the other hand, regarding the regulation relating to the prohibition of the use of software of dual use, the General Director of the Tax Agency indicates that the project continues in the Council of State pending a report.
Since there are no more requests to speak, the Vice President of the Forum thanks the attendees for their presence and concludes the twenty-sixth plenary session of the Large Business Forum, saying goodbye until the next meeting.
The Technical Secretary
Ignacio Fraisero Aranguren
Vº Bº
The Vice President of the Forum
Soledad Fernández Doctor