Minutes of the session

PLENARY MINUTES 1/2022

Minutes of the Plenary Meeting of the Small and Medium Enterprises Forum
held on February 16, 2022

Secretary of State of Finance

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

Mr. Héctor Fernando Izquierdo Triana

Office of the Secretary of State for the Treasury

Mrs. Ana Isabel Mateo Lozano

President of the Small and Medium Enterprises Forum

General Director of the State Tax Administration Agency

Mr. Jesús Gascón Catalán

Members representing the Tax Agency

Director of the Tax Management Department

Mrs. Rosa María Prieto del Rey

Director of the Department of Financial and Tax Inspection

Mr. Javier Hurtado Puerta

Director of the Collection Department

Mr. Guillermo Barros Gallego

Director of the Tax IT Department

Mr. José Borja Tomé

Director of the Planning and Institutional Relations Service

Mr. Ignacio Fraisero Aranguren

Members representing Small and Medium Enterprises

Confederación Española de Organizaciones Empresariales (CEOE)

Director of the Department of Economics

Mr. Gregorio Izquierdo Llanes

Head of Tax Area

Mr. Bernardo Soto Siles

Spanish Confederation of Small and Medium Enterprises (CEPYME)

General secretary

Mr. Luis Aribayos Mínguez

Technical Secretariat of the Small and Medium Enterprises Forum

Deputy Director General of External Communication

Mrs. María Dolores Carreño Beltrán

On February 16, 2022, the first plenary session of the Small and Medium Enterprises Forum will be held, attended by the mentioned people, and in accordance with the following

AGENDA

1. Opening by the Secretary of State for Finance and President of the State Tax Administration Agency. Objectives of the Small and Medium Enterprises Forum.
2. Round of interventions by representatives of Small and Medium Enterprises.
3. Approval of the Forum's operating rules.
   • Composition of the Technical Secretariat.
4. Constitution of working groups:
   • Code of Best Tax Practices.
   • Regulatory analysis and digitalization project.
5. Next call: dates and topics to be discussed.
6. Other considerations, requests and questions.

1. Session opening

The session opens with Mr. Héctor Fernando Izquierdo Triana, Secretary of State for Finance and President of the State Tax Administration Agency, who, after greeting the attendees and thanking them for their presence, states that the Administration is aware that small and medium-sized enterprises Companies are a key economic element, since they represent more than 95% of the Spanish business fabric. Likewise, it indicates that it is the will of the Ministry of Finance and Public Function and the Tax Agency to promote the cooperative relationship model, which is proving to be an effective instrument in the prevention and fight against tax fraud. Mr. Héctor Izquierdo adds that he hopes that, as happens with other forums already established and that have been operating for more than a decade, the Small and Medium Enterprises Forum will also become an excellent communication channel based on the principles of transparency and mutual trust and that with the effort and work of everyone, results are achieved that have a positive impact on society as a whole.

Next, the Secretary of State for the Treasury gives the floor to Mr. Jesús Gascón Catalán so that he can comment on the objectives that are intended to be achieved with the constitution of this Forum.

Mr. Jesús Gascón begins his presentation by pointing out that the Tax Agency, in line with the OECD initiatives regarding the cooperative model, launched a forum with large companies in 2009 and, later, in 2011, another with the associations and colleges of tax professionals, but that, in recent times, the need to have an analogous framework for relations with small and medium-sized companies has been appreciated. Likewise, he comments that he wants to recognize the work carried out by the group of professionals who carry out social collaboration functions and who in their day-to-day work bring to the Administration different problems that affect SMEs, self-employed workers and people with tax obligations in general. However, Mr. Jesús Gascón comments that the vision of tax professionals does not necessarily always have to coincide with that of the taxpayers they represent, which is why the Tax Agency has considered that the establishment of this Forum perfectly complements the works of those already existing. Thus, it points out that the main objective of this Forum is to institutionalize a direct and permanent space for relations, where its members meet periodically and can share different perspectives on matters of interest that arise in relation to the application of the tax system. In addition, the Tax Agency will share, as is done in other forums, its planning and strategic lines for the coming years, explaining the results obtained by the organization. On the other hand, Mr. Jesús Gascón adds that the Forum will also develop its activity through the constitution of working groups, given that, due to the experience demonstrated in other areas of collaboration, they contribute greater dynamism to the work, being able meetings that any of the parties deem appropriate may be called. In this sense, it points out that the planned working groups are two, one specifically dedicated to drafting a code of good practices that can be subscribed to by the associations and confederations that represent the group and to which the companies themselves can adhere, and another dedicated to regulatory developments and the digitalization project. In relation to the first working group, he comments that there is already a Code of Good Tax Practices approved within the framework of the Large Companies Forum, although not limited to them, since any company that wishes can adhere to it. However, this code includes references to issues, such as international taxation, with which an SME, in principle, will not feel very identified. For this reason, it has been deemed appropriate that, based on the existing codes of good tax practices, the necessary adaptations be carried out so that they reflect the reality of small and medium-sized companies. On the other hand, regarding the second working group, Mr. Jesús Gascón points out that, of course, the digitalization project for the group will be analyzed, but that, in addition, in these times of continuous regulatory changes, the group meetings They will be very useful in order to be permanently updated and to know the position and points of view of the members of the Forum on the issues that arise. He adds that the regulatory development of the prohibition on the use of dual-use software is about to be published on the Ministry's website, in order to comply with the hearing and public information process, and that both the General Directorate of Taxes and the Tax Agency are interested in having the suggestions and observations made from different areas. Likewise, the General Director of the Tax Agency comments that this working group will not only have to focus on the short and medium term, but will also have to address matters related to the future of the taxation of SMEs. In this sense, he adds that it is expected that the Committee of experts will soon present the White Paper on tax reform and that, although the issue of taxation of SMEs and self-employed workers did not expressly appear in the order made by the Government, will be affected in some way, so the working group meetings could be used to put the Committee's recommendations into practical terms and analyze and discuss the possible changes in the short, medium and long term that could be implemented. Finally, Mr. Jesús Gascón indicates that, given that there will be matters of common interest for both SMEs and self-employed workers, the meetings of the working groups can be held jointly for both forums and, if the matter requires it, Representatives of the General Directorate of Taxes or the Institute of Fiscal Studies may participate.

2. Round of interventions by representatives of Small and Medium Enterprises

Next, the Secretary of State offers the floor to the representatives of SMEs.

Firstly, Mr. Luis Aribayos Mínguez, Secretary General of the Spanish Confederation of Small and Medium Enterprises (CEPYME), intervenes, who, after thanking the Tax Agency for establishing the forum and making himself available to all the people present, highlights that At a time like this, in which regulatory changes are constant, having a space in which to share and debate issues of interest is tremendously clarifying when adopting a position. Likewise, he points out that CEPYME is committed to the SME digitalization project, since they are convinced that electronic invoices and other digital tools constitute an effective instrument in the fight against tax fraud and the underground economy, but that they do not However, they are concerned about how it will be implemented and that the different dimensions of the companies will be taken into account, since it must be taken into account that the Spanish productive fabric is made up mostly of microenterprises and self-employed workers. Thus, he adds that for his association the increase in collection motivated by an increase in the number of taxpayers is excellent news, that is, lowering the tax pressure while the underground economy emerges. Likewise, he comments that another issue that worries them is late payment, since, although large companies have immediate solutions at quite low costs through the use of confirming systems ##1##or factoring , for an SME using these mechanisms means a few points of their profit margin. However, he adds that CEPYME would not agree that, at a time of economic crisis like the current one, a system of sanctions was articulated for SMEs that are experiencing special difficulties in meeting their obligations, understanding that it should rather be resorted to. to an incentive-based model. Thus, Mr. Luis Aribayos indicates that the “Create and grow” bill is also being discussed with the Ministry of Economic Affairs and Digital Transformation and reiterates that, as everyone knows, the main problems of the Spanish economy are a consequence of the size of the companies that make up the business sector, as they point out in a study they have prepared, where it is stated that taxation would increase by 5 points of GDP only if the European average in terms of company size was reached. For this reason, their organization maintains that it is of great importance that, when legislating, the reality of the productive fabric is kept in mind. Finally, returning to the constitution of the Forum, the representative of CEPYME points out that in his opinion the key will be in the work of the groups, which is where the specific day-to-day issues, many of which will be analyzed and shared. which, effectively, are shared with the group of self-employed workers.

Mr. Gregorio Izquierdo, from the Spanish Confederation of Business Organizations (CEOE), then takes the floor, who first of all thanks the Secretary of State for his presence in this constitutive act, a clear indicator of the interest of the Ministry of Finance and Public Function in promoting the model of cooperative relationship with the groups represented by the confederations present and adds that this Forum represents the institutionalization of an already existing relationship, which represents a great advance. Likewise, he points out that the fact that the Tax Agency has marked as one of its strategic lines the promotion of a cooperative relationship with taxpayers instead of continuing with the controversial approach so prevalent in the past, is something very positive for all, since, in addition to the degree of tax pressure, SMEs are very concerned about legal certainty, which, without a doubt, this type of forum helps to increase, both for the taxpayer and for the Administration. On the other hand, he comments that, regarding the issues raised (digitization, code of good practices, etc.), they are all current issues and challenges aimed at modernizing the Tax Agency and that, although the regulatory competence corresponds to the Likewise, to the extent that the contributions and experiences that the different social agents can make in such complex matters are taken into account, better regulation will be achieved that will result in the achievement of a tax system that is also better for everyone, which, on the other hand, It is the wish of all those present.

3. Approval of the Operating Rules of the Forum and composition of the Technical Secretariat

For the development of this item on the agenda, the Secretary of State for the Treasury gives the floor to Mr. Jesús Gascón, who communicates that the “Rules of operation” of the Small and Medium Enterprises Forum were sent to its members with prior to this call, with no comments having been received, and if there were none at this time, they would be definitively approved. Since no comments were made by those present, the General Director of the Tax Agency declares the “Operating Rules” approved.

Next, Mr. Jesús Gascón points out that the “Rules of Operation” state that the General Subdirectorate of External Communication will perform the functions of Secretary of the Forum, with the collaboration of a representative of the Federations on a rotating basis for annual periods, which the representatives of the SMEs respond by appointing Mr. Luis Aribayos Mínguez as collaborator of the Technical Secretariat for this first year.

Below, Mr. Jesús Gascón informs that in the electronic headquarters of the Tax Agency a space will be enabled within the “Cooperative Relationship” section in which all those issues that are considered of general interest in relation to the Forum (operating rules, working groups, minutes of plenary sessions, etc.).

4. Constitution of working groups

The Secretary of State for the Treasury reiterates what was commented by Mr. Jesús Gascón in that the Operating Rules in section III state that the activities of the Forum may be developed through the constitution of working groups when the Plenary so decides. , and that their meetings may be attended by other people whose presence is considered appropriate (representatives of the General Directorate of Taxes, the Institute of Fiscal Studies, etc.). Likewise, Mr. Héctor Izquierdo adds that, when topics of interest to the members of the Forum of Federations and Associations of Self-Employed Workers are discussed, the sessions of the working groups of both Forums may be held jointly.

He then gives the floor to the Director General of the Tax Agency to make a brief presentation on this item on the agenda.

Mr. Jesús Gascón points out that in the preparatory meetings prior to the celebration of this plenary session, the convenience of creating from the outset the two working groups already mentioned was confirmed and whose tasks can be highlighted as follows:

Code of Good Tax Practices: Starting from the existing codes of good practices, they will be adapted to the reality of SMEs, so that the code can be subscribed both by the entities representing the group, and by the SMEs themselves, in line with what was done in the Forum of Associations and Colleges of Tax Professionals, where the professionals who perform social collaboration functions have a Code of Good Practices to which they can adhere.

Regulatory analysis and digitalization project: The idea with this working group is to hold meetings, initially, with greater frequency in order to address the digitalization project, since it is imminent that the regulatory development be referred to public information and for the Tax Agency it is a priority to have with the contributions of the affected groups, especially taking into account that the project is included in Component 27 of the Recovery, Transformation and Resilience Plan and that one of its milestones is the full entry into force of Law 11/2021. Given that the prohibition of using dual-use software is one of the most important measures included in the Law, its regulatory development must be approved and in force before July 1. For this reason, the Tax Agency has a special interest in maintaining permanent dialogue throughout the development of the project, so that the final result of the entire process can be foreseen, thus achieving greater legal certainty for the affected groups. Likewise, to the extent that one of the initiatives financeable with European funds is the “Digital Kit” program, the incorporation of the companies that manufacture and develop software will have to be monitored. ##1##, of the technical specifications that are being prepared, so that the purchasers of the product have complete guarantee that they are complying with the standard. On the other hand, regarding the other fundamental content of the working group, other regulatory projects, as well as the news related to them, a list will have to be made distinguishing between the short, medium and long term, so that the group meetings can be properly ordered, since the issues are going to be varied and important. Thus, as an example, the issue of indirect burdens and formal obligations will have to be addressed, sharing proposals that can contribute to their reduction and simplification. In addition, of course, the projects that arise will be brought to the group, in order to analyze their consequences from the point of view of applicability.

Since those present do not raise any objection, Mr. Jesús Gascón declares the Forum's working groups formally constituted.

5. Next call: dates and subjects to deal with

In developing this point on the agenda, the Secretary of State for the Treasury states that this Forum was born with a clear vocation for permanence and that, in order to comment on matters concerning the next ordinary meeting of the plenary session, he gives the floor to the Director General. of the Tax Agency.

Mr. Jesús Gascón points out that, in principle, two plenary sessions would be convened a year, with the next scheduled for the month of September, since, regardless of the evolution of the pandemic, the advantage of having a small number of participants is which, surely, can be done in person. Likewise, it reiterates what was already commented during this session in relation to the fact that the objective of the Forum is to have a permanent communication channel where the topics are unblocked and progress can be made on them, so the meetings of the working groups will be They would convene as many times as necessary, as soon as one of the parties appreciated the convenience of holding it. On the other hand, the General Director of the Tax Agency indicates that the functions of the Secretariat will be resided in the Planning and Institutional Relations Service, directed by Mr. Ignacio Fraisero Aranguren, with the position of Technical Secretary falling to the Deputy Director General of External Communication, Ms. Dolores Carreño Beltrán. He adds that, regardless of the formalities, the representatives of the SMEs also have at their disposal Ms. Rosa María Prieto del Rey, Director of the Department of Tax Management, Mr. Javier Hurtado Puerta, Director of the Department of Financial Inspection and Tax Agency, to Mr. Guillermo Barros Gallego, Director of the Collection Department, to Mr. José Borja Tomé, Director of the Tax IT Department and, of course, to the General Director of the Tax Agency.

Next, the Secretary of State for Finance takes the floor again, who, after making himself available to the Forum, reiterates that its constitution seeks to achieve the real establishment of a space for cooperation, so that convening two plenary sessions a year not to guarantee its minimum functioning, but because it becomes a genuine necessity derived from its usefulness for its members. Likewise, it reiterates that the working groups will meet as many times as any of the parties deems appropriate.

6. Other considerations, requests and questions

Next, the Secretary of State for the Treasury offers the floor to the attendees and since there is no intervention, he thanks all the attendees for their presence and concludes the first plenary session of the Small and Medium Enterprises Forum, saying goodbye until the end. next meeting.