For the purposes of the provisions of Article 206.bis of Law 58/2003, of December 17, General Tax Law and in accordance with the provisions of Article 194.6 of the General Regulation of the actions and procedures of tax management and inspection and development of the common rules of the procedures for the application of taxes, approved by Royal Decree 1065/2007, of July 27, a copy of the report of the Advisory Commission on conflict in the application of the rule relating to the taxpayer, natural person "NATURAL PERSON 1" is published.

The operation analyzed in the report consists of a purchase of own shares by COMPANY 1 from its partner INDIVIDUAL 1 to carry out a subsequent capital reduction with amortization of the acquired shares. This operation is declared by the partner as a transfer that generates a capital gain, to which the ninth transitional provision of Law 35/2006 of the Personal Income Tax applies. The Advisory Commission's Report on conflict in the application of the tax rule concludes that, when the operations are considered as a whole, they are clearly artificial and improper and do not produce any relevant legal or economic effects other than tax savings, the usual or proper operation being a capital reduction with a return of contributions to the partners.