Tax compliance has as its main objective controlling tax risks deriving from the eventual breach of tax rules by companies, irrespective of their size and activity.

BEPS Action Plan (Report on the taxable Base erosion and Profit Shifting) whose objective is confronting the erosion of tax losses as well as the shift of profits to low tax jurisdictions, constitutes the first precedent, on an international level, of the consecution of good governance in the tax area.

Different initiatives searching for a new relation framework between taxpayers and the tax authorities are becoming more frequent and are worth knowing.

compliance tributario

✔ At a Spanish level and in the area of the cooperative relationship between taxpayers and the Tax Authorities, the Large Enterprises Forum approved the Code on Good Fiscal Practices, with the purpose of reinforcing the mutual trust between the Spanish tax agency and companies.

It includes several recommendations voluntarily assumed by the Tax Administration and enterprises, which can adapt to their specific characteristics, aimed at improving the application of the Spanish tax system through the increase of juridical security, reciprocal cooperation and the application of responsible fiscal policies in the enterprises, with the knowledge of the Board of Directors.

✔ In the area of the private initiative, this scope of action has been complemented with the recent publication by the Spanish Association for Standardisation of the Rule UNE 19602. This rule sets a series of requirements and recommendations to establish a risk management system, whose monitoring and observance evidences, in front of the tax authorities, a clear determination of achieving the compliance of fiscal obligations, according to the applicable rules.

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The fulfilment by taxpayers of the requirements established by this rule will permit a specific certificate issued by a certifying entity be obtained. This will not only benefit the enterprise reputation but will allow evidencing the due diligence in tax risk prevention as well.

As it is a private regulation, it remains to be seen whether such certificate may imply a reduction or exoneration of tax responsibility that may derive as a result of a tax audit.

✔ Given the evolution of the increasingly complex tax regulations, there is no doubt that prevention is a must in order to appropriately manage tax risks and that putting into practice tax compliance systems shall contribute to enhancing companies’ tax performance.


Publicado el 05-2019 por PBS