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Best practices
In its session on 29 September 2015, Red Eléctrica Corporación, S.A.'s Board of Directors approved the group's adherence to the Code of Best Tax Practices, which had been approved by the Large Business Forum based on the guidelines proposed by the Spanish Tax Authority (AEAT).
Said undertaking took place in October 2015 and is aligned with the principles and guidelines for action on tax matters established in the tax strategy of the group.
Good tax practices are defined in the Code as ‘all those leading to the reduction of significant tax risks and the prevention of behaviours that may generate them.’ The Code aims to increase the effectiveness of Tax Authority controls and reduce legal uncertainty for companies and litigation that arises between them.
The Code is structured around three main groups of best tax practices:
1
Transparency, good faith, and cooperation with the Tax Authority. To avoid opaque structures and involve the Board of Directors in tax policies.
2
Transparency and legal certainty for the application and interpretation of tax rules by the Tax Authority. Consistency in the Authority's criteria and publication of the tax treatment applied to certain transactions.
3
Reduction of litigation and prevention of conflicts in tax inspection and management.
The group complies with the Code's provisions, as reflected in the Annual Corporate Governance Report.
On October 28, 2016, the Large Companies Forum approved the proposal to strengthen good practices on corporate tax transparency, thereby proposing a report called the 'Annual Tax Transparency Report for companies adhered to the Code of Best Tax Practices.' Accordingly, the group has voluntarily submitted its Tax Transparency Report to the AEAT, following analysis and approval by the Audit Committee.
Additionally, the new tax statement called Country-by-Country Reporting has been presented to the Spanish Tax Authority.
In line with the commitment established in the Code of Ethics and the group's Tax Strategy, the company neither has a presence nor carries out any activity in those territories deemed as tax havens in accordance with current regulations:
Spanish regulations contained in Royal Decree 1080/91 of 5 July, amended subsequently by Royal Decree 116/2003, of 31 January.
List of countries and territories drafted by the European Union of non-cooperative tax jurisdictions.
List of non-cooperative tax havens prepared by the OECD.