Endesa is committed to the promotion of cooperative relations with the Tax Administration in the different jurisdictions in which it operates.
Therefore, in Spain Endesa participated in the redaction of the Code of Good Tax Practices (CGTP) within the framework of the Forum of Large Companies, resulting in the constitution of an instrument for cooperative relations between the Tax Administration and Spanish Taxpayers.
Endesa and its controlled subsidiaries are signed up the CGTP since 2011 and it was subsequently ratified in 2016 due to the incorporation of an Annex that enhances the system with regard to the mandatory compliance conducts of the parties and in relation to the transparency of the information interchanged.
Accordingly, specific mandatory compliance conducts have been developed for the administrators since 2016, which include:
- The company's tax strategy shall be developed and duly justified by the Board of Directors and sent to the company's senior managers.
- The Board of Directors shall approve all transactions and investments that pose a particular tax risk.
- The company's risk management policy shall adopt measures aimed at mitigating identified tax risks and shall establish internal corporate governance rules in such regard, compliance with which may be subject to verification.
- The company shall employ efficient information and internal control systems as regards tax risks, and the design and operation thereof shall be fully integrated into the company's general internal control systems.
- The company shall provide the Tax Administration with true and accurate information on the above points.
Additionally, in compliance with the Corporate Governance regulations for tax related issues and as foreseen in the Code of Good Tax Practices, the Audit and Compliance Committee is periodically informed of the tax situation of the company. In the following link the report of the integrated activities of the Committees of the Board of Directors is attached.
Some of these obligations were already in application in Endesa as they are foreseen in the Capital Corporations Law and as Endesa is a listed company.
In addition, pursuant to the mentioned Annex, since the period 2016 Endesa has voluntarily decided to submit the Enhanced Transparency Report to the Tax Administration in accordance with the enhanced good practices for tax transparency of the entities signed up to the CGTP. In this respect, the 2018 report was presented on the 5th July 2019.
In 2019 periodic meetings with the Tax Authorities were held in order to analyse the content of the Transparency Reports from 2017 and 2018 and at the start of 2020 a letter was received from the Tax Authorities confirming the adequacy of all of the information presented and thanking the disposition, collaboration and transparency of the entity towards the Authorities.