On an ongoing basis, Endesa maintains its commitments to good governance, transparency and integrity that, together with the creation of value for shareholders, form part of its standards in the management of its businesses and corporate activities.
In this context, compliance with the tax legislation in force at each moment forms part of the principles which inspire its corporate responsibility, with taxes paid being one of its contributions to the economic and social development of the society in which it operates. As an example of this, compliance with the tax laws has been incorporated into the values of the company.
Endesa's Fiscal Strategy is governed by the following guidelines:
- Compliance with tax legislation in force, adopting in every moment a reasonable interpretation of same and trying to avoid, deriving from such interpretation, inefficiencies and improper tax costs for Endesa.
- Renouncement of the following actions: operations or structures which only pursue a tax advantage, structuring of operations of an artificial nature or those not related with the own activity of the Company or the utilisation of non-transparent structures with the purpose of reducing its tax burden, realisation of investments in or through territories classified as tax havens with the sole purpose of reducing the tax burden.
- Consideration of the principles of the BEPS Project (Action Plan on Base Erosion and Profit Shifting) of the OECD in the fight against base profit erosion and profit shifting in both Endesa and its controlled subsidiaries in each one of the jurisdictions in which it operates.
- Full collaboration with the Tax Authorities in their activities of verification related to both Endesa and to third parties.
- Transparency towards third parties (shareholders, clients, suppliers, employees, regulatory bodies, etc.) regarding the herein described tax principles, the bodies implied in the tax governance of Endesa and the detail of its tax contribution in the countries in which Endesa operates.
- The promotion of cooperative relationships with the Tax Administration.
The Tax Strategy was approved by Endesa´s Board of Directors on 15th June 2015 and is subsequently updated when required.
Tax Risk Management and Control Policy
Endesa´s Tax Risk Managment and Control Policy shall serve as the basis for Endesa´s Tax Control Framework.
It intends to regulate the principles that should guide Endesa´s Tax Function with the object of carrying out a correct management and control of the tax risks, comprising of:
- Principles guiding the management of tax risks, establishing obligations and duties within the organization in such regard and including a description of the suggested measures for mitigating any potential identified tax risks.
- Principles guiding the proper control of tax risks, including, on the one hand, the implementation of several preventive ex ante controls and, on the other hand, ex post controls aimed at identifying, measuring, analysing, monitoring and reporting risks in accordance with the provisions of Endesa's Risk Management and Control Policy and of its Operating Instructions for developing the Endesa Risk Map.