We are committed to building relationships with tax authorities that are based on the principles of trust, good faith, professionalism, collaboration, loyalty, and a search for mutual understanding. We aim to facilitate the application of the tax system, increase legal security, and reduce litigiousness based on reciprocity in our relationships. We are committed to following the below action lines in our relations with tax administrations:
B-Team is an association formed by multinational companies from different sectors that favor a new framework for best business practices in tax governance, based on the principles of transparency, responsibility, and collaborative compliance. We form part of the work group that the B-Team has tasked with creating a catalog of Responsible Taxation Principles. We have decided to adhere to these principles, demonstrating our commitment to promoting and implementing them effectively in every business that we hold a majority share and have control.
International Assurance Compliance Programme (ICAP)
This is an international initiative for greater cooperation between tax administrations. It was created in the context of work carried out by the OECD to monitor tax risks, with the purpose of achieving a coordinated definition of the level of tax risk in multinational groups regarding transfer prices. The administrations that are currently involved in this initiative are those of: Australia, Canada, Spain, the US, Italy, Japan, the Netherlands, and the United Kingdom. The Spanish Tax Agency invited us to participate in the ICAP pilot program in 2018. Ideally, as a result of this global tax transparency exercise, the score “low or zero tax risk” should be awarded, which would lead to greater certainty regarding the tax impact of activities and transactions carried out.
Business and Industry Advisory Committee (BIAC)
We contribute to the comments that the BIAC prepares regarding documents published by the OECD for public consultation on tax matters, especially double taxation agreements.
Subcommittee on Extractive Industries Taxation Issues
We contribute practical experience with applying double taxation agreements, permanent establishments, negotiating oil industry contracts, etc.
EU Joint Transfer Pricing Forum
We are members of this organization which advises the European Commission and aims to bring together companies, tax administrations, and other members of civil society in order to come up with solutions to problems deriving from defining transfer prices within the context of the EU.
Since 2010 we have followed the Code of Good Tax Practices created by the Tax Administration’s Large Companies Forum.
We aim to promote transparency, good faith, and cooperation with the Tax Administration’s State Agency in business tax practices and legal security in everything related to the application and interpretation of current regulations by the Tax Agency.
Following this code requires us to promote a cooperative, loyal relationship with the Tax Agency, thereby increasing the effectiveness of the controls of the Large Companies Forum and reducing the litigiousness and legal insecurity to which large companies may be exposed.
To demonstrate our commitment to strengthened transparency as outlined in the Code of Good Tax Practices, we voluntarily sent our 2015 and 2016 Tax Transparency Reports to the Spanish Tax Agency. These reports detail the Group’s financial activities as well as any actions and decisions relating to taxation.
As part of our commitment to transparency, we are also a member of the EITI (Extractive Industries Transparency Initiative), a globally renowned organization in our sector that multilaterally and voluntarily brings together governments, international organizations, state-run and private companies, investors, and social agents.
The purpose of EITI is to promote increased transparency with regard to contracts and laws. At Repsol we believe that the companies in our sector have a leading role to play in building a balanced, sustainable society: our activity is based on the use of natural resources and we must translate this activity into sustainable development for the communities in which we operate.
Our membership to EITI voluntarily commits us to publishing what we pay in each country where we operate. It also commits governments to disclose what they receive, all in a totally voluntary manner that is focused on the transparency of the process.
Other initiatives that we are involved with
We actively participate in the following international forums and work groups:
In Portugal, Repsol is also a founding member of the Big Businesses Forum, established in March 2014 by the Portuguese Tax Agency. There are currently 28 businesses that are members of the forum. The Repsol Group also participates in parellel initiatives in Singapore, the UK, and the Netherlands.
In addition to this, the Repsol Group is committed to complying with the tax recommendations outlined in the OECD's Guidelines for Multinational Enterprises, which are very similar to the commitments included in our Tax Strategy: Contributions to the countries' public funds, total compliance with the law, cooperation with tax authorities, the Board of Directors' acceptance of tax risk management strategies, etc.