Tax control framework

Our adequate management and control system that allows us to prevent tax risks

The existence of tax risks is inherent to fiscal activity and, in our case, is influenced by the unique nature of our tax system, which is characterized by economic relevance, complexity, and areas of uncertainty. All of this has led us to apply responsible tax policies which enable us to prevent conduct that could generate significant tax risks, and to base our work on the following action lines:   

• We manage tax matters in an organized, expert fashion to guarantee compliance with our tax obligations and manage tax risks. We apply effective procedures, systems, and internal controls to ensure that we suitably carry out key tax processes.
• We have the organization needed to ensure the deployment of our tax policies. Our organizational principles ensure that our tax functions are carried out professionally with expert teams, which are integrated with a single, global criteria, and which are responsible for all of the Company's tax matters in our different fields of management.
• The Board of Directors approves the Fiscal Policy and monitors the implementation of the strategy and the management of fiscal risks.
• We submit especially risky fiscal transactions to the Board of Directors for approval.

We frame our management of tax risks within our global Integrated Risk Management policy, and we implement it through internal processes, systems, and controls. To that end: 

• We keep a risk map duly updated. This map specifically identifies tax risks which may result from: 
  • The tax policies applied. 
  • Possible non-compliance. 
  • Controversies surrounding the interpretation or application of laws. 
  • Instability of the legal-tax and contracts framework. 
• We will actively manage tax risks with the aim of mitigating or eliminating them and, if we must assume them because a common understanding with the tax administration was not possible, we will assume the best possible defense of the legitimate interests of our Company.