Tax Compliance Policy
The Tax Compliance Policy of Soltec Power Holdings, S.A. and its subsidiaries (hereinafter "the Group") aims to implement an organisational and tax management model based on due control and the reinforcement of an ethical business culture with respect to compliance with tax obligations, which eliminates the risk of tax violations and tax fraud due to negligence or fraud in any member or collaborator of the company.
In this respect, the Group's governing body has implemented a set of internal measures and rules aimed at supervising, monitoring and controlling the activities of the Group's companies in order to guarantee and demonstrate due diligence in the fulfilment of tax obligations.
The Group is made up of different companies spread across various jurisdictions. It is the intention of the Governing Body of Soltec Power Holdings, S.A. to implement this Policy in all companies where it has control, regardless of the jurisdiction in which it is located, always adapted and tailored to the company in question. In those investee companies where the Group does not have control, the Governing Body shall promote the application of this policy or, at least, the implementation of a set of minimum supervisory measures, reporting and oversight adapted to the specific situation of each company on tax matters.
The control and prevention model adopted by the Group through this policy is based on the identification of risk activities, the establishment of procedures for the adoption and execution of decisions in relation to these risks, the express provision of adequate financial resources, and the establishment of a disciplinary system in the event of non-compliance.
Asimismo, el modelo de control y prevención adoptado disponede mecanismos específicos de revisión y supervisión periódica respecto de lahttps://soltec.com/wp-content/uploads/2022/03/115-business-consulting-agency_blog_8-1.jpgeidad de las medidas adoptadas y su adecuación a las características ycircunstancias del Grupo.
2. Principles and pillars of the Tax Compliance policy
The Policy on tax compliance is based on a series of practices based on due diligence and aimed at introducing control measures to ensure optimal tax management, the elimination of potential tax risks and the elimination of criminal risk.
Conceptually, the Policy on tax compliance The Group's work revolves around the following principles:
2.1 Objectivity. The policy of taxcompliance is materialised in the adoption of concrete and specific measures that allow their application to be homogenised over time and independently of the person responsible for their adoption.
2.2 Suitability. The measures adopted in implementation of the tax compliance are intended to demonstrate the diligence of the management bodies in managing risks and obligations of a fiscal and customs nature.
2.3 Measurability. The measures implemented under the EU's tax compliance The goals are quantifiable so that their monitoring is affordable and scalable.
2.4 Efficiency. The policy of taxcompliance is based on the minimal imposition of formal obligations by promoting the exploitation of synergies.
2.5 Relevance. Actions taken under the tax compliance of the Group have a real impact on the achievement of the final goal.
The principles underlying the model of taxcompliance are embodied in measures that pursue the effectiveness and efficiency of the system in order to achieve the ultimate goal of good governance and, eventually, exemption from criminal liability for the legal person.
The measures of tax compliance The Group has developed and implemented the following pillars:
2.6 Decision-making. Decisions on tax matters are taken by the members of the Tax Department, under the supervision and direction of the Chief Financial Officer (hereinafter referred to as CFO), "CFO"),within the framework of the Fiscal Policy approved by the governing body.
The members of the Tax Department are responsible for informing the Governing Body of tax and customs decisions and for approving those of major significance.
2.7 Resources. The Governing Body should have the necessary information for tax-related decision-making. The persons responsible for making tax and customs decisions and for their implementation have sufficient professional qualifications and the necessary material resources. However, in compliance with the principles governing the Group's tax strategy and the good practices deriving therefrom, the persons responsible undertake to keep the CFO and the Governing Body informed prior to making decisions of particular relevance and of a tax nature.
2.8 Traceability. Mechanisms are in place to record decision-making and allocation of responsibilities in the fulfilment of tax obligations and implementation of measures. To this end, the traceability of information in tax decision-making is part of the Group's tax strategy. As proof of this, the persons responsible for tax matters undertake to keep an explicit record of the adoption of decisions or measures taken in the Company's internal files.
2.9 Special operations. Those operations have been identified which, due to their special relevance, should have a specific treatment in terms of decision-making, allocated resources and traceability.
3. Characteristics of the Tax Compliance Policy
The Policy on tax compliance The Group's tax policy, promoted and approved by the governing body, requires, in all cases, compliance with the tax legislation applicable to the Group and consideration of the doctrine of the courts of law and the Directorate General of Taxes to interpret tax regulations and to classify, for tax purposes, a transaction that is to be carried out or has been carried out within the Group.
The Policy on tax compliance is consistent with the aims and objectives of the Group, which are to eliminate the risk of tax offences and tax fraud due to negligence or negligence on the part of a member or collaborator of the company, by implementing an organisational and tax management model based on due tax control and reinforcing the ethical corporate culture with regard to compliance with tax obligations.
In this way, by means of this taxcompliance all members of the Group are expressly prohibited from wilfully or negligently committing tax offences and offences, in order to minimise the occurrence of such conduct.
In addition, the tax compliance minimises the Group's exposure to tax risks in an effective, efficient and proportionate manner by introducing a set of organisational rules and protocols to identify, detect, prevent and mitigate tax risks.
Likewise, by analysing the internal and external factors relevant to the management system of the tax complianceIn the identification of stakeholders and the subjective and objective scope of the programme, a set of Organisational Rules have been defined which provide an appropriate framework for the definition, review and achievement of the programme's objectives. compliance taxation.
The Policy on tax compliance It also includes a Responsible Governance Body Declaration and a Commitment of active collaboration of the Group's managers to comply with the requirements set out in the management system of the Group. tax compliance.
In the same vein, channels of communication have been established for reporting non-compliance or well-founded suspicions of non-compliance, guaranteeing that the informant will not suffer reprisals, in the following terms:
As stated in the relevant Whistleblowing Protocol, it is the obligation of all staff, regardless of their status and category, to report to the compliance body any substantiated suspicions or knowledge of possible breaches of any Policy, Rule or Protocol implemented in the Group in relation to the Corporate Compliance and Tax Compliance.
As set out in the relevant Protocol on Internal Whistleblowing Policy and Procedures, no employee may be discriminated against for reporting in good faith breaches of any Policy, Standard or Protocol implemented within the Group as a result of the conduct of the CorporateCompliance and Tax Compliance.
In this way, through the tax compliance The Group's commitment to the continuous improvement of the Group's management system is expressly stated. tax compliance.
By virtue thereof, the Governing Body, by itself, or through its Tax Compliance Body (hereinafter referred to as the "Tax Compliance Body"), may, in accordance with the provisions of this Article, establish a tax compliance body (hereinafter referred to as the "Tax Compliance Body"), "TaxCompliance Officer".)The Commission shall encourage the review of the present Policy. tax compliance and its organisational rules, adopting such modifications and improvements as it deems appropriate, in accordance with the regulations applicable at any given time.
In this respect, the Tax Compliance Officer The position of the highest guarantor of the supervision, monitoring and control of the requirements necessary for the proper performance of the taxcompliance and, to this end, it has sufficient resources and staff with the appropriate skills, status, authority and independence. Lastly, the rules adopted by the Group in the framework of the Group's tax compliance have the nature of an internal rule, so that any breach will be sanctioned in accordance with the provisions of current labour legislation, as established in the Workers' Statute and in the Collective Bargaining Agreement signed by the company, taking into account the seriousness of the conduct carried out.
4. Instruments of Tax Compliance
For the purposes of implementing the present Policy taxcomplianceThe rules are developed organisational The following are described below.
The Governing Body has approved the management framework which underpins and delimits the tax compliance of the Group.
In this respect, a number of structural rules have been approved, the aim of which is to highlight and reinforce the Group's due diligence in tax management.
Standard 001: Conceptual framework for tax managementStandard defining the Group's tax organisation and management model. In addition, this standard includes a declaration of responsibility from the governing body, as well as a declaration of responsibility from the CFO and the key persons in tax matters, certifying that the Group's tax policies are in line with the principles of the Group's tax policy. tax compliance have been properly implemented and are sufficient.
Standard 002: Involvement of the Governing Body and senior management in the company's tax policy and its implementation. A rule that records the involvement of the governing body and senior management in the design of the Group's Tax Policy and the escalation of tax decisions of particular relevance.
Rule 003: Appointment of the Tax Compliance Body. Rule intended to record the appointment and functions of the Tax compliance officer and specialised teams by the Governing Body.
Standard 004: Functional organisation chart and chain of command in the fiscal area. A rule that aims to record the role of the Governing Body in the design of a functional organisation chart and chain of command (functional organisation chart) of the Tax Questions Group.
Standard 005: Annual training and competency plan. This rule aims to approve an annual tax training plan for the Group's employees in order to train and update all members involved in making or implementing tax-relevant decisions. In addition, the competencies of the members of the Group are set out.
Standard 006: Protocol for monitoring the outcome of inspections. The purpose of this rule is the approval by the governing body of a protocol for the evaluation, monitoring and implementation of measures in relation to the results of tax inspections, with the aim of achieving the correct implementation of the consequences derived in years not inspected, which must be used by those responsible for the Group's tax management in relation to tax inspection procedures.
Standard 007: Protocol for monitoring and reporting on issues with implications for future years. The aim of this regulation is to implement mechanisms to ensure the appropriate tax treatment of those issues that may have implications for future fiscal years.
Standard 008: Definition of the special operations map. The purpose of this standard is to define the operations which, for the purposes of the implementation of the tax compliance Group, shall be classified as "special operations".
Standard 009: Protocol for documentation of decision-making in relevant matters. Standard to establish mechanisms for documenting decision-making in materiatributary matters.
Standard 010: Communication and dissemination of standards. Standard defining the guidelines and procedures for communicating and disseminating the management standards adopted by the Group within the framework of the taxcompliance.
Standard 011: Management of security measures tax compliance. Standard defining the mechanisms for the management of the policy of tax compliance and the rules and procedures adopted thereunder.
Standard 012: Fiscal risk management. Standard approving the protocol for the identification, assessment, management and adoption of measures in relation to the Group's tax risks.
Rule 013. Protocol for the conservation of tax information. Rule approving the protocol for the conservation of tax information in relation to all those decisions, agreements or documentation which, due to their nature, could have tax implications.
Standard 014. Performance appraisal system. Standard which covers the monitoring and evaluation of the performance of the management system for the tax compliance in order to ensure that its objectives are achieved.Non-compliance with the policy of tax compliancepenalty system
In the event of non-compliance by any employee or collaborator with the policy of tax compliance of the Group, the applicable disciplinary regime will be that established in the Workers' Statute and in the Collective Bargaining Agreement signed by the company, taking into account the seriousness of the conduct carried out.
The Group's Human Resources Department will be responsible for tailoring the sanction to each individual's conduct.
See Standard 002 Governing body and senior management involvement in tax policy and Standard 004 Functional organisation chart and chain of command in the tax area.