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:
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.
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.