Responsible Tax Management
As part of development of the Code of Business Ethics, in 2010 the Ferrovial Board of Directors approved the company’s adhesion to the Spanish Tax Agency’s Good Taxation Practices Code. Three years later, the company extended these standards to all activities worldwide under its own Policy of Compliance and Good Practices in Taxation.
Finally, in February 2015 the company’s Board of Directors took yet another step forward by approving the strategy detailed in the Ferrovial Tax Policy document, which complies with the stipulations of Article 529 b under the Spanish Corporations Act.
These policies translate into the following commitments and guidelines:
1. Ferrovial complies with its fiscal obligations in all countries where it operates, managing taxes via a professional, efficient, transparent, cooperative and sensible approach.
a) Compliance: Ferrovial undertakes to pay the correct amount of tax as it becomes due, in accordance with the laws of each country where Ferrovial operates.
b) Professionalism: the Ferrovial Tax Advisory Department, a global and centralized department comprising specialists in the field, manages the firm’s taxes and associated risks. As and when necessary, this department is backed by independent consultants from prestigious tax consulting firms.
c) Efficiency: as well as strictly complying with the law and always pursuing legitimate business activities, Ferrovial oversees fiscal aspects in a manner coherent with its business strategy, seeking to comply with its objectives and to optimize value for shareholders.
d) Transparency: Ferrovial provides full information that tax authorities might require in the appropriate form. The company does not make use of any companies domiciled in tax havens or other non-transparent jurisdictions, except when a given activity – for example a specific construction project – is irredeemably connected with such jurisdictions. In such cases, the company will provide full information to the competent authorities regarding the project, what activities are performed, the financial results of the same and employees involved, all in accordance with current legislation.
e) Cooperation: Ferrovial sustains good relations with tax authorities and manages tax matters in a proactive manner in order to avoid any kind of conflict.
f) Sustainability: Ferrovial has procedures and policies in place to manage fiscal risks. The company evaluates the same prior to implementing any transaction that involves fiscal planning.
g) Participation: Ferrovial is indirectly involved in legislative proceedings, contributing its international knowledge of how other jurisdictions handle tax matters.
h) Market price: all transfers of goods and services between Ferrovial companies are subject to market conditions established between independent parties. The prices established are considered normal for the market and must reflect the true nature of each transaction.
2. Ferrovial has practices in place to undermine relevant fiscal risks and prevent any conduct that may be conducive to risks.
Following the recommendations of the Good Taxation Practices Code, the company:
i) Promotes measures to prevent and reduce significant fiscal risks.
ii) Seeks to reduce conflicts arising from differing interpretations of regulations, harnessing instruments established in tax legislation such as consulting with fiscal authorities before the fact, and reaching prior understanding agreements.
iii) Works with the competent tax administrations to detect potential fraudulent tax practices in any market where Ferrovial operates with a view to preventing and eradicating such practices.
iv) Provides the information and documentation requested by tax authorities as quickly and as completely as possible.
v) Makes use of all opportunities offered by the contradictory nature of inspection procedures, strengthening agreements with tax authorities in any procedural stage where feasible.
3. Ferrovial’s Board of Directors takes an active role in overseeing the company’s tax matters.
In compliance with Article 529 b of the Spanish Corporations Act, the Ferrovial Board of Directors performs those fiscal duties that may not be delegated to another body. These include approving a control and management policy for fiscal risks, as well as any operations that carry particular risk.
The Board of Directors was informed of the fiscal policies that the company applied during the year for drawing up the financial statements. The Board was also apprised on the effective compliance with the commitments contained in the Code of Good Taxation Practices. Annual Corporate Governance Report contains this commitment.
The company’s Board of Directors, via the Chairman, CEO and senior executives, ensures that Ferrovial adheres to principles and good practices with respect to taxation.
For further information, please refer to section 6.6 in the Consolidated Financial Statements.
“Ferrovial is committed to developing responsible fiscal management in the markets where it operates.”