The Portuguese Tax and Customs Authority (AT) has, since its establishment, governed its activity in a spirit of reconciliation with taxpayers, in order to achieve a greater level of cooperation, transparency and confidence in legal-tax relations.
In this sense, organic solutions have been developed that allow a closer and more efficient management according to the tax situation of the different types of taxpayers. The implementation of these solutions resulted in the creation of the Large Taxpayers Unit (UGC), in 2011. In accordance with the responsibilities of the UGC, it was decided to set up the Large Taxpayers Forum, which was created in 2014 with the aim of creating a space for dialogue, that would allow deepening the relationship between AT and taxpayers, based on principles of proximity, transparency and mutual trust.
It draws on the international experiences of various tax administrations in the European Union (e.g. Netherlands, United Kingdom, Spain) and follows the OECD recommendations on this matter, namely, incorporating tax issues as an integral part of good management practices. In particular, it aims to simplify the fulfilment of tax obligations, increase legal certainty in transactions and approve codes of good practices in tax matters, both for companies and the tax administration.
The Forum operates at two levels: the plenary and through sectoral commissions.
The plenary is chaired by the Secretary of State for Tax Affairs and consists of him and the other members: representatives of the AT (General Director and some deputy directors) and representatives of taxpayers (large companies)
Within the scope of their activities, they may analyse and discuss tax matters of general interest to the participants, based on a reasoned proposal from any of them to be addressed to the president. However, it is forbidden to discuss the particular matters of any members of the forum.
The forum may discuss any tax matters considered relevant by its members, namely:
• Improvement of the relationship between AT and companies in general and the improvement or establishment of new communication channels;
• Simplification and facilitation of voluntary compliance with tax obligations;
• Streamlining the tax procedure to reduce contextual costs and litigation;
• Increased legal certainty;
• Discussion, promotion and adoption of principles of good corporate management by companies and the application of good tax practices by AT.
The sectoral commissions discuss topics of common interest also with a view to improving tax compliance, debating and reflecting on the different perspectives of stakeholders in the tax process and find solutions to improve the tax system.
In these terms, it is important to create the necessary conditions within the Forum to promote this debate and reflection, to find solutions that contribute, globally or sectorally, to the intended improvement of the system. Thus, the creation of sectoral working commissions should constitute an objective and constructive form for this purpose.
The conclusions of the Forum take the form of recommendations or agreements in relation to the matters under analysis and are not legally binding.
It should also be noted that at the 4th plenary session of the Forum on December 3, 2019 the Code of Good Tax Practice (CBPT) was approved, representing the achievement of one of its objectives. This Code constitutes a set of recommendations voluntarily accepted by AT and taxpayers, committing AT and taxpayers to observe, within the framework of their legal and tax relations, principles and conduct with a view to improving the tax system through an increase in fiscal certainty, cooperation based on transparency and trust amongst themselves.
The principles established in this Code will be applied in the tax matters of the entities covered by it, without prejudice to compliance with the principles enshrined in law.
In addition, improvements resulting from the Forum benefit not only large contributors but also taxpayers in general.
Trust & Compliance
