Responsible tax management

In 2010, Ferrovial adhered to the Code of Good Tax Practices promoted by the Spanish Tax Agency, subsequently extending these recommendations to all its activities in the world through the Compliance Policy and Good Practices in Tax Matters. Finally, in February 2015, the Board of Directors approved the Ferrovial Tax Policy, complying with the provisions of Article 529 ter of the Capital Companies Law.

Principles

• Compliance, assuming the commitment to make the correct payment, and on time, of all applicable taxes, complying with the law in each country.
• Professionalism, assigning the management of taxes and the associated risks to a team of specialized professionals, the Ferrovial Tax Advisory Division, supported by top external advisors.
• Efficiency, managing tax aspects in coherence with the business strategy, maximizing the value for its shareholders.
• Cooperation, sustaining good relations with tax authorities and managing tax matters in a proactive manner in order to avoid any kind of unnecessary conflict.
• Sustainability, having procedures and policies in place to manage fiscal risks.
• Participation, contributing its international knowledge on tax matters in legislative processes.
• Applying market price in all transmissions made between the Ferrovial companies.

Tax risk prevention

Following the recommendations of the Good Taxation Practices Code:

• It promotes measures to prevent and reduce fiscal risks.
• It seeks to avoid conflicts arising from the interpretation of regulations by applying instruments such as prior consultation with tax authorities and prior valuation agreements.
• It collaborates with the competent tax administrations to detect fraudulent fiscal practices that may exist in the market, with the aim of eradicating them.
• It provides all information and documentation requested by tax authorities as quickly and as completely as possible.
• It makes use of all the possibilities offered by the inspector procedure to reach an agreement with the tax administrations.

The role of the Board Of Directors

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. In charge of approving a control and management policy for fiscal risks, as well as any operations that carry a tax risk.

When formulating the annual accounts, the Board is informed about the fiscal policies applied during the year and about the effective fulfillment of the commitments included in the Code of Good Tax Practices, reflecting it in the Annual Corporate Governance Report. For further information, please refer to section 6.6 of the Consolidated Financial Statements.