Royal Decree 1643/1990 of 20 December, approving the General Plan of Accounting, establishes in its final disposal the fifth that the Accounting and Audit Institute of Accounts, by Resolution, may dictate (a) rules of mandatory compliance with the development of the General Accounting Plan in relation to valuation standards.

The need to develop the number sixteen valuation standard, relating to the accounting record of Corporate Tax expenditure, led the Accounting and Audit Institute of Accounts to draw up the Resolution of 30 June. April 1992, on some aspects of this valuation standard.

This Resolution is in response to the need arising from the entry into force on 1 January 1996 of Law 43/1995 of 27 December of the Corporate Tax, to update the Resolution of 30 April 1992, The above mentioned Resolution, logically adapted to the legal regulation of the tax in force until that date. In addition, the formulation of consultations with this Institute has shown the desirability of dealing specifically with a general resolution of certain aspects relating to this standard of assessment.

In the light of the possibility of dealing with this resolution only aspects which have been adapted to the new tax legislation or, on the other hand, clarified, it has been considered appropriate to recast in a single text the of the Resolution of 30 April 1992, which remain in force with the changes made in this Resolution, in order to bring together in a resolution the development of the sixteenth valuation rule and therefore simplify its knowledge and analysis.

In the first rule the application of the principle of prudence is regulated in relation to deferred taxes, anticipated and credits for compensation of negative tax bases in the Tax on Societies, which arise as consequence of the accounting registration scheme set out in the General Accounting Plan.

In accordance with the accrual principle, each financial year must be placed on the basis of the corporate tax expense corresponding to the accounting result before taxes and not on the amount of the liquid quota corresponds to the Public Finance for that financial year. In other words, the corporate tax payable for accounting purposes does not necessarily coincide with the corporation tax payable, since it will be determined taking into account, among other tax criteria, the temporary imputation of income and expenditure, which sometimes differ from the accounting officers.

In order to be able to reconcile the above two parameters, the sixteenth valuation rule of the General Accounting Plan states that in the event of differences between the tax base of the tax on Companies and the accounting result before tax, will be carried out in their analysis to determine whether or not these differences will revert in the future, which will cause, where appropriate, the existence of temporary or permanent differences, respectively.

One of the differences between the corporate tax expense and the tax payable will be equal to the result of applying the tax rate to the temporary differences, without prejudice to the positive and negative adjustments that may be made. produced in the exercise itself and in the future.

When there are temporary differences between the accounting result before tax and the tax base of the Company Tax, the amount to be paid for the said tax in an exercise, including deductions and payments on account, will be lower or higher than the expenditure incurred by that tax; the difference between the two measures, if it has a certain interest in relation to the future tax burden, will in the first case result in a deferred tax, whereas if the tax payable In the case of an overpayment, an advance tax shall be recorded.

According to the aforementioned standard of the General Accounting Plan, in the register of the advance taxes and the credits derived from the compensation of negative tax bases, the principle of The value of the value of the goods in question is calculated in accordance with Article 38 of the Trade Code and in the first part of the General Accounting Plan, and therefore only those anticipated taxes whose future performance is reasonably assured shall be taken into account.

Taking into account that tax legislation is in the process of change and adaptation almost constant and that in some cases it is impossible for the dam to predict in a reasonable way the evolution of its economic situation to In the long term, it will not be possible to understand that the future performance of the pre-tax and the credits derived from negative tax bases is reasonably assured when it is expected that its reversal or cancellation will be made in a period of excessively long time. In these cases, it is not appropriate to account for the high level of advance taxes and credits for compensation of negative tax bases, thus avoiding that in the balance sheet items of doubtful effectiveness are collected.

Therefore, on the basis of the principle of prudence, the resolution states that when the time limit for the future implementation of the anticipated tax is expected to occur after a very long period of time, it will be considered as that their reversal is not reasonably assured, so the advance tax will not be recorded. To this end, a maximum period of reversal of 10 years shall be fixed for the purpose of recording that item.

The criteria laid down for the registration of the advance taxes will also apply for the credits derived from negative taxable bases pending compensation, although in this case the expected deadline of Recovery must also be at the maximum the level laid down in the tax legislation, which is generally seven years. For the purposes of assessing the possibility of offsetting the negative tax bases, it will also be necessary for them to have been produced by a sporadic event in the business of the company and which its cause has already been referred to, as in another case there is no certainty that these negative tax bases can be compensated for in the future.

Additionally, an issue that has been highlighted lately is the possibility that both assets and liabilities arising from the accounting of corporate tax expense and which revert or are offset in the long term, they may be subject to financial update. This has required that, prior to the final wording of this standard, a detailed study of the subject has been necessary.

First, and to focus this aspect, it should be noted that the 12th valuation standard contained in the fifth part of the General Accounting Plan states that debtors and traffic creditors:

" They will be in the balance sheet at face value. Interest on the nominal amount of the loans and debits for transactions with a maturity of more than one year shall be recorded in the balance sheet as income to be distributed in various financial years '' or to be distributed in various financial years '', respectively, annually imputed to results according to a financial criterion. '

On the other hand, for non-commercial credits, the standard of valuation novena provides that "they will be recorded for the amount delivered", while the 11th standard for non-commercial debts, according to the With the provisions of article 197 of the recast of the Law of Companies, approved by Royal Decree 1564/1989 of 22 December 1989, it indicates that " they will appear in the balance sheet for their value for reimbursement. The difference between that value and the amount received shall be shown separately in the balance sheet asset. '

For traffic operations, it is necessary to indicate that they are listed in Group 4, "Creditors and Debtors for Traffic Operations", included in the second part of the General Accounting Plan, the content of which is:

" Personal accounts and active and passive commercial effects that have their origin in the company's traffic, as well as the accounts with the Public Administrations, including those that correspond to balances with a maturity of more than one year ".

This allows us to reach a first conclusion, in the sense that although the Plan distinguishes traffic operations and balances with the Public Administrations, where the various assets and liabilities will be found The accounts to be used are included in the same group, so they could be participants of the same value criterion as set out above, so that the update of the set for any operation included in this group of accounts. The specialty in relation to the financial update for the traffic operations, is that the Plan only compels it when the maturity date is higher than the year.

Once the above mentioned, it should be specified that the financial update of credits and debits established in the General Accounting Plan, is based on the fact that an economic transaction has been carried out. Monetary current occurs at a time other than the accrual of the transaction, so that there is a temporary distance between the actual and the monetary event; it is therefore evidenced that the transaction includes two components from one point economic-rational view:

The actual amount of the transaction.

The financial component (implied interest) derived from deferral in payment or collection.

In relation to the accounting treatment of the items arising from the tax effect, in particular the financial update of the same, the nature of each of them must be analysed; that is to say, deferred tax and credit for compensation of negative tax bases, resulting in the following:

(a) When there is a deferred tax, the payment of an already established corporate tax expense is generally different from the accounting point of view. In this type of operations, the Public Finance Ministry grants a deferral in the payment of the debt at no financial cost; that is, the tax benefit is identified by the deferral of a debt with a zero financial cost, a very similar operation from a economic point of view of a subsidy of interest rates.

The accounting record of subsidised financial transactions, in accordance with the criteria set out in the Plan, requires the debt to be included in the liability of the company's balance sheet for its redemption value; Balance sheet assets shall be included in a heading of 'expenditure to be distributed in various financial years', the amount of which shall be determined by the difference between the redemption value and the current value of the debt calculated with a market interest rate for similar debts; this item shall be recorded on the basis of a liability item on the balance sheet "income to be distributed in various exercises". Both items shall be imputed to the results of the period over the lifetime of the debt, using a financial criterion, in order to match the amount (corresponding to those items) charged to the profit and loss account of the each financial year, not having as its effect on the outcome of the financial year in which the payment is deferred or on the outcome of future financial years. In addition, the revenue from the investment in which the amount corresponding to the liability "deferred tax" is materialised shall be produced, which shall be recorded in accordance with its nature.

b) On the other hand, when a corresponding amount is anticipated, in general, to what will be a future accrual for Corporate Tax expense, the contrary case is given; the company bears the cost of the anticipation, that is, the financial cost associated with it. The same is true when there are credits for negative tax bases.

The accounting record of the above, would require to compute the loss for the "gratuitousness" of the interest corresponding to the advance that is made to the Public Finance, circumstance that motivates a loss to record in the exercise in which the advance is produced.

Above all the previous update process, there are indeterminations about the interest rate to be applied and the time limit for the reversal or compensation of the indicated items. This, which cannot affect the consideration of the updating of other financial assets and liabilities, has promoted a deep debate in the accounting doctrine both in our country and internationally, when what is updated are items arising from the tax effect. In this sense it is necessary to refer to the International Accounting Standard (IAS) number 12, revised in 1996, where it is indicated in paragraph 53 and below that the assets and liabilities arising from the registration of the tax expense on Companies should not be subject to financial update.

The above has generated two doctrinal positions in this regard. A position is that the financial update of the items arising from the tax effect will not be carried out, without prejudice to the fact that for the assets (pre-tax and loss credits to be offset), if the reversal takes place in the long The application of the principle of prudence requires this circumstance to be taken into account.

Another position is to consider that all items arising from the tax effect should be updated financially on the basis of the above.

This Resolution, taking into account everything indicated and once seen the pros and cons that both positions produce, is decanted by the first of them, for reasons of simplification in the accounting record of the Tax on Companies, in such a way that the criterion established in general, is the non-financial update, quantifying the items derived from the tax effect by applying the tax rate of the exercise to the temporary differences or, where appropriate, negative taxable bases, unless the rate of charge in the case is known Reversal or compensation exercise is different, in which case the latter will be used. Notwithstanding the financial non-update, the application of the principle of prudence for the accounting record of the assets which have been indicated, pre-tax and credit for negative taxable bases, requires all the circumstances affecting the same.

Another aspect that this standard also deals with is the quantification of deferred taxes, pretax and credit for negative tax bases, in those companies that are fiscally qualified as small the size referred to in the Chapter XII of Law 43/1995, that is, those that present in the previous tax period a net amount of the turnover of less than 250,000,000 pesetas, considering the regulation introduced by the Article 19 of Law 13/1996, of 30 December, of Fiscal, Administrative and Order Measures Social, in relation to the type of tax to be applied to these companies. Taking into account that the rate of charge applied to the first 15,000,000 of the taxable amount is 30 per 100, the rule provides that those items are to be recorded at the rate indicated, without prejudice to the fact that the average rate in the exercise of reversion beyond that, the corresponding provision for risks and expenses shall be provided, where appropriate.

The second and third standards develop the possibility contained in the General Accounting Plan to make permanent differences and the deductions of the quota, when they give rise to a minorizing of the expenditure. accrued by Company Tax and according to reasonable criteria. It is established in this respect that only deductions from the tax on corporate tax-applied companies may be subject to a reclassification.

On this point, it is important to highlight the different tax treatment that, in relation to the previous legislation, grants Law 43/1995 to the reinvestment of extraordinary profits. This Law provides that the income obtained from the onerous transfer of certain assets, once corrected for monetary depreciation, will not be integrated into the taxable base of the year of the transfer but in the taxable amount of years. subsequent, provided that the amount of such transmissions is reinvested in a given period.

In the previous legislation these reinvestment transactions led to the exemption of these rents, causing, where appropriate, a permanent difference which would reduce the expenditure incurred by the Corporate Tax and which could be the purpose of the annual accounts in the annual accounts as provided for in the second rule of the Resolution. This aspect will still be applicable for the small-scale enterprises referred to in Chapter XII of Law 43/1995, for which the exemption from income (once corrected in the amount of monetary depreciation) is maintained. in the case of the transfer of items of the fixed assets to economic holdings, provided that these incomes are less than 50,000,000 pesetas and the amount of the transfer has been reinvested.

The tax treatment in force from the entry into force of Law 43/1995 for the rest of the reinvestment operations, originates, if any, in the year of the transmission a difference between the accounting result before taxes and the tax base, which will be reversed in successive financial years. It will therefore be a temporary difference which will result in the accounting of a deferred tax for the difference resulting from this reason between the corporate tax expense and the tax payable, and which will be cancelled as, in successive exercises, the reversal of the deferred tax would lead to a tax payable in excess of the accrual accounting expense.

The fourth standard of the Resolution deals with the accounting record of the tax on entities that are subject to the tax transparency regime in accordance with the rules of the resolution, collecting both the accounting criteria (a) to be applied on a general basis, as well as to the accounting development relating to the specificities of the economic interest groups and the Temporary Unions of Enterprises.

In the previous legislation, companies subject to the tax transparency regime were exempted from the Corporate Tax on the tax base part of the resident partners, while in the regulation Article 75 of Law 43/1995 states that they are taxed by this Tax and enter the quotas resulting from the liquidation of the same, which will subsequently impute its resident partners along with the positive tax bases, deductions, bonuses, split payments, withholding, income on account and fees that in turn have been imputed to such companies. In addition, the regulation provides for a special tax transparency regime for economic, Spanish and European interest groups, and for Temporary Business Unions.

In this rule, it is established that transparent entities must perform the accounting record in accordance with the general rules contained in the General Accounting Plan and in this Resolution. However, the tax system in force provides that these companies, in the part attributable to the partners to which the tax base is charged, cannot directly recover the excess withholding, income on account, payments made in instalments and (a) the amount to be paid by companies subject to the tax transparency scheme, on the amount resulting from the reduction of the full quota in deductions and allowances; these amounts are classified as a tax-related expenditure; be entered in the profit and loss account under the heading 'Other taxes', for this purpose to ensure that the corporate tax item represents what is strictly imposed on profits, and to preserve it from any other tax concept that does not participate in this nature. The accounting criteria applicable to entities (economic interest groups and Temporary Business Unions) which are taxed in the tax transparency regime have also been included in this rule, although they have certain particularities, such as: is the non-taxation of the Company Tax of certain entities (European economic interest groups) or the non-taxation of this tax on the basis of the taxable amount corresponding to the members or members resident in the territory Spanish (Spanish economic interest groups and Temporary Business Unions).

Particularly, and in order to clarify, it is necessary to refer to the Temporary Unions of Companies (UTE). The accounting criterion maintained in the adjustments to the General Accounting Plan for construction and real estate companies, approved by the Ministry of Economy and Finance dated 27 January 1993 and 28 December 1994, respectively, (in particular in the rules for drawing up the annual accounts 5.a), 6.a j) and 7.a (e), and in the valuation standard 21.a, of the two adaptation rules), provides that the share of the share of the proportional share in their annual accounts of the balances of the UTE that correspond to you, having these rules general scope for any type of economic activity. From the above it follows the criterion maintained by this Institute and expressed through consultation, that the daily book of the participant will include the operations carried out by the UTE (the recording of the operations will be carried out in the daily book). on a daily basis, or by means of a joint record of periods not exceeding the month, in accordance with Article 28.2 of the Trade Code) in the proportion to which it corresponds, so that the annual accounts of the participating Member contain the assets, liabilities, income and expenses that correspond to the UTE. As a result, the UTE does not make annual accounts for commercial purposes, without prejudice to the fact that other legislation, such as tax legislation, may impose certain accounting obligations on them; however, a adequate internal control will lead to the use of the relevant records in the form of records, which may be made in a manner similar to the bookkeeping books which are compulsory for undertakings.

This Resolution, taking into account the above, does not regulate the way in which the tax effect is recorded in the UTE, since, since it is not required to make annual accounts, it should refer to the 'auxiliaries' to which it has been mentioned, and in which it would produce a register similar to that set out in this Resolution for economic interest groups.

The fifth standard collects the accounting of tax expense derived from the tax transparency regime that must be made by the residents or members of the transparent entities.

The resident partners of the transparent companies shall account for the tax expense derived from the imputation of taxable bases, in accordance with their nature, in the exercise that is fiscally imputable; the amount of the The tax base charged, in general, could be treated as a temporary difference. However, this treatment leads to a number of difficulties which, although they have specific solutions, may lead to an excessive complication in the accounting record to be carried out by partners.

This accounting record requires, first of all, the exact quantification of the time difference, which in turn requires information on the permanent differences that may exist in the determination of the base. (a) taxable persons in a transparent company, since the existence of permanent differences in the transparent company determines that these differences must also be considered by the partner-partner, thereby altering the amount of the the time difference that occurs in the partners as a result of the base imputation taxable. Secondly, it will be necessary to verify compliance with the requirements necessary for temporary differences to result in the accounting of advance taxes, taking into account the uncertainty that may occur in many cases over the reversal of such temporary differences.

For the purposes of quantifying the time difference, the following situations may occur:

That the net balance of the permanent differences increases the positive accounting result of the transparent society and that, therefore, the expense of the Company Tax on the partner in the amount corresponding to the " This would require the partner to treat only that part of the tax base which does not correspond to the permanent differences as a temporary difference.

That the net balance of the permanent differences eliminates the negative accounting result of the transparent society, producing a positive tax base, which will increase the corporate tax expense of the partner in the amount corresponding to the taxable amount charged. In this case, the partner could not consider that there is a temporary difference.

That the net balance of the permanent differences decreases the positive accounting result of the transparent society, minoring the partner's Company Tax expense in the amount corresponding to them; in this case the time difference to be considered by the partner shall be that which corresponds to the said accounting result, without being reduced by the permanent differences to be considered. A different situation is whether these permanent differences result in a negative tax base, in which case only the amount of the net balance of the same could be taken into account to match the tax base.

The reversal of the temporary differences thus quantified will occur in general when dividends are distributed by the transparent company, or when the shares in the capital of the company are sold.

When the necessary requirements are not met, it is generally stated in this Resolution, that the temporary differences will result in the accounting of the anticipated taxes, they will not be able to register (i) the introduction of a new system of taxation in the field of public services, which is a matter for the Member States.

For all of the above, this Resolution specifies rules that allow to avoid the difficulties described above, by configuring the imputation of the tax base as a temporary difference only in certain cases. It has been decided, in short, for a simpler treatment and in line with the business reality, establishing that the partners of transparent companies must include in the scheme of calculation of the Corporate Tax the tax base imputed by the transparent company as a permanent difference in the exercise that is fiscally attributable, and in the event that there is evidence that part of it is to be distributed as a dividend, or the participation in the capital in the short term, the corresponding advance tax will be recorded, all without prejudice to the fact that the companies which consider it are able to carry out their accounting records in accordance with the above, with strict application of the principles of prudence and uniformity. In any case, the criteria used must be indicated in the memory.

For the accounting record of holds, fractional payments, income to account and satisfied shares that transparent companies impute to their partners, this Resolution provides that their amount will decrease the tax due as expenditure by the partner in the year in which they are charged. The tax deductions and benefits charged to the partners must be treated in the same way as the one provided for in general in the General Accounting Plan and in this Resolution for deductions and bonuses.

In this rule, the characteristics of the taxation of economic interest groups and of the Temporary Unions of Companies have also been collected from the perspective of the partners and participants, respectively, of the entities. Finally, the issue of international tax transparency is also covered.

It also addresses this Resolution in its sixth norm the issue of the regime of the groups of societies, establishing the way of determining for the societies that form the tax group the expense for the Tax on Societies that must record each of them. It is known that a consolidation is to be carried out for the determination of the consolidated tax base of the said tax. The elimination of "intra-group" results practiced in this process will produce, within the scheme of calculation of the tax expense on accrued societies, either temporary differences, or permanent differences (as is the case for certain dividends distributed among group companies), which will have to be taken into account in order to determine the correct registration of the tax in the companies belonging to the tax group.

This Resolution is pronounced by accounting in the annual accounts of each company, of which the tax group makes up, the tax due in accordance with the tax characteristics imposed by the said regime. Therefore, each company member of the group will quantify the tax that would have been imposed under the individual declaration corrected according to the company group scheme.

Regarding the deductions and bonuses applied in the liquidation of the tax, the resolution establishes that the same will be computed in any case by the society that, according to the rules of the tax, obtain the returns or perform the necessary activity so that the deduction or bonus can be practiced. Other options have thus been discarded, among which it is possible to mention in accounts the increase in deductions from the group of companies, the company that provides the conditions for increasing the limits of the necessary to exercise the right to deduct.

This rule has practically maintained the wording contained in the Resolution of 30 April 1992, although the consideration has been removed that the tax rules may lead to a different distribution of the tax burden than that which results from the accounting rules. In this respect, it is noted that the Tax Administration has considered that by not establishing Law 43/1995 any specific regulation, on the way to determine the credits and debits that arise between the societies of the group by the application of the tax effect, the accounting criteria for this matter shall apply in accordance with the provisions of Article 10 (3) of that Law.

The seventh standard deals with the case of taxes on profits earned abroad by those companies whose activity is developed outside the national territory. To this end, it provides, in order to obtain adequate information, that these amounts appear in the profit and loss account under 'Other taxes'.

The eighth standard provides for the aspect relating to regulatory changes that affect the tax rate, known before the annual accounts are drawn up, by establishing that, if this is the case, the tax rate is to be adjusted. amounts of the advance and deferred taxes, as well as the claims for negative tax bases, at the time they are notified.

An issue that has raised doubts, and about which this Institute has already been expressed, is the one concerning the record of the minutes that, on the Tax on Societies, the Tax Administration can initiate with the procedures for the verification and investigation of taxes, in accordance with the ninth standard, the registration of contingencies arising from this tax, taking into account the nature of each of its components.

Finally, given the changes introduced in Law 43/1995, in the tax transparency regime, it has been necessary to deal with the 10th standard, the accounting solution of certain aspects.

Both the adaptation to the new regulation of the tax transparency regime, as well as the possible change of a transparent society to the general taxation regime, will entail the registration of the corresponding taxes anticipated, deferred and credits for compensation of negative taxable bases. It has also been collected, in relation to the quantification of the credits and debits derived from the tax effect, the peculiarity laid down in the transitional provision twenty-second of Law 43/1995 on the rates applicable to the transparent companies during the transitional period included in the transitional period.

According to the foregoing, taking into account the current tax regimes, for reasons of opportunity, and pursuant to the final disposal of Royal Decree 1643/1990 of 20 December 1990, for which the approves the General Accounting Plan, as well as Article 2 of Law 19/1988, of July 12, of Audit of Accounts, this Institute of Accounts and Audit of Accounts gives the following Resolution:

First. -Application of the principle of prudence.

1. The advance and deferred taxes, and the tax credits arising from the application of the sixteenth valuation standard of the fifth part of the General Accounting Plan, shall be accounted for in accordance with that rule and with the content of the Resolution.

2. For application of the principle of prudence, deferred taxes shall be the subject of accounting in any event. The amount shall be determined by the application of the tax rate of the financial year on the difference, for each transaction, between the tax base and the pre-tax accounting result which reverts to future periods.

3. The claims for compensation of negative taxable bases and the advance taxes shall be counted only to the extent that they have a certain interest in the future tax burden, taking into account that the annual accounts they must show the true image of the assets, the financial situation and the results of the company. Therefore, if there are doubts about their future recovery, by application of the principle of prudence, they should not be recorded in the annual accounts as such, and in no case should they be recorded in the asset and correct their valuation by the provision of provisions.

In view of the above, the amount corresponding to the said assets will be determined, in general, by the application of the tax rate of the financial year on the difference, for each transaction, between the tax base and the pre-tax accounting result that reverses in future periods if this is an advance tax, or the amount of the negative tax base if it is a credit for negative taxable base compensation.

4. The claims resulting from the compensation of negative taxable bases shall be the subject of an accounting record only where the negative tax base has been produced as a result of an unusual occurrence in the management of the undertaking, provided that It is reasonable to consider that the causes that originated have disappeared at present and that tax benefits are to be obtained that will allow their compensation in a period not exceeding that provided for in the tax legislation for the compensation of the negative tax bases, i.e. seven years on a general basis, and with a maximum limit of 10 years, from the date of the end of the financial year in cases where the tax law allows the compensation to be offset in higher instalments.

5. In the event that the credit for negative taxable bases had been generated in a previous year, it would not have been the subject of an accounting record as an asset because the negative tax base was produced as a result of a (a) to be used for the purposes of the management of the undertaking, or because it cannot be considered that the causes which originated it, without prejudice to the necessary information in the memory, may only be the subject of an accounting record in the year in which it is produced; the effective compensation of the negative tax bases, unless there is a prior exercise clear evidence that the company is on a profit path that would ensure the compensation of the negative tax base.

If a credit for negative taxable bases was not the subject of an accounting record as an asset as a result of its future recovery in excess of ten years, and provided that the tax legislation (a) allow for the compensation to be paid, shall be the subject of an accounting record in the first financial year in which the future recovery period does not exceed 10 years from the date of the end of the financial year.

The flowering of the tax credit, in a subsequent year to which it originated, will result in a reduction of the corporate tax expense in the profit and loss account, for which the account 638. "Positive adjustments in the tax on benefits" provided for in Part Two of the General Accounting Plan.

If the adjustment to which the reference has been made is significant, it shall be reflected in the profit and loss account by breaking down the corporate tax expense, so that the expenditure incurred is reflected separately. in the exercise and the one derived from negative taxable bases of previous years.

6. An accounting record shall be the subject of advance taxes only if a reasonable estimate of the company's evolution indicates that the latter may be subject to future recovery.

It will be assumed that the future realization of the anticipated taxes is not sufficiently assured, among others, in the following cases:

When it is expected that its future reversal will occur within a period of more than ten years, counted from the date of the close of the financial year.

In the case of companies that are typically generating losses, therefore the reversal of the advance tax cannot be reasonably foreseen.

7. By way of derogation from the preceding number of this rule, any advance tax which exceeds the stated time limit may be entered in the accounts where the following two circumstances are met:

That the amount of deferred taxes is equal to or greater than the anticipated taxes.

The deferred tax reversal deadline is equal to that of the anticipated taxes.

8. If an advance tax was not the subject of an accounting record as an asset as a result of the company's loss of business usually, without prejudice to the necessary information in the memory, it may only be the subject of an accounting record in the the exercise of the effective reversal of the advance tax, unless there is clear evidence in a previous financial year that the company is on a profit path that would ensure the reversal of the advance tax.

If an advance tax was not the subject of an accounting record as an asset as a result of its future reversal within a period of more than ten years and the circumstances set out in paragraph 7 above were not met. this rule shall be the subject of an accounting record in the first financial year in which the time limit for future reversal does not exceed 10 years from the date of the end of the financial year, or the situation referred to in paragraph 7 of this rule occurs.

When circumstances are necessary to record an advance tax produced in a previous financial year, and which was not the subject of an accounting record in accordance with the criteria set out in the General Accounting Plan and in this Resolution, the advance tax will result in a reduction in the share of corporate tax expense in the profit and loss account, for which account 638 may be used. "Positive adjustments in the tax on benefits" provided for in Part Two of the General Accounting Plan.

If the adjustment to which the reference has been made is significant, it shall be reflected in the profit and loss account by breaking down the corporate tax expense, so that the expenditure incurred is reflected separately. in the financial year and the one derived from advance taxes from previous years.

9. The quantification of credits and debits arising from the tax effect on small-scale entities, which under the tax legislation should be taxed at a rate of charge for the first tranche of the tax base and other types of tax The tax rate for the remainder of the tax base shall be applied by applying the rate corresponding to the first tranche and taking into account the provisions of the preceding numbers of this standard.

However, if the estimate of the overall situation of the tax effect of the company resulted in a possible higher debt for corporate tax, for which the average rate of charge will be taken into account, it shall provide a provision for risks and expenses for that estimated amount, under a corporate tax expense item, for which account 633 may be used. 'Negative adjustments to the taxation on profits' contained in the second part of the General Accounting Plan.

This provision shall be included in item C. 2 "Provisions for taxes" of the liability of the balance sheet, or in an item in the group F "Provisions for short-term risks and expenses", which shall be created for the purpose of the balance sheet liability if the maturity of this provision is lower than the year. Account 141 may be used for this purpose. "Provision for taxes" provided for in the second part of the General Accounting Plan.

In turn, the excesses that can be evidenced in this provision for risks and expenses will result in a reduction in the corporate tax expense item, for which account 638 may be used. "Positive adjustments in the tax on benefits" provided for in Part Two of the General Accounting Plan.

10. If the accounting of the tax effect produces deferred, anticipated or credits for compensation of negative taxable bases, whose reversal or cancellation is to be produced in the long term, they may be used for their registration accounting the following accounts:

For deferred taxes, account 4791. "Long-term deferred benefit tax", or accounts created for the purpose in subgroup 42 of the General Accounting Plan.

These accounts shall be on the liabilities side of the balance sheet, item D. IV. 'Other creditors', under the heading 'long-term public administration', to be created for that purpose.

For pre-tax or loss credits to offset, respectively, the 4741 accounts. "Long Term Advance Benefit Tax" and 4746. "Credit for losses to compensate for the ... long-term exercise", or alternatively, account of subgroup 45 of the General Accounting Plan.

These accounts shall be included in the balance sheet asset under item B. IV. 'Financial assets' means a 'long-term public administration' that will be created for the purpose.

11. Companies will have to report in the section on the "tax situation" of the memory, about any substantive circumstances regarding their fiscal situation and, in particular, in addition to the indications that they are from agreement with the provisions of the commercial law, in the General Accounting Plan and in other rules of this Resolution, shall include duly justified information on:

The treatment applied to the advance taxes and credits for compensation of negative tax bases in the Company Tax, and on the circumstances that motivated or not the registration of the same in the asset of the balance.

Amounts of advance taxes and claims for compensation of negative taxable bases not recorded on the assets of the balance sheet, indicating, where appropriate, the time and the conditions to be able to do so.

When an advance tax or credit for a negative tax base, which from a previous year has not been the subject of registration, occurs, it shall be reported on the circumstances of the said financial year. (a) in respect of existing at the time when the above assets were not recorded on the balance sheet.

Tax expense incurred in the financial year and resulting from previous financial years, and will be appropriately detailed, provided that they are significant, the amounts of deferred and anticipated taxes that revert to the financial year. exercise and those which revert to the following, as well as the claims for negative taxable bases which are offset in the financial year.

Second. -Permanent Differences.

1. The differences of a permanent nature between the accounting result before tax and the tax base of the Company Tax will change the basis of calculation and, consequently, the amount of tax due in the year in which the tax is paid produce.

2. By way of derogation from the preceding number of this rule, where permanent differences result in a minorisation of expenditure due to corporate tax, such a reduction may be subject to a period of time in the annual accounts.

The indicated amount will be made, if any, by correlating the reduction of the expense of the Company Tax with the depreciation of the asset that motivated the permanent difference.

3. In order to carry out the period referred to in the preceding number of this rule, the item 'Tax revenue to be distributed in several financial years' shall be created as part of the balance sheet liabilities ' B) Revenue to be distributed in several "exercises", the assessment of which and the allocation of results will be consistent with the provisions of the General Accounting Plan for non-reintegrable grants. Account 137 may be used for this purpose. "Tax revenue for permanent differences to be distributed in several years", the movement of which shall be:

(a) The account shall be paid out of the account 630 for the amount of the tax effect of the permanent differences to be charged in several financial years.

(b) The portion of the item for which the financial year is charged shall be charged to the account (630).

4. Paragraph 4 of the models of memory contained in the General Accounting Plan shall be reported on the criteria used for the period of time required in the preceding numbers of this standard, both in the year in which the data are produced. permanent differences as in subsequent years until the end of their period of time. In addition, the memory shall be reported on any circumstances of a substantive nature in relation to the reported occurrence in this standard, which shall be included in the section for the "Tax situation".

Third. -Deductions and quota bonuses.

1. The deductions from the tax incentive fee and the Corporate Tax bonuses applied in the statement for such a tribute are the result of the expense incurred, receiving treatment similar to that of the permanent differences.

2. By way of derogation from the preceding number of this rule, a reduction in the amount of expenditure due on corporate tax resulting from deductions and allowances in the quota may be subject to a reasonable period of time. excluding deductions and payments on account.

3. Only deductions and allowances from the tax levy applied in the declaration for the financial year in question may be considered as a period of time.

4. The period referred to in the preceding numbers shall be carried out, where appropriate, by correlating the deduction or allowance corresponding to the depreciation of the asset in question.

5. In order to carry out the period referred to in the preceding numbers, the item 'Tax revenue to be distributed in various financial years' shall be created in the balance sheet 'B) Revenue to be distributed in several financial years'. The allocation of results will have to coincide with the provisions of the General Accounting Plan for non-reintegrable grants. To do this, account 138 may be used. "Tax income from tax deductions and allowances to be distributed in various financial years", the movement of which shall be:

(a) The account shall be paid out of the account 630 for the amount of the deductions or bonuses to be charged in various financial years.

(b) The portion of the item for which the financial year is charged shall be charged to the account (630).

6. Paragraph 4 of the memory models contained in the General Accounting Plan shall be reported

on the basis of the criteria used in the forecast of the preceding numbers of this standard, both in the year in which the corresponding deductions and bonuses are produced and in subsequent ones until end your reification. In addition, the memory shall be reported on any circumstances of a substantive nature in relation to the reported occurrence in this standard, which shall be included in the section for the "Tax situation".

Fourth. -Entities in the tax transparency regime.

4.1 General rules. -1. The accounting record of the tax effect on entities that are fiscally rated as transparent shall be performed in accordance with the general rules contained in the General Accounting Plan and in this Resolution, without prejudice to the Specific specificities of the following numbers of this standard. The accounting criteria applicable by the resident partners or members of the entity under tax transparency are regulated in the fifth standard of this Resolution.

2. The amount of the amounts withheld, instalments and income on account of the transparent entities, as well as in cases where these entities are partners of other companies subject to the tax transparency regime, of the quotas (a) to be satisfied by the latter to the transparent entity, which exceeds the amount resulting from the payment of the full amount of the tax on the deductions and allowances corresponding to it, as it is not directly recovered by the company in question; the party attributable to the partners who are to bear the imputation of the positive tax base, shall be considered to be a tax-related expenditure, which shall be included in the item 'Other taxes' in the profit and loss account. The account provided for in paragraph 4.4 of this standard may be used for its accounting record.

3. In the case of the annual accounts, in the section corresponding to the "fiscal situation", transparent entities, in addition to the information provided for in the commercial legislation, in the General Accounting Plan and in other rules of this Resolution, must include information about the applicable tax transparency regime and the imputation to its partners of the taxable bases, deductions and bonuses in the quota, retentions, fractious payments, income to account, quota satisfied by the transparent company, as well as the quotas which had been imputed to the said company entity.

4.2 Special rules applicable to economic interest groups. -1. The tax effect produced in the economic interest group on the part of the tax base of the company tax charged to the members shall be recorded in accordance with the following: the amount of the amounts withheld and the income from economic interest groups and quotas charged to those entities, which may not be directly recovered by the group, shall be considered to be a tax-related expenditure which shall be included in the item "Other taxes" of the profit and loss account. The account provided for in paragraph 4.4 of this standard may be used for its accounting record.

2. In the event that a grouping of economic interest is taxed, in part, by the Company Tax, the accounting record of the tax effect arising from such taxation shall be carried out in accordance with the general rules contained in the General Accounting Plan and in this Resolution.

If the proportion of the tax base for which the corporation tax is subsequently altered, an adjustment shall be made, where appropriate, in the amounts of advance or deferred tax or credit. for compensation of negative taxable bases. These adjustments shall be included in the 'Company Tax' item of the profit and loss account. For these purposes, the accounts provided for in paragraph 4.4 of this Standard may be used.

3. In the case of the annual accounts, in the section corresponding to the 'tax situation', the economic interest groups, in addition to the information provided for in the trade legislation, in the General Accounting Plan and in other rules of This Resolution shall include information on the applicable tax transparency regime and on the allocation to its partners of the taxable bases, deductions and allowances in the quota, withholding, income on account, as well as of the quotas which have been imputed to these entities.

4.3 Special rules applicable to the Temporary Unions of Enterprises. -According to the Orders of the Ministry of Economy and Finance of 27 January 1993 and 28 December 1994, for which the rules of adaptation of the General Accounting Plan to construction companies and real estate companies, respectively, each company participating in a temporary union, shall record the operations carried out by the latter in the percentage of its participation, resulting in your balance sheet and your profit and loss account picking up the proportional to the assets, liabilities, revenue and expenditure of the temporary union corresponding to its share of participation, after the corresponding homogenizations and eliminations indicated by the aforementioned rules, it is apparent that the tax effect produced in the UTE will be recorded by the members of the same.

4.4 Accounts to be used. -The account of the General Accounting Plan number 632 is developed, the denomination of which is:

632. "Transparent entities, tax effect".

6320. "Amounts to account not recoverable by transparent entities".

Collects the amounts withheld, fractional payments, income on account and the shares charged to the transparent entities, which exceed the amount resulting from the minoring of the full tax on deductions and the corresponding bonuses, which cannot be the subject of direct recovery by these entities.

It will appear in the "Other taxes" item of the profit and loss account.

Your move is as follows:

(a) It shall be charged for the withholding, fractional payments, income to account and non-recoverable fees directly from the Public Finance, with credit of account 4732. "Public Finance, debtor with transparent entities", to be opened in account 473. "Public finance, withholding and payments on account".

(b) The account shall be credited to the account 129. "Losses and gains".

6321. "Amounts to account not recoverable by economic interest groups".

Collects the amounts retained and income on account of the economic interest groups and quotas charged to these entities, which cannot be directly recovered by the group.

It will appear in the "Other taxes" item of the profit and loss account.

Your move is as follows:

(a) It will be charged for withholding and income from non-recoverable directly from the Public Finance, with credit to the account 4732. "Public Finance, debtor with transparent entities", to be opened in account 473. "Public finance, withholding and payments on account".

(b) The account shall be credited to the account 129. "Losses and gains".

6323. "Negative adjustments in taxation on transparent entities".

Amount of the decrease adjustments, known in the financial year, to the advance tax or the tax credit for losses to compensate or increase, equally known in the financial year, deferred tax, in the entities transparent.

The profit and loss account shall be included in the item "Company tax".

Your move is as follows:

(a) The amount of the adjustments will be charged, with credit to the representative accounts of anticipated, deferred or credit losses to be offset, as appropriate.

(b) The balance shall be paid at the end of the financial year in charge of account 129. "Losses and gains".

6328. "Positive adjustments in taxation on transparent entities"

Amount of increase adjustments, known in the financial year, to the advance tax or loss tax credit to compensate or decrease, equally known in the financial year, deferred tax, in institutions transparent.

The profit and loss account shall be included in the item "Company tax".

Your move is as follows:

(a) It shall be paid for the amount of the adjustments, payable to the representative accounts of anticipated, deferred or credit-for-loss taxes to be offset, as appropriate.

(b) The balance shall be charged at the end of the financial year with credit to account 129. "Losses and gains".

Fifth. -Partners or unit-holders of the entities in tax transparency.

5.1 General rules. -1. The accounting record of the tax effect on the partners or members of the entities in tax transparency shall be carried out in accordance with the general rules contained in the General Accounting Plan and in this Resolution, with the specific specialities as set out in the following paragraphs of this rule.

2. The taxable bases which the transparent entities impute to the partners, will be treated by them, in the exercise that they are fiscally attributable, as a permanent difference in the calculation of the expense accrued by Tax on Companies, except for the part of the tax base which at the time of the imputation is provided for, or will be distributed as a dividend in the short term or is expected to revert in the short term by the disposal of the shares, reflecting in these cases as a temporary difference.

3. Notwithstanding the foregoing, the partners may, where appropriate, reflect the tax base charged by the transparent entity as a temporary difference, applying the general criteria set out in the General Accounting Plan and in the present Resolution, and bearing in mind the principle of uniformity, so that an option is maintained over time and with respect to the different entities in the tax transparency regime in which they may participate.

4. The withholding, fractional payments, income to account and the fees paid to the members, coming from the transparent entity will be treated contacably as a minorar of the Tax on the accrued societies in the exercise, being able to use the account 638 for this purpose. 'Positive adjustments in the tax on profits', as provided for in Part Two of the General Accounting Plan, under consideration 4732. "Public Finance, debtor with transparent entities", which will be opened within the account 473. "Public finance, withholding and payments on account".

5. The deductions and bonuses that the transparent entities impute to the partners-partners, will be treated by these as the rest of deductions and bonuses to which they are entitled, in accordance with the provisions of the General Plan of Accounting and in this Resolution.

6. The companies will have to report in the memory, in the section corresponding to the "Fiscal situation", about the imputations of the taxable bases, deductions, bonuses, retentions, payments fractious, income to account and quotas satisfied (a) to be charged to the entities under tax transparency, and shall also include the accounting result and the reconciliation with the tax base of the latter.

5.2 Special rules applicable to members of economic interest groups. -1. The shareholders of the economic interest groups shall apply the accounting criteria laid down in the preceding paragraph of this rule in a general manner, although, since those entities are not taxed on the company's corporate tax. The tax base of the members resident on Spanish territory, and therefore these entities have not satisfied any shares in the company tax for that part of the taxable amount, will not be imputed to be carried out by that concept.

2. If necessary, the imputation of negative taxable bases in the partner-partner will be treated contably as a minorage of the Corporate Tax due in the year, being able to use the account 638. 'Positive adjustments in the tax on profits', as provided for in Part Two of the General Accounting Plan, under consideration 4745. 'Credit for loss to compensate for the financial year ...'; in any case, the accounting records of these claims shall meet the criteria set out in the first standard of this Resolution.

3. The companies must report in the memory, in the section corresponding to the "Tax situation", about the imputations of the taxable bases, deductions, bonuses, retentions and income to account imputed from the interest groups (a) the economic and monetary policy of the Member States, and the amount of the financial contribution to be paid to them, shall include the accounting result and the reconciliation with the tax base of the latter.

5.3 Special rules applicable to members of temporary joint ventures. -1. Members of the Temporary Business Unions shall record the tax effect arising from the integration of the various assets, liabilities, income and expenses of the temporary union in accordance with the general rules contained in this Resolution, taking into account the charges resulting from the tax transparency, the circumstances in the temporary union in relation to the differences which may exist between the accounting result and the tax result, as such; as between the Corporation Tax to be paid and the expense for that tax.

2. The companies must report in the memory, in the section corresponding to the "Tax situation", about the imputations of the taxable bases, deductions, bonuses, retentions and income to account imputed from the Temporary Unions of Companies will also include the accounting result and the reconciliation with the tax base of the latter.

5.4 International tax transparency. -1. Companies that, in accordance with the rules of international tax transparency, include in their tax bases positive income obtained by non-resident entities in Spanish territory, will treat the tax effect derived from such income in the form set out in paragraph 5.1 (2) of this rule. For their part, the deductions from the quota to which they are entitled will follow the general treatment set out in the third standard of this Resolution.

2. Companies will have to report in the memory, in the section corresponding to the "Tax situation", about the positive income obtained by non-resident entities in Spanish territory included in their taxable bases, as well as the deductions which are derived from being entitled.

Sixth. -Companies that are taxed on the basis of the groups of companies.

1. The expenditure incurred by corporation tax which must appear in the profit and loss account of a company, individually considered, which is taxed on the basis of the company groups, shall be determined taking into account, in addition to the parameters to be considered in case of individual taxation, the following:

(a) The temporary and permanent differences resulting from the elimination of results derived from the process of determining the consolidated tax base.

(b) The deductions and bonuses corresponding to each company of the tax group in the group of companies; for these purposes, the deductions and bonuses shall be charged to the company which carried out the activity or obtained the necessary performance to obtain the right to the tax deduction or bonus.

All of the above will be done in accordance with the following number of this rule.

2. For the calculation of the corporate tax expense and other measures relating to the tax effect of each of the companies that are taxed under the corporate group, the following rules apply:

2.1 Temporary differences. -If as a result of the elimination of results for the determination of the consolidated tax base, a difference in the recognition by the group of results is produced as long as they are not in respect of third parties or, where appropriate, the valuation corrections relating to the investment in the capital of a group company, shall arise for the company which has entered into the accounts such result, or, where appropriate, an endowment, a a temporary difference, the accounting record of which shall be in accordance with the general rules; You can use the following accounts for this:

4748. "Early benefit tax from intra-group" operations. "

4798. "Profit tax deferred by intra-group" operations. "

Long-term accounts shall be used in the event that the reversal of the temporary differences occurs over a period of time exceeding the year from the date of the close of the financial year, as set out in point 10. of the first rule of this Resolution for the general regime.

2.2 Permanent Differences. -Yes as a consequence of the elimination of dividends distributed between companies in the tax group and other results for the determination of the consolidated tax base by transactions made between companies that form the group for tax purposes, a non-reversible difference occurs, and therefore permanent, it will arise for the society that had counted or corresponding the result a permanent difference with respect to the base imputable which would have resulted in individual declaration procedure, and its registration the accounting officer shall be made in accordance with the general rules.

2.3 Negative taxable bases.

2.3.1 If a company in the group for tax purposes, taking into account the above, is in the exercise of a negative tax result, equivalent to a negative tax base, and the set of companies which the group compensates all or part of it in the consolidated statement of the Corporate Tax, the accounting of the tax effect shall be carried out as follows:

For the part of the negative tax result offset, a reciprocal credit and debit will emerge, between the society to which it corresponds and the companies that compensate it.

For the part of the negative tax result not compensated by the companies of the group, the company to which it corresponds will account for a credit if it is reasonably expected that the tax group as a whole will generate in the future positive fiscal results, as provided for in the first standard of this Resolution. For these purposes, account 4749 can be used. 'Credit for losses to be offset by consolidated statement of the financial year ...'. Where the compensation is to be made in the long term, it shall be recorded, where appropriate, in the accounts of the long term as set out in point 10 of the first standard of this Resolution.

2.3.2 In the case of negative taxable bases produced prior to consolidated taxation, the requirements for the accounting reflection of the tax credit derived therefrom, established for the companies Individually considered in point 4 of the first standard of this Resolution, it will be necessary to add that the group for tax purposes can compensate them.

2.3.3 The tax credit as a result of the tax loss compensation will be calculated by applying the corresponding tax rate to the negative tax base.

2.4 Deductions, bonuses, holds and income on account.

2.4.1 The deductions and allowances of the Company Tax quota will affect the calculation of the tax due in each company for the actual amount of the same that is applicable in the scheme of the companies and not for the amount, lower or higher, which would correspond to each company under individual taxation.

2.4.2 For the purposes of the preceding paragraph, the deductions and allowances of the quota applied in the group of companies shall be attributed to those companies which have carried out the activity or obtained the performance which originate them.

2.4.3 The amounts of income on account of the Company Tax, including withholding taxes, shall be charged to the company that has actually incurred them.

2.4.4 If, as a result of the foregoing, the sum of deductions and bonuses applied to a company produces a "fee" with negative amount, this amount will be taken into account to determine the mutual credit or debit between the company and the other members of the tax group.

3. The claims for compensation of negative taxable bases and the advance taxes shall be the subject of an accounting record in accordance with the principle of prudence in the terms laid down in the first rule of this Resolution, and provided they can be effective by the set of companies forming the group set up for the purposes of the corporate group scheme of corporate tax.

4. If, as a result of the private-law relations between the companies of the tax group, the distribution of the tax burden does not coincide with that resulting from the application of this rule, the difference for each company will be treated in such a way as to the company that undermines its tax burden will pay a credit to an account of extraordinary income from a credit account in front of the company that increases its tax burden; for its part the company that increases its tax burden, will charge a (a) account of extraordinary expenses with credit to a creditor account in respect of the company that decreases its tax burden.

5. The reciprocal credits and debits as a result of the operations described in paragraphs 2.3 and 2.4 above, as well as those generated, where appropriate, for each company by the apportionment of the tax burden, may be entered in the accounts, expiration, in the following accounts:

1608. "Long-term debts to group companies by tax effect".

2448. "Long-term credits with group companies for tax effect".

5108. "Short-term debts to group companies by tax effect".

5348. "Short-term credits with group companies for tax effect".

6. Each company in the tax group must include in the memory, in the section corresponding to the "Tax situation", in addition to the indications that are obtained in accordance with the provisions of the commercial legislation, in the General Plan of Accounting and other rules of this Resolution, any circumstance relating to this special tax regime, indicating in particular:

Permanent and temporary differences arising as a result of this special arrangement, indicating for the temporary the exercise in which they originate, as well as the reversal produced in each financial year.

Compensation of negative tax bases resulting from the application of the corporate group scheme.

Breakdown of the most significant credits and debits between companies in the group as a result of the tax effect generated by the group of companies.

Seventh. -Foreign taxes of a similar nature to Corporate Tax.

1. The costs incurred by tax on profits in foreign tax systems having the same nature as the Spanish company tax, taking into account in any case the "double taxation agreements", will be recorded as the same way as the expense accrued by Corporate Tax. Account 635 may be used for registration. 'foreign profit tax', the movement of which shall be similar to that provided for in the General Accounting Plan for account 630, the necessary breakdowns in the counterpart accounts. The tax payable for this concept shall be included in the item "Other taxes" of the profit and loss account.

2. Companies subject to taxation abroad will have to report in the memory, in the section corresponding to the "Tax situation", on foreign taxes that tax the benefit of the company, indicating under the tax applicable as many circumstances affect the company's annual accounts, using the same information scheme provided for the Spanish company tax on the memory models included in the fourth part of the plan General Accounting.

Eighth. -Acount after closing.

Any change known prior to the formulation of the annual accounts that has an impact on the accounting of the tax effect must be taken into account for the quantification of the tax expense on accrued societies. In particular, the variation in the rate of taxation before the annual accounts is made, the amount of the advance and deferred taxes as well as the credits derived from taxable bases shall be adjusted in such annual accounts. negative.

Ninth. -Registration of contingencies arising from the Corporate Tax.

1. In accordance with the principle of prudence laid down in the first part of the General Accounting Plan, fiscal contingencies, whether or not they arise from an inspection report, must be carried out in the financial year in which they are provided, the corresponding allocation to the provision for risks and expenses for the estimated amount of the tax liability.

2. The provision for risks and expenses referred to in the preceding number or, where appropriate, in the case of certain amounts, the debt to the Public Finance, shall be recorded in respect of the concepts of expenditure corresponding to the various components that integrate it.

This provision shall be included in item C. 2 "Provisions for taxes" of the liability of the balance sheet or in a group item F "Provisions for short-term risks and expenses" which shall be created for the purpose of the balance sheet liability if the maturity of this provision is lower than the year; where appropriate, the debt referred to above shall be less than one year and shall be included in the heading 'General government' under the heading E. V 'Other non-commercial debts' of the liabilities of the balance sheet, whereas if the debt to the public treasury has a maturity of more than one year, it shall be included in the 'long-term public administration' shall be set up for the purpose under item D. IV 'Other creditors' of the liability. For the accounting record of the provision and the debt referred to above, account shall be used, respectively, of account 141. "Provision for taxes" and 4752. "Public Finance, creditor by corporation tax", provided for in the second part of the General Accounting Plan.

The record of the transactions arising from the previous paragraph shall be made by reference to the profit and loss account models contained in the fourth part of the General Accounting Plan, according to the following:

The Company Tax quota will be collected as an expense for the profit tax year, and will be included in the "Corporate Tax" item, as part of the section VI. 'Result of the financial year'. To this end, account 633 may be used. 'Negative adjustments to the taxation on profits' contained in the second part of the General Accounting Plan.

The interest for the current financial year shall be counted as a financial expense, which shall be included in the item "Financial expenses and related expenses", as part of heading II. "Financial results". To this end, the accounts of the subgroup 66 corresponding to the second part of the General Accounting Plan may be used.

The interest for earlier financial years shall be considered as expenditure of previous years and shall be included in the item "Expenditure and losses of other financial years", as part of heading IV. "Extraordinary results". Account 679 may be used for this purpose. "Previous financial expenses and losses" contained in the second part of the General Accounting Plan.

The penalty will produce an expense of extraordinary nature, which will be included in the item "Extraordinary expenses", as part of item IV. "Extraordinary results". To this end, the account 678 may be used. "Extraordinary expenses" contained in the second part of the General Accounting Plan.

Excesses that can be made manifest in the provision for risks and expenses referred to, will assume a charge in the same with credit to the concepts of income that correspond; in particular, the excesses that In the case of a company, a reduction in the 'Company tax' item of the profit and loss account shall be incurred in relation to the concept of corporate tax expense, for which account 638 may be used. 'Positive adjustments to the taxation of profits' provided for in the second part of the General Accounting Plan; for their part, the excesses arising in relation to the concept of interest for earlier financial years shall be included in the item 'Income and benefits of other financial years' of the profit and loss account, for which account 779 may be used. 'Income and profits from previous years' contained in the second part of the General Accounting Plan; lastly, any excess which may be made manifest in relation to the concept of a penalty shall be included in the item ' Revenue (a) of the profit and loss account, for which account 778 may be used. "Extraordinary income" contained in the second part of the General Accounting Plan.

3. If the amount of corporate tax expense for previous years is significant, it shall be reflected in the profit and loss account by breaking down the corporate tax expense item, so that it is it reflects separately the expenditure incurred in the financial year and the expenditure arising from previous financial years.

4. In the memory of the annual accounts, in the section corresponding to the 'Tax situation', information on these situations should be provided, provided that it is significant, and in particular on the tax expense incurred in this case. exercise and the one derived from previous exercises.

10th. -Treatment applicable to the transitional tax transparency regime.

1. Companies which, in accordance with the tax rules prior to that laid down in Law 43/1995 of 27 December 1995 on Corporate Tax, would have been subject to the tax transparency regime, registered in the first financial year In the case of the Court of Justice of the European Parliament, the Court of Justice of the European Court of Justice of the European Court of Justice of the European Court of Justice of the European Union This Resolution.

The same criterion must be used for those companies which, in accordance with the rules of the Company Tax prior to that established in Law 43/1995 of 27 December, have been subject to the Tax transparency, and in the first entry into force of this Law, the system of taxation changes to the general scheme.

2. The quantification of the credits and debits derived from the tax effect during the period referred to in the transitional provision twenty-second of Law 43/1995 shall be carried out in accordance with the rate of charge for the financial year in question. that they are expected to reverse or to compensate. If the time of reversal or compensation is not known, the tax rate shall be applied to the general tax rate and to the advance taxes and credits for negative taxable bases, the lower tax rate among those for the foreseeable reversal or compensation exercises.

However, if, depending on subsequent circumstances, different amounts of deferred tax, pretax and credit are derived from taxable negative bases to those exposed, they will be charged or paid it corresponds to the accounts representative of them, with credit or charge to the accounts 6328. "Positive adjustments in taxation on transparent entities" and 6323. 'Negative adjustments to taxation in transparent entities', as provided for in the fourth standard of this Resolution.

3. Companies in the tax transparency system, in the section corresponding to the "fiscal situation" of the memory, must include information on any aspect of a significant nature that has an impact on the expenditure incurred by tax on Companies as a result of this transitional regime.

11th. -Repeal provision.

The Resolution of 30 April 1992 of the Institute of Accounting and Audit of Accounts on some aspects of the standard of assessment sixteen of the General Accounting Plan is repealed.

Madrid, October 9, 1997.-The President, Antonio Gomez Ciria.