We strongly believe that tax transparency is another important dimension of sustainable finance.
Disclosure of our tax strategy and the details of our tax contribution in the countries we operate in Central and South America, on the company website, underlines the importance that Enel Americas gives to tax issues, to their social role and in general to transparency as a factor that encourages sustainable development
Tax strategy objectives and principles
Enel Américas’ Board of Directors approved the Group's tax strategy, with the objective of ensuring that taxation is managed in a uniform way across all Company subsidiaries. Its objectives are:
1. To determine and liquidate taxes due in a correct and timely way, in accordance with the law and complying with corresponding obligations.
2. Manage tax risk, which is understood as the risk of incurring in any violation of tax regulations or abuse of the principles and purposes of the tax system. In turn, the strategy outlines the following principles as guidelines for Enel Américas and the different subsidiaries of the Group, to support their business activity and keep it consistent with the fiscal variable, adopting the appropriate processes to ensure their effectiveness and application:
• Values: The Company's tax management is aligned with the values of honesty and integrity, as the Company is aware that tax revenues are one of the main sources of contribution to the economic and social development of the countries in which it operates.
• Legality: The Company pursues a behavior oriented towards compliance with applicable tax regulations and is committed to interpreting them with respect to both form and substance.
• Tone at the top: The Board of Directors has the responsibility to lead a corporate culture based on the values of honesty and integrity, and the principle of legality.
• Transparency: The Company maintains collaborative and transparent relations with tax authorities.
• Shareholder value: Considers tax to be a business cost and, as such, believes that it should be managed in accordance with the principle of legality, with the objective of safeguarding the Group's assets and pursuing the overriding interest of creating value for shareholders in the medium and long term.
Enel Américas must respect the principle of legality, promptly applying tax laws to ensure that the applicable tax regulation or regime is fully respected. Likewise, Enel Américas does not engage in national or cross-border conducts or operations that result in purely artificial constructions that do not reflect the economic reality and from which it obtains undue tax advantages, coming in conflict with the purpose or spirit of the tax provisions or system in question.
The Company must respect the principle of legality and promptly apply the tax laws of the countries in which it operates to ensure that the wording, spirit and purpose of the applicable tax rule or regime is respected.
Starting from 2018, the Group presented the Country-by-Country Report (for the years 2016 and 2017) in accordance with the recommendations provided by the OECD in the Transfer Pricing Guidelines (the so-called "three-tiered approach", articulated in the Master File, Local File, Country-by-Country Report). The report shows the aggregated data, at Country level, of all the Group companies included in the scope of the CbCR legislation, among the others, revenues, profits (or losses) before income taxes, income taxes paid and accrued. This document, prepared by Enel SpA, is transmitted to the Italian Tax Authority and by this latter provided to the Countries with which an agreement for the exchange of information is in force.
Furthermore, as of 2018, Enel has adopted a Total Tax Contribution model for Italy and the main countries in which it operates, thus providing information on all the taxes paid (as its own cost or as a substitute for tax). The 2022 report of Enel Americas, available here, underlines the importance the Group ascribes to fiscal matters and their social role as a significant contribution to the communities in which it operates