Thursday, September 28, 2023

Banks and energy companies will pay the temporary tax after this week’s legal setback

Come on big banks and the most important Energy company They have until next Wednesday, September 20, to pay the second tranche of the extraordinary tax approved by the government after the court again rejected their precautionary suspension.

Between September 1st and 20th Large companies in these industries must meet these requirements the second payment of the new extraordinary taxes, after paying 1,454.5 million euros in the first period in February.

In this first payout According to the Ministry of Finance, the total was divided between the 817.4 million paid by the major energy companies and the 637.1 million paid by the banking sector.

When the tax was passed, the government had forecast it would raise $1.7 billion a year for the energy tax and $1.3 billion a year for the banks.

Legal setback for companies

It is second paid This comes after the national court ruled the same week temporarily suspend the extraordinary tax to the bank after rejection resources submitted by Bankinter, Kutxabank – through its subsidiary Cajasur – and Sabadell, on the assumption that this will not cause them serious harm or jeopardize their survival.

The court considers it a rejection of the stay does not represent irreparable damage, because if the appeal is finally allowed, the situation would be completely reversible by refunding the amount paid with the payment of the compulsory interest (making the necessary compensation).

This decision complements the decision of the same chamber last February in which it rejected Repsol’s request to suspend the tariff for energy companies.

Energy tax

Inside Energy sector The tax affects electricity, gas and oil companies They billed more than 1,000 million in 2019 and taxes sales at a rate of 1.2%, excluding regulated income and income outside Spain.

For this year, the energy companies Repsol, Cepsa, Naturgy, Iberdrola and Endesa have reserved almost 1.5 billion for the extraordinary tax.

The most affected was Repsol, which, due to its size in Spain, recorded the impact of the tax of 444 million as an expense on January 1, 2023 and now has to pay half, namely 222 million.

Next were Cepsa with 323 million for the whole year and Naturgy with an estimated around 300 million, while Iberdrola with 216 million and Endesa with almost 200 million were the least affected.

Bank tax

Inside Fall of the banks The rate taxes the interest margin and net commissions of the banking business in Spain at 4.8%, which the executive considers an extraordinary advantage due to the increase in interest rates in banks with a turnover of more than 800 million in 2019.

Since the Large companies do not comment neither on the decision of the regional court nor on the payment of the second tranche of tax, although sources in the industry assume that they will do so before the deadline.

In the case of CaixaBank, the amount announced last February totaled 373 million euros, half of which was paid out at the time, namely 186.5 million, the same amount that must be paid in this second installment, sources calculate.

Other companies such as Santander, BBVA and Bankinter will also make the second payment in these days, although they decided at the time to note the overall impact on the first quarter accounts. According to sources, Santander achieved 224 million; BBVA 225 million and Bankinter 77 million.

Nation World News Desk
Nation World News Desk
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