Blogs and advice from Industry leading Specialists
Valuable Opinions, Comments & Gossip
Financial related News & Articles relating to Spain
Latest News, Stories
& Hot Topics
Various Tools & Widgets to help with your financial needs
Tools & Widgets to
help with finances
Polls, Surveys and Opinions featured throughout Tumbit
Featured Polls, Surveys & Stats
Discussions, Advice & Topical Chat
Discussions, Advice & Topical Chat

Further austerity cuts hit Spanish corporations

Wed 24th Aug 2011
Spanish corporations Telefonica SA, Banco Santander SA and Iberdrola SA may be forced to pay back Spain's government as much as EUR1 billion in goodwill deductions booked after foreign acquisitions before 2007, following the approval of new fiscal measures in Spain, Expansion newspaper reports, citing tax experts. Spain's parliament Tuesday approved a package of extra austerity measures, including the removal of goodwill deductions for some foreign deals that Spanish companies previously enjoyed. The companies forced to pay now will be allowed to recover the cash 21 years after the deal, Expansion adds.

Spanish Businesses such as Banco Santander, Telefonica and Iberdrola may be forced into making payments to the Government of as much as a combined 1 Billion Euros.

This will apply to overseas acquisitions by Spanish companies since 2007, following a recent reform of economic measures.

Tax reductions, referred to as 'Goodwill deductions' had been previously taken advantage of by corporations who had looked to expand their operations overseas, but it now seems that these deductions are to be clawed back.

This is just one of several austerity measures brought in by parliament over the last week, and follow news that Spanish Businesses will also now be expected to pay a certain potion of their annual taxes in advance, as already expected of their employees.

Comment on this Story

Be the first to comment on this Story !!

Related Partners

Recommended Items

Related Articles

Related Blogs