Corporate Tax

The Ministry of Finance will return Amancio Ortega € 215,000 corporate tax – CVBJ

March 11th, 2021 at 2:06 pm CET

EP

The Supreme Court ruled that the State Tax Administration (AEAT) Return to the founder of Inditex, Amancio Ortega, a total of 214,842.82 euros for the liquidation of corporate income tax corresponds to the 2014 financial year of his equestrian company Grilse, which was taken over by Pontegadea Spain.

In particular, the Supreme Court upheld the appeal of the company that owns the Casas Novas Equestrian Center, based in Arteixo (La Coruña), against a decision of the Dispute Administration Chamber of the Supreme Court of Galicia.

According to the Supreme Court, the focus of the “controversy” about the deductibility of interest on arrears is the regularization practiced by the tax inspectorate as a result of the fact that an audit on arrears interest was carried out on the 21st in the 2014 financial year, and this was formalized on November 17, 2014 by the signing of a protocol with consent.

Specifically and as a result of the regularization carried out in 2014, there were a few Interest on arrears in the amount of 214,842.82 euros, which the company took into account as a deduction for corporate income tax 2014.

The law of June 21, 2016 regulates the consideration of default interest as a deductible item and does not allow its deduction, a criterion confirmed by the settlement agreement of October 31, 2016, resulting in a debt to be paid. € 67,679.90, of which € 64,452.85 is tax and € 3,227.05 is interest on arrears.

Nevertheless, the Supreme Court now points out in its judgment that default interest for corporate income tax purposes should be that which is necessary in the course of the liquidation practiced in a review procedure or which has accrued due to the suspension of the enforcement of the contested administrative act, “Due to their legal nature with the specified scope and the limits mentioned, they are considered tax-deductible expenses.“.

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