The Spanish banks, in unison, join the large electricity companies and unleash their artillery against the new temporary tax that PSOE and United We Can register in Congress and that will begin processing next week. His arguments against the "property of a public nature", a name coined in the bill of the Government parties to avoid calling it a tax, have as a spearhead that, in his opinion, generates a "problem of double taxation" . They explain it in the internal arguments that they have put together with contributions from the different legal teams of the financial entities. The bank is ready to fight in court at the time they have to make their first payment of 1,750 million, scheduled for February.
The bank has been looking for reasons throughout the summer to try to knock down the 4.8% tax, which will be calculated on the interest margin and commissions, as announced by President Sánchez.
The block entities consider that the new provision "would tax something that is already subject to corporate tax" and that it is not legal. By not allowing the deduction, they conclude that it is likely to be appealable and even unconstitutional since it would violate article 31 of the Magna Carta, which establishes the principles of equality and non-discrimination.
Some time ago, some of the big banks hinted that, if taxation were increased in Spain, one option could be to establish its headquarters in another of the countries in which it operates.
The bank calculates that the new tax could reduce credit by 50,000 million, which represents 4.1% of the total stock to the private sector; that there will be a counterproductive impact on GDP and that between 25,000 and 35,000 jobs could be lost.
The big banks assure that they will act firmly against this tax promoted by the Government. Throughout the extensive argument advanced by Abc and to which La Vanguardia has had access, the bank also explains that the new tax represents a "disadvantage for the Spanish financial sector" as it falls only on entities whose sum of interest income and commissions in 2019 is equal to or greater than 800 million. Fintech firms would not be subject to this rate either. They demand equal treatment for all competitors.
In addition, banks complain that the corporate tax rate is 30%, above other business sectors, and that the sector has other specific taxes, such as the tax on deposits from credit institutions and the controversial tax on documented legal acts.
Weeks of confrontation between the big bank and the Executive are coming. The rise in interest rates, with its consequent improvement in some ratios, such as profitability, is another argument of the Government, but the bank warns that delinquencies may also increase, which in practice implies that it is necessary to increase the new provisions.
