Banks to pay more Corporation Tax

A LEADING company and management association has applauded government measures to induce the banking sector in Portugal into paying more corporation tax (IRC).

A large majority, 62 per cent, of Associação Cristã de Empresários e Gestores (ACEGE) members asked in an internet survey thought that the record profit making banking sector needed to pay a larger share in taxes.

At the same time, 64.8 per cent believed that the government should have forced the banks to disclose their client’s financial planning operations earlier.

On the other hand, 54.6 per cent of company bosses questioned earlier this month thought that the Portuguese banking sector enjoyed too many privileges.

Two-thirds of those asked criticised the banking sector practice of penalising those paying off their mortgages earlier than the initial maturity date, a practice which the government should shortly force the banking sector to change.

Around 49 per cent of company owners thought that obligatory tax inspections, when reporting losses over a million euros concerning limited company restructuring, were in order.

Interestingly enough, almost two-thirds believed that the cuts announced in public investment in the 2007 State Budget constituted a damaging risk for the national economy, although 25.9 per cent thought them a good idea.

Overall, 37.9 per cent of those asked said they were “moderately optimistic” with the economy’s performance in October, compared to 48 per cent in September.