As if the coalition government did not already have enough on its plate, now energy giants Galp and REN are refusing point blank to pay a €50 million “extraordinary contribution” tax, alleging that it is illegal.
Secretary of State for Fiscal Affairs Paulo Núncio has retaliated with threats of imminent tax inspections, steep fines and enforced recovery of all the amounts due.
According to Jornal de Negócios online, fines could run at the rate of €6,500 per day, but analysts are predicting a “long legal battle” before either of the companies agree to pay up.
For now, Núncio’s initial threat is hastily being put into action. According to national press, tax inspectors will be swooping down on both companies to go through their accounts with a fine-toothed comb.
“The behaviour of both these companies is very serious,” Núncio told reporters on Monday. “Particularly when one considers their size.”
What Núncio appears to be saying is that as both concerns are large, they should pay the government all the money it wants.
EDP has already paid its €69 million share of the “extraordinary contribution tax”, but what irks Galp and REN appears to be the government’s zeal to keep writing the pay-out into successive budgets.
The tax is already written into next year’s state budget, and media reports suggest neither company is prepared to let the matter ride without a fight.
As Galp said in a statement this week, their decision has come “after careful analysis, backed by legal advice” and is designed to “protect the shareholders’ interests”.
