Spanish Court Decision Roiling FX Market
Court Decision - Spanish Tax Agency Has to Repay €5.1Bn to Taxpayers
At 13:30, El Economista reported that a Court has determined the way the Spanish Tax Agency was collecting VAT revenues (over the 2006-08 period) was “illegal” and, therefore, it now owes €5.1Bn to taxpayers. This decision cannot be appealed since the Court (TEAC – Tribunal Economico Administrativo Central) is the highest within its jurisdiction.
Still, I do not exactly know (i) what is the timeframe for this, and (ii) whether the Court can force the Government to pay immediately.
However, given the size of the amount (note the total cut in infrastructure spending is €5.9Bn), I believe this could get some people nervous.
I am digging into it. I will keep you all posted.