Cepsa manages to impose itself on the world. Tax Administration to be precise, in a million-dollar legal battle that both sides have dragged into successive conflicts for more than a decade. HE The Supreme Court also rejected the last objections. The appeal filed by the State Attorney on behalf of the Public Treasury and establishes the legal doctrine for the liquidation of corporate tax by the oil company and its international subsidiaries.
The latest decisions of the Supreme Court, expressed in five sentences, represent a turning point for the energy company. 34 million euro victory, according to legal sources familiar with the case of El Periódico de España from the Prensa Ibérica group. The Supreme Court now allows the company’s invoice to be reduced in various exercises in corporate tax, finding that Cepsa’s parent company can allocate proportional management and administration expenses to its companies abroad, whether made in Spain or elsewhere.
extended Legal dispute between Cepsa and Tax OfficeRegarding the calculation of corporate income tax, in recent years successive appeals and counter-appeals have been made by both parties by the Central Economic Administrative Court, the National Court, the Supreme Court, and even at an interim step, the company has unsuccessfully sought protection. in the Constitutional Court.
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After the examinations of the Tax Office on Cepsa’s corporate tax bases between 2005-2011, the allocation of some expenses to its foreign subsidiaries, and the differences in criteria between the Treasury and the energy company, the struggle began. Some interest agreements, sanctions and other issues for R&D+i.
Cepsa is the second largest Spanish oil company and now Controlled by Abu Dhabi’s sovereign wealth fundHe initiated the legal battle first before the Central Economic and Administrative Court (which settled with the Tax Office in 2012 and 2015) and then the National Court (which admitted some of the group’s claims in 2019).
Initially, the total amount of different Cepsa receivables affected tax payments totaling 117 million euros., but in reality only 84 million were in actual conflict because the remaining 33 million conflicts were against the criterion of accruing them in three years or a single fiscal year. The decision of the National Court only partially accepted Cepsa’s objection to the interpretation of certain corporate tax notes, causing it to recalculate some issues for the sum of 51 million.
The Tax Office then continued the appeals in the Supreme Court through the State Attorney General’s Office. In order to annul this decision of the Court and recover at least some of these sums, they focused their demands on allocating the costs to group companies located outside of Spain. The Supreme Court finally dismissed these appeals in a few sentences published last July.