The managements of REN and Galp are launching legal bids to challenge the government’s raid on their company profits.
The tax grab, referred to as a rather more cuddly ‘extraordinary contribution,’ was levied on the energy sector as a one-off in 2014, and then again in 2015.
The management of REN, the country’s electricity generation and distribution company, and Galp Energia which supplies the nation’s gas, yesterday stated that they have written to the treasury about the tax demands for €25 million, which it has paid on account, and now will take the government to court.
REN says that "the company complies fully with its responsibilities as a taxpayer, in a transparent manner," adding that "it will challenge the tax bill in accordance with applicable law, and based on opinions obtained has found doubts on the legality of the extraordinary contribution.”
Galp said this week during the presentation of its 2014 results that it is still awaiting notification from the Tax Authority. In view of its refusal to pay, a bank guarantee has been lodged so Galp can go to court with head held high.
The Government imposed the tax to raise €150 million, of which €100 million would be swallowed up by general state spending and €50 million would be used to pay interest on the Troika loans.
