Brussels may require shipyards to return the 'tax lease'
The European Commission (EC) announced to investors, shipping firms, banks and shipyards that they could be required to return the tax lease, the tax benefit system used in Spain until June for the construction of vessels, FIS reports.
The EC has just published a report on the investigation of this accelerated repayment scheme in the Official Journal of the European Union.
The findings of the study conclude that the tax lease is an "illegal" aid so the "interested parties" of the Spanish shipbuilding sector have one month to submit any relevant statements.
In May of 2006 two national associations of shipyards and an individual company presented complaints about the Spanish tax system, and in July last year, shipbuilding associations from seven countries of the EU signed a petition against the tax lease.
The EC estimates that this system authorised 273 transactions for construction and the acquisition of ships from 2002 to August, 2010.
"Illegal" aids were given to the Economic Interest Grouping (EIG), its investors, shipping companies, shipyards, leasing companies, banks and other intermediaries involved in the scheme operation, the newspaper Faro de Vigo reported.
The tax lease was cancelled last 29 June and is retroactive despite the displeasure of the Spanish Government.
The EC insists that the repayment of such aid can be required unless it "was contrary to a general principle of Community Law," the item 99 of the investigation points out.
In addition, it is clarified that "at this stage, the Commission does not have proof that a breach of a general principle of the Community Law prevents the Commission from seeking the recovery of a possible illegal aid."
However, Ramon Ozores, tax lease specialist, noted that this system was used on airplanes and on trains. "It's not an exclusive naval device," he said.
The study conducted by Brussels notes that the system allows shipping companies to acquire vessels in shipyards from Spain for values that are "between 20 per cent and 30 per cent lower than usual."
Besides, three scheme items are highlighted: repayment in advance, tonnage scheme and the role of the EIG.
Regarding the first item, it is stated that the tax lease allows an accelerated repayment of the vessel in three years and a quarter, and in advance, that is, from the moment the contract is signed.
In this regard, Brussels allows the accelerated repayment, but not in advance.
In relation to the tonnage scheme, the EC believes that the vessels acquired from the tax lease become second hand when transferred to the shipowner and taxes should be paid on entrance booking as the others.
Finally, the EU executive does not agree that the EIG that purchases a boat can have a special scheme for shipping companies in the country when no shipowner forms part of it.
On the other hand, the shipbuilding industry from Vigo is attending Neva fair in Russia, where the signing of contracts is sought to ensure their survival.
According to Enrique Mallón, a spokesperson for the Association of Metallurgical Industries of Galicia (Asime), "the aim is to enter new markets that will allow the relaunch of this activity," Diario Atlántico reported.
The EC has just published a report on the investigation of this accelerated repayment scheme in the Official Journal of the European Union.
The findings of the study conclude that the tax lease is an "illegal" aid so the "interested parties" of the Spanish shipbuilding sector have one month to submit any relevant statements.
In May of 2006 two national associations of shipyards and an individual company presented complaints about the Spanish tax system, and in July last year, shipbuilding associations from seven countries of the EU signed a petition against the tax lease.
The EC estimates that this system authorised 273 transactions for construction and the acquisition of ships from 2002 to August, 2010.
"Illegal" aids were given to the Economic Interest Grouping (EIG), its investors, shipping companies, shipyards, leasing companies, banks and other intermediaries involved in the scheme operation, the newspaper Faro de Vigo reported.
The tax lease was cancelled last 29 June and is retroactive despite the displeasure of the Spanish Government.
The EC insists that the repayment of such aid can be required unless it "was contrary to a general principle of Community Law," the item 99 of the investigation points out.
In addition, it is clarified that "at this stage, the Commission does not have proof that a breach of a general principle of the Community Law prevents the Commission from seeking the recovery of a possible illegal aid."
However, Ramon Ozores, tax lease specialist, noted that this system was used on airplanes and on trains. "It's not an exclusive naval device," he said.
The study conducted by Brussels notes that the system allows shipping companies to acquire vessels in shipyards from Spain for values that are "between 20 per cent and 30 per cent lower than usual."
Besides, three scheme items are highlighted: repayment in advance, tonnage scheme and the role of the EIG.
Regarding the first item, it is stated that the tax lease allows an accelerated repayment of the vessel in three years and a quarter, and in advance, that is, from the moment the contract is signed.
In this regard, Brussels allows the accelerated repayment, but not in advance.
In relation to the tonnage scheme, the EC believes that the vessels acquired from the tax lease become second hand when transferred to the shipowner and taxes should be paid on entrance booking as the others.
Finally, the EU executive does not agree that the EIG that purchases a boat can have a special scheme for shipping companies in the country when no shipowner forms part of it.
On the other hand, the shipbuilding industry from Vigo is attending Neva fair in Russia, where the signing of contracts is sought to ensure their survival.
According to Enrique Mallón, a spokesperson for the Association of Metallurgical Industries of Galicia (Asime), "the aim is to enter new markets that will allow the relaunch of this activity," Diario Atlántico reported.