The 22 major Basque companies paid EUR 225 million less in Corporate Tax than corresponded to
- The ELA trade union has analysed the official accounts of the major companies, as well as their audit reports. According to the official accounts for 2019 (the last year in which information is available), 22 Basque companies received a profit of EUR 1.295 million. However, of all these companies, only EUR 98.7 million was paid into corporate tax. In other words, the actual rate for these 22 companies stood at 7.6%. If, without exception, a rate of 25% had been applied to corporation tax, the haciendas would have received an additional EUR 225 million. In the words of Mixel Lakuntza of ELA, "it is not good news that sufficient funds are not raised for health, care, education or employment."
All of this 2019 data has been provided by the ELA trade union. 22 Basque companies have paid a real corporate tax rate of 7.6% in 2019. ELA Secretary General Mitxel Lakuntza stressed that "big companies pay almost nothing; for the 10 euros they receive they pay only one euro". The trade union considers that there are particularly striking and denouncing cases, i.e. companies that do not pay a euro in corporate tax: Petronor has a profit of 135 million euros; Tubacex and Bridgestone, with 11.5 million; Pepsico, with 16.5 million; and GKN, with 8.3 million, among others. Other representative companies also pay very little tax on their profits. Examples are Mercedes Benz (10.4% of profits), ITP (effective rate 4.6%), CIE Automotive (5.4%), Aernnova (7.6%), Kutxabank (4.6%), Euskaltel (11.1%) or Gasca (0.3%).
Lakuntza has denounced that governments and employers "go hand in hand" to end the violence. 'Auzolana' is the only cooperation between the Basque Government and the employers so that large companies do not pay taxes'. In their words, it is the big companies that regulate taxation. "They are the Basque lobby and that is ethically and socially unacceptable," he added.
ELA has called for urgent fiscal reform to be launched before the summer, for which it will request meetings with Lehendakari, MEPs, EH Bildu and Elkarrekin Podemos. It has also announced mobilisations for the coming months.
Iberdrola e Inditex
"There are other companies that operate in our territory, that have a high level of profits and that pay little taxes. A clear example of this is Iberdrola and the Inditex Group," ELA explained.
Iberdrola, "the company that has presented as an example the Basque institutions, received in 2019 a profit of more than EUR 2.8 billion, but paid only EUR 36 million in the Corporation Tax, which represents 1.3% of the total profits. If it's an example of something, it's an example of bad tax practice," ALS said.
The Inditex group, composed of 8 brands, including Zara, earned "a profit of €10.4 billion in 2019, so it did not enter a euro in corporate tax. Inditex's principal owner, Amancio Ortega, uses the donations he made to the institutions to clean up his image. It would be better to pay taxes for the profits made."
With the application of the effective minimum rate of 25% required by ELA, Iberdrola would pay EUR 703 million, 667 more than those that entered the Corporation Tax. In the case of the Inditex Group, the figure would amount to EUR 2.6 billion.
Large cooperatives almost do not tax
"The cooperative enterprises analysed deserve special mention, as they pay little tax. Thus, Ampo does not pay a euro for its profits, Danobat does not pay (only 0.1%), and Irizar’s contribution is very small (4.9%). It is unacceptable that cooperatives do not pay corporate tax," the union stressed.
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