The Spanish Government may have found a source of income which could bring them 4 billion € this year.

:Text may be subject to copyright.This blog does not claim copyright to any such text. Copyright remains with the original copyright holder.


The Supreme Court President, José Manuel Sieira, has asked the Minister for Justice, Alberto Ruiz-Gallardón, to extend until December the current contracts for nine judges which are due to expire in June. These judges have been working in trying to collect the monies which have been awarded to the Government in court cases, which has not been paid. The scheme started in July 2010 and last year brought in almost 1.7 billion €. In many cases the money had not been collected simply because of the judicial backlog.

El País reports there are 2,265 litigations pending regard tax with the administrations, and some individual cases involve sums as high 104 million € as in the case of the BBVA.

Meanwhile the Government’s plans for a tax amnesty remain in place. A 10% fee will be charged for those tax evaders who come clean over the next eight months, and the defrauders will not face criminal charges in the cases where tax evasion has been committed. 

The measure has been criticised in many circles including the European Commission which has suggest that an increase in IVA/VAT would be more certain of bringing in more money.