Spain: Shipyard Investors Ordered to Return Tax Advantages

Shipyard investors will have to pay back the benefits they had been given by the Spanish Government, since the European Union competition regulator determined the practice in question as unlawful, giving Spanish shipyards an advantage over their competitors, Reuters reports.

According to the European Commission, the scheme made the price of ships reduced by up to 30%.

The decision caused a concern with regard to employment opportunities in the country, which are already scarce, along with potential legal consequences that might ensue, the worst scenario being demise of Spanish shipyards.

Even though the support scheme that was devised to give tax advantages to investors for financing purchase of ships was launched in 2002, investors will have to return tax advantages dating back to 2007.

European Competition Commissioner Joaquin Almunia did not specify the amount of money to be returned, saying that it is up to the Spanish Government to reach the final decision on that issue.

[mappress]
Shipbuilding Tribune Staff, July 18, 2013