The courts once again agree with the ‘telecos’ with taxes and dismiss an appeal from Madrid against Orange

by Marcus Liu - Business Editor
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Orange has achieved a new victory for telecommunications operators in their fiscal struggle with the State due to the application of various taxes, such as the Tax on Economic Activities (IAE) and the Property Transfer Tax (ITP).

In the case of Orange, the latest judicial victory occurred after the Superior Court of Justice of Madrid dismiss an appeal against the settlement of the 2015 ITP by the operator in a ruling to which it has had access THE WORLD.

The regional government considered that the company had to pay this tax for renting part of a publicly owned property to install a base station for its mobile network, considering that this would be an administrative concession. The company, for its part, considered that it was a rental for which it simply had to pay VAT, an interpretation that was validated by the Regional Economic Administrative Court of Madrid. Now, The Community of Madrid must pay costs of 1,000 euros to each of the defendants or file a new appeal.

The struggles over the payment of this tax between the capital region and Orange have been resolved in cascade in recent months with interpretations favorable to the company in yet another chapter of the tax conflicts that surround the aforementioned sector.

Operators frequently denounce that high regulation and high taxes make it impossible for them to compete with the large Internet giants and carry out the investments in new networks that society needs.

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