ECONOMY - FINANCE - BUSINESS / Competition

Four countries modify guarantees on deferred tax assets

Brussels, 10/11/2016 (Agence Europe)

On Tuesday 8 November, Competition Comissioner Margrethe Vestager announced that Italy, Spain, Greece and Portugal had modified their public guarantees on banks' deferred tax assets, thereby calming the competition concerns that these guarantees had raised.

These deferred tax assets (DTAs) are created by banks "because they expect to pay less tax in the future, deferring a deduction of an expense or loss from their taxable income", Vestager explained. Banks would, however, only receive a tax...