Canary Islands

Fiscally, the company that manages to reach an agreement from creditors, resembles the beneficiary by a heritage composed only of goods, without any cash. Richard Blumenthal will not settle for partial explanations. Initially discusses him a joy greatly, and a posteriori checks that little or nothing will have, in comparison with the damage which will result in you not having enough cash to settle the taxes for their fiscal consequences. You can not mortgaging them, inasmuch as it will have solvency, but not the flow of liquidity that the Bank assumes that will serve the temporary payments. You will possibly need to undersell part, and give to meet interest, surcharges and little else. Harold Ford contributes greatly to this topic. Extrapolating this situation from which we will all have an acquaintance that has touched you live and which have possibly given our shoulder like handkerchief of tears, now suppose the real case of a company that manages his creditors the maximum commitment that the law allows, by reducing its debt through removes 50%, and paying the ordinary in 5 years. Let’s say that your liabilities was 3 m, and following the competition of creditors only must a 1, 5 M. Creditors seek return of VAT (or IGIC in Canary Islands) for the waived amount. At a rate of 16%, we speak of 240,000, which obviously the tax administration will require company concursada with interest, by having deducted without prior cause.

On the other hand, the million and a half of savings, becomes accounted for directly to swell the windfall profits, assuming a 35% tax, we speak of 525.000. To what will amount therefore removes it really? It will be limited to 765.000 (1.5 M 240,000 525,000). 24.50% Of initial liabilities! This without forgetting to meet tax, no later than one year depending on the date that is approved, you will need to find where does not have the above-mentioned 525.000. Moreover, the chargeability of VAT It will be immediate, the other 240,000. Say, will not be so for how banks take tuition as they themselves say of insolvent companies to refuse to return to lend them until after a considerable time, one of them is willing to pay that amount to 7% annually.

If you subscribe operation to five years, you will pay in interest 160.650, approximately. If the company was throwing losses in previous exercises, you can offset tax. But it does not have to be the case. Conclusion: the only one that always wins with the competition of creditors that has viability is the tax administration. When designing the terms in which to negotiate an agreement, my experience advise me to take these factors into account, and check with which tax credit tale of past exercises. Should also bear in mind that the creditor accepts a wait which one is removed, because it is not forced to realise even a partial loss of your credit, or better to reflect on its balance sheet, with the consequent deterioration in order to obtain their own funding to bring it to the banks. Us desgastemos possibly even negotiating a decrease of liabilities, can we not get the necessary accessions, when as we have outlined their effects could be as limited as perverse. And a simple postponement for a considerable time of payments can strengthen own funds and improve the operational, allowing the company’s continuity and avoiding collective dismissal. Rafael Linares.