Spanish treasury demands Catalan Broadcasting Corporation pay €167.4 million in VAT

The Spanish treasury is demanding that the Catalan Broadcasting Corporation (CCMA in Catalan) pay 167.4 million euros in VAT on subsidies for the years 2015, 2016, 2017 after a change of criterion in the application of the law. The new law states that VAT will not have to be paid on future subsidies.

In a statement, the CCMA has expressed its “disagreement” over the demand and warned that it “seriously compromises” its future viability.

The CCMA also stated that in recent years it has promoted a plan to adjust its expenses to the budgetary restraint of the public sector in Catalonia with an "unprecedented effort" with measures such as the reduction of management structures, and the resizing of staff.

"With this collective effort, the CCMA has gone from being managed with 457.5 million euros in 2010 to 302.4 million in 2017, which has meant a 34% reduction in the available resources,” it was said.

These measures come just days after the leader of the Catalan People’s Party, and candidate for the coming election, said that the PP will propose to shut down the Catalan television channel TV3, and “reopen it hiring normal and plural people.” He said that considering it is paid for with public money, “it should be changed from the bottom to the top.”