This week's business headlines cover a range of topics, from tax inspections of major Spanish banks to the overseas accounts of a controversial property developer. We'll also look at the government's AIReF report on Muface and the recent stock performance of athletic wear company On Holding.
Spanish Banks Face Tax Inspection
Several major Spanish banks, including Santander, BBVA, Sabadell, and Bankinter, are under tax inspection by the Spanish tax authority, Hacienda. The inspection concerns the payment of the banking tax. The banks have responded by signing records of disagreement and initiating legal appeals, signaling a potential legal battle over the tax imposition.
The banks are challenging the tax assessment, arguing that it may be unfair or miscalculated. This legal challenge could have significant implications for the banks' financial performance and the government's revenue.
Offshore Accounts and Property Developers
In other news, a controversial property promoter in Torrevieja is under scrutiny for holding significant funds in offshore accounts. Despite his company, Justo y Manoli SL, being in liquidation and owing 10.6 million euros in tax debt, the insolvency administrator has confirmed that he holds 3.4 million euros in accounts in Switzerland and Andorra.
This revelation raises questions about the source of these funds and whether they were properly declared. The case highlights the ongoing challenges in combating tax evasion and offshore financial activities.
Government Finalizes AIReF Report on Muface
The Spanish government has finalized a key report from AIReF (Autoridad Independiente de Responsabilidad Fiscal) regarding the viability of Muface, the mutual society for civil servants. The report comes after the government declared the crisis with insurance companies closed. The Treasury had been reviewing the document for over two months, incorporating final contributions from various ministries.
On Holding Stock Dips Despite Strong Growth
Finally, athletic wear company On Holding (NYSE: ONON), known for its innovative Cloud-tech footwear, experienced a 19% drop in its stock price in February. According to data from S&P Global Market Intelligence, the decline occurred amidst market fears about tariffs and in anticipation of an upcoming earnings report.
However, the earnings report, released shortly after the stock dip, proved to be outstanding. Sales increased by 40% year-over-year in the fourth quarter of 2024, driven by a 48% increase in direct-to-consumer sales. Apparel and accessories are growing even faster than footwear, indicating strong brand loyalty. The company benefits from celebrity endorsements from figures like Roger Federer and Zendaya.
Despite the February dip, On Holding's strong performance suggests a positive outlook for the company. The stock decline may have been a temporary market correction rather than a reflection of the company's underlying health.
"On is establishing a strong global brand presence." - S&P Global Market Intelligence
These are just a few of the key business stories making headlines this week. Stay tuned for further updates and analysis.