Since 2011, the condition of the financial sector was in such dire shape that the banks had to use many tax credits in order to manage the amount it has to pay in corporate taxes. Taking over 60 billion euros in credits was a boon for these banks, who during Q1 2014 paid the Finance Ministry 521 million euros.
But the banks have decided not to apply tax credits this year, because 67% of them will factor in to capital ratios when the banks undergo ECB stress tests. These data prove that the sector is healing and will help the nation to increase overall tax revenues.
