In 2007, Juan Arena was dismissed as president of Bankinter and received a compensation package worth nearly 14 million euros, including stock options, a pension, and other benefits. The Tax Agency began an inspection of the firm’s accounts in 2012, questioning the nature of the compensation provided to Arena.
The judicial battle between Bankinter and the Treasury regarding the tax deductibility of the compensation paid to Arena has finally come to an end. The Supreme Court has upheld the ruling of the Contentious Chamber of the National Court, which in 2021 considered the payment as a “remunerative donation” granted voluntarily. The court agreed with the National Court that Bankinter did not provide sufficient evidence to demonstrate that the expense was appropriately related to generating income or results for the company.
Juan Arena had a long history with Bankinter Group before his departure in 2007. During his tenure, he served in various roles before being replaced by Pedro Guerrero. The Supreme Court emphasized that Bankinter did not have a legal obligation to provide such compensation and that it was negotiated as part of Arena’s resignation from his position. The court also highlighted that there was no evidence presented by Bankinter to prove that its actions were reasonable or justified under Spanish tax law.
