Tax office chief denies claims of political witch-hunt

The new general manager of the Spanish Tax Agency (AEAT), Santiago Menéndez, on Monday denied there was any political meddling behind an extensive reshuffle in his department, while the secretary of state for finance, Miguel Ferre, rejected the idea of there being an institutional crisis at the agency.

Finance Minister Cristóbal Montoro of the ruling conservative Popular Party government on Friday fuelled media interest in a possible witch-hunt by saying that those who had stood down from the AEAT favored the opposition Socialist Party and resigned because of differences with the new head of the agency. In response, Menéndez said in an interview with radio station Onda Cero that he had never inquired after the political affiliations or ideology of tax office employees. “I don’t ask. I’m not interested,” he said.

The furor was sparked by the dismissal of an official at the large contributors department of the AEAT’s inspections division after she rejected an appeal by the Spanish unit of the giant Mexican cement maker Cemex against a multi-million-euro fine. Her immediate boss and other figures subsequently resigned, while the head of the inspection department, Luis Jones, tendered his resignation, citing differences with Menéndez.

The general manager said it was “incomprehensible” that as the result of one inspector being “relieved” of her duties, the media should raise the issue of a particular taxpayer, in reference to Cemex. “I don’t like this, and I believe the personnel of the agency don’t like this,” he said.

Menéndez acknowledged he had differences of opinion with Jones but denied this had anything to do with a specific tax inspection. He said the changes in personnel were “normal,” and pointed out that when the Socialist government took power in 2004, there were 119 changes to personnel in the AEAT. There have only been 104 in the same period since the PP took office in December 2011. “This has no importance; these are normal processes,” he said

Meanwhile, speaking at a seminar, Ferre said: “You can’t say there is any institutional crisis in the Tax Agency. Of that there is no doubt. It seems to be regrettable to have to say it; but I have to say it because of what has appeared in the press.”