Canary Islands fiscal and administrative scrutiny

The Canary Islands are facing increased scrutiny regarding fiscal management and government transparency. The Spanish Tax Agency (AEAT) has intensified audits of tax incentives under the Canary Islands Economic and Fiscal Regime (REF), specifically reviewing the Canary Islands Investment Reserve (RIC) and the Canary Special Zone (ZEC). These investigations focus on whether companies, such as the airport operator Aena, have adhered to strict conditions or exceeded permitted state aid. Recent judicial rulings have addressed disputes involving invalid investments and incorrect reporting.

Simultaneously, the Canary Islands Court of Accounts has identified transparency failures within the regional government. Reports indicate that several ministers failed to meet deadlines for asset declarations or neglected to record activities in their public agendas. The Court noted that these omissions affect a significant portion of high-ranking regional officials, potentially hindering the ability to control conflicts of interest.