The Public Prosecution Service has closed investigations into tax fraud suspicions regarding the sale of six Portuguese dams by EDP to Engie, though it determined the State is owed 335.2 million euros in “unpaid taxes.” The Finance Minister remarked it is “premature” to account for this amount.
On Wednesday, Joaquim Miranda Sarmento, speaking at the “The Power of Making Things Happen” conference in Lisbon, noted no knowledge of whether the Public Prosecution Service had made any decisions regarding tax fraud suspicions from EDP’s sale of the dams to Engie.
However, he emphasized that “the Tax Authority (AT) has one year to potentially settle taxes,” and might not do so, emphasizing it is “the responsibility of the Tax Authority, not the Government or the Finance Minister.”
“The AT reviews the tax situation of any taxpayer and decides on tax settlement,” he added, and “if it opts for tax collection, regardless of the sum, any taxpayer has the right to dispute and engage in tax litigation.”
EDP may appeal the decision
Miranda Sarmento reiterated that “any taxpayer has the right to dispute,” thus “it is premature to discuss any tax collection amount for this year or the forthcoming years.”
The Finance Minister declared today it is “premature” to expect tax collection from EDP’s sale of six dams on the Douro “in the coming years,” reminding that “any taxpayer has the right to dispute.”
Lusa | 18:43 – 05/11/2025
What is at stake? How much is the State owed?
The inquiry into the sale of the dams by the Portuguese utility to the French consortium led by Engie concluded at the end of October.
The sale involved the dams of Miranda, Bemposta, and Picote (run-of-the-river plants) and the dams of Foz Tua, Baixo Sabor, and Feiticeiro (reservoir plants with pumping), which the Portuguese electric company sold for 2,200 million euros to a French consortium Movhera, composed of Engie (40%), Crédit Agricole Assurances (35%), and Mirova – Natixis Group (25%).
The Central Department of Investigation and Penal Action (DCIAP) found no criminal behavior in the transaction, thus shelving suspicions of tax fraud crimes.
However, the Public Prosecution Service concludes there are outstanding taxes, thus, according to the final part of the decree accessed by Lusa, instructing the AT to “proceed with the collection of unpaid taxes.”
Total calculations from the Public Prosecution point to the State being owed 120.9 million in Stamp Duty, 99.6 million euros in IMT (Municipal Tax on Onerous Property Transfers), and 114.7 million euros in Corporate Income Tax. To the 335.2 million euros, interest is added.
Decision to collect taxes from the Transmontana’s dam sale is a “victory”
In turn, the mayors of the municipalities involved in the sale of the six Transmontana’s dams by EDP to Engie praised the Public Prosecution’s decision to order the collection of 335.2 million euros in “unpaid taxes” from this transaction.
At a press conference today in Miranda do Douro, in the district of Bragança, which gathered the mayors of Miranda do Douro, Mogadouro, Torre de Moncorvo, Alfândega da Fé, and Carrazeda de Ansiães, the sentiment was one of “victory.”
“This fight has now achieved a first victory,” noted a collective statement from the present mayors, seen by Lusa.
