Deferred tax assets : Commission seeks information

The European Commission has asked Spain, Italy, Portugal and Greece for information on their rules that authorise the presence of deferred tax assets as part of a bank's equity. With this accounting practice, financial institutions transform such assets in their balance sheet into state-guaranteed tax credits. When a bank has suffered significant losses, it can use this technique to pay less tax subsequently when it earns profits on which taxes will be owed. Spain found this technique useful in 2013…