2013 Registration document and annual financial report - page 273

Registration Document 2013
271
Financial Statemements
5
Consolidated Financial Statements And Notes
At December 31, 2012
(in millions of euros)
France
Europe (excl.
France)
Asia
Pacific
Latin
America &
Caribbean
Worldwide
Structures
Other
countries
Total
Goodwill
188
207
258
160
-
27
840
Intangible assets
10
113
81
21
37
2
264
Property, plant and equipment
691
1,232
266
191
38
174
2,592
Non-current financial assets
61
56
328
81
25
81
632
TOTAL NON-CURRENT ASSETS
EXCLUDING DEFERRED TAX
ASSETS
950
1,608
933
453
100 284 4,328
Deferred tax assets
33
57
12
22
26
1
151
OTHER ASSETS
479
458
267
108
1,617
152
3,081
TOTAL ASSETS
1,462
2,123
1,212
583
1,743
437
7,560
For information, total non-current assets (excluding deferred tax assets) in Germany amounted to €377 million at December 31, 2013 and
to €331 million at December 31, 2012.
NOTE
39 CLAIMS AND LITIGATION
Note 39.1. CIWLT tax audit
A tax audit was carried out on the permanent branch in France
of Compagnie Internationale des Wagons Lits et du Tourisme
(CIWLT), a Belgian company that is 99.78%-owned by Accor SA.
Following the audit for the years 1998 to 2002 and 2003, the French
tax authorities concluded that CIWLT’s seat of management was
located in France not in Belgium.
Accordingly, the French tax authorities added back CIWLT’s profits
in Belgium for the purpose of calculating income tax payable in
France. The resulting reassessments, for a total of €263 million
including late interest, were contested by CIWLT, on the basis of
the notice received from the Belgian tax authorities confirming
that its seat of management was in Belgium.
CIWLT subsequently asked the Cergy Pontoise Administrative
Court to rule on the contested reassessments. On December 12,
2008 and May 12, 2011, the court found against CIWLT concerning
the reassessments for the years 1998 to 2002 and the year 2003.
CIWLT decided to appeal these rulings before the Versailles
Administrative Court of Appeal on February 10, 2009 and on July 11,
2011 respectively.
Under French law, collection of the tax deficiencies is not suspended
while the appeal is being heard. For the years 1998 to 2002,
€242.5 million was paid at the end of February 2009. The tax
deficiencies and penalties for 2003, in an amount of €17.5 million,
were paid in July 2011, while the estimated €2.7 million in late
interest was paid in August 2011.They were recognized as an asset
in the statement of financial position.
For the years 1998 to 2002, on February 1, 2011, the reporting
judge read out his conclusions and stated that he did not support
CIWLT’s case.
In a ruling handed down on March 15, 2011, the Versailles
Administrative Court of Appeal found against CIWLT for the period
1998 to 2002.To appeal the ruling, CIWLT filed a summary motion
to institute proceedings with the French Supreme Court of Appeal
(
Conseil d’État
) on May 12, 2011, followed by a supplementary
brief on August 10, 2011.
In light of these unfavorable developments, the tax receivable
recognized as an asset in the statement of financial position at
December 31, 2010 was written down by €242.5 million in 2010
and an additional provision of approximately €20.6 million was set
aside, corresponding to the tax deficiency for 2003 and estimated
late interest up to December 31, 2010. Following payment of the tax
deficiency in July and August 2011, a tax receivable was recognized
as an asset in the statement of financial position in an amount
of €20.2 million. The asset was immediately written down in full
by transferring the same amount from the existing €20.6 million
provision, of which the remainder,
i.e.
€0.4 million, was reversed.
Based on the reporting judge’s conclusions, on December 28, 2012
the Supreme Court of Appeal issued a ruling rejecting CIWLT’s
application to appeal the Versailles Court’s ruling.
This decision meant that the €242.5 million tax reassessment
became final. However, this had no impact on CIWLT’s income
statement because the tax receivable was already written down
in full. In CIWLT’s 2012 financial statements, the €242.5 million tax
receivable was written off and the corresponding provision was
reversed (see note 24.2).These accounting entries had no adverse
effect on the company’s cash position, as the tax had been paid
in February 2009.
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