2013 Registration document and annual financial report - page 310

Registration Document 2013
308
FINANCIAL STATEMENTS
Parent Company Financial Statements and Notes
5
E. Dividend withholding tax (précompte)
In 2002, Accor launched a legal challenge to its obligation to pay
withholding tax on the redistribution of European-source dividends.
Until 2004, French parent companies that received dividends from
their French subsidiaries were entitled to a 50% tax credit, which
could be set off against the withholding tax payable on redistribution
of the dividends. However, no such tax credit was available for
European-source dividends.
Accor claimed that the absence of a tax credit on European-source
dividends breached European Union rules.
Ruling on a dispute between Accor and the French State, on
December 21, 2006 the Versailles Administrative Court ordered
the State to refund the
précompte
withholding tax paid by Accor
in the period from 1999 to 2001, for a total of €156 million. The
amount of €156 million was refunded to Accor during the first half
of 2007, together with €36.4 million in late payment interest due
by the French State.
However, on March 8, 2007, the French State appealed the ruling to
theVersailles Administrative Court of Appeal. On May 20, 2008 the
Versailles Administrative Court of Appeal ruled in favor of Accor and
confirmed the Company’s right to the refunded amount.
The French State went on to appeal the ruling to the French Supreme
Court and a provision was therefore booked for the amount of
the refund and the late payment interest, with the result that the
decisions of the Versailles Administrative Court and Administrative
Court of Appeal had no net impact on the 2011 accounts.
After examining the case in 2012, the Supreme Court issued an
unfavorable ruling for Accor. Consequently, in 2013Accor was required
to repay a principal amount of €149.8 million and €34.9 million in
late payment interest. The €6.3 million out of the original principal
amount refunded by the State that Accor was not required to
repay was recognized in reserves at December 31, 2012 and the
€1.4 million in late payment interest received from the State that
Accor did not have to repay was recognized as a tax benefit in the
2012 income statement.
In addition, on February 7, 2007, Accor filed an application instituting
proceedings before the Cergy-Pontoise Administrative Court to
obtain a refund of the €187 million in
précompte
withholding tax
paid in the years 2002 to 2004.
The judgment in this case should be issued during 2014 as the
court has stated that it intends to close the pre-trial investigation
process on February 28, 2014.
NOTE 24
DEFERREDTAX
Additions and reversals of non-deductible provisions recorded in 2013
by subsidiaries that form part of the Accor tax group represented a
net non-deductible charge of €2.8 million, giving rise to a €0.9 million
deferred tax asset calculated at the rate of 33.33% excluding the
3.3% contribution sociale surtax and the 10.7% special contribution.
NOTE 25
OFF-BALANCE SHEET COMMITMENTS GIVEN AND RECEIVED
Lease commitments
Commitments given by Accor SA to its subsidiaries concerning fixed and variable lease payments were as follows at December 31, 2013:
(in millions of euros)
2012
2013
Fixed lease payment commitments given to subsidiaries
1,827
1,215
Variable lease payment commitments given to subsidiaries
1,894
1,674
TOTAL LEASE PAYMENT COMMITMENTS GIVEN
3,721
2,890
A breakdown of the Company’s finance lease commitments is provided in note 19.
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