Page 92 - Annual Report 2013
P. 92
Financial Statements
The Company as a lessor
Refer to note 5.1
5.28 Commitments
As at 31 December 2013 the Company has the following significant commitments:
a) Capital expenditure commitments amounting to approximately €3,2m (2012: €2,9m)
b)Operating service commitments, which are estimated to be approximately to €106,9m (2012: €89,1m)
mainly related to security, maintenance, fire protection, transportation, parking and cleaning services, to
be settled as follows:
Analysis of operating service commitments 2013 2012
Within 1 year 35,891,798 37,736,101
Between 1 and 5 years 32,690,017 44,695,762
More than 5 years 38,300,169 6,713,744
Total operating service commitments 106,881,984 89,145,607
c) Operating lease commitments are analysed as follows:
Analysis of operating lease commitments 2013 2012
Within 1 year 206,784 215,878
Between 1 and 5 years 274,555 394,044
Total operating lease commitments 481,339 609,922
5.29 Contingent liabilities
The Company has contingent liabilities comprising the following:
Income tax:
a) The Company has not been audited yet by the Tax Authority for the year 2010. Consequently, the
tax liability with respect to the fiscal year 2010 has not been finalized yet. However, management does
not expect any additional income taxes to be paid in view of the existence of significant assessable
tax losses available for carried forward (Refer to note 5.23). In accordance with the implementation
of article 65a of Law 4174/2013 the tax audit of the financial year 2011 onwards is performed by the
statutory auditors of the Company who are obliged to issue the respective “Annual Tax Certificate”
upon audit completion. The validity of the above law has been extended for two more years until the end
of 2015. With respect to the “Annual Tax Certificate” process for the years 2011 to 2013, management
does not expect additional income tax obligations to arise, other than those that already have been
reflected in the financial statements.
b) In accordance with Law 3808/2009 the Greek State imposed a “special once off tax surcharge” on
the profits generated by legal entities in year 2008. The Company was advised by the Tax Authorities
that it is liable to pay a special once off tax surcharge amounting to €23m which was higher by €9m
than the amount that should be paid in accordance with the provisions of the law and the tax privileges
which have been granted by the ADA. Tax Authorities refused to modify the assessment of the once
off tax surcharge and management proceeded with the legal actions to remedy the erroneous tax
bill referring the issue to the Athens Administrative Court of First Instance on 18 February 2010. The
hearing, set for 28 May 2013, took place on 17 December 2013 and the decision is pending. No provision
has been recognised based on Company’s experts’ opinion by reference to the specific legislation
governing its tax affairs, since the case is expected to be successfully concluded at its favour (refer also
to note 5.15).
51 of 58 Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated).
The Company as a lessor
Refer to note 5.1
5.28 Commitments
As at 31 December 2013 the Company has the following significant commitments:
a) Capital expenditure commitments amounting to approximately €3,2m (2012: €2,9m)
b)Operating service commitments, which are estimated to be approximately to €106,9m (2012: €89,1m)
mainly related to security, maintenance, fire protection, transportation, parking and cleaning services, to
be settled as follows:
Analysis of operating service commitments 2013 2012
Within 1 year 35,891,798 37,736,101
Between 1 and 5 years 32,690,017 44,695,762
More than 5 years 38,300,169 6,713,744
Total operating service commitments 106,881,984 89,145,607
c) Operating lease commitments are analysed as follows:
Analysis of operating lease commitments 2013 2012
Within 1 year 206,784 215,878
Between 1 and 5 years 274,555 394,044
Total operating lease commitments 481,339 609,922
5.29 Contingent liabilities
The Company has contingent liabilities comprising the following:
Income tax:
a) The Company has not been audited yet by the Tax Authority for the year 2010. Consequently, the
tax liability with respect to the fiscal year 2010 has not been finalized yet. However, management does
not expect any additional income taxes to be paid in view of the existence of significant assessable
tax losses available for carried forward (Refer to note 5.23). In accordance with the implementation
of article 65a of Law 4174/2013 the tax audit of the financial year 2011 onwards is performed by the
statutory auditors of the Company who are obliged to issue the respective “Annual Tax Certificate”
upon audit completion. The validity of the above law has been extended for two more years until the end
of 2015. With respect to the “Annual Tax Certificate” process for the years 2011 to 2013, management
does not expect additional income tax obligations to arise, other than those that already have been
reflected in the financial statements.
b) In accordance with Law 3808/2009 the Greek State imposed a “special once off tax surcharge” on
the profits generated by legal entities in year 2008. The Company was advised by the Tax Authorities
that it is liable to pay a special once off tax surcharge amounting to €23m which was higher by €9m
than the amount that should be paid in accordance with the provisions of the law and the tax privileges
which have been granted by the ADA. Tax Authorities refused to modify the assessment of the once
off tax surcharge and management proceeded with the legal actions to remedy the erroneous tax
bill referring the issue to the Athens Administrative Court of First Instance on 18 February 2010. The
hearing, set for 28 May 2013, took place on 17 December 2013 and the decision is pending. No provision
has been recognised based on Company’s experts’ opinion by reference to the specific legislation
governing its tax affairs, since the case is expected to be successfully concluded at its favour (refer also
to note 5.15).
51 of 58 Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated).
