251
Annual Report -
2013
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Vivendi
4
Financial Report | Statutory Auditors’ Report on the Consolidated Financial Statements |
Consolidated
Financial Statements
| Statutory Auditors’ Report on the Financial Statements | Statutory Financial Statements
Note 6. Income taxes
Thus, the amounts of tax attributes reported in this table and the amounts reported to the tax authorities may differ significantly, and if necessary,
may be adjusted at the end of the following year in the table above.
(c)
Relates to deferred tax assets recognizable in respect of tax attributes by Vivendi SA as head of the French Tax Group, representing €1,553 million
as of December 31, 2012 (please refer to Note 6.1), of which €815 million related to tax losses and €738 million related to tax credits, after taking
into account the estimated impact (-€26 million) of 2013 transactions (taxable income and use or expiration of tax credits), but prior to taking into
account the consequences of ongoing tax audits (please refer to Note 6.6 below).
In France, tax losses can be carried forward indefinitely and tax credits can be carried forward for a period of up to 5-years. In 2013, €188 million
tax credits matured as of December 31, 2013.
(d)
Relates to deferred tax assets recognizable in respect of tax attributes by Universal Music Group Inc. in the United States as head of the US tax
group, representing $892 million as of December 31, 2012, after taking into account the estimated impact (-$393 million) of 2013 transactions
(taxable income, capital losses, and tax credits that expired, capital losses and tax credits generated, as well as the divestiture of Activision
Blizzard), but prior to taking into account the consequences of ongoing tax audits (please refer to Note 6.6).
As a reminder, with respect to the divestiture of Activision Blizzard and in accordance with US tax rules, Vivendi allocated to the acquirer a fraction
of the tax attributes that it previously deferred: tax losses were estimated at more than $700 million. In addition, the Universal Music Group Inc.
replaced the Vivendi Holding I Corp. as head of the Tax Group System in the United States.
In the United States, tax losses can be carried forward for a period of up to 20-years and tax credits can be carried forward for a period of up to
10-years. No tax credit will mature prior to December 31, 2022 and no tax credit matured as of December 31, 2013.
(e)
Mainly relates to the deferred tax assets related to non-deducted provisions upon recognition, including provisions relating to employee benefit
plans, and share-based compensation plans.
(f)
These tax liabilities, generated by asset revaluations following the purchase price allocation of companies are terminated upon the amortization
or divestiture of the underlying asset and generate no current tax charge.
The fiscal year ended December 31, 2013 and prior years are open to
tax audits by the respective tax authorities in the jurisdictions in which
Vivendi has or had operations. Various tax authorities have proposed
adjustments to the taxable income reported for prior years. It is not
possible, at this stage of the current tax audits, to accurately assess
the impact that could result from an unfavorable outcome of certain of
these audits. Vivendi Management believes that these tax audits will
not have a material and unfavorable impact on the financial position or
liquidity of the group.
Regarding Vivendi SA, in respect of the Consolidated Global Profit Tax
System, the consolidated income reported for fiscal years 2006, 2007,
and 2008 is under audit by the French tax authorities. This tax audit
started in January 2010. In addition, in January 2011, the French tax
authorities began a tax audit on the consolidated income reported for
fiscal year 2009 and in February 2013, the French tax authorities began
a tax audit on the consolidated income reported for fiscal year 2010.
Finally, Vivendi SA’s tax group System for the years 2011 and 2012
group is under audit since July 2013. Vivendi Management believes
that it has serious legal means to defend the positions it has chosen
for the determination of the taxable income of the fiscal years under
audit. In any event, a provision for the impact of the Consolidated Global
Profit Tax System in 2011 has been accrued (€366 million), as well as
a provision for the impact in relation to the use of tax credits in 2012
(€220 million). Moreover, the tax attributes recognized by Vivendi SA
with respect to the fiscal years under audit, representing tax savings
of €1,527 million as of December 31, 2013, were recognized in the
Consolidated Statement of Financial Position for €163 million only
(please refer to Notes 6.1 and 6.5).
Regarding Vivendi’s US tax group, the fiscal years ending December 31,
2005, 2006, and 2007 were under a tax audit. The consequences of
this tax audit did not materially impact the amount of tax attributes.
Vivendi’s US tax group is under a tax audit for the fiscal years
ending December 31, 2008, 2009, and 2010. This tax audit started in
February 2012.
Finally, regarding Maroc Telecom, the fiscal years ending December 31,
2005, 2006, 2007, and 2008 were under a tax audit. This tax audit is
now closed following the execution of a Memorandum Agreement on
December 19, 2013, effective as of December 31, 2013.
6.6.
Tax audits
