101
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
During 2015, NH Hotel Group, S.A., as head of Consolidation Groups of Corporate Tax and VAT, NH Hoteles España, S.A. and NH Europa S.L., were
inspected by the Spanish tax authorities in relation to Corporate Income Tax (years 2010-2013), Value Added Tax, Personal Income Tax and Non-
resident Income Tax (years 2011-2013).
In the last quarter of 2015, agreements were signed in compliance with all taxes and years mentioned above, as well as an agreement regarding
the area of transfer pricing for Corporate Income Tax purposes. None of these yielded fines. The total of the regularization, including payment and
interest, amounted to a cash outflow of 363 thousand euros.
The Directors believe that the adaptation of the Parent Company with the criteria set by the Administration for inspection generated liabilities for
the parent company amounting to 794 thousand euros, which has been provisioned for in the year’s profits and losses.
Regarding the financial years open to inspection, contingent liabilities not susceptible to objective quantification may exist, which are not significant
in the opinion of the Group’s Directors.
Deductions generated by the consolidated tax group of the Parent Company
At 31 December 2015, the Tax Group held the following tax credit carry-forward (Thousands of euros):
Year Origin
Deduction pending application
Amount
2002 to 2010
Investment in export activity
29,047
2008 to 2014
Tax deduction to avoid double taxation
11,267
2002 to 2014
Other
1,021
41,335
Of this amount, 11 million euros have been capitalized during 2015.
Similarly, the consolidated tax group of the Parent Company took advantage in prior years of the “Deferral of extraordinary profits for reinvestment”
scheme. The essential characteristics of such reinvestment are as follows (Thousands of euros):
Amount offset
Year of origin
Revenue Qualifying for
deferral
Previous years
Year 2015
Amount Outstanding Last year of deferral
1999
75,145
51,439
682
23,024
2049
This income was reinvested in the acquisition of buildings.
Negative tax bases
At 31 December 2015, the Consolidated Tax Group headed by NH Hotel Group, S.A. has the following tax loss carry-forwards:
Financial year
Amount
2007
8,835
2008
17,711
2009
85,995
2010
18,606
2011
26,294
2012
131,708
2013
11,907
2014
51,208
2015
39,478
Total
391,742
All the negative tax bases generated by the Consolidated Tax Group are recorded in the consolidated profit and loss statement, related to Spain are
98 million euros and 5 million euros to the rest of countries.
