325 348
325
PrysmianS.p.A. acts as the head of the tax group and calculates
a single taxable base for companies in the Italian tax group; this
has the benefit of being able to offset taxable profits against
tax losses in a single tax return, thereby ensuring optimisation
of the tax charge.
On 7 June 2012, the head of the tax group sent the required
notice of renewal of the group tax election for the three years
2012 – 2013 – 2014 for the following companies:
• Fibre Ottiche Sud – F.O.S. S.r.l.
• Prysmian Cavi e Sistemi S.r.l.
• Prysmian Cavi e Sistemi Italia S.r.l.
• Prysmian Treasury S.r.l.
This notice also included the election to include Prysmian
Electronics S.r.l. in the group tax consolidation with effect
from 2012.
Prysmian PowerLink S.r.l. renewed its election to file for tax
on a group basis for the three years 2014 - 2015 – 2016 on 3
June 2014.
The rate used to calculate the tax charge is 27.5% for IRES
(Italian corporate income tax), and 5.57% for IRAP (Italian
regional business tax).
As a global operator, the Company is exposed to legal risks
primarily, by way of example, in the areas of product liability,
and environmental, antitrust and tax rules and regulations.
Outlays relating to current or future proceedings cannot be
predicted with certainty. The outcome of such proceedings
could result in the payment of costs that are not covered, or
23. CONTINGENT LIABILITIES
not fully covered, by insurance, which would therefore have a
direct effect on the Company's financial position and results.
It is also reported, with reference to the Antitrust investi-
gations in the various jurisdictions involved, that the only
jurisdiction for which Prysmian S.p.A. has been unable to
estimate the related risk is Brazil.
The Company has the following types of commitments at 31
December 2014:
a) Commitments to purchase property, plant and equipment
and intangible assets
Contractual commitments, already given to third parties at
31 December 2014 and not yet reflected in the financial state-
ments, amount to Euro 3,276 thousand (Euro 941 thousand
24. COMMITMENTS
at 31 December 2013), of which Euro 402 thousand in relation
to the SAP Consolidation project (Euro 264 thousand at 31
December 2013).
b) Operating lease commitments
Future commitments relating to operating leases are as
follows:
2014
2013
Due within 1 year
3,804
2,175
Due between 1 and 5 years
5,580
2,029
Due after more than 5 years
66
-
Total
9,450
4,204
(in thousands of Euro)