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Total provision movements for 2012 recorded by subsidiaries deferred tax asset calculated at the rate of 33.33% excluding the that form part of the Accor tax group represented a net non-3.3% contribution sociale surtax and the 5% special contribution. deductible charge of €246 million, giving rise to an €82 million

D. Provision recognized in accordance with Article 312-1 of standard CRC 99-03

In 2012, Accor applied Recommendation 2005-G issued on October 12, 2005 by the French National Accounting Board’s Urgent Issues Task Force concerning the conditions applicable for recognizing a provision within a parent company that has set up a tax group.

Under the Group relief agreement between Accor SA and its subsidiaries, the tax benefits resulting from the utilization by the tax group of a subsidiary’s tax losses revert to the subsidiary if it leaves the tax group.

As required by Article 312-1 of CRC standard 99-03, a provision is recorded for the Company’s liability when it is probable that the tax benefit will be transferred as a result of a subsidiary leaving the tax group.

In practice, over the past five years the majority of the companies that have left the tax group have done so as a result of a liquidation, merger or disposal not requiring any transfer of tax benefits. There has only been one case where the sale of a subsidiary to a party outside the tax group led to the transfer of a tax benefit.

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.


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Accor claimed that the absence of a tax credit on Europeansource 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 prĂ©compte 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 the Versailles 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 2013 Accor will be required to repay a principal amount of €149.7 million and an estimated €35 million in late payment interest. The €6.3 million out of the original principal amount refunded by the State that Accor will not be 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 will 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 prĂ©compte withholding tax paid in the years 2002 to 2004.