Tiscali 2012 Annual Report Download - page 159

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54
settlement of the dispute, partly so as to avoid any recourse taken by the financial institutions which, as
indicated in the letter dated 11 December 2012, could take action against WOL in the event that this
settlement is not reached.
You are also hereby informed that Stichting Van der Goen WOL Claims in December 2011 made an
additional request for compensation representing a further 29 shareholders or those entitled, in which
the hypothesis of proceedings with legal action was furthered. This request for compensation does not
fall within the afore-mentioned negotiations which the Tiscali Group is finalising with the financial
institutions for the transactional component of the dispute. The same Stiching Van der Goen confirmed
its claims by means of letter dated 6 March 2013 which was accompanied by the draft of a potential writ
of summons vis-à-vis WOL. To-date, what is more no proceedings appear to have been launched.
These disputes are potentially significant; however, at present there are not enough sufficiently defined
elements for quantifying the potential liability. Therefore, no provision has been made at present in the
financial statements.
Tax assessments
In 2003, the Dutch tax authorities notified WOL and the direct subsidiary Tiscali International BV with
regard to the alleged non-payment of withholdings on remuneration and stock options acknowledged to
a number of company executives. The total amount of these disputes is EUR 2 million, against which
payments were made totalling around EUR 0.3 million. The residual amount mainly refers to
withholdings on stock options which, in the opinion of the Group’s tax advisors, would not be subject to
taxation in the Netherlands. Given this circumstance and considering that the Dutch tax authorities have
not sent any formal letter or document in the years following receipt of the notice of dispute, it is not
deemed that the liability can be considered probable and, consequently, no further provision has been
made.