Unilever 2010 Annual Report Download - page 119

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116 Unilever Annual Report and Accounts 2010
Financial statements
Notes to the consolidated nancial statements Unilever Group
25 Commitments and contingent liabilities (continued)
Legal proceedings
Details of significant outstanding legal proceedings and ongoing regulatory investigations are as follows:
Competition investigations
As previously reported, in June 2008 the European Commission initiated an investigation into potential competition law infringements in the
European Union in relation to consumer detergents. While the investigation is ongoing, Unilever has concluded that it is appropriate to take
aprovision of €110 million.
In addition and as previously reported, Unilever is involved in a number of other ongoing investigations by national competition authorities in a
number of European countries including Greece, France, the Netherlands, Belgium and Germany. These investigations are at various stages and
concern a variety of product markets. Provisions have been made to the extent appropriate.
It is Unilever’s policy to co-operate fully with the competition authorities in the context of all ongoing investigations. In addition, Unilever reinforces
and enhances its internal competition law compliance procedures on an ongoing basis.
Tax case Brazil
During 2004 in Brazil, and in common with many other businesses operating in that country, one of our Brazilian subsidiaries received a notice
ofinfringement from the Federal Revenue Service. The notice alleges that a 2001 reorganisation of our local corporate structure was undertaken
without valid business purpose. The dispute is in court and if upheld, will result in a tax payment relating to years from 2001 to the present day. The
2001 reorganisation was comparable with restructurings done by many companies in Brazil. We believe that the likelihood of a successful challenge
by the tax authorities is remote, however, there can be no guarantee of success in court.