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DESCRIPTION OF THE RISK POTENTIAL IMPACT
MITIGATING FACTORS AND MEASURES
Legal proceedings and
arbitration against the
company
Negative impact on the result of the period
and possibly on the company’s image and
share price.
Control of all in-house factors that could negatively influence the poor
execution of a contractual obligation.
Professionalism of the teams ensuring rigorous compliance with the
obligations.
Hidden liabilities resulting
from mergers, demergers
and contributions
Negative impact on the net asset value, fall
in results.
Due diligence: appropriate technical, administrative, legal, accounting and
tax audits when acquiring property companies and assets.
Declarations and guarantees required from sellers.
The exit tax is calculated
by taking into account
the provisions of the
circular CI.RH.423/567.729
dated 23.12.2004,
which interpretation or
practical application
may be modified at any
time. The “real value” of a
property as defined in that
circular is calculated after
deduction of registration
duties or VAT; this “real
value” differs from (and
can therefore be lower
than) the property’s fair
value as stated in the IFRS
balance sheet of the RREC.
Increase of the basis on which the exit tax is
calculated.
The Group considers that it complies in all respects with the provisions
of the circular concerning the calculation of the exit taxes for which it is
liable.
Interests on loans/rental
income received in excess
of the threshold fixed by
the RREC legislation
Non-compliance with legislation.
Updating of a five-year financial plan.
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