UBI Banca Group

a different criterion is used to calculate the timing of tax deductions for impairment losses on loans. On
6 th December 2011, an application for tax assessment by consent was filed in order to obtain, as a
reduction in the increased tax demanded, what had already been paid voluntarily in accordance with
Law No. 244/2007 for the realignment of statutory accounts with tax accounts with regard to existing
provisions for risks and charges. This procedure was concluded on 1 st February 2012 without the parties
having reached an agreement. The bank reserves the right to appeal within the legal time limits.
Centrobanca: following the tax assessment report received on 23 rd July 2009, with which the Lombardy
Regional Department of the tax authorities did not approve the criteria employed for the recognition of
disposal of loans to customers, and that is the impairment losses recognised on them, even where the
reinforced derivation principle, introduced for entities subject to IFRS with Law No.244/2007, applies.
On 20 th July 2011, a notice of assessment was received from the same regional department for a total of
€6.920 million (of which €2.736 million for increased taxation, €351 thousand of interest and €3.832
million of fines). This notice takes no account whatsoever of the outcome of the criminal proceedings
(which occurred in the meantime and concluded with a ruling of 8 th June 2011 by the Court of Milan
dismissing the case because there was “no case to answer”) and in fact confirmed the results of the tax
assessment report. An unsuccessful attempt was made to use compliance by consent procedures in
relation to that notice of assessment and therefore court proceedings were initiated.
UBI Assicurazioni: on conclusion of inspections relating to 2008, on 30 th November 2011 the tax
authority inspectors from the Lombardy Regional Department delivered their tax assessment report from
which the following amounts can be estimated: increased IRES of €87 thousand, increased IRAP (local
production tax) of €13 thousand and increased VAT of €40 thousand.
These findings mainly concerned questions relating to the tax period or the VAT regime for co-insurance.
In consideration of the small amounts of the demands, the new owners of UBI Assicurazioni agreed with
the proposal to file an application for tax assessment by consent. As already reported, under the clauses
of the contract signed with the controlling shareholder of the company, UBI Banca is not required to pay
any compensation because the case in question is within the exemption limits.
UBI Banca: on 28 th November 2011, UBI Banca was served with a notice of assessment and notified of
fines imposed for corporate income taxes relating to 2003 for a total of €47.138 million (of which €17.986
million for increased corporate income tax, €3.970 million for interest and €25.181 million of fines). This
notice resulted from a tax assessment report received by the bank on 8 th July 2010, which contained one
irregularity only that was fully reproduced in the notice of assessment. Very briefly, with regard to the
contributions of banking operations made by BPB-CV Scrl in June 2003 to the newly formed BPB Spa
and BPCI Spa (as part of the operation which gave rise to the BPU Banca Group), the full deduction of
the provisions for risks and charges taxed separately by the contributor (BPB-CV Scrl) was contested,
because the tax authorities considered that those provisions should have been deducted in subsequent
years by the contributing companies (BPB and BPCI).
The above tax assessment report gave rise to criminal proceedings (fiscal offence of inaccurate income tax
returns) against the legally authorised representative of BPU Banca, when the tax returns for 2003 were
filed. The case was closed on 21 st July 2010 with an order for no further action by the Criminal Court of
Bergamo, both because of the absence of specific intent and because the statute of limitations applied to
the alleged offence. The assessment was performed as a result of Ruling No. 247 of 25 th July 2011 of the
Constitutional Court, which doubled the length of the assessment period for fiscal offences, even if the
ascertainment of the criminal offence occurs when the ordinary assessment period has expired. This
issue is subject to broad debate, which is still in progress. In the case in question, the inspection relating
to 2003 took place well after the time limit pursuant to article 43 of Presidential Decree No. 600/1973
had expired.
On 6 th December 2011, UBI Banca filed an application for tax assessment by consent in relation to the
notice of assessment, the procedures for which are still in progress.
UBI Banca: on 12 th December 2011, UBI Banca as the consolidating company and the Large Taxpayers
Office of the Lombard Regional Department of the tax authorities, signed a legal reconciliation agreement
in order to reduce the litigation concerning a series of appeals relating to 2004, presented by UBI Banca
and some of the consolidated companies (Banco di Brescia, UBI Leasing, Grifogest SGR and Banca
Lombarda Private Investment). An increased payment resulted from that agreement totalling
approximately €744 thousand compared to an original demand of approximately €4 million, for which
appropriate provisions had been made. The payment documentation is expected from the competent
authorities.
UBI Banca: on 23 rd June, the Bergamo tax unit of the Guardia di Finanza (finance police) commenced a
tax inspection for the year 2008. The inspection was suspended indefinitely to allow the inspectors to coordinate
their work with the Regional Department of the tax authorities.
UBI Banca and Banco di Brescia: in compliance with Supervisory Recommendations issued in Bank of
Italy Circular No. 229/1999, in 1999-2000 the former Banca Lombarda e Piemontese Spa, its subsidiary
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