SOL MELIA ANNUAL REPORT 00 COMP

FISCAL SITUATION
As a result of the inspection adjustments, Sol Meliá, S.A. has applied tax losses amounting to Ptas. 7,248 million and tax
liabilities and assets have decreased by Ptas. 1,476 and 2,550 million, respectively, with the corresponding effect on the profit
and loss account. This was the main reason for the increase in the tax rate of the Group’s parent company in 2000 when
compared with the previous year.
The tax benefits of Sol Meliá, S.A., arising from the sale of assets and tax exempt due to reinvestment, as well as the disposal
amounts to be reinvested, in thousands of pesetas, are as follows:
AMOUNT PROFIT PENDING EXPIRATION
YEAR SALE OF SALE ON SALE REINVESTED REINVESTMENT DATE
1996 Sundry assets 5,231,169 4,060,445 5,231,169 0 1999
1997 H. Don Manolo 578,000 259,108 578,000 0 2000
1998 Sundry assets 1,469,773 977,146 1,469,773 0 2001
1999 H. Sol Canarios 825,000 369,669 825,000 0 2002
2000 Lav. Industrial de Guadalajara 215,250 172,801 0 215,250 2003
TOTAL 8,319,192 5,839,169 8,103,942 215,250
The 1996 amounts reflect the write-off of balances previously applicable to reinvestments, which have been adjusted at the aforementioned
inspection.
As indicated in Note 5 above, the tax criteria applied to financial leasing contracts signed after January 1, 1996 were modified
in 1999.
The information stipulated in Article 98 of Law 43/95, of December 27, on Corporation Tax, and on mergers and spin-offs of
activities carried out in previous years is included in the first Notes to the consolidated annual accounts approved after each
transaction, the summary of which is as follows:
Inmotel Inversiones, S.A.: 1993, 1996, 1997 and 1998
Sol Meliá, S.A.: 1999
The breakdown of tax deductions applicable for new fixed assets acquired in the Canary Islands by Sol Meliá, S.A. is:
YEAR INVESTMENT DEDUCTION APPLICATION PENDING
(QUOTA)
1999 2,457,600 614,400 500,000 114,400
2000 624,577 156,144 0 156,144
TOTAL 3,082,177 770,544 500,000 270,544
S OL
M ELIÁ
A NNUAL R EPORT 2000
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