The Company has given guarantees that its subsidiaries, the financial figures of which are included in the consolidated financial statements, will comply with certain contractual obligations.
The Company has a combined credit and guarantee facility of EUR 50,000 (2019/2020: EUR 50,000), of which no draw down was made (2019/2020: no draw down) in the form of guarantees.
The Company issued a letter of comfort relating to a facility of USD 600 million (2019/2020: USD 600 million) for KPMG International. In this letter of comfort the Company confirmed that it is a member of KPMG International and that it will pay its contribution in accordance with the Articles of Association of KPMG International and the ‘Membership Agreement’. The letter of comfort has a duration of 5 years as of November 2016.
Together with its 100% subsidiaries, including KPMG N.V., Coöperatie KPMG U.A. forms a tax group for corporate income tax purposes. Each of the companies of the tax group is, under the relevant standard tax conditions, jointly and severally liable for the tax payable by all of the companies in the tax group. As the head of the income tax fiscal unity, the Cooperative pays the income tax assessments. It is, however, KPMG N.V. that incurs the total income tax expense of the tax group, except for the amount attributable to the Cooperative under the ruling with the Dutch Tax Authorities.
KPMG N.V. is part of a tax group for value added tax purposes, headed by Coöperatie KPMG U.A. Each of the companies of the tax group is, under the relevant standard tax conditions, jointly and severally liable for the tax payable by all of the companies in the tax group.