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27 Liabilities and assets not recognised in the consolidated statement of financial position

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27.1 Other commitments

The Group has long-term property leases for which the service costs are excluded from the lease liability and right-of-use asset in the consolidated balance sheet. In addition, the Group has commitments that are exempt from recognition in the balance sheet in accordance with IFRS 16, such as for personal computers and IT services, and commitments under long-term sponsorship agreements. The total of these commitments as at 30 September 2021 amounted to EUR 31,172 (2019/2020: EUR 23,937).

Non-cancellable commitments:

EUR 000

30 September 2021

30 September 2020

 

Service costs related to property

Other contracts

Total

Service costs related to property

Other contracts

Total

 

Within 1 year

2,104

7,093

9,197

2,153

3,279

5,432

Between 1-5 years

5,122

6,927

12,049

5,619

3,625

9,244

After 5 years

8,121

8,121

9,254

7

9,261

 

15,347

14,020

29,367

17,026

6,911

23,937

The future rental income from sub-leases is as follows:

EUR 000

30 September 2021

30 September 2020

Within 1 year

2,834

3,175

Between 1 and 5 years

5,256

8,231

After 5 years

7,994

11,739

 

16,084

23,145

The following expenses related to other commitments and rental expenses were recognised in the consolidated statement of profit or loss and other comprehensive income:

EUR 000

2020/2021

2019/2020

Properties

2,126

2,153

Cars

119

755

Other contracts

3,279

2,349

27.2 Tax Group

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 in 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 in 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.

27.3 Guarantees

The Group 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 Group 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.

27.4 Legal disputes

Claims have been filed and proceedings have been instituted against the Group on the grounds of alleged failure to perform professional duties. The Group evaluates whether relevant circumstances are such that it is reasonable to assume that they will result in the Group entity being held liable on the grounds of alleged failure to perform professional duties. A decision is taken on a case-by-case basis as to whether it is probable that settlement of the case will involve an outflow of resources from the Group. In such cases, a provision is accounted for. The Group carries professional indemnity insurance.