Ubisoft 2014 Annual Report Download - page 52

Management Report
2014
47
1.7.2 LEGAL RISKS
1.7.2.1 LAWSUITS – LEGAL PROCEEDINGS AND ARBITRATION
There are no government, legal or arbitration proceedings pending that are likely to have or that, over
the past 12 months, have had a material impact on the financial position or profitability of the Company
and/or the Group.
The Group is subject to regular tax inspections by the tax authorities in the countries where it is
present.
As part of the Ubisoft Divertissements Inc. (Canada) tax audit for 1999 to 2003, and 2004 to 2008, a
bilateral transfer price agreement has been initiated with the tax authorities. Pending the final
agreement, the provision of CAD$3 million is maintained unchanged.
A tax audit is underway at Ubisoft International SAS for the period from April 1, 2008, to March 31,
2012. Proposed adjustments have been received. The Company wholeheartedly contests these
proposed adjustments and, consequently, no provision has been recognized in the financial
statements.
A tax audit is underway at Ubisoft France SAS for the period from April 1, 2010, to March 31, 2013. No
proposed adjustments have been received to date. Consequently, no provision has been recognized
in the financial statements.
A tax audit is underway at the German companies Ubisoft GmbH and Blue Byte GmbH L for the period
from April 1, 2007, to March 31, 2011. No proposed adjustments have been received to date.
Consequently, no provision has been recognized in the financial statements.
A tax audit is underway at Ubisoft Entertainment India Pvt. Ltd (India) for the period from April 1, 2009,
to March 31, 2011. Proposed adjustments have been received in the financial year 2010. The
company wholeheartedly contests these proposed adjustments and, consequently, no provision has
been recognized in the financial statements.
A tax audit is underway at the British companies Ubisoft Ltd and Ubisoft Reflections Ltd for the period
from April 1, 2011, to March 31, 2012. No proposed adjustments have been received to date.
Consequently, no provision has been recognized in the financial statements.
1.7.2.2 REGULATORY ENVIRONMENT
a) Relating to consumer protection
The Company has developed tools and implemented the requisite procedures to comply at a global
level with local laws and regulations, in particular those relating to consumer protection, also covering
but not limited to information given to consumers on the rules of use and content of games, the
classification of games in accordance with the age-rating classifications of PEGI in Europe and ESRB
in the United States, the protection of consumers’ personal data when this data is collected, and the
protection of minors (notably by setting up parental consent procedures). The Company has
introduced internal control procedures to check compliance with the above.
This aspect is increasingly becoming a risk factor for the Company because video games in general
are increasingly regarded as a potentially addictive pastime.