TAV IT

TAV AIRPORTS HOLDING AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2008
(Amounts expressed in Euro unless otherwise stated)
Following the audits carried out by the Financial Auditors of the Ministry of Finance, on the 2001-2004 accounts of the TAV Holding.
a settlement has been reached on 23 March 2008, with the Revenues Administration Directorate of the Ministry of Finance, for
the taxes and penalties set forth in the reports notified regarding the 2001-2005 period, and subsequently settlement has been
reached for an income tax withholding of TRY 2,790,637 (equivalent of EUR 1,631,404) and a value added tax of TRY 623,282
(equivalent of EUR 364,806) had been settled. A delay interest payment of TRY 4,603,610 (equivalent of EUR 2,691,855) is made
for these penalties. A provision of TRY 8,017,529 (equivalent of EUR 4,688,065) had been allocated in the 31 December 2007
consolidated financial statements of the Company. As at 31 December 2008, tax review for TAV Holding has been finalised and tax
penalty amounting to TRY 4,121,010 (equivalent of EUR 1,924,986) has been recorded to short term other payables.
The tax audits carried out by the Financial Auditors of the Ministry of Finance, on the January 2004-September 2007 accounts
of BTA have been completed. Following the inspections carried out, it has been notified to BTA that food and beverage sales at
the customs areas at the airports (air side) must not be exempt from value added tax, together with the relevant tax/penalty
notifications. Together with this notification, a value added tax of TRY 15,480,954 and a corporate tax of TRY 288,647 were
calculated, and a tax loss penalty for the same amounts was calculated. BTA requested a settlement as a response to this
notification, and in its financial statements as at 31 December 2007. BTA allocated a provision amounting to a total of TRY
5,298,286 (equivalent of EUR 3,098,049), i.e., TRY 3,238,286 (equivalent of EUR 1,893,513) tax and TRY 2,060,000 (equivalent
of EUR 1,204,535) delay interest. As at 31 December 2008, tax review has been finalised for BTA and tax penalty amounting TRY
6,337,215 (equivalent of EUR 2,960,209) has been recorded to short term other payables.
Tax penalty
2008 2007
Balance at 1 January 9,248,823 -
Provision (released)/set during the year, net (2,900,918) 9,248,823
Reclassification of tax penalty to other payables (4,885,195) -
Effects of change in foreign exchange rate (294,209) -
Balance at 31 December 1,168,501 9,248,823
Unused vacation
2008 2007
Balance at 1 January 2,284,737 949,545
Provision set during the year, net 713,239 1,256,739
Effects of change in foreign exchange rate (459,551) 78,453
Balance at 31 December 2,538,425 2,284,737
35. TRADE PAYABLES
At 31 December 2008 and 2007, trade payables comprised the following:
31 December 2008 31 December 2007
Trade payables 27,103,474 21,557,591
Deposits and guarantees received 439,195 422,547
Other 638 27,611
27,543,307 22,007,749
Trade creditors principally comprise amounts outstanding for trade purchases and ongoing costs. The Group’s exposure to currency
and liquidity risk related to trade payables is disclosed in Note 38.