Annual Report 2010 - CMVM

Financial Statements 2010The expenditure on external supplies and services incurred in the year ended on 31 December 2010 were almost entirely the result of the public takeover bid, in the form of a public exchangeoffer on all the remaining share capital of TD-EC, the share capital increase carried out through new entries in kind and through the listing of these shares on the Stock Exchange.13. Contingent Liabilities13.1. It is disclosed that during 2010, the Tax Inspection Authorities (DSIT) carried out external inspections to the company Teixeira Duarte - Gestão de Participações InvestimentosImobiliários, S.A. (hereinafter designated TDGPII, S.A.), which is 100% owned by the subsidiary company TD-EC.As a result of these external inspections, of a general scope, to the accounting documentation of TDGPII, S.A. and relative to 2006, 2007 and 2008, the following corrections were madeto the initially calculated tax losses:Year Calculated Tax Loss DGCI Correction2006 24,950 18,8372007 51,176 29,3312008 64,606 45,327These corrections result entirely from the non-acceptance, as a tax cost, of the financial costs incurred with the investment in subsidiary companies under the form of additional paid-incapital.Since TDGPII S.A. is subject to Corporate Income Tax (IRC) in accordance with the Special Taxation Scheme for Groups of Companies (article 69 and following of the IRC Code), the correctionsto the tax losses of 2006 and 2007 were the object of IRC Settlement Statements issued to the controlling company – TD-EC, which filed a judicial review at the Administrativeand Fiscal Court of Sintra.Therefore, the taking of effect of the IRC Settlement Statement is suspended until the definitive decision is read on the judicial reviews which have been filed, regarding which the Boardof Directors believes that its outcome will be favourable to TDGPII, S.A. and, consequently, to the controlling company.On the date of the closing of the Financial Statements for 2010, the corrections relative to 2008 had not yet been the object of any settlement of IRC.13.2. In the context of the financing line referred to in Note 8.3) and as its term of guarantee, TD,SA subscribed and delivered to Caixa Geral de Depósitos S.A. (CGD) during the yearended on 31 December 2010 a promissory note with a blank amount and due date, duly dated, authorising this same entity to fill in the abovementioned promissory note, when suchshould prove necessary, in accordance with the conditions established in the addendum to the loan contract that it signed.14. Staff CostsStaff costs for the years ended on 31 December 2010 and 2009 are broken down as follows:2010 2009Remunerations 33 -Participation in profit or loss 1,500 -Payroll costs 7 -Insurance 4 -1,544 -15. Share CapitalNominal share capitalAs at 31 December 2010, the Company's share capital, totally underwritten and paid-up, was composed of 420,000,000 shares with the nominal value of EUR 1.00 each.During 2010, the share capital was increased by EUR 287,881 thousand to EUR 420,000 thousand, through new entries in kind, via the issue of 132,119,201 new shares of the nominalvalue of EUR 1.00, at the issue price of EUR 1.00 per share, integrating the public takeover bid launched on the shares of TD-EC. This process was concluded with the acquisition of theentirety of the shares of the abovementioned Company.141