Article 36 - Post-filing Adjustments

An adjustment to Covered Taxes for a previous Fiscal Year of a Constituent Entity located in the Kingdom recorded in its financial accounts shall be treated as an adjustment to Covered Taxes in the Fiscal Year in which the adjustment is made, unless the adjustment relates to a Fiscal Year in which there is a decrease in Covered Taxes of the Constituent Entity located in the Kingdom.

Subject to Paragraph C of this Article, where a decrease in Covered Taxes included in the Adjusted Covered Taxes of a Constituent Entity located in the Kingdom for a previous Fiscal Year arises, all of the following clauses shall apply:

1. Effective Tax Rate and Tax Due for such Fiscal Year shall be recomputed by reducing Adjusted Covered Taxes by the amount of the decrease in Covered Taxes.

2. The Constituent Entity Income for that Fiscal Year and any previous Fiscal Years shall be adjusted accordingly.

On the making of an Annual Election by the Filing Constituent Entity in accordance with Article 20 of the Law, when there is an aggregate reduction of less than EUR 1 million in the Adjusted Covered Taxes determined for the jurisdiction for a Fiscal Year, the decrease in Covered Taxes may be treated as an adjustment to Covered Taxes in the Fiscal Year in which the adjustment is made.

The amount of deferred tax expense resulting from a reduction to the applicable domestic tax rate shall be treated as an adjustment to Covered Taxes for a previous Fiscal Year of a Constituent Entity located in the Kingdom when such reduction results in the application of a rate that is less than the Minimum Rate.

Where a deferred tax expense was recorded in the financial accounts of a Constituent Entity at a rate lower than the Minimum Rate, and the applicable tax rate is increased in a subsequent Fiscal Year, the amount of deferred tax expense that results from such increase shall be treated, upon payment of the related tax, as an adjustment to a Constituent Entity's liability for Covered Taxes claimed for the previous Fiscal Year in which the deferred tax expense was recorded.

The adjustment under Paragraph E of this Article shall not exceed an amount equal to the deferred tax expense recomputed at the Minimum Rate.

Where more than EUR 1 million of the amount incurred by a Constituent Entity as a current tax expense and included in Adjusted Covered Taxes for a Fiscal Year is not paid within three years after the end of that Fiscal Year, the Effective Tax Rate and Tax for the Fiscal Year in which the unpaid amount was included as a Covered Tax shall be recomputed by excluding such unpaid amount from the Adjusted Covered Taxes.