Company: SNY
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0001121404-25-000010
Chunk: 318

Company: Sanofi
Filing Date: 2025-02-13
Form: 20-F
Chunk 318
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 and other, including controls over determining whether a loss is probable and whether the amountof loss can be reasonably estimated, as well as the need for and the level of financial statement disclosures. These procedures alsoincluded, among others, obtaining and evaluating the letters of audit inquiry with internal and external legal counsels, evaluatingmanagement’s assessment regarding whether an unfavorable outcome is reasonably possible or probable and reasonablyestimable through the evaluation of the legal letters and summaries of the proceedings and lawsuit correspondence. We alsoevaluated the Company’s disclosures for contingent liabilities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

Uncertain tax positions

| Descriptionof the Matter               | As described in Notes B.22. and D.19.4. to the consolidated financial statements, the Company has recorded liabilities pertaining touncertain tax positions of €1,512 million at December 31, 2024. The Company operates in multiple tax jurisdictions, carrying outpotentially complex transactions that require management to make judgments and estimates as to the tax impact of thosetransactions. The positions adopted by the Company in tax matters are based on its interpretation of tax laws and regulations.Some of those positions may be subject to uncertainty. In such cases, the Company assesses the amount of the tax liability on thebasis of the following assumptions: that its position will be examined by one or more tax authorities on the basis of all relevantinformation; that a technical assessment is carried out with reference to legislation, case law, regulations, and established practice;and that each position is assessed individually (or collectively where appropriate), with no offset or aggregation between positions.Those assumptions are assessed on the basis of facts and circumstances existing at the end of the reporting period. When anuncertain tax liability is regarded as probable, it is measured on the basis of the Company’s best estimate.The principal considerations for our determination that auditing uncertain tax positions is especially challenging, subjective andrequired complex auditor judgment related to the significant judgment by management when determining the liability foruncertain tax positions, including a high degree of estimation uncertainty of certain assumptions and interpretations of the taxlaws and regulations underlying the positions. |
| How We Addressedthe Matterin Our Audit | Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overallopinion on the consolidated financial statements. These audit procedures included obtaining an understanding of the process andassessing the design and testing the operating effectiveness of controls relating to the identification and recognition of the liabilityfor uncertain tax positions, management’s assessment and interpretation of tax laws and its evaluation of