Company: GIFLF
Filing Date: 2025-02-26
Form Type: 6-K
Source: 0001104659-25-017501
Chunk: 39

Company: Grifols SA
Filing Date: 2025-02-26
Form: 6-K
Chunk 39
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. Currently, the IRS is still in the initial phase of their analysis and only        
 beginning discussions have taken place.                                                                                        
 • Certain Group companies domiciled in Spain, taxed under the Spanish tax consolidation regime, recently                       
 underwent an audit by the Spanish State Tax Administration Agency, in relation to Corporate Income Tax for the                 
 fiscal years 2017 to 2019 and Value Added Tax, personal income tax, non-resident income and capital income tax                 
 for June 2018 to December 2019. The Group disagreed to the corresponding assessment proposals                                  
 ("disconformidad") and has received the corresponding final assessments. No penalties were imposed on any of                   
 the Group companies for any of the taxes subject to these audit proceedings.                                                   
 As regards Corporate Income Tax, the assessment is based on a different pricing criteria approach. In relation to VAT,         
 the assessment relies on a different interpretation of the financial activity carried out by the Group and how such            
 difference affects the deductibility of certain expenses.                                                                      
 The net tax liability included in the group's Financial Statements to cover the worldwide exposure to uncertain tax            
 treatments at December 31, 2024 is Euros 136,705 thousand (Euros 76,604 thousand as of December 31, 2023) and it is            
 included under the caption "Other public entities". This increase in the net tax liability for uncertain tax positions relates 
 to transfer pricing mainly as a result of an update of potential tax liabilities following the tax audits mentioned above.     
 Transfer pricing matters are complex, highly subjective and open to disputes involving different tax jurisdictions. The        
 topics under discussion are complex and may take many years to resolve. The tax liability includes uncertain tax               
 treatments that are estimated using either the most likely amount method or the expected value method and depend on            
 the Group's assessment as to whether the approach taken by the Tax Authorities is likely to be sustained by Tribunals or       
 Courts. Such assessment could change in the future to reflect progress in Tax Authorities' reviews to the extent that any      
 Tax Authority review is concluded; progress in on-going appeals and international procedures, including the return of          
 taxes which have already been paid under the assessments set out above; changes in legal provisions or in the                  
 interpretation of such provisions; or even expiry of the corresponding statutory periods of limitations.                       
 Management believes that it is unlikely that additional liabilities, above the amounts provided, will arise. Also, it is       
 possible that the amounts provided may change and be partially, or even entirely, mitigated in