2.1.10 Research and development activities
2.1.11 Subsequent events
Edenred strengthens its toll offering in Brazil with the acquisition of Greenpass
On February 22, Edenred announced that it had acquired a 51% controlling interest in Greenpass, an issuer of electronic toll solutions in Brazil. The deal strengthens Edenred’s position in this business as well as its technology and sales capabilities in an attractive market offering significant cross-selling potential with its client base. It is fully in line with the Group’s Beyond Fuel strategy to develop new non-fuel fleet and mobility services, enhancing its value proposition for fleet managers and expanding its addressable market.
2.2 Results of operations for the Edenred parent company
2.2.1 Description of the business
As the Group holding company, Edenred SE manages a portfolio of equity interests, collects dividends from subsidiaries and drives the Group’s development.
The Company owns a portfolio of brands, including Ticket Restaurant, Ticket Alimentaçao, Ticket Compliments, Childcare Vouchers and Ticket EcoCheque, and earns revenues from licensing these brands.
It also provides services to other members of the Group regarding prepaid solutions, staff secondment, cash management and IT, as well as advisory services. These services are billed as a percentage of the subsidiaries’ revenue and/or profit, as a flat fee or on a per-service basis. They are determined on arm’s length terms.
2.2.2 Significant events in 2021
Change of legal form
The Company changed its legal form to a European company or Societas Europaeas (S.E.) in May 2021 to adapt to economic trends and reflect the international nature of its business.
Edenred SE tax audit
In 2018 and 2019, a tax audit was carried out at Edenred SE, covering the period from 2014 to 2016.
Notifications of tax reassessments were received by the Company in December 2018 in respect of 2014, and in July 2019 in respect of 2015 and 2016. The total tax, late interest and penalties claimed for the three years amounted to €17 million. The Company has contested the reassessments and filed a claim with the national tax board in early 2019. Following a sitting on January 24, 2020, the tax board issued an opinion against the reassessment. The tax authorities nevertheless notified the Company on July 3, 2020 that they would be maintaining the reassessment.
After meeting with the departmental representative (interlocuteur départemental) to discuss the matter on October 7, 2020, Edenred continued talks with the French National and International Audit Department (DNVI), reaching an agreement on the brand royalty rates. A collection procedure was initiated in June 2021 to recover the €0.7 million in corporate income, CVAE and withholding taxes.
Since September 2021, the Company has been the subject of another tax audit covering the period from 2018 to 2020.
The tax authorities put forward a proposed reassessment for the 2018 tax year, which was accepted by the Company’s management. The total tax, late interest and penalties amount to €0.6 million.
The audit remains open for the period 2019-2020. The Company has recognized a provision in an amount of €0.6 million in this respect.