Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
Contingent liabilities related to income tax
The European Commission has addressed questions to the
Dutch government about article 29a of the Dutch Corporate
Income Tax Code. If the European Commission would decide
to start a formal investigation and ultimately would conclude
that this is a case of state aid, Rabobank may have to repay tax
benefits it enjoyed from 2015 onwards.
Article 29a of the Dutch Corporate Income Tax Code was
included in the Dutch Corporate Income Tax Code so that
capital instruments issued by credit institutions and which are
covered by EU regulation 575/2013 would be considered tax
deductible. In this context, Rabobank issued Capital Securities
in January 2015 and in April 2016, amounting respectively to
EUR 1.5 billion at a fixed interest rate of 5.5%, and EUR 1.25
billion at a fixed interest rate of 6.625%.The contingent liability
related to this matter amounts to 96 (2016: 54).
Liability undertakings
Pursuant to section 403 of Book 2 of the Dutch Civil Code,
Rabobank has assumed liability for the debts arising from the
legal transactions of the following group companies:
Bodemgoed B.V.
De Lage Landen America Holdings B.V.
De Lage Landen Corporate Finance B.V.
De Lage Landen Facilities B.V.
De Lage Landen International B.V.
De Lage Landen Vendorlease B.V.
FGH Bank N.V.
Rabo Direct Financiering B.V.
Rabo Factoring B.V.
Rabo Financial Solutions Holding B.V.
Rabo Groen Bank B.V.
Rabo Lease B.V.
Rabo Merchant Bank N.V.
Rabo Mobiel B.V.
Rabobank International Holding B.V.
A liquidity guarantee was issued by Rabobank for Rabo Groen
Bank B.V.
In the past, Rabobank has guaranteed the liabilities of a number
of group companies. Even though these guarantees have
come to an end, Rabobank remains liable for the fulfilment of
obligations entered into by the group companies during the
term of the guarantees.
In connection with theTrust Preferred Securities, Rabobank
guarantees theTrust concerned, on a subordinated basis, that
the payments from the LLC to theTrust will be made and - in
the event that the LLC goes into liquidation - that the LLC
Class B Preferred Securities will be repaid and the associated
payments on theTrust Preferred Securities will be made
(the'Guarantees'). Under the so-called Contingent Guarantee,
Rabobank guarantees the LLC that it will pay the amounts owed
under the Guarantees, if these amounts have been due and
unpaid for more than 180 days.
Internal liability (cross-guarantee system)
Various legal entities belonging to Rabobank Group are
internally liable under an intragroup mutual keep well system.
Under this system the participating entities are bound, in the
event of a lack of funds of a participating entity to satisfy its
creditors, to provide the funds necessary to allow the deficient
participant to satisfy its creditors.The system is a remnant of
Rabobank's previous cooperative structure that was in effect
until 31 December 2015, when the Coöperatieve Centrale
Raiffeisen-Boerenleenbank B.A. and the local member banks
merged into a single legal entity: Coöperatieve Rabobank U.A.
Therefore, it is intended that the system will be terminated in
the course of 2018.
As on 31 December 2017, the remaining participants are:
Coöperatieve Rabobank U.A
Rabohypotheekbank N.V.
De Lage Landen International B.V.
Rabo Factoring B.V.
(previously named De Lage Landen Trade Finance B.V.)
Rabo Lease B.V.
(previously named De Lage Landen Financial Services B.V.)
Rabo Direct Financiering B.V
(previously named De Lage Landen Financiering B.V.)
Fiscal unit for corporate tax purposes
For corporate tax purposes Rabobank forms a fiscal unit with
a number of domestic subsidiaries. Under the fiscal unit, each
participating legal entity is jointly and severally liable for the
fiscal unit's corporate tax liabilities.
Rabobank Annual Report 2017 - Company financial statements
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