Physical Cash Pooling Agreement

przez | 11 kwietnia 2021

More information about tm5 and our dynamic cash management and payment solutions. In particular, the group`s internal account (light blue) is not an instrument within the meaning of Article 1, paragraph 23, of the AnaCredit Regulation and is therefore not subject to AnaCredit`s reports. In the meantime, individual accounts, each reflecting the contractual relationship between the creditor and the debtor, are instruments submitted to the AnaCredit report. AnaCredit borrows from credit institutions on the basis of a legally binding agreement where the debtor – a corporation or part of a corporation – has an unconditional obligation to repay the repayments arising from the agreement. In addition, according to the direct contractual link, the bank acts as a creditor for cash pooling transactions between the bank and cash pool participants, whether or not they use the funds made available to you. It also means that the various instruments are subject to the declaration of anaCredit, even if no funding is deducted. As explained above, the reporting of cash pool credit facilities depends on the specifics of a cash pool in a given case. In particular, reporting obligations depend on the nature of the cash pool in which different entities in a group may or may not have contractual obligations to the bank in the context of a cash pool transaction. Cash pooling combines all net increases and reductions to the group`s coffers, giving all companies the opportunity to use the terms of interest of the Central Ministry of Finance. The dual role of the observed agent (the bank) that manages the cash pool: Since the pooling by the bank is carried out by the creation of a high fictitious account account that practically consolidates the positions of the participants in the pool, but does not present itself as a resource or obligation of the bank, the top account of fiction is not subject to the declaration to AnaCredit. Cash Pooling is a valuable cash tool for convenient, daily cash management.

Cash pooling allows a multinational to centralize its internal financing agreements, allowing for more control, efficiency and synergies between the group members. However, in recent years, it has emerged that cash-pooling agreements may also entail some transfer pricing risks. These risks are manifested by non-deductible interest charges, double taxation or penalties that may ultimately outweigh profits. This article focuses on transfer pricing risks associated with cash-pooling agreements and follows our previous article on “Intra-Group Loans – 10 Things to Consider.” But who should be entitled to this supplementary benefit? In general, the allocation mechanism should reflect the individual contributions of the parties to the value creation process. Nevertheless, the reasons for the bank`s more favourable conditions on the cash pool leader`s main account can be multiple (z.B.

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