Tag: Zero balancing pool

Poland vs. Corp. Aug. 2016, Supreme Administrative Court, Case No. II FSK 1097/16

Poland vs. Corp. Aug. 2016, Supreme Administrative Court, Case No. II FSK 1097/16

A Group had established a physical cash-pool where funds from participants was transferred to and from a consolidating account (cash pool). The Polish Supreme Administrative Court concluded that every agreement in which the lender is obligated to transfer ownership of a specified amount of funds to the borrower, and the borrower is obligated to return the amount and pay interest, even if obligations of the parties to the agreement are implicit, constitutes a loan agreement. 2016 Decision Click here for translation Polish Cash Pool 2016 2015 Decision Click here for translation Polish Cash Pool 2015 ... Continue to full case
Switzerland vs Corp, Oct. 2014, Federal Supreme Court, Case No. 4A_138-2014

Switzerland vs Corp, Oct. 2014, Federal Supreme Court, Case No. 4A_138-2014

Decision on the criteria for the arm’s length test of interest rates on inter-company loans. This case i about intercompany loans created by zero balancing cash pooling and the funding of group companies by a group finance company. The Swiss Federal Supreme Court states – If the terms of inter-company loans are not conforming to market conditions, then the payment qualifies as a distribution and a special reserve must be made in the balance sheet of the lender. The Court also states – It is questionable from the outset whether a participation in the cash pool, by which the participant disposes of its liquidity, can pass the market conditions test at all. Click here for translation Swiss case law 4A_138-2014 ... Continue to full case
Switzerland vs Swisscargo AG, Oct 2014, Federal Supreme Court, Case No 4A_138/2014

Switzerland vs Swisscargo AG, Oct 2014, Federal Supreme Court, Case No 4A_138/2014

Zero balancing/physical cash pooling involves a physical transfer of money from the accounts of individual group companies to the accounts of the group’s cash pooling company and risks can be considerable. Group companies participating ind the cash pool may loose there funds. Loans in the form of cash pool arrangements must be agreed at arm’s length terms. Click here for translation Swiss Cash Pool 2014 ... Continue to full case