15   Capital commitments, contingent liabilities and legal disputes

The capital commitments relate to contractual agreements for the acquisition of development real estate. Whether the commitment is invoked depends on the fulfilment of the conditions agreed with the counterparties.

There are no guarantees or sureties in favour of third parties. Beyond this, in the individual financial statement, Allreal Holding AG has issued guarantees and sureties amounting to CHF 545.2 million in connection with financings and derivative financial transactions with third parties on behalf of individual subsidiaries (31.12:2014: CHF 659.6 million).

In a decision supplementing a ruling of the Swiss Federal Supreme Court handed down on 5 October 2012 concerning the Swiss tax liability of the business establishment of Allreal Finanz AG in the Cayman Islands, which has since been liquidated, the Administrative Court of Zug specified that the tax liability would only commence from the date of the Supreme Court’s ruling. The Swiss Federal Tax Administration as opposing party represents a different opinion and has therefore referred the case to the Swiss Federal Supreme Court. As at 20 August 2015 (date of the approval of the consolidated half-year financial statements by the Board of Directors), no decision has yet been made. The company believes that as of the balance sheet cut-off date, sufficient tax provisions are in place.

As at 30 June 2015, there are no pending legal disputes of a nature liable to have a significant impact on the asset and income situation of the Allreal Group for which no corresponding provisions or bad debt allowances are in place.