From the accounting point of view, we have assumed that ownership of the investment for the cost of the execution of the building work on the Taoro Building and its gardens, as well as the amount for the correction of the pathologies detected in the building of the former Hotel Taoro (maximum limit of 1,870,000 Euros) will be the property of the leasing company and should not be re-invoiced to the leasing body. We have accepted that while the compensation period for the investment of the cost of the material execution of the work on the Taoro Building and its gardens lasts, the lessor, the Cabildo Insular de Tenerife, will not issue any invoices for the lease (taxable base + IGIC) and therefore it will be treated as if it were a period of interest-only payments. Is this correct?

From the accounting point of view, we have assumed that ownership of the investment for the cost of the execution of the building work on the Taoro Building and its gardens, as well as the amount for the correction of the pathologies detected in the building of the former Hotel Taoro (maximum limit of 1,870,000 Euros) will be the property of the leasing company and should not be re-invoiced to the leasing body. We have accepted that while the compensation period for the investment of the cost of the material execution of the work on the Taoro Building and its gardens lasts, the lessor, the Cabildo Insular de Tenerife, will not issue any invoices for the lease (taxable base + IGIC) and therefore it will be treated as if it were a period of interest-only payments. Is this correct?

Clause 6 of the document establishes the following:

 

6.8. The fee will be paid by calendar year and payment will be made in the first quarter

of the following year.

 

6.9. The total economic investment made by the lessee must be accredited by means

of the presentation of the corresponding invoices which justify the expense within the

space of the six months following the date on which the investment has been made.

Breach of this requirement will be a cause of termination of the contract, on the terms

set out in Clause 36 of the present document.

 

6.10. Once the investment is duly justified, the date from which the above-mentioned

fee will be paid will be formally agreed with the lessor.

 

6.11. This fee, even during the period in which it is not yet paid, will be automatically

updated annually according to the annual variation in the Consumer Price Index of the

Canary Islands Autonomous Community.

 

6.12. When the beginning of the payment of the fee does not coincide with the

beginning of the calendar year, this fee will be calculated proportionally for the months

that remain until the end of the year.

 

Likewise, clause 33, as obligations of the lessee, provides the following:

 

  1. u) Provide proof of the investment made to apply the compensation for the rental

fee, under the terms referred to in clause 6. Such proof must be provided by the

lessee within six months from the date on which the expense was made.

 

Proof of the investment made must be provided in chronological order and

classified by each of the different actions that have been executed.

 

The execution of the works and installations must be justified by the submission

of the certifications of works signed by the technical managers thereof and the

relevant invoices.

 

The lessor may request both the proof of payment actually made by the lessee

and the recipient thereof.

 

Therefore, what is required is the accreditation, within the foreseen term, of the economic total investment made by the lessee through the presentation of the corresponding

invoices that justify the expenditure made.

 

In addition, the fee is paid annually, without prejudice to the fact that, as it is stated in clause 6.3, the winning tenderer will not be obliged to make any deposit of any kind to the Treasury of the Illustrious Tenerife Island Authority (Cabildo), until the cost of the investment offered by it is totally offset

 

Clause 6 of the document establishes the following:

 

6.8. The fee will be paid by calendar year and payment will be made in the first quarter

of the following year.

 

6.9. The total economic investment made by the lessee must be accredited by means of the presentation of the corresponding invoices which justify the expense within the space of the six months following the date on which the investment has been made.

Breach of this requirement will be a cause of termination of the contract, on the terms set out in Clause 36 of the present document.

 

6.10. Once the investment is duly justified, the date from which the above-mentioned fee will be paid will be formally agreed with the lessor.

 

6.11. This fee, even during the period in which it is not yet paid, will be automatically updated annually according to the annual variation in the Consumer Price Index of the Canary Islands Autonomous Community.

 

6.12. When the beginning of the payment of the fee does not coincide with the beginning of the calendar year, this fee will be calculated proportionally for the months that remain until the end of the year.

 

Likewise, clause 33, as obligations of the lessee, provides the following:

 

  1. u) Provide proof of the investment made to apply the compensation for the rentalfee, under the terms referred to in clause 6. Such proof must be provided by the lessee within six months from the date on which the expense was made.

 

Proof of the investment made must be provided in chronological order and classified by each of the different actions that have been executed.

 

The execution of the works and installations must be justified by the submission of the certifications of works signed by the technical managers thereof and the relevant invoices.

 

The lessor may request both the proof of payment actually made by the lessee and the recipient thereof. Therefore, what is required is the accreditation, within the foreseen term, of the economic total investment made by the lessee through the presentation of the corresponding invoices that justify the expenditure made.

 

In addition, the fee is paid annually, without prejudice to the fact that, as it is stated in clause 6.3, the winning tenderer will not be obliged to make any deposit of any kind to the Treasury of the Illustrious Tenerife Island Authority (Cabildo), until the cost of the investment offered by it is totally offset

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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