Note 10 Trade and other receivables

At the end of 2020, impairment of trade receivables totalled €10 million (2019: €10 million). The impairment loss on trade receivables recognised in the income statement in 2020 amounted to €3 million (2019: €1 million). For further information, see the credit risk section of note [34].

The other receivables include an amount of €7 million (2019: €8 million) for non-controlling interests.

The current financial assets as at year-end 2019 concern the current portion of long-term receivables, which were made up primarily of a receivable from the City of Amsterdam relating to the Spaklerweg site. See note [7].

In November 2010, Alliander issued a subordinated perpetual bond loan with a nominal value of €500 million. In the closing two months of 2013, this subordinated perpetual bond loan was redeemed. Under IFRS, an instrument of this kind qualifies as equity. It was assumed that the periodic payments made to the holders of the bonds issued in 2010 would count as a deductible interest expense for the purposes of corporate income tax. No agreement was reached with the Dutch Tax & Customs Administration concerning the tax treatment of this loan. This matter was submitted to the District Court and subsequently to the Court of Appeal, which both ruled in Alliander’s favour. On behalf of the Dutch Tax & Customs Administration, the Dutch Finance State Secretary then sought to have the Appeal Court ruling overturned in cassation by the Supreme Court. On 15 May 2020, the Supreme Court delivered its ruling, dismissing the appeal in cassation. Briefly after delivery of this ruling, Alliander engaged with the Dutch Tax & Customs Administration to discuss the implications of the ruling, which makes interest expenses on the perpetual bond loans in question fully tax deductible. The Dutch Tax & Customs Administration processed the 2010 corporate income tax assessment as per the ruling and upheld the notices of objection for the other years. Aside from that, the notices of objection with respect to dividend tax assessments will also be upheld and dividend tax bills will, therefore, be reduced to zero, putting an end to Alliander’s exposure of €38 million. The final settlement has now taken place. This Supreme Court ruling puts an end to the dispute over the tax treatment of the subordinated perpetual bond loan from 2010. The ruling did not affect the results for 2020.