The challenge
The inventor of the multiplex cinema concept Kinepolis was also the first cinema chain to move to digital projection and offer more luxury seating, and it continues to look at how it enhance the customer experience. It also has an active expansion policy, seeking potential targets in Europe and beyond.
Over the last years, Kinepolis has grown significantly via acquisition and now has 94 complexes in eight countries – including Canada. As the company grows and expands its international operations, and as tax regimes evolve and new regulations are brought in, Kinepolis requires a partner that can help it make sure its tax structure and strategy remain relevant.
PwC has been Kinepolis’ tax advisor for more than a decade. We support the group by making sure that its tax structure continues to reflect its business as it becomes an increasingly larger concern.
Delivering global advice
The tax environment is dramatically different to that of ten years ago and more morality driven than before. As part of an international network and following tax legislation in all countries in which Kinepolis has activities, PwC is ideally placed to help Kinepolis adapt to changes in the regulatory landscape and to understand requirements in any country in which it’s looking to make an acquisition, benefiting from the same high quality of services and advice in all locations.
"It’s crucial that we work with a partner that fully understands CIT, VAT regulations, local taxes, city taxes, etc. in different countries, and this will be even more so going forward." Nicolas De Clercq, CFO, Kinepolis.
As countries start to rethink their tax regimes, we need to be aware of how we need to adapt our business to accommodate new rules and requirements.
Staying ahead of changes
Working with governments and tax authorities the world over, we also gain insight into upcoming topics, meaning we’re able to think through consequences of planned actions before they’re enacted into law.
"PwC helps us adapt to changes both within Kinepolis and from the outside world that impact our business, such as the OECD’s base erosion and profit shifting (BEPS) initiative. The team is proactive in its approach to new ideas of how to address challenges that the evolving regulatory environment brings," says Nicolas De Clercq.
"With PwC we’re confident that the quality of the advice we receive will be of the same high standard everywhere and its experts will demonstrate the same high level of professionalism across the world."
Investing in client proximity
Supporting a global group such as Kinepolis when it’s looking into and doing new deals requires a deep understanding of the business and its ambitions so that we can bring in the right comeptences from across PwC - on a global basis.
Our breadth of experience in supporting deals , especially in terms of due diligence in different areas has enabled us to become a trusted partner to Kinepolis as it continues to realise its expansion ambitions. And with full knowledge of the client's business and structure, we can immediately create scenarios of how best to integrate new acquisitions, helping make sure that opportunities and potential are realised as soon as possible.
Planning for the future
As Kinepolis continues its expansion strategy and actively looks for potential new acquisitions, PwC will continue to monitor its business and help it adapt its tax structure where necessary, and help it redefine processes and systems where required, making sure it keeps up with the rapid pace of regulatory change.
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