Contingent rights
Bouwinvest has management agreements with the funds for an indefinite period with a two-year notice period, as well as a mandate with bpfBOUW regarding the International and Heritage portfolios for an indefinite period with a five year notice period. The management fee is calculated on the basis of net asset value, amounting to approximately € 30 million for the year 2016.
Contingent liabilities
Rental and lease agreement-related contracts entered into:
| | 2015 | 2014 |
First year | 1,728 | 1,455 |
Second to fifth year | 5,412 | 2,716 |
More than five years | - | - |
Total | 7,140 | 4,171 |
Management takes the position that the management fees charged to the Residential Fund, Office Fund and Retail Fund are exempt from Dutch VAT under the exemption for the management of collective investment funds.
Bouwinvest did not pay the levied Dutch VAT over the second and third quarter of 2013. The Dutch Revenue has imposed an assessment of € 2.0 million with respect to the unpaid VAT. Bouwinvest has appealed the decision from the Dutch Revenue and management expects to pay nil. The maximum exposure, on result before tax, is € 2.9 million in case the VAT have to be paid whereas € 0.9 million is recorded as a receivable, see Note 5.