Financial advice University Hospital Antwerp

The University Hospital Antwerp wanted a better idea of the fiscal flows corresponding to two new departments. We provided the data so the hospital could make an informed decision.

New departments inside or outside the existing structure?
‘Should we incorporate our new departments for tomotherapy and cyclotron into the existing hospital structure or should we set up a separate public limited company?’ The University Hospital Antwerp did not want to make a hasty decision and came to Rebel for financial advice. Publicly owned companies are subject to different rules regarding VAT recovery, corporation tax and tax on legal persons compared to privately owned companies. Hospitals can decide to turn a department/competency into either one or the other. The University Hospital Antwerp wanted to know which would be the most economical option.

Decisions based on all the facts
We think it is very important that all companies involved, both public and private, take informed decisions based on all the facts. This assignment is a good example of this principle. Often, publicly owned companies are precipitate in their choice for an autonomous public limited company for VAT recovery reasons. In this case, however, we were asked to compare the fiscal flows corresponding to both options.

Fiscal flows compared
Our expertise lies in presenting a clear and comprehensive ‘fiscal flow chart’. We identified the various fiscal flows and, with the help of a fiscal advisor, we did a cost calculation which showed that incorporation in the existing hospital structure would be the cheaper option. The advantages from the VAT recovery in the case of a public limited company would be nullified by the loss of the exemption granted to the hospital regarding the advanced levy on income derived from securities. This has proved to be a useful exercise. Not every service or local council has the same rules and regulations and it pays to investigate the options.