The balance includes current taxes and deferred tax income and expenses:
|
(thousands of Euro)
|
|
2009
|
2008
|
|
Current taxes
|
|
60,341
|
60,265
|
|
|
|
|
|
|
Deferred tax income:
|
|
|
|
|
- reversal of intercompany profits
|
|
2,852
|
(1,636)
|
|
- additions, uses and releases from provisions for risks and other charges
|
|
1,590
|
(1,510)
|
|
- taxes on a different depreciable/amortizable base for property, plant and equipment and intangible assets
|
-
|
(2,500)
|
|
- carried forward tax losses
|
|
2,027
|
1,200
|
|
- fair value of derivatives
|
|
(1,630)
|
837
|
|
- other
|
|
1,791
|
3,552
|
|
Total deferred tax income
|
|
6,630
|
(57)
|
|
|
|
|
|
|
Deferred tax expenses:
|
|
|
|
|
- reversal of excess depreciation and the application of finance lease accounting
|
798
|
(4,371)
|
|
- capital gains
|
|
(68)
|
1,049
|
|
- distributable earnings/reserves of subsidiaries
|
|
948
|
487
|
|
- tax effect of business combination
|
|
(741)
|
(1,189)
|
|
- other
|
|
(193)
|
26
|
|
Total deferred tax expenses
|
|
744
|
(3,998)
|
|
Total
|
|
67,715
|
56,210
|
The tax charge amounts to Euro 67,715 thousand compared with Euro 56,210 thousand in 2008; the tax rate is 36.5%, up from 26.5% in 2008, mainly reflecting increased operating losses by certain foreign subsidiaries and higher impairment of property, plant and equipment and intangible assets recognized in 2009.
The reconciliation of the tax charge is as follows:
|
(%)
|
|
2009
|
2008
|
|
Theoretical tax rate
|
|
31.40
|
31.40
|
|
Different tax rate of companies in profit
|
|
(8.97)
|
(9.20)
|
|
Different tax rate of companies in loss
|
|
11.50
|
8.97
|
|
Tax effect of distributable earnings/reserves of subsidiaries
|
|
0.64
|
0.33
|
|
Effect arising from business transfers
|
|
(4.63)
|
(5.43)
|
|
Amortization of excess consideration associated with acquisitions
|
|
0.16
|
0.32
|
|
Effect of carried forward tax losses
|
|
(0.27)
|
(0.98)
|
|
Effect of impairment of property, plant and equipment and intangible assets
|
|
2.87
|
0.48
|
|
Higher rate of IRAP (Italian regional business tax)
|
|
2.10
|
1.25
|
|
Other net effects
|
|
1.69
|
(0.66)
|
|
Reported tax rate
|
|
36.49
|
26.48
|