7 |
Income taxes |
2009 |
2010 |
|
CHF thousands |
|
|
1) The revised tax law that came into effect in the canton of Grisons on 1 January 2010 provides for a reduction in the tax rate on earnings. This results in a recognised reversal of deferred tax obligations and a corresponding impact on the effective income tax rate.
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2) In 2009 SET, owner of a gas-fired combined-cycle power plant in Teverola near Naples, increased the value of the generation facility by TEUR 22,968 in the statutory single-entity financial statements as a result of the provision in Art. 15 of the 185/2008 law relating to real estate. The provision allows real estate assets to be reappraised at a higher value via equity reserves. Depreciation of the reappraisal is permitted.
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3) The Italian IRAP totalled TCHF 1,052 in the previous year and was disclosed in the “Other” category. These taxes are now disclosed separately.
|
|
|
|
|
|
Income taxes charged to the income statement |
|
|
|
Current income taxes |
23,415 |
30,411 |
|
Deferred income taxes |
-23,111 |
-4,864 |
|
Total |
304 |
25,547 |
|
|
|
|
|
Income taxes charged to equity |
|
|
|
Income taxes on changes in equity |
-492 |
268 |
|
Total |
-492 |
268 |
|
|
|
|
|
The reconciliation between the actual tax burden and the expected tax charge for the years ending 31 December 2010 and 31 December 2009 is as follows: |
|
|
|
|
|
|
|
Transitional statement |
|
|
|
Profit before income taxes |
111,785 |
105,663 |
|
Expected income tax rate |
18.9 % |
16.7 % |
|
|
|
|
|
Income taxes at expected tax rate |
21,127 |
17,625 |
|
Tax effect from non – tax – deductible expenses |
2,885 |
1,144 |
|
Tax effect from income taxed at other rates |
-2,112 |
9,113 |
|
Tax effect from tax – free income |
-385 |
-3,059 |
|
Value adjustment of previously capitalised deferred taxes on tax – loss carryforwards or temporary differences |
603 |
|
|
Tax losses in the current year for which no deferred tax assets were formed |
992 |
1,469 |
|
Tax losses charged for which no deferred tax assets were formed |
-57 |
-2,609 |
|
Tax rate revision - Switzerland1) |
-7,609 |
-450 |
|
Tax law revision in Italy2) |
-11,792 |
2 |
|
Regional production tax - Italy (IRAP) 3) |
- |
3,786 |
|
Tax burden/relief subsequently recognised for previous years |
-2,849 |
-1,948 |
|
Other |
-499 |
474 |
|
Income taxes charged to the income statement |
304 |
25,547 |
|
|
|
|
|
Effective income tax rate |
0.3% |
24.2% |
Deferred income taxes by origin of difference |
31.12.2009 |
31.12.2010 |
CHF thousands |
|
|
|
|
|
Deferred tax assets |
|
|
Property, plant and equipment |
2,399 |
3,123 |
Other non – current assets |
19,134 |
13,731 |
Current assets |
6,563 |
3,169 |
Provisions |
401 |
1,344 |
Liabilities |
35,529 |
30,974 |
Loss carryforwards / tax credits |
2,336 |
1,478 |
Total |
66,362 |
53,819 |
|
|
|
Deferred tax liabilities |
|
|
Property, plant and equipment |
71,532 |
63,816 |
Other non – current assets |
2,691 |
5,199 |
Current assets |
24,777 |
19,615 |
Provisions |
19,392 |
17,079 |
Liabilities |
1,971 |
1,050 |
Total |
120,363 |
106,759 |
|
|
|
Of which the following are disclosed in the balance sheet as: |
|
|
Deferred tax assets |
-17,191 |
-14,915 |
Deferred tax liabilities |
71,192 |
67,854 |
Net deffered tax liabilities |
54,001 |
52,939 |
There are no notable additional tax obligations anticipated as a result of dividend payments made to Group companies and associates. The Repower Group does not recognise deferred taxes levied on possible future payments of retained earnings by Group companies, since these are regarded as permanently reinvested.
Tax loss carryforwards
On 31 December 2010, individual Group companies had tax loss carryforwards of TCHF 17,351 (previous year: TCHF 17,629) which they can charge in future periods as taxable profit. Deferred tax assets are recognised only to the extent that it is probable that the tax credits can be realised. On the balance sheet date the Group had unrecognised tax loss carryforwards of TCHF 12,280 (previous year: TCHF 8,066), since the future utilisation of these amounts for tax purposes is not probable. These are due on the following dates:
Unrecognised tax loss carryforwards |
31.12.2009 |
31.12.2010 |
CHF thousands |
|
|
|
|
|
Due within 1 year |
- |
- |
Due in 1 – 3 years |
352 |
36 |
Due in 3 – 7 years |
6,827 |
4,057 |
Due after 7 years or no due date |
887 |
8,187 |
Total |
8,066 |
12,280 |
|
|
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