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7 Income taxes

7 Income taxes
    2010 Restated 2011
  CHF thousands    
       
  Income taxes charged to the income statement    
  Current income taxes1) 30,411 34,835
  Deferred income taxes -5,249 -10,938
  Total 25,162 23,897
       
  Income taxes charged to equity    
  Income taxes on changes in equity 268 358
  Total 268 358
       
  The reconciliation between the actual tax burden and the expected tax charge for the years ending 31 December 2011 and 31 December 2010 is as follows:    
       
  Transitional statement    
  Profit before income taxes 101,860 78,075
  Expected income tax rate 16.7 % 16.7%
       
  Income taxes at expected tax rate 16,990 13,023
  Tax effect from non-tax-deductible expenses 1,144 8,422
  Tax effect from income taxed at other rates 9,363 8,667
  Tax effect from tax-free income -3,059 -5,910
  Subsequent capitalisation of previously unrecognised deferred taxes on tax-loss carryforwards - -1,261
  Tax due on tax-loss carryforwards for which deferred taxes were recognised - 156
  Tax losses in the current year for which no deferred tax assets were recognised 1,469 754
  Tax losses charged for which no deferred tax assets were recognised -2,609 -195
  Tax rate revision Switzerland2) -450 -
  Tax law revision Italy 2 -
  Tax rate revision Italy3) - -313
  Regional production tax - Italy (IRAP) 3,786 3,307
  Tax burden/relief subsequently recognised for previous years -1,948 -2,770
  Other 474 17
  Income taxes charged to the income statement 25,162 23,897
       
  Effective income tax rate 24.7% 30.6%

1) Tax income was rebooked from the statement of comprehensive income to shareholders' equity in the amount of TCHF 540 in connection with the adjustment to the previous year's figures (see Note 30).

2) The revised tax law that came into effect in the canton of Graubünden on 1 January 2010 provided for a reduction in the tax rate on earnings. This resulted in a recognised reversal of deferred tax obligations and a corresponding impact on the effective income tax rate.

3)In Italy the surcharge (IRES) was increased, limited to the years 2011, 2012 and 2013.

Deferred income taxes by origin of difference 31.12.2010 31.12.2011
CHF thousands    
     
Assets    
Property, plant and equipment 3,123 4,380
Other non-current assets 13,731 13,915
Current assets 3,169 7,183
Provisions 1,344 3,453
Liabilities 30,974 15,918
Loss carryforwards / tax credits 1,478 5,235
Total 53,819 50,084
     
Liabilities    
Property, plant and equipment 63,815 52,550
Other non-current assets 5,199 1,834
Current assets 19,615 14,032
Provisions 17,079 14,025
Liabilities 1,050 1,088
Total 106,758 83,529
     
Of which the following are disclosed in the balance sheet as    
Deferred income taxes1) -14,915 -25,430
Deferred tax liabilities 67,854 58,875
Net deferred tax liabilities 52,939 33,445

1) Deferred income taxes were increased by TCHF 540, from TCHF 14,915 to TCHF 15,455, in connection with the adjustment to the previous year's figures (see Note 30).

CHF thousands Property, plant and equipment Other non-current assets Current assets Provisions Liabilities Loss carryforwards Tax credits Total
Change in deferred taxes 2011 by category              
               
Opening balance 2011 -60,692 8,532 -16,446 -15,735 29,924 1,478 -52,939
Change due to an acquisition - - - - - - -
Change due to a sale - - - - - - -
Change via the income statement 2,526 3,576 9,593 5,244 -14,483 4,482 10,938
Reported as “Liabilities held for sale” 10,076 - - - - - 10,076
Change recognised directly in shareholders' equity (OCI) - - - - -358 - -358
Translation differences -80 -27 4 -81 -253 -119 -556
Other2) - - - - - -606 -606
Closing balance 2011 -48,170 12,081 -6,849 -10,572 14,830 5,235 -33,445

2) Transfer of loss carryforwards within the Italian tax group which were booked as a reduction in the current tax receivable in the head of the tax group.

  Property, plant and equipment Other non-current assets Current assets Provisions Liabilities Loss carryforwards Tax credits Total
Change in deferred taxes 2010 by category              
               
Opening balance 2010 -69,133 16,443 -18,214 -18,991 33,558 2,336 -54,001
Change due to an acquisition - -2,053 - - -625 - -2,678
Change due to a sale 1,131 - - - - - 1,131
Change via the income statement 7,855 -5,019 1,048 3,392 -1,818 -594 4,864
Change recognised directly in shareholders' equity (OCI) - - - - -268 - -268
Translation differences -545 -839 720 -136 -923 -264 -1,987
Other - - - - - - -
Closing balance 2010 -60,692 8,532 -16,446 -15,735 29,924 1,478 -52,939

Tax loss carryforwards

On 31 December 2011 individual Group companies had tax loss carryforwards of TCHF 31,351 (previous year: TCHF 17,351), 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 6,726 (previous year: TCHF 12,280), since the future utilisation of these amounts for tax purposes is not probable. These are due on the following dates:

Unrecognised tax loss carryforwards 31.12.2010 31.12.2011
CHF thousands    
     
Due within 1 year - -
Due in 1-3 years 36 319
Due in 3-7 years 4,057 5,293
Due after 7 years or no due date 8,187 1,114
Total 12,280 6,726