22 Taxes
The tax component of the total comprehensive income after taxes amounts to EUR 61.4 million (2012: EUR -7.8 million), the details are shown in the following table. Following the presentation changes of the investment property operational and financial lease agreements, the comparative figures for 2012 regarding the direct result as well as the indirect result have also been adjusted. The effect of this revised presentation on the comparative figures is shown in the following tables.
Download data(x EUR million) | 2013 | 2012 |
|---|---|---|
Taxes on direct result based on applicable tax rates | -20.8 | -20.1 |
Adjustments for actual group companies rate | -4.6 | -4.3 |
Adjustments for permanent differences: | ||
- Notional Interest deduction facility | 4.7 | 4.3 |
- Adjustment for local rates | 0.6 | - |
- Other permanent differences | -0.7 | -1.1 |
Other adjustments | 1.0 | -0.1 |
Tax expense on direct result | -19.8 | -21.3 |
Deferred taxes on the indirect result based on the applicable tax rates | 74.8 | 41.7 |
Adjustment for actual group companies rate | 10.2 | 11.0 |
Adjustments for permanent differences: | ||
- Goodwill impairment | - | -52.1 |
- Adjustment for local rates | 3.8 | - |
- Other permanent differences | - | 13.3 |
Other adjustments | - | - |
Tax income on indirect result | 88.8 | 13.9 |
Foreign exchange rate differences foreign activities and movements in value of cross currency swaps | 7.4 | -1.2 |
Movements in the value of interest rate swaps | -15.0 | 0.8 |
Tax expense direct on shareholders' equity | -7.6 | -0.4 |
Total tax income (expense) recognised in the comprehensive income | 61.4 | -7.8 |
The adjustments of permanent differences in the direct result concerns mainly adaptations regarding non-tax deductible expenses and adaptations as a result of the notional interest deduction facility in Belgium. The adjustments of permanent differences in the indirect result concerns mainly the positive effect due to tax rate changes in Great Britain, Norway, Finland and Denmark.
The reconciliation between the applicable tax rate and the effective tax rate is shown in the following table.
Download data(x EUR million) | 2013 | 2012 |
|---|---|---|
Applicable tax rate | 25.0% | 25.0% |
Deviating tax rates for group companies | 5.4% | 5.4% |
Notional interest deduction | -5.6% | -5.3% |
Other permanent differences | -1.2% | 1.3% |
Other effects | 0.1% | 0.1% |
Effective tax rate direct result | 23.7% | 26.5% |
Applicable tax rate | 25.0% | 25.0% |
Deviating tax rates for group companies | 3.4% | 6.6% |
Goodwill impairment | 0.0% | -31.2% |
Adjustment for local rates | 1.3% | 0.0% |
Other permanent differences | 0.0% | 7.9% |
Other effects | 0.0% | 0.0% |
Effective tax rate indirect result | 29.7% | 8.3% |
The deferred tax balances recognised in the balance sheet are detailed in the following table.
Download data(x EUR million) | 2013 | 2012 |
|---|---|---|
Movements in value of derivatives and other temporary taxable differences | 28.2 | 33.1 |
Available tax losses carried forward | 115.0 | 107.4 |
Total deferred tax assets | 143.2 | 140.5 |
Revaluation of owned investment property | 360.8 | 408.4 |
Revaluation of lease contracts | 80.1 | 100.8 |
Other temporary taxable differences | 25.4 | 22.4 |
Total provision deferred taxes | 466.3 | 531.6 |
Movements in the deferred tax assets and liabilities are shown in the following table.
Download data(x EUR million) | 2013 | 2012 | ||
|---|---|---|---|---|
Deferred tax assets | Deferred tax laibilities | Deferred tax assets | Deferred tax laibilities | |
Book value as per 1 January | 140.5 | 531.6 | 123.3 | 504.8 |
Exchange rate result | -0.9 | -4.3 | 0.5 | 3.9 |
Movements via statement of comprehensive income | 9.5 | -59.5 | -4.4 | 3.0 |
Movements via shareholders' equity | -7.6 | - | -0.4 | - |
Transfers of deferred taxes and other movements | 1.7 | -1.5 | 21.5 | 19.9 |
Book value as per 31 December | 143.2 | 466.3 | 140.5 | 531.6 |
The total deferred tax assets relate to tax-deductible losses, the notional interest deduction facility in Belgium and the interest deduction still to be settled in France. The total deferred tax assets include amounts recoverable for a limited period - varying from 7 to 9 years - amounting to EUR 39.3 million (2012: EUR 46.8 million). The recoverability of the tax-deductible losses included in the deferred tax assets has been tested against the most recent business plan. Based hereupon, it was determined that a provision is not necessary.
The transfer of deferred taxes in 2012 of EUR 20.5 million is linked to changes in legislation regarding compensation of losses of foreign permanent establishments with Dutch profits. Up to and including 2011, deferred tax assets pertaining to these losses were offset with passive deferred tax balances because of the claw back provision applicable to these losses. As a result of the change in legislation, losses suffered by the foreign permanent establishments can no longer be offset against profit in the Netherlands and the deferred taxes over these losses must be stated separately.