22 Taxes
The tax component of the total comprehensive income after taxes amounts to EUR -32.4 million (2014: EUR 7.6 million), the details are shown in the following table.
Download data(x EUR million) | 2015 | 2014 |
|---|---|---|
Taxes on direct result based on appropriate tax rates | -27.9 | -23.2 |
Adjustments for actual group companies rate | -3.7 | -3.9 |
Adjustments for permanent differences: | ||
- Notional interest deduction facility | 2.6 | 4.6 |
- Adjustments local rates | 0.4 | - |
- Other permanent differences | -2.2 | -2.0 |
Other adjustments | 10.1 | -18.4 |
Tax expense on direct result | -20.7 | -42.9 |
Deferred taxes on the indirect result based on the appropriate tax rates | 0.1 | 83.2 |
Adjustment for actual group companies rate | 0.5 | 6.6 |
Adjustment for permanent differences: | ||
- Goodwill impairment | - | -33.3 |
- Adjustments local rates | -2.3 | 0.1 |
- Other permanent differences | 2.0 | -1.5 |
Other adjustments | - | 0.3 |
Tax income on indirect result | 0.3 | 55.4 |
Foreign exchange rate differences foreign activities and movements in value of cross currency swaps | -4.0 | 2.2 |
Movements in the value of interest rate swaps | -8.0 | -7.1 |
Tax expense direct on shareholders' equity | -12.0 | -4.9 |
Total tax income (expense) recognised in the comprehensive income | -32.4 | 7.6 |
The restatement of permanent differences in the direct result concerns mainly corrections regarding non-deductible tax expenses and the corrections regarding the notional interest deduction facility in Belgium. The other adjustments in the direct result mainly concern changes to estimates of the interest deduction on group funding included in the deferred tax assets.
The restatement of permanent differences in the indirect result over 2014 mainly concerns corrections for untaxed goodwill impairment results.
Compared to the previous financial year, local rates changed during the financial year in the United Kingdom, Denmark and Norway.
The reconciliation between the applicable tax rate and the effective tax rate (calculated over the direct result before taxes, the indirect result before taxes and the direct equity movements in the shareholders' equity before taxes) is explained in the following table.
Download data(x EUR million) | 2015 | 2014 |
|---|---|---|
Appropriate tax rate | 25.0% | 25.0% |
Adjustment tax rates for group companies | 3.3% | 4.2% |
Notional interest deduction | -2.3% | -5.0% |
Other permanent differences | 1.6% | 2.2% |
Other effects | -9.0% | 19.9% |
Effective tax rate direct result | 18.6% | 46.3% |
Appriopriate tax rate | 25.0% | 25.0% |
Adjustment tax rates for group companies | 263.1% | 2.0% |
Goodwill impairment | 0.0% | -10.0% |
Other permanent differences | -151.5% | -0.5% |
Other effects | 0.0% | 0.1% |
Effective tax rate indirect result | 136.6% | 16.6% |
The deferred tax balances recognised in the balance sheet are detailed in the following table.
Download data(x EUR million) | 2015 | 2014 |
|---|---|---|
Movements in value of derivatives and other temporary taxable differences | 28.4 | 32.0 |
Available tax losses carried forward | 84.3 | 80.5 |
Total deferred tax assets | 112.7 | 112.5 |
Temporary taxable differences legal property, concessions, ground leases and leases with protection | 339.8 | 337.5 |
Temporary taxable differences other leases | 92.7 | 71.5 |
Other temporary taxable differences | 13.3 | 7.2 |
Total deferred tax liabilities | 445.8 | 416.2 |
Movements in the deferred tax assets and liabilities are shown in the following table.
Download data(x EUR million) | 2015 | 2014 | ||
|---|---|---|---|---|
Deferred tax assets | Deferred tax liabilities | Deferred tax assets | Deferred tax liabilities | |
Book value as per 1 January | 112.5 | 416.2 | 143.2 | 466.3 |
Exchange rate result | - | 1.6 | -0.5 | -2.1 |
Movements via statement of comprehensive income | 12.2 | 28.0 | -7.9 | -23.6 |
Acquisitions and divestments | - | - | - | -5.2 |
Movements via shareholders' equity | -12.0 | - | -4.9 | - |
Transfers of deferred taxes and other movements | - | - | -17.4 | -19.2 |
Book value as per 31 December | 112.7 | 445.8 | 112.5 | 416.2 |
The transfers of deferred taxes in 2014 mainly concerned the net presentation of deferred tax assets and liabilities.
The total deferred tax assets concern tax-deductible losses, the notional interest deduction facility in Belgium, and (temporary) taxation valuation differences of interest rate derivatives. The deferred tax assets include amounts recoverable for a limited period - varying from 7 to 20 years - amounting to EUR 23.4 million (2014: EUR 36.7 million).
The recoverability of the tax-deductible losses included in the deferred tax assets has been assessed in the light of the current recent business plan and prevailing tax regulations. Based on this review and these adjustments to the internal capital and financing arrangements, the provision formed in 2014 (EUR 16.2 million), made for uncertain future recoverability, was adjusted to EUR 10.7 million.