(32) Income taxes, including deferred taxes
| All figures in €’000 | 2008 | 2007 |
|---|---|---|
| Income tax attributable to continuing operations | 16,020 | 32,609 |
| of which current taxes on income and profit | 16,844 | 32,843 |
| of which deferred taxes | –824 | –234 |
| Income tax attributable to discontinued operations | 187 | –1,070 |
| Total | 16,207 | 31,538 |
On July 6, 2007, the German Bundesrat endorsed the law for corporate tax reform in 2008. In particular, the reduction in the rate of corporation tax from 25 % to 15 % with effect from January 1, 2008, reduced the MLP Group’s rate of taxation as of the financial year 2008.
Current taxes on income from continuing operations include income of € 1,000 thsd which is attributable to previous periods.
Income taxes from Group companies outside Germany were attributed to discontinued operations.
The current and deferred tax is calculated using the relevant country-specific income tax rate. The combined income tax rate for domestic companies is made up of corporation tax at 15 % (previous year: 25 %), the solidarity surcharge at 5.5 % (previous year: 5.5 %) and an average municipal trade tax rate of 13.4 % or 12.3 % (previous year: 16.1 %).
The effective income tax rate applicable to the earnings before tax is 34.0 % for continuing operations (previous year: 29.6 %). The following reconciliation account shows the relationship between the earnings before tax and the taxes on income and profit in the financial year. The anticipated tax expense is based on the German combined income tax rate of 29.25 % (previous year: 38.50 %).
| All figures in €’000 | 2008 | 2007 |
|---|---|---|
| Earnings before tax from continuing operations | 47,076 | 110,078 |
| Earnings before tax from discontinued operations | –6,084 | –16,393 |
| 40,992 | 93,685 | |
| Group income tax rate | 29.25% | 38.50% |
| Calculated income tax expenditure in the financial year | 11,990 | 36,069 |
| Tax-exempt earnings and permanent differences | 2,393 | –6,639 |
| Non-deductible expenses | 871 | 1,413 |
| Divergent trade taxation charge | 305 | –409 |
| Effects of other taxation rates applicable abroad | 182 | 952 |
| Income tax not relating to the period | –531 | 15 |
| Change in the tax effect due to unrecognised differences and tax losses for which no deferred tax assets were formed | 1,031 | 2,831 |
| Effects of the corporate tax reform | 0 | –2,849 |
| Other | –35 | 156 |
| Income taxes | 16,207 | 31,538 |
The item income tax not relating to the period includes effects of the ongoing tax field audit for the period between 2002 and 2006, insofar as these are known and put in sufficiently concrete terms.
The tax-exempt earnings and permanent differences include investment income of the Feri Group and the tax effect of the dividends paid to minority shareholders.
Deferred taxes
| All figures in €’000 | Deferred tax assets |
Deferred tax liabilities |
||
|---|---|---|---|---|
| Dec 31, 2008 | Dec 31, 2007 | Dec 31, 2008 | Dec 31, 2007 | |
| Intangible assets | 81 | 91 | 10,176 | 10,191 |
| Property, plant and equipment | – | – | 1,845 | 1,585 |
| Financial investments | – | – | 22 | 28 |
| Investment property | – | – | 543 | 1,118 |
| Other assets | 1,632 | 350 | 1,229 | 205 |
| Tax loss carryforwards | 2 | 469 | – | – |
| Provisions | 2,780 | 2,504 | – | – |
| Liabilities | 1,114 | 1,442 | 64 | 56 |
| Gross value | 5,609 | 4,856 | 13,879 | 13,183 |
| Netting of deferred tax assets and liabilities | –4,283 | –3,286 | –4,283 | –3,286 |
| Total | 1,326 | 1,570 | 9,597 | 9,897 |
The foreign branches and Group companies report tax loss carryforwards of € 9,835 thsd (previous year: € 5,703 thsd). For these, deferred tax assets for tax loss carryforwards were not accounted in the balance sheet. In the previous year, no deferred taxes were formed on the basis of tax loss carryforwards of € 3,829 thsd. There are no significant unrecognised differences from retained earnings. In the Dutch enterprise, the utilisation of losses is limited to a maximum of nine years.
At December 31, 2008, deferred income tax claims of € 155 thsd (previous year: € 20 thsd) and deferred income tax liabilities of € 13 thsd (previous year: € 3 thsd) were recognised directly in the shareholders’ equity.
Tax refund claims
Tax refund claims include € 18,447 thsd (previous year: € 8,316 thsd) of corporation tax and € 8,422 thsd (previous year: € 1,338 thsd) of trade tax. The major portion of € 25,193 thsd (previous year: € 8,178 thsd) is attributable to MLP AG.
Tax liabilities
| All figures in €’000 | Jan 1, 2008 |
Utilised | Released | Allocation | Dec 31, 2008 |
|---|---|---|---|---|---|
| Corporation tax | 55 | – | 55 | – | 0 |
| Trade tax | 19 | 19 | – | – | 0 |
| Total | 74 | 19 | 55 | – | 0 |
Liabilities are set up for taxes on the income and profit of the individual companies based on the corresponding national tax regime. Contingent tax liabilities are shown under deferred tax liabilities.