The table below shows the breakdown of current, anticipated and deferred taxes.
Compared with the previous year, there is a significant impact in relation to the utilisation of provisions for anticipated taxes in 2009, specifically referring to pre-retirement transactions.
“Other tax items” include a payment of €8,653 thousand made pursuant to Italian Law 73 of 22 May 2010 in the matter of pending tax disputes, specifically referring to the pending litigation with the Financial Authorities in relation to the tax recognition of the deficit identified in 1991 resulting from the merger by incorporation of Arnoldo Mondadori Editore SpA into AME Finanziaria (AMEF).
| Income taxes | 2010 | 2009 |
|---|---|---|
| (€ 000) |
|
|
|
|
|
|
| IRES tax on income for the year | 23,583 | 26,646 |
| IRAP for the year | 11,289 | 10,984 |
| Total current taxes | 34,872 | 37,630 |
|
|
|
|
| Deferred tax (income) expense - IRES | 3,494 | (6,647) |
| Deferred tax (income) expense - IRAP | 528 | 348 |
| Total deferred tax (income) expense | 4,022 | (6,299) |
|
|
|
|
| Other tax items | 8,739 | (2,320) |
| Total income taxes | 47,633 | 29,011 |
Reconciliation between the tax charge in the consolidated financial statements and the theoretical tax charge
|
|
2010 | 2009 | ||||
|---|---|---|---|---|---|---|
| (€ 000) | Profits before taxes | Taxes |
Current tax rate | Profits before taxes |
Taxes |
Current tax rate |
|
|
|
|
|
|
|
|
| Theoretical IRES tax charge | 90,267 | 24,823 | 27.50% | 63,918 | 17,577 | 27.50% |
| Theoretical IRAP tax charge | 90,267 | 3,520 | 3.90% | 63,918 | 2,493 | 3.90% |
| Total theoretical tax charge /rate |
|
28,343 | 31.40% |
|
20,070 | 31.40% |
|
|
|
|
|
|
|
|
| Actual IRES tax charge |
|
35,668 | 39.51% |
|
18,158 | 28.40% |
| Actual IRAP tax charge |
|
11,965 | 13.26% |
|
10,853 | 16.98% |
| Actual tax charge/effective tax rate |
|
47,633 | 52.77% |
|
29,011 | 45.38% |
|
|
|
|
|
|
|
|
| Theoretical tax charge/rate |
|
28.343 | 31,40% |
|
20.070 | 31,40% |
|
|
|
|
|
|
|
|
| Effect relating to consolidation entries |
|
456 | 0.51% |
|
743 | 1.16% |
| Effect deriving from the payment of taxes for the definition of pending tax disputes |
|
8,653 | 9.59% |
|
- | - |
| Effect of utilisation of tax losses from previous years |
|
- | - |
|
- | - |
| Effect of differences of tax rates on taxable income of foreign subsidiaries |
|
(757) | (0.84%) |
|
782 | 1.22% |
| Net effect of other permanent differences |
|
2,493 | 2.75% |
|
(944) | (1.48%) |
|
|
|
|
|
|
|
|
| Effect of different IRAP tax base |
|
8,445 | 9.36% |
|
8,360 | 13.08% |
|
|
|
|
|
|
|
|
| Actual tax charge/effective tax rate |
|
47,633 | 52.77% |
|
29,011 | 45.38% |