22 Taxes
The tax component of the total comprehensive income after taxes amounts to EUR -71.8 million (2015: EUR -32.4 million), the details are shown in the following table.
Download data(x EUR million) | 2016 | 2015 |
|---|---|---|
Taxes on direct result based on domestic tax rates | -34.9 | -27.90 |
Adjustments for actual group companies rate | -5.5 | -3.70 |
Adjustments: | ||
- Notional interest deduction facility | 0.2 | 2.60 |
- Adjustments local rates | -0.8 | 0.40 |
- Other permanent differences | -3.2 | -2.20 |
- Other adjustments | -9.7 | 10.10 |
Tax expense on direct result | -53.9 | -20.7 |
Deferred taxes on the indirect result based on the domestic tax rates | -16.2 | 0.1 |
Adjustment for actual group companies rate | -0.1 | 0.5 |
Other adjustments | -5.0 | -0.3 |
Tax income on indirect result | -21.3 | 0.3 |
Foreign exchange rate differences on foreign activities | 6.7 | -4.0 |
Movements in the value of interest rate swaps | -3.3 | -8.0 |
Tax expense direct on shareholders' equity | 3.4 | -12.0 |
Total tax income (expense) recognised in the comprehensive income | -71.8 | -32.4 |
The permanent differences in the direct result concerns mainly adjustments regarding non-deductible interest expenses, non-deductible tax expenses and the corrections regarding the notional interest deduction facility in Belgium. The other adjustments in the direct result mainly concern the estimate of the future loss compensation as a result of a settlement with the tax authorities and the intended change in group structure. This negative one-off effect will be partly compensated in the coming years by a lower expected effective tax rate as result of this change in the group structure. The adjustment for permanent differences in the indirect result is the outcome of an in-depth analysis of the DTL calculation as well as changes in (future) tax rates. The local (future) tax rates changed during the financial year in the United Kingdom and France.
The reconciliation between the applicable tax rate and the effective tax rate (calculated over the direct result before taxes and the indirect result before taxes) is explained in the following table.
Download data(x EUR million) | 2016 | 2015 |
|---|---|---|
Domestic tax rate | 25.0% | 25.0% |
Adjustment tax rates for group companies | 4.0% | 3.3% |
Notional interest deduction | -0.1% | -2.3% |
Adjustments local rates | 0.6% | -0.3% |
Other permanent differences | 2.3% | 1.9% |
Other effects | 6.9% | -9.0% |
Effective tax rate direct result | 38.7% | 18.6% |
Domestic tax rate | 25.0% | 25.0% |
Adjustment tax rates for group companies | 0.2% | 263.1% |
Other effects | 7.7% | -151.5% |
Effective tax rate indirect result | 32.9% | 136.6% |
The deferred tax balances recognised in the balance sheet are detailed in the following table.
Download data(x EUR million) | 2016 | 2015 |
|---|---|---|
Deferred tax balances on value of derivatives and other temporary taxable differences | 24.4 | 28.4 |
Available tax losses carried forward | 59.7 | 84.3 |
Total deferred tax assets | 84.1 | 112.7 |
Temporary taxable differences legal property, concessions, ground leases and leases with protection | 375.2 | 339.8 |
Temporary taxable differences other leases | 108.2 | 92.7 |
Other temporary taxable differences | 8.4 | 13.3 |
Total deferred tax liabilities | 491.8 | 445.8 |
Movements in the deferred tax assets and liabilities are shown in the following table.
Download data(x EUR million) | 2016 | 2015 | ||
|---|---|---|---|---|
Deferred tax assets | Deferred tax liabilities | Deferred tax assets | Deferred tax liabilities | |
Book value as per 1 January | 112.7 | 445.8 | 112.5 | 416.2 |
Exchange rate result | -0.5 | -4.4 | - | 1.6 |
Movements via statement of comprehensive income | -31.5 | 36.6 | 12.2 | 28.0 |
Acquisitions and divestments | - | 13.8 | - | - |
Movements via shareholders' equity | 3.4 | - | -12.0 | - |
Book value as per 31 December | 84.1 | 491.8 | 112.7 | 445.8 |
The total deferred tax assets mainly concern tax-deductible losses, the notional interest deduction facility in Belgium, and (temporary) taxation valuation differences of interest rate derivatives.
The recoverability of the tax-deductible losses and the notional interest deduction facility included in the deferred tax assets has been assessed in the light of the recent business plan and prevailing tax regulations. Based on this review, tax-deductible losses and tax credits amounting to EUR 49.9 million are no longer considered realisable and as such the related deferred tax assets amounting to EUR 16.0 million are not valued in the balance sheet.