18. Income Taxes

(in TEUR) 2006 2005  
Current tax expense (45,107) (30,170)
Changes in deferred taxes charged to the income statement 535 384  
  (44,572) (29,786)  

rep06-en-income_taxes_tax_expense.xls (Download size 16 KB)

Changes in the deferred income tax account consist of the following:

(in TEUR) 2006 2005  
Deferred tax assets 21,845 21,854
Liabilities for deferred taxes (45,036) (58,693)  
Balance as at 31 December, as previously stated (23,191) (36,839)
Deferred tax relating to the origination and 
reversal of temporary differences
  income statement charge 535 384
  charged to equity 1,532 13,264
  (21,124) (23,191)  
thereof
    Deferred tax assets 58,969 21,845
    Liabilities for deferred taxes (80,093) (45,036)

rep06-en-income_taxes_deferred_taxes.xls (Download size 16 KB)

The reconciliation of the effective tax rate to the tax rate used is as follows:

(in TEUR) 2006 2005  
Earnings before taxes (EBT) 165,925 110,024  
Tax at the applicable tax rate (25% in 2006 and 25% in 2005) (41,481) (27,506)
Non-deductable amortization of goodwill 0 (146)
Tax effect of
    adjustment of using new tax rates 509 (246)
    other changes (3,600) (1,888)  
(44,572) (29,786)
Current tax expense (45,107) (30,170)
Changes in deferred taxes charged to the income statement 535 384  

rep06-en-income_taxes_tax_rate.xls (Download size 17 KB)

Deferred tax assets and liabilities for deferred taxes as at 31 December 2006 and 2005 are the result of the following temporary valuation differences between book values in the IFRS consolidated financial statements and the relevant tax bases:

  2006   2005  
Deferred tax Deferred tax
(in TEUR) Assets   Liabilities   Assets   Liabilities  
Intangible assets 1,805 (12,226) 2,031 (713)
Property, plant and equipment 2,945 (11,760) 2,841 (8,963)
Financial assets 7 (10,108) 5 (106)
Inventories 268,518 (2,065) 227,167 (507)
Receivables 2,733 (47,223) 2,458 (21,966)
Marketable securities and shares 0 (182) 0 (195)
Other assets 190   (93)   0   (16)  
276,198 (83,657) 234,502 (32,466)
Provisions 56,317 (36,198) 29,921 (35,816)
Liabilities 22,466 (275,355) 3,766 (221,190)
Deferred income 27   (13)   5,685   0  
78,810 (311,566) 39,372 (257,006)
Tax loss carry-forwards 60,264   0   7,198   0  
Deferred tax assets / liabilities 415,272 (395,223) 281,072 (289,472)
Valuation allowance for deferred tax assets (41,173) 0 (16,514) 0
Other 0 0 1,723 0
Offset within legal tax units and jurisdiction (315,130) 315,130 (244,436) 244,436
Net deferred tax assets and liabilities 58,969   (80,093)   21,845   (45,036)  

rep06-en-income_taxes_temporary_valuation_differences.xls (Download size 24 KB)