UBI Banca Group

10.1. Current tax assets and liabilities
Current tax for the current and prior periods is recognised as a liability to the extent that it
has not yet been settled; any excess compared to the amount due is recognised as an asset.
Current tax liabilities (assets) for the current and prior years, are measured at the amount
expected to be paid to/recovered from taxation authorities, using the enacted tax rates and tax
laws in force.
Current tax assets and liabilities are derecognised in the year in which the assets are realised
or the liabilities are extinguished.
10.2. Deferred tax assets and liabilities
Deferred tax liabilities are recognised for all taxable temporary differences unless the deferred
tax liability arises from:
• goodwill for which amortisation is not deductible for tax purposes or
• the initial recognition of an asset or a liability in a transaction which:
is not a business combination and
at the time of the transaction, affects neither the accounting nor the taxable profit.
Deferred tax assets are not calculated for higher values of assets for which the tax regime has
been suspended relating to equity investments and to reserves for which the tax regime has
been suspended because it is considered there are no reasonable grounds to assume they will
be taxed in future.
Deferred tax liabilities are recognised in the balance sheet item 80 “Tax liabilities b) deferred”.
A deferred tax asset is recognised for all deductible temporary differences if it is probable that
a taxable income will be used against which it will be possible to use the deductible temporary
difference, unless the deferred tax asset arises from:
• negative goodwill which is treated as deferred income;
• the initial recognition of an asset or liability in a transaction which:
is not a business combination and
affects neither the accounting profit nor the taxable profit at the time of the transaction.
assets for prepaid taxes are recognised under the balance sheet item 140 “Tax assets b)
deferred.
Deferred tax assets and deferred tax liabilities are subject to constant monitoring and are
measured using the tax rates that it is expected will apply in the period in which the tax asset
will be realised or the tax liability will be extinguished on the basis of the tax regulations
established by laws currently in force.
Deferred tax assets and deferred tax liabilities are derecognised in the accounts in the year in
which:
• the temporary difference which gave rise to them becomes payable with regard to
deferred tax liabilities or deductible with regard to deferred tax assets;
• the temporary difference which gave rise to them is no longer valid for tax purposes.
Deferred tax assets and deferred liabilities are not discounted to present values nor offset one
against the other.
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