UBI Banca Group

No deferred tax assets were recognised for impairment losses on equity investments which
satisfied the requirements for participation exemption.
The rates generally used for calculating deferred tax assets for IRES (corporation tax) and IRAP
(local production tax) purposes are 27.50% and 5.57%.
The difference between the “increases” and the “decreases” of “deferred tax assets” recognised
in the income statement does not correspond to the item “change in deferred tax assets”,
reported in table 20.1 of the income statement section “Taxes on income for the year from
continuing operations“ amounting to approximately €17,801 thousand. An amount of
approximately €16,049 thousand (recognised within item 2.3 “Other increases”) represents the
deferred IRES tax relating to the debt for the health policy which arose against an entry
recognised in equity in past years and which was recognised in the income statement in 2011,
as a result of the new trade union agreement signed in September 2011 by the Parent and
some network banks, which removes the obligation on them to contribute to the cost of the
policy for retired personnel.
The appreciable increase in deferred tax assets is due primarily because the Parent took
advantage of an option to realign tax accounts with statutory accounts relating to goodwill and
other intangible assets recognised independently in the consolidated financial statements, in
accordance with paragraphs 12 to 15 of article 23 of Decree Law No. 98 of 6 th July 2011. The
deductibility of the tax amortisation on the amount subject to this tax relief (€3,285.3 million)
at constant rates over ten years from 2013 was obtained in return for payment of a substitute
tax of 16% amounting to €525.6 million. As a consequence deferred tax assets of €903.4
million were recognised.
The amount recognised within item 3.1 b) “impairment losses on non-recoverable items”
relates to deferred tax assets already recognised by the Parent for IRAP purposes in the 2010
Annual Report, for which the reasons for the initial recognition were no longer valid due to
expectations of losses for taxable income for IRAP purposes in subsequent years.
14.4 Changes in deferred tax liabilities (balancing entry in the income statement)
31/12/2011 31/12/2010
1. Opening balance 188,200 219,269
2. Increases 39,666 38,480
2.1 Deferred tax liabilities arising during the year 37,850 32,329
a) relating to previous years 3,702 869
b) due to changes in accounting policies - -
c) other 34,148 31,460
2.2 New taxes or increases in tax rates 800 445
2.3 Other increases 1,016 5,706
3. Decreases (82,448) (69,549)
3.1 Deferred tax liabilities derecognised during the year (74,079) (66,034)
a) reversals of temporary differences (70,060) (65,817)
b) due to changes in accounting policies - -
c) other (4,019) (217)
3.2 Reductions in tax rates - -
3.3 Other decreases (8,369) (3,515)
4. Final balance 145,418 188,200
14040O|1 -
NOTA
Deferred tax liabilities were recognised on the basis of temporary differences between the
financial accounting value of an asset or liability and its value for tax purposes. That
recognition was made on the basis of the tax legislation in force.
No deferred taxes were recognised on untaxed reserves, because no events occurred to remove
the tax exemption regime.
The difference between the “increases” and the “decreases” of the “deferred tax liabilities”
recognised in the income statement does not correspond to the item “change in deferred tax
liabilities”, reported in table 20.1 of the income statement section “Taxes on income for the
year from continuing operations“ amounting to approximately €810 thousand. An amount of
approximately €936 thousand relates to deferred IRES tax, recognised by the Parent relating
312