2007 - April

2.0
Notes to the consolidated financial statements at December 31 st 2007
5.9. Tax
5.9.1. Explanation on consolidated tax expense
The current tax expense is equal to the amount of corporate
income tax due to the tax authorities for the year in question,
in line with the tax rules and rates in force in the various
countries. On January 1 st , 2005, APRIL GROUP renewed its
option for the common law tax consolidation system provided
for under Article 223 A of the General French Tax Code both
for itself and for French subsidiaries controlled at 95%.
The deferred tax expense is determined based on the
accounting method indicated in Note 1.29.
The basic tax rate for businesses in France is 33.33%.
The social security financing law 99-1140 December 29 th ,
1999 introduced a further tax charge equal to 3.3% of the
basic tax due. In this way, the legal tax rate in force for
French companies was increased by 1.1%.
TAX EXPENSE ON CONSOLIDATED COMPANY EARNINGS
(in thousand euros)
The application of the tax consolidation system has had the following impacts:
5.9.2. Analysis of tax rate differentials applicable
DEC 31 st , 2007 DEC 31 st , 2006
Current tax (tax on profits) 31,685 32,172
Deferred tax for the period 281 -964
TOTAL 31,966 31,208
In thousand euros DEC 31 st , 2007 DEC 31 st , 2006
Tax consolidation premium 8,926 3,391
Under the amended finance bill 2004-1485 of June 30 th ,
2004, tax on net long-term capital gains generated on the
sale of equity securities was reduced to 8% in 2006 (15% in
2005) and does no longer apply as of 2007.
RECONCILIATION BETWEEN THE LEGAL RATE IN FRANCE AND THE EFFECTIVE TAX RATE
ON THE CONSOLIDATED INCOME STATEMENT
DEC 31 st , 2007
Legal tax rate in France for the year 33.33%
Additional contribution 0.88%
Share in dividends excluding tax consolidation 0.1%
Tax losses carried forward used, not previously activated -3.78%
Other 0.05%
EFFECTIVE TAX RATE 30.58%
126
Return to the contents section