2008 Registration Document - Rexel

14. Financial information concerning the assets andliabilities, financial position and profits and lossesof Rexel9.3 Effective tax rate(in millions of euros) 2008 2007Income before tax 343.2 251.3Theoretical tax rate 34.4% 34.4%Income tax calculated at the theoretical tax rate (118.2) (86.5)Effect of tax rates in foreign jurisdictions 16.8 12.6Effect of tax rate variations 0.1 (4.7)Effect of prior year losses utilised / (current year losses unrecognized) (16.7) 1.1Effect of non-deductible expenses, tax exempt revenues 6.3 (30.2)Actual income tax expense (111.7) (107.7)Effective tax rate 32.5% 42.9%In 2008, non deductible expenses and tax exempt revenuesessentially includes the favorable effects of the non-taxablegain on disposal of Rexel’s business in Germany for anamount of €30.3 million partially compensated by the effectof non-deductible goodwill impairment and free sharesexpense for respectively €14.0 million and €7.6 million.In 2007, income tax expense included the effect of nondeductiblecosts related to the free shares scheme andemployee offering for an amount of €19.6 million.PAGE 178 | REXEL 2008