CFE - 2006 annual report - Vinci

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9. Income tax expenses
Recognized in the income statement
(in thousand Euro) 2006 2005
Current taxes
• Tax expense of the year 20,740 10,586
• Under/(over) provided in prior years (398) (1,151)
Total current tax expense 20,342 9,435
Deferred taxes
• Origination and reversal of temporary differences (9,146) (300)
• Use of losses from previous exercises 4,629 5,863
• Deferred taxes calculated on the losses of the exercise (145) (431)
• Write-off reversal - (1,239)
• Deferred taxes calculated by a change of tax rate (17) 49
Total deferred tax (expense)/income (4,679) 3,942
Total of tax expenses recognised in the income statement 15,663 13,377
The variation in the heading “origination and reversal of temporary differences” is mainly explained by the recognition of tax
credits at DEME.
Reconciliation of the effective tax rate
(in thousand Euro) 2006 2005
Profi t for the year before taxes 57,669 40,260
- (+) Share in profit (losses) from associates (357) (329)
Profit before taxes and revenues from associates 57,312 39,931
Taxes on the profit calculated at the rate of 33,99% 19,480 13,573
Tax impact of non deductible expenses 1,962 2,616
Tax impact of non taxable revenues (2,636) (393)
Tax credit and impact on notional interests (3,504) -
Other taxable revenues 625 367
Effect of different tax rate of subsidiaries acting in other legal
environments
(3,489) (3,798)
Tax impact of the use of losses not recognized previously (1,671) (2,214)
Tax impact of current and deferred tax adjustments related to prior years 952 301
Tax impact of deferred tax assets on losses of the year not recognized 3,944 4,164
Reversal of valuation allowances on deferred tax assets (1,239)
Tax charge and effective tax rate of the exercise 15,663 13,377
27.3% 33.5%