Note 10 • Income tax expense
|
€’000 |
2010 |
2009 |
||
|
Recognised in the consolidated income statements |
||||
|
Current tax expense |
33,165 |
20,090 |
||
|
Adjustment for prior years |
36 |
36 |
||
|
33,201 |
20,126 |
|||
|
€000 |
% |
2010 |
% |
2009 |
|
Deferred tax expense: |
||||
|
Origination and reversal |
||||
|
of temporary differences |
(4,071) |
(3,027) |
||
|
Recognition of previously unrecognised deductible temporary differences |
(5,696) |
– |
||
|
Recognition of previous unrecognised tax losses brought forward |
(5,754) |
(158) |
||
|
(15,521) |
(3,185) |
|||
|
Total income tax expense in the consolidated income statements |
17,680 |
16,941 |
||
|
Reconciliation of effective tax rate |
||||
|
Net profit before income tax |
135,217 |
117,253 |
||
|
Average applicable tax rate, % |
11.7 |
11.0 |
||
|
Tax at applicable tax rate |
11.7 |
15,779 |
11.0 |
12,932 |
|
Adjustment to tax expenses |
||||
|
Non-deductible expenses |
3.3 |
4,477 |
3.8 |
4,504 |
|
Utilisation of previously unrecognised |
||||
|
tax losses brought forward |
(2.5) |
(3,351) |
(1.8) |
(2,055) |
|
Recognition of previously unrecognised tax losses brought forward |
(4.3) |
(5,754) |
(0.1) |
(158) |
|
Recognition of previously unrecognised |
||||
|
deductible temporary differences |
(4.2) |
(5,696) |
(0.0) |
– |
|
Increase/(release) of tax provision |
6.7 |
9,006 |
(0.6) |
(698) |
|
Withholding taxes |
1.8 |
2,417 |
1.7 |
1,934 |
|
Other taxes |
0.6 |
766 |
0.4 |
446 |
|
Adjustments in respect of prior years |
0.0 |
36 |
0.0 |
36 |
|
Tax expense |
13.1 |
17,680 |
14.4 |
16,941 |
|
Effective tax rate, % |
13.1 |
14.4 |
Average applicable tax rate increased due to business volume movement in countries where applicable tax rate is higher.
The tax at applicable tax rate is the weighted average of the expected tax expense calculated by applying the countries’ enacted or substantively enacted tax rates.
The tax rates of the Group’s subsidiaries range between 0 percent and 39 percent. The Group benefits from favourable tax regimes in a number of countries, the bene-fits of which are expected to continue in foreseeable future.