Income taxes can be broken down as follows:
|
(in thousands of euro) |
2010 |
2009 |
|
Current taxes |
35,322 |
50,752 |
|
Deferred taxes |
(25,767) |
(66,441) |
|
Tax expense from prior periods |
3,040 |
11,355 |
|
Total |
12,586 |
(4,334) |
The item “Tax expense from prior periods” refers to extraordinary provisions of a tax nature, set aside in the Espresso group, for the probable risk from disputes still pending on options on stock rights.
The following chart shows the reconciliation of the ordinary tax rate and the effective tax rate for financial year 2010:
|
(in thousands of euro) |
2010 |
|
Pre-tax income resulting from financial statements |
135,972 |
|
Theoretical income taxes |
38,045 |
|
Tax effect of non-deductible costs |
11,027 |
|
Tax effect of losses of prior periods which generate deferred tax assets in the period |
(63,260) |
|
Tax effect of losses of prior periods which did not generate deferred tax assets |
(9,076) |
|
Tax effect on interest rate differentials of foreign companies |
1,498 |
|
Non-taxable grants |
-- |
|
Other |
6,485 |
|
Income taxes |
(15,281) |
|
Average effective tax rate |
(11,2) |
|
Theoretical tax rate |
28,0 |
|
IRAP and other taxes |
24,827 |
|
Tax charges from prior periods |
3,040 |
|
Total taxes from financial statements |
12,586 |