324 348
Parent Company Financial Report |
EXPLANATORY NOTES
2014 Annual Report
Prysmian Group
324
These are detailed as follows:
22. TAXES
2014
2013
Current income taxes
(17,499)
(31,091)
Deferred income taxes
1,363
2,847
Total
(16,136)
(28,244)
Current income taxes report a positive Euro 17,499 thousand
in 2014, compared with Euro 31,091 thousand in 2013, and
mainly reflect the net positive effects of the relief provided by
tax losses transferred from some Italian companies under the
rules of the group tax consolidation.
Information about deferred taxes can be found in Note 4.
Deferred tax assets.
Taxes charged on profit before taxes differ from those calcu-
lated using the theoretical tax rate applying to the Company
for the following reasons:
2014
Tax rate
2013
Tax rate
Profit before taxes
175,420
156,441
Theoretical tax expense at
Parent Company's nominal tax rate
48,241
27.5%
43,021
27.5%
Dividends from subsidiaries
(57,755)
(32.9%)
(57,439)
(32.7%)
Other permanent differences
(2,812)
(1.6%)
407
0.2%
Tax credit paid abroad
(186)
(0.1%)
(8,192)
(4.7%)
Impairment/(Reversal of impairment)
of investments in subsidiaries
4,528
2.6%
-
0.0%
Other
(1,985)
(1.1%)
1,237
0.7%
Net effect of group tax consolidation for the year
(6,168)
(3.5%)
(7,278)
(4.1%)
Effective income taxes
(16,136)
(9.2%)
(28,244)
(16.1%)
Since 2006 the Company, along with all its Italian resident sub-
sidiaries, has opted to file for tax on a group basis, pursuant to
art. 117 et seq of the Italian Income Tax Code, with the Company
acting as the head of this group. The intercompany transac-
tions arising under such a group tax consolidation are governed
by specific rules and an agreement between the participating
companies, which involve common procedures for applying the
tax laws and regulations.
These rules were updated in 2008 to reflect the amendments
and additions introduced by Law 244 of 24 December 2007
(Finance Act 2008) and Legislative Decree 112 of 25 June 2008.
These rules were amended on 26 March 2012 to incorporate in
the transactions between the head of the tax group and the in-
dividual participating companies, the amendments introduced
by Legislative Decree 201/2011 and the Ministerial Decree dated
14 March 2012 concerning Aid for Economic Growth.
(in thousands of Euro)
(in thousands of Euro)