BMW 2008 Annual Report Download - page 91

92
72 Group Financial Statements
72 Income Statements
74 Balance Sheets
76 Cash Flow Statements
78 Statement of Income and
Expenses recognised
in Equity
79 Notes
79 Accounting Principles
and Policies
88 Notes to the Income
Statement
94
Notes to the Balance Sheet
1 1 5 Other Disclosures
1 2 9 Segment Information
in euro million 2008 2007
Expected tax expense 106 1,506
Variances due to different tax rates 24 – 731
Tax reductions (–) / tax increases (+) as a result of non-taxable income and non-deductible expenses – 49 4
Tax expense (+) / benefits (–) for prior periods – 60 – 4
Other variances – – 36
Actual tax expense 2 1 739
The tax returns of BMW Group companies are checked
regularly by German and foreign tax authorities. Taking
account of a variety of factors – including existing inter-
pretations,
commentaries and legal decisions taken relat-
ing to the various tax jurisdictions and the BMW Group’s
past experience – adequate provision has, as far as
identifiable, been made for potential future tax obliga-
tions.
The effects of the sale of Cirquent GmbH, Munich, are in-
cluded in the line relating to non-taxable income. Rulings
made by the European Court of Justice with regard to Ger-
man tax legislation have had a positive impact on the tax
expense of German entities. The impact in  is included
on the line “Tax expenses / benefits for prior periods”. The
line “Variances due to different tax rates” includes a tax
expense of euro  million relating to the revaluation of de-
ferred tax assets and liabilities as a result of changed tax
rates (: tax income of euro  million).
The effect of the reduction in tax expense as a result of the
utilisation of tax losses for which deferred tax assets had
The actual tax expense for the financial year  of euro
 million (: euro  million) is euro  million (:
euro  million) lower than the expected tax expense of
euro  million (: euro , million) which would theo-
retically arise if the tax rate of .  (: . ), appli-
cable for German companies, was applied across the
Group. The difference between the expected and actual
tax expense is attributable to the following:
not previously been recognised amounted to euro  million
(: euro  million). Moreover, the tax expense was re-
duced by euro  million (: euro  million) as a result of
deferred taxes on previously unrecognised temporary
differences. The tax expense for the valuation allowance
on deferred tax assets relating to tax losses available for
carryforward and temporary differences amounted to euro
 million (: euro  million). Tax income from the
re-
versal of previously recognised allowances amounted to
euro  million (: euro  million). Overall, the net tax
income from new or reversing temporary differences
totalled euro  million (: tax expense of euro  mil-
lion).
17
2008 2007
Net profit for the year after minority interest euro million 324.3 3,125.9
Profit attributable to common stock euro million 297.9 2,878.4
Profit attributable to preferred stock euro million 26.4 247.5
Average number of common stock shares in circulation number 601,995,196 601,995,196
Average number of preferred stock shares in circulation number 51,296,162 51,535,857
Earnings per share of common stock euro 0.49 4.78
Earnings per share of preferred stock euro 0.51 4.80
Dividend per share of common stock euro 0.30 1.06
Dividend per share of preferred stock euro 0.32 1.08
Earnings per share