Chrysler 2007 Annual Report Download - page 123

122 Fiat Group Consolidated Financial Statements at December 31, 2007 - Notes
Interest and other financial expenses may be analysed as follows:
(in millions of euros) 2007 2006
Interest expenses on bonds 503 528
Bank interest expenses 229 307
Interest expenses on trade payables 610
Commission expense 20 28
Other interest and financial expenses 738 743
Total Interest and other financial expenses 1,496 1,616
10. Result from investments
This item, amounting to 185 million euros (156 million euros in 2006), includes the Group’s interest in the net result of the
companies accounted for using the equity method for 210 million euros (125 million euros in 2006); for 25 million euros (31 million
euros in 2006) the negative effect of the write-downs connected with the loss in value of financial assets net of reversals of value,
the write-downs of equity investments classified as held for sale, accruals to provisions against equity investments, income and
expense arising from the adjustment to fair value of investments in other entities held for trading, and dividend income.
The item includes (amounts in millions of euros): Fiat Group Automobiles Sector companies 76 (38 in 2006), entities of Agricultural
and Construction equipment Sector companies 70 (46 in 2006) and other companies 39 (41 in 2006). The net result from
investments in 2006 additionally included 31 million euros in connection with certain Iveco companies, of which 15 million euros
relating to the reversal of a provision made in 2005 against risks, in connection with a Chinese associate, which no longer
subsisted.
11. Income taxes
Income taxes consist of the following:
(in millions of euros) 2007 2006
Current taxes:
- IRAP 188 149
- Other taxes 624 346
Total Current taxes 812 495
Deferred taxes for the period (114) (61)
Taxes relating to prior periods 21 56
Total Income taxes 719 490
In 2007, the increase in the charge for income taxes is the consequence of the significant rise in profits from operations, partially
offset by an increase in recognised deferred tax assets and hence income and lower taxes relating to previous years.
Deferred tax income of 114 million euros (net income of 61 million euros in 2006) is the net effect of the recognition of deferred tax
assets recognised during the year over those recognised in prior years and realised during the year, plus the effect of the reduction
in deferred tax liabilities.
Taxes relating to prior periods include the cost arising from certain disputes with foreign tax authorities.