Chrysler 2007 Annual Report Download - page 126

125Fiat Group Consolidated Financial Statements at December 31, 2007 - Notes
The decision to recognise deferred tax assets is taken by each company in the Group by assessing critically whether the conditions
exist for the future recoverability of such assets on the basis of updated strategic plans, accompanied by the related tax plans. For
this reason, the total theoretical future tax benefits arising from deductible temporary differences (3,229 million euros at December
31, 2007 and 3,824 million euros at December 31, 2006) and tax loss carryforwards (4,431 million euros at December 31, 2007 and
5,701 million euros at December 31, 2006) have been reduced by 3,791 million euros at December 31, 2007 and 5,372 million euros
at December 31, 2006.
In particular, Deferred tax assets, net of Deferred tax liabilities, include 1,197 million euros at December 31, 2007 (1,150 million
euros at December 31, 2006) of tax benefits arising from tax loss carryforwards. At December 31, 2007, a further tax benefit of 3,234
million euros (4,551 million euros at December 31, 2006) arising from tax loss carryforwards has not been recognised.
Deferred taxes have not been provided on the undistributed earnings of subsidiaries since the Group is able to control the timing
of the distribution of these reserves and it is probable that they will not be distributed in the foreseeable future.
The totals of deductible and taxable temporary differences and accumulated tax losses at December 31, 2007, together with the
amounts for which deferred tax assets have not been recognised, analysed by year of expiry, are as follows:
Year of expiry
Total at
December 31, Unlimited/
(in millions of euros) 2007 2008 2009 2010 2011 Beyond 2011 indeterminable
Temporary differences and tax losses relating
to State taxation (IRES in the case of Italy):
- Deductible temporary differences 10,187 3,713 1,386 1,359 1,408 2,266 55
- Taxable temporary differences (6,507) (1,010) (1,403) (1,260) (1,224) (1,569) (41)
- Tax losses 16,169 2,389 2,398 2,500 1,715 2,446 4,721
- Temporary differences and tax losses for which
deferred tax assets have not been recognised (13,907) (1,854) (2,493) (2,605) (1,690) (2,597) (2,668)
Temporary differences and tax losses relating to State taxation 5,942 3,238 (112) (6) 209 546 2,067
Temporary differences and tax losses relating
to local taxation (IRAP in the case of Italy):
- Deductible temporary differences 4,369 1,219 666 661 735 1,069 19
- Taxable temporary differences (4,328) (671) (1,017) (874) (826) (903) (37)
- Tax losses 897 53 48 48 46 468 234
- Temporary differences and tax losses for which
deferred tax assets have not been recognised (1,783) (633) (101) (110) (98) (610) (231)
Temporary differences and tax losses relating to local taxation (845) (32) (404) (275) (143) 24 (15)