Chrysler 2007 Annual Report Download - page 271

Deferred tax assets have been recognised by carrying out a critical analysis to ensure that the conditions for their future realisation
exist, through the use of updated strategic business plans and the related tax plans. As a consequence, the total theoretical future
tax benefits arising from deductible temporary differences (6,632 thousand euros at December 31, 2007 and 165,055 thousand
euros at December 31, 2006) and tax loss carryforward (175,224 thousand euros at December 31, 2007 and 232,867 thousand euros
at December 31, 2006), has been reduced by 147,878 thousand euros at December 31, 2007 (353,721 thousand euros at December
31, 2006).
The reduction of the tax rates applied in the calculation of deferred tax balances at December 31, 2007 led to a reduction of the
theoretical deferred tax benefit deriving from unused tax losses (for approximately 39 million euros) and of the deferred tax assets
and liabilities arising from temporary differences (for approximately 20 million euros). In consideration of the fact that said benefit
had been completely written down, said write-downs were correspondingly reduced by an equal amount without therefore having
any negative effect on the result for the year.
Total temporary differences (deductible and taxable) and total tax losses at December 31, 2007 and the amounts for which deferred
tax assets have not been recognised, analysed by year of expiry, are set out in the following table:
Year of expiry
Total at
December 31,
(in thousands of euros) 2007 2008 2009 2010 2011 Beyond 2011
Temporary differences and tax losses relating to IRES:
- Deductible temporary differences 22,807 14,911 1,252 914 785 4,945
- Taxable temporary differences (122,245) – (118,381) – – (3,864)
- Tax losses 637,176 178,678 229,335 – 221,746 7,417
- Temporary differences and tax losses for which
deferred tax assets have not been recognised (537,738) (193,589) (112,206) (914) (222,531) (8,498)
Temporary differences and tax losses relating
to State taxation ––– –––
Temporary differences relating to IRAP:
- Deductible temporary differences 9,234 1,358 1,282 964 720 4,910
- Taxable temporary differences (118,381) – (118,381) – – –
Temporary differences and tax losses relating
to local taxation (109,147) 1,358 (117,099) 964 720 4,910
Fiat S.p.A. Financial Statements at December 31, 2007 - Notes to the Financial Statements270