Chrysler 2008 Annual Report Download - page 135

The temporary differences arising during the year relate mainly to the difference between the carrying amount of intangible assets
in the consolidated financial statements and their tax base.
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 (€3,646 million at 31 December
2008 and €3,229 million at 31 December 2007) and tax loss carryforwards (€3,679 million at 31 December 2008 and €4,431 million
at 31 December 2007) have been reduced by €2,899 million at 31 December 2008 and €3,791 million at 31 December 2007.
In particular, Deferred tax assets, net of Deferred tax liabilities, include €1,231 million at 31 December 2007 (€1,197 million at
31 December 2007) of tax benefits arising from tax loss carryforwards. At 31 December 2008, a further tax benefit of €2,448 million
(€3,234 million at 31 December 2007) 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 31 December 2008, 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
31 December Unlimited/
(€ millions) 2008 2009 2010 2011 2012 Beyond 2012 indeterminable
Temporary differences and tax losses relating
to State taxation (IRES in the case of Italy):
- Deductible temporary differences 10,854 3,229 1,183 1,079 1,127 4,002 234
- Taxable temporary differences (6,716) (1,416) (1,231) (1,188) (1,160) (1,667) (54)
- Tax losses 13,578 901 2,107 1,236 389 1,924 7,021
- Temporary differences and tax losses for which
deferred tax assets have not been recognised (10,586) (1,220) (1,710) (552) (437) (2,236) (4,431)
Temporary differences and tax losses relating to State taxation 7,130 1,494 349 575 (81) 2,023 2,770
Temporary differences and tax losses relating
to local taxation (IRAP in the case of Italy):
- Deductible temporary differences 5,381 1,250 732 681 654 1,921 143
- Taxable temporary differences (4,127) (971) (793) (751) (734) (788) (90)
- Tax losses 789 42 40 40 40 341 286
- Temporary differences and tax losses for which
deferred tax assets have not been recognised (1,470) (292) (115) (102) (98) (583) (280)
Temporary differences and tax losses relating to local taxation 573 29 (136) (132) (138) 891 59
Fiat Group Consolidated Financial Statements at 31 December 2008134