Chrysler 2009 Annual Report Download - page 300

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9. Income taxes
A breakdown of taxes recognised in the income statement is provided below:
(€ thousand) 2009 2008
Current taxes:
IRES - -
IRAP - 19,012
Total current taxes 19,012
Deferred taxes for the period:
IRAP (5,858) 1,602
Total deferred taxes for the period (5,858) 1,602
Taxes relating to prior periods 11,973 23,428
Total income taxes 6,115 44,042
For 2008, current IRAP payable was correlated to the estimate of the income generated during the year including the non-recurring gain from sale of the
FIAT trademark.
Deferred IRAP related to profit recognised on the contract work in progress with T.A.V. S.p.A.
Taxes relating to prior periods totalled €11,973 thousand and consisted almost entirely of IRAP paid during the year in relation to the prior year’s taxable
income. In 2008, taxes relating to prior periods totalled €23,428 thousand and principally related to the balance payable in relation to the prior year’s
domestic tax consolidation.
A reconciliation between theoretical income taxes determined on the basis of the tax rates applicable in Italy and the income taxes reported in the financial
statements is as follows:
(€ thousand)
2009 2008
Theoretical income taxes 95,172 341,877
Tax effect of permanent differences (90,928) (214,402)
Taxes relating to prior periods (2) 23,428
Tax loss carryforwards utilised (4,244) (127,475)
Unrecognised net deferred tax assets - -
Current and deferred income tax recognised in the financial statements, excluding IRAP (2) 23,428
IRAP (current and deferred) 6,117 20,614
Income taxes reported in the income statement (current and deferred income taxes) 6,115 44,042
Theoretical income taxes are calculated by applying the IRES tax rate (27.5% for 2008 and 2009) to the result before taxes. IRAP tax is excluded to facilitate
an understanding of the reconciliation between theoretical and reported income taxes; since it is calculated on a tax basis that differs from profit before taxes,
it would otherwise generate distortions between one year and another.
The permanent differences referred to above include, among other things, the tax effect of non-taxable income amounting to €329,236 thousand in 2009
(€221,820 thousand in 2008) and of non-deductible costs amounting to €238,308 thousand in 2009 (€7,418 thousand in 2008).
In particular, for 2009 the tax effect of non-taxable income is principally attributable to dividends and totals approximately €329,131 thousand (€216,844
thousand in 2008). For 2009, non-deductible costs principally included impairment losses on investments whose tax effect was €235,950 thousand (€1,925
thousand in 2008).