Chrysler 2012 Annual Report Download - page 270

269
Fiat S.p.A. - Statutory
Financial Statements
at 31 December 2012
8. Income taxes
A breakdown of taxes recognized in the income statement is provided below:
(€ thousand) 2012 2011
Current taxes:
- IRES (19,948) (36,663)
- IRAP --
- Other current taxes 12 253
Total current taxes (19,936) (36,410)
Deferred taxes for the period:
- IRES 4,051 -
- IRAP -1,145
Total deferred taxes for the period 4,051 1,145
Taxes relating to prior periods (15,168) (8,536)
Total income taxes (31,053) (43,801)
Current IRES tax for 2012 relates to compensation receivable by Fiat S.p.A. (€19,948 thousand) for tax loss carryforwards contributed to the domestic tax
consolidation scheme.
Other current taxes for 2012 relate to rebates on tax withheld outside Italy.
Deferred IRES tax, totaling €4,051 thousand, related to the portion of taxable timing differences not offset by loss carryforwards.
Taxes relating to prior periods (€15,168 thousand) primarily represents income related to the prior year’s domestic tax consolidation.
A reconciliation between theoretical income taxes determined on the basis of tax rates applicable in Italy and income taxes reported in the financial
statements is as follows:
(€ thousand) 2012 2011
Theoretical income taxes (50,436) 15,225
Tax effect of permanent differences (3,577) (133,952)
Taxes relating to prior periods (15,168) (8,536)
Other current taxes 12 253
Deferred taxes not recognized on tax loss for the year and other deferred taxes 38,116 82,064
Tax loss carryforwards utilized --
Current and deferred income tax recognized in the financial statements, excluding IRAP (31,053) (44,946)
IRAP (current and deferred) -1,145
Income taxes reported in the income statement (current and deferred income taxes) (31,053) (43,801)
Theoretical income taxes are calculated by applying the IRES tax rate (27.5% for 2012 and 2011) to the result before taxes.
The permanent differences referred to above include, among other things, the tax effect of non-taxable income amounting to €275,035 thousand in 2012
(€198,735 thousand in 2011) and of non-deductible costs amounting to €271,458 thousand in 2012 (€64,783 thousand in 2011). In particular, for 2012
the tax effect of non-taxable income was principally attributable to dividends (€269,217 thousand vs. €101,408 thousand in 2011) and impairment reversals
on investments (€5,799 thousand vs. €96,815 thousand in 2011). Non-deductible costs principally relate to impairment losses on investments whose tax
effect was €270,591 thousand (€53,515 thousand in 2011).