Chrysler 2013 Annual Report Download - page 163

162 Consolidated
Financial Statements
at 31 December 2013
Notes
The decision to recognize Deferred tax assets is taken for each company in the Group by assessing critically whether the conditions exist for
the future recoverability of such assets by taking into account the basis of most recent forecasts from budgets and plans. In this regard at 31
December 2013, in view of the results achieved by Chrysler, of the continuous improvement of its product mix and of its trends in international
sales and its implementation of new vehicles, together with the consolidation of the alliance between Fiat and Chrysler, following Fiat’s
acquisition of full control at the beginning of 2014, the Group recognized previously unrecognized deferred tax assets for a total of €1,734
million, of which €1,500 million recognized in Income taxes and €234 million in Other comprehensive income/(losses). Moreover, in respect
to the Group’s Italian entities, at 31 December 2013, despite a tax loss in the national tax consolidation, the Group continued to recognize
Deferred tax assets for €1,016 million (€1,063 million at 31 December 2012) on the basis of the future taxable income expected to arise in
future periods and taking into account that these tax losses can be carried forward indefinitely.
At 31 December 2013, the Group had deferred tax assets on deductible temporary differences of €6,173 million (€6,353 million at 31
December 2012), of which €435 million was not recognized (€2,445 million at 31 December 2012). At the same date the Group had also
theoretical tax benefit on losses carried forward of €3,810 million (€3,399 million at 31 December 2012), of which €2,891 million was
unrecognized (€2,473 million at 31 December 2012). At 31 December 2013, net deferred tax assets included the amount of €919 million in
respect of benefits on unused tax losses carry-forwards (€926 million at 31 December 2012).
Deferred taxes on the undistributed earnings of subsidiaries have not been recognized, except in cases where it is probable they earnings will
be distributed in the foreseeable future.
The totals of deductible and taxable temporary differences and accumulated tax losses at 31 December 2013, together with the amounts for
which deferred tax assets have not been recognized, analyzed by year of expiry, are as follows:
Year of expiry
(€ million)
At 31
December
2013 2014 2015 2016 2017
Beyond
2017
Unlimited/
indeterminable
Temporary differences and tax losses relating to State
taxation (IRES in Italy):
Deductible temporary differences 18,768 4,997 1,738 1,641 1,803 8,589 -
Taxable temporary differences (11,604) (1,133) (1,396) (1,229) (1,218) (5,360) (1,268)
Tax losses 13,555 86 16 303 31 1,556 11,563
Amounts for which deferred tax assets were not
recognized (11,546) (685) (90) (193) (136) (172) (10,270)
Temporary differences and tax losses relating
to State taxation 9,173 3,265 268 522 480 4,613 25
Temporary differences and tax losses relating to local
taxation (IRAP in Italy):
Deductible temporary differences 18,570 3,922 1,946 2,248 2,067 8,387 -
Taxable temporary differences (15,151) (1,193) (1,634) (1,540) (1,529) (6,934) (2,321)
Tax losses 1,091 2 3 9 54 234 789
Amounts for which deferred tax assets were not
recognized (1,169) (124) (30) (21) (13) (212) (769)
Temporary differences and tax losses relating
to local taxation 3,341 2,607 285 696 579 1,475 (2,301)