Chrysler 2013 Annual Report Download - page 292

291
Fiat S.p.A. Statutory
Financial Statements
at 31 December 2013
8. Income taxes
A breakdown of taxes recognized in the income statement is provided below:
(€ thousand) 2013 2012
Current taxes:
- IRES (17,434) (19,948)
- IRAP --
-Other current taxes -12
Total current taxes (17,434) (19,936)
Deferred taxes for the period:
- IRES -4,051
- IRAP --
Total deferred taxes for the period -4,051
Taxes relating to prior periods 2,884 (15,168)
Total Income taxes (14,550) (31,053)
Current IRES tax for 2013 relates to compensation receivable by Fiat S.p.A. (€17,434 thousand) for tax loss carryforwards contributed to the
domestic tax consolidation scheme.
Taxes relating to prior periods (expense of €2,884 thousand) mainly consisted of an adjustment relating 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) 2013 2012
Theoretical income taxes (66,343) (50,436)
Tax effect of permanent differences 9,562 (3,577)
Taxes relating to prior periods 2,884 (15,168)
Other current taxes -12
Deferred taxes not recognized on tax loss for the year and other deferred taxes 39,347 38,116
Tax loss carryforwards utilized --
Current and deferred income taxes recognized in the income statement, excluding IRAP (14,550) (31,053)
IRAP (current and deferred) --
Total Income taxes (14,550) (31,053)
Theoretical income taxes are calculated by applying the IRES tax rate (27.5% for 2013 and 2012) to the result before taxes.
The permanent differences referred to above include, among other things, the tax effect of non-taxable income amounting to €144,514 thousand
in 2013 (€275,035 thousand in 2012) and of non-deductible costs amounting to €154,076 thousand in 2013 (€271,458 thousand in 2012). In
particular, for 2013 the tax effect of non-taxable income was principally attributable to dividends (€140,114 thousand vs. €269,217 thousand
in 2012) and impairment reversals on investments (€4,400 thousand vs. €5,799 thousand in 2012). Non-deductible costs principally relate to
impairment losses on investments whose tax effect was €153,010 thousand (€270,591 thousand in 2012).