ING Direct 2009 Annual Report Download - page 145

Notes to the consolidated balance sheet of ING Group (continued)
2.1 Consolidated annual accounts
ING Group Annual Report 2009 143
Deferred tax in connection with unused tax losses carried forward
2009 2008
Total unused tax losses carried forward 10,073 6,392
Unused tax losses carried forward not recognised
as a deferred tax asset –1,779 –638
Unused tax losses carried forward recognised
as a deferred tax asset 8,294 5,754
Average tax rate 30.2% 28.7%
Deferred tax asset 2,508 1,653
The following tax loss carry forwards and tax credits will expire as follows as at 31 December:
Total unused tax losses carried forward analysed by expiry terms
No deferred tax asset recognised Deferred tax asset recognised
2009 2008 2009 2008
Within 1 year 54 279 56
More than 1 year but less than 5 years 510 68 381 425
More than 5 years but less than 10 years 177 219 3,199 2,802
More than 10 years but less than 20 years 962 298 3,960 1,540
Unlimited 76 51 675 931
1,779 638 8,294 5,754
Deferred tax assets are recognised for temporary deductible differences, for tax loss carry forwards and unused tax credits only to the
extent that realisation of the related tax benefit is probable.
The deferred tax asset includes balances for which the utilisation is dependent on future taxable profits whilst the related entities have
incurred losses in either the current year or the preceding year. The aggregate amount for the most significant entities where this applies
is EUR 1,754 million. Recognition is based on the fact that it is probable that the entity will have taxable profits and /or can utilise tax
planning opportunities before expiration of the deferred tax assets. Changes in circumstances in future periods may adversely impact
the assessment of the recoverability. The uncertainty of the recoverability is taken into account in establishing the deferred tax assets.
As of 31 December 2009 and 31 December 2008, ING Group had no significant temporary differences associated with the its parent
company’s investments in subsidiaries, branches and associates and interest in joint ventures as any economic benefit from those
investments will not be taxable at parent company level.
Changes in reorganisation provision
2009 2008
Opening balance 583 619
Changes in the composition of the group –22
Additions 686 162
Interest 11 15
Releases –89 –18
Charges –604 –169
Exchange rate differences –2 –6
Other changes 59 2
Closing balance 644 583
As at 31 December the provision for reorganisation, of which EUR 433 million relates to termination benefits, mainly related to the
reorganisation of Postbank, Postkantoren, Nationale Nederlanden, RVS and Insurance Americas.
The provision for reorganisation as at 31 December 2008 includes EUR 360 million for the restructuring of the retail business of Postbank
and ING Bank.