ING Direct 2011 Annual Report Download - page 153

Notes to the consolidated annual accounts of ING Group continued
Deferred tax in connection with unused tax losses carried forward
2011 2010
Total unused tax losses carried forward 9,093 9,335
Unused tax losses carried forward not
recognised as a deferred tax asset –4,529 –2,862
Unused tax losses carried forward
recognised as a deferred tax asset 4,564 6,473
Average tax rate 28.4% 28.6%
Deferred tax asset 1,298 1,851
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
2011 2010 2011 2010
Within 1 year 30 14 49 67
More than 1 year but less than 5 years 378 406 539 461
More than 5 years but less than 10 years 774 243 1,971 3,768
More than 10 years but less than 20 years 3,185 2,093 192 1,285
Unlimited 162 106 1,813 892
4,529 2,862 4,564 6,473
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 490 million (2010: EUR 1,102 million).
This can be specified by jurisdiction as follows:
Breakdown by jurisdiction
Banking operations Insurance operations Total
2011 2010 2011 2010 2011 2010
The Netherlands 190 190
United States 508 120 232 120 740
Great Britain 116 89 116 89
Belgium 70 13 70 13
Australia 36 40 36 40
Spain 11 19 19 11
Germany 519 5 19
France 66 66
Mexico 32 32
Italy 26 26
281 857 209 245 490 1,102
In 2011 the deferred tax assets for banking operations for which the utilisation is dependent on future taxable profits, as disclosed above,
decreased significantly compared to 2010, as a result of the announced sale of ING Direct USA. Reference is made to Note 30 ‘Companies
acquired and companies disposed’.
In 2011, ING Group has reconsidered its method of determining the breakdown by jurisdiction. The recoverability is now determined at the
level of the fiscal unity within that jurisdiction and not at the level of the individual company. Also the offsetting of deferred tax assets with
deferred tax liabilities was revised. The comparatives provided in this table have been adjusted accordingly.
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.
1 Who we are 2 Report of the Executive Board 3 Corporate governance 4 Consolidated annual accounts 5 Parent company annual accounts 6 Other information 7 Additional information
151ING Group Annual Report 2011