ING Direct 2011 Annual Report Download - page 199

Notes to the consolidated annual accounts of ING Group continued
48 TAXATION
Profit and loss account
Taxation on continuing operations by type
Netherlands International Total
2011 2010 2009 2011 2010 2009 2011 2010 2009
Current taxation 48 168 159 1,006 790 416 1,054 958 575
Deferred taxation 523 48 –1,051 –212 222 –137 311 270 –1,188
571 216 –892 794 1,012 279 1,365 1,228 – 613
Reconciliation of the weighted average statutory income tax rate to ING Group’s effective income tax
rate
2011 2010 2009
Result before tax from continuing operations 6,109 3,928 –1,837
Weighted average statutory tax rate 26.1% 24.4% 35.5%
Weighted average statutory tax amount 1,594 958 –652
Associates exemption –329 –403 –166
Other income not subject to tax –263 –125 –227
Expenses not deductible for tax purposes 122 102 47
Impact on deferred tax from change in tax rates –56 8
Deferred tax benefit from previously unrecognised amounts –32
Current tax benefit from previously unrecognised amounts 4
Write down/reversal of deferred tax assets 284 740 535
Adjustment to prior periods 9–52 –118
Effective tax amount 1,365 1,228 – 613
Effective tax rate 22.3% 31.3% 33.3%
The weighted average statutory tax rate in 2011 compared to 2010 does not differ significantly.
The weighted average statutory tax rate decreased significantly in 2010 compared to 2009. This is caused by the fact that in 2010 profits
were realised in a significant part of the tax jurisdictions that incurred losses in 2009.
The effective tax rate in 2011 was lower than the weighted average statutory tax. This is mainly caused by exempt income, which was
onlypartly offset by non deductible expenses and write-down of deferred tax assets.
The effective tax rate in 2010 was higher than the weighted average statutory tax. This is caused by an off-setting effect of the write-
down of deferred tax assets (mainly in the United States) and the non-deductable expenses which exceeded tax exempt income and
prioryear adjustments.
The effective tax rate in 2009 was lower than the weighted average statutory tax rate. This is caused by the fact that a write-down
ofthecarrying value of deferred tax assets and non-deductible expenses exceeded tax exempt income.
Adjustment to prior periods in 2011 relates to final tax assessments and other marginal corrections.
Adjustment to prior periods in 2010 relates mainly to a tax settlement.
Comprehensive income
Income tax related to components of other comprehensive income
2011 2010 2009
Unrealised revaluations –873 –1,216 – 4,712
Realised gains/losses transferred to profit and loss
(reclassificationsfromequity to profit and loss) –291 8–494
Changes in cash flow hedge reserve –373 –194 203
Transfer to insurance liabilities/DAC 847 719 1,017
Exchange rate differences –39 813
Total income tax related to components
of other comprehensive income –729 –675 –3,973
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
197ING Group Annual Report 2011