LensCrafters 2013 Annual Report Download - page 218

Footnotes to the statutory financial statements as of December 31, 2013 Page 51 of 71
The provision for income taxes reflects the tax charge for the year.
With reference to current IRES (Italian corporate income tax), the Company has recognized a charge of Euro
(137,689,609), relating to the income tax transferred to the tax group which it heads under the national tax
consolidation regime, permitted by Sections 117 et seq. of the Italian Tax Code. This regime allows the taxable
income and tax losses of participating companies to be offset against one another.
With reference to current IRAP (Italian regional business tax), the charge for the year is Euro (26,167,786), calculated
on the value of net production for the year.
The Company has also recognized Euro 250,000 in taxes under Section 167 of the Italian Tax Code.
In terms of deferred tax, the Company has recognized Euro (511,876) in deferred tax assets for IRAP and Euro
(1,848,341) in deferred tax assets for IRES.
Reconciliation between reported tax charge and theoretical tax charge (IRES)
December, 31
2013 2012
Theoretical tax charge (%) 27.5% 27.5%
Dividends effect (4.0)% (3.9)%
Other permanent differences 1%- -
Real tax charge (%) 22.50%
23.60%
Reconciliation between reported tax charge and theoretical tax charge (IRAP)
December, 31
2013 2012
Theoretical tax charge (%)
3.90% 3.90%
Dividends effect
(0.60)% (0.60)%
Other permanent differences
1.00% 1.40%
Real tax charge (%)
4.30% 4.70%
39. COMMITMENTS, RISKS, GUARANTEES AND CONTINGENT LIABILITIES
Description 2013 2012
Risks assumed by the company for sureties 996,219,035 1,170,500,222
Minimum royalty and advertising contributions 528,114,204 605,314,489
Finance lease payments 51,290,030 74,195,013
Total 1,575,623,269 1,850,009,724