Porsche 2008 Annual Report Download - page 180

To our shareholders The Company
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In addition, deferred tax assets totaling €913 million (prior year: €8 million) have been recognized
on unused tax losses. No deferred taxes were recorded on retained profits at subsidiaries, associ-
ates and joint ventures of €34 million (prior year: €33 million), as these profits are primarily to be
used for the expansion of business activities at the various locations.
In accordance with IAS 12.82, the utilization of a deferred tax assets of €249 million (prior year:
€0 million) depends on the future taxable profit which, based on current tax planning, will probably
be realized.
The following reconciliation shows the differences between the expected income tax expense
calculated on the group tax rate and the reported income tax expense:
The reconciliation item “Recognition and measurement of deferred taxes” mainly contains deferred
taxes not recognized on unused tax losses and deductible temporary differences.
€ million 2008/09 2007/08
Profit before tax – 4,405 8,569
Group tax rate 30% 30%
Expected income tax expense – 1,322 2,571
Tax rate related differences – 50 – 43
Difference in tax base – 888 – 369
Recognition and measurement of deferred taxes 821 18
Taxes relating to other periods 567 -3
Other differences 45 3
Reported income tax expense – 827 2,177