Porsche 2009 Annual Report Download - page 180

180 Financials
loss carryforwards amounting to €1,087 million (thereof continuing operations: €0 million) that
could be used indefinitely.
There are no tax credits in continuing operations in either reporting period. In the prior year
no deferred tax assets were recognized in the balance sheet for tax credits of discontinued opera-
tions of €143 million. Of these tax credits, €27 million had to be used within the next ten years and
€116 million within a period of 10 to 15 years.
No deferred taxes were recognized on deductible temporary differences of €57 million in
continuing operations in the reporting period. In the prior year no deferred tax assets were recog-
nized on unused deductible temporary differences of €1,373 million (thereof continuing operations:
€1,369 million). Of these deductible temporary differences, it was assessed in the prior year that
€4 million (thereof continuing operations: €0 million) could be used for an unlimited period of time,
while the use of €1,369 million (thereof continuing operations: €1,369 million) was restricted to the
next 10 years.
No deferred taxes were recognized on tax loss carryforwards in continuing operations in ei-
ther reporting period. In the prior year a deferred tax asset was recognized on tax loss carryfor-
wards of €913 million in discontinued operations. In the prior year no deferred taxes were recorded
on retained profits at subsidiaries and joint ventures of €34 million (thereof continued operations:
€0 million), as these profits were primarily to be used for the expansion of business activities at the
various locations.
In the prior year the utilization of a deferred tax asset of €249 million (thereof continuing
operations: €0 million) depended on the future taxable profit which, based on last year’s tax plan-
ning, was likely to be realized.
The following reconciliation shows the differences between the expected income tax ex-
pense from continuing operations calculated at the theoretical group tax rate of 30% (prior year:
30%) and the reported income tax expense from continuing operations:
€ million 2009/10 2008/09
Profit before tax (continuing operations) 5,855 – 2,559
Group tax rate 30% 30%
Expected income tax expense 1,757 – 768
Tax rate related differences – 5 0
Difference in tax base – 1,822 – 770
Recognition and measurement of deferred taxes 173 721
Taxes relating to other periods 11 603
Reported income tax expense 114 – 214