Tiscali 2007 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 of the 2007 Tiscali annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 165

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165

taxes are recorded since it is deemed probable that positive tax-
able income will be generated over the next few accounting peri-
ods, capable of permitting, via their use against subsequent years’
taxes, the recovery of the amount recorded under the assets. The
forecasts are based on the taxable income which can be generat-
ed with reasonable certainty in light of the business plans, accom-
panied by the related tax plans, and the current performance of the
Group companies to whom the tax losses refer.
The balance relates in particular to the Tiscali Group compa-
nies listed below:
3Prepaid taxes relating to Tiscali International NV and sub-
sidiaries included in the Dutch consolidated tax regime for
EUR 34.3 million (EUR 67.2 million at 31 December 2006),
originating in full from previous tax losses. The change on
the decrease of EUR 51 million when compared with 31
December 2006 is due to the partial release of tax assets
covering the taxes calculated on the capital gain deriving
from the sale of the Dutch operating activities, happened
during the financial year. The balance at 31 December 2007
is essentially relatable to the future income which may be
generated by the intra-group interest earned which the sub-
sidiaries will accrue in the future.
3Prepaid taxes pertaining to the subsidiary Tiscali UK, amount-
ing in total to EUR 72.3 million (EUR 77.5 million at the end
of 2006).
Tax losses of subsidiaries operating in the United Kingdom can
be carried forward indefinitely, while the ones relating to the
Netherlands are expiring from 2011 to 2013. Shareholders are
informed that the deferred tax assets prudently take into account
the adjustments to the prior losses in previous years deriving
from the tax assessment carried out by the Dutch tax author-
ities, described in note 35 below, which also contains illustra-
tion of the outstanding tax disputes.
The table below illustrates the movements in prepaid taxes
during 2007, broken down by the various Group companies
included in the ‘on-going operations’ area.
The tax benefit relating to previous losses brought forward
compared to those recognised as assets for prepaid tax
(deferred tax assets) represent only a part of the tax benefit
linked to previous losses brought forward by the Tiscali Group
companies which, at 31 December 2007, totalled EUR 1,775.6
million.
CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES AT 31 DECEMBER 2007
84
EUR (000) 31.12.2006 Utilisation Increase Other changes(*) 31.12.2007
Tiscali International BV 67,152 (51,000) 18,195 - 34,247
Tiscali UK Ltd 77,519 - - (5,251) 72,268
Tiscali International Network S.p.A. 18 - - - 18
Tiscali International Sa 17 - - (17) -
Total 144,706 (51,000) 18,195 (5,267) 106,634
(*) Changes in the translation reserve (exchange rate effects) and others