Tiscali 2008 Annual Report Download - page 85

The balance at 31 December 2008 refers to the prepaid taxes
recorded by the subsidiary Tiscali International BV parent
company of the Dutch tax consolidation system. These taxes
are entirely generated by prior tax losses, whose recoverability
is possible to correlate to future income generated by interest
income accrued by the Dutch subsidiaries.
Prepaid taxes pertaining to the UK subsidiaries, amounting to
EUR 72.2 million at 31 December 2007 have been reversed
in full. The Company decided not to record deferred taxation
in the financial statements, in light of the matters envisaged
in the new 2009/2013 Business Plan.
Prior tax losses of the subsidiaries with headquarters in the
UK are carried forward without limit while those relating to the
Netherlands expire between 2011 and 2013.
In relation to the Dutch tax losses, shareholders are informed
that the deferred tax assets already prudently take into account
the adjustments to the prior losses in previous years deriving
from the tax assessment carried out by the Dutch tax authorities,
described in note Tax assessments on page 98, which also
contains illustration of the outstanding tax disputes.
The following table shows the change in the balance of prepaid
taxes, which took place in 2008, broken down in relation to
the various Group companies falling within the perimeter of
continuing operations.
The tax benefit relating to previous losses brought forward with
respect to which assets for prepaid taxes (deferred tax assets)
have been recorded, represents only a very limited part of the
tax benefit linked to previous losses which can be carried
forward by the Tiscali Group companies which, at 31 December
2008 amounted in total to EUR 600 million.
It is emphasised that the amount of the prepaid taxes recorded
in total is within the limits of the book balance of EUR 10.5 million,
since Tiscali S.p.A.’s directors prudently considered that, on the
basis of the current business plan, at present there is no
reasonable certainty of the conditions for the recording of an
additional amount, taking into account the envisable timescales.
The following table shows the total prior losses deductible for tax
purposes at Tiscali Group level broken down by year of maturity,
together with the deductible timing differences. The same table
shows the prepaid taxes with separate indication of those which,
for the aforesaid reasons, have not been recorded.
84
CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES
EUR (000) 31.12.2007 Uses Increase Assets held Other 31.12.2008
for sale changes
Tiscali International BV 34,347 (23,840) - - - 10,507
Tiscali UK Ltd 72,268 (72,268) - - - -
Tiscali International Network S.p.A. 18 - - (18) - -
Total 106,633 (96,108) - (18) - 10,507