Atari 2011 Annual Report Download - page 84

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ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
84
Unrecognized deferred tax assets resulting from tax loss carryforwards amounted to €426.8 million at March 31, 2011
and €439.4 million at March 31, 2010.
Unrecognized deferred tax assets resulting from other temporary differences amounted to €5.7million at March 31, 2011
and €24.2 million at March 31, 2010.
At March 31, 2011 and 2010, the recognized provision for impairment primarily concerned tax loss carryforwards arising
in the United States (Atari Inc.) and in France.
Atari SA and its French subsidiaries set up a consolidated tax group on July 1, 1995. The five-year option for tax
consolidation was extended on March 31, 2005. For the years ended March 31, 2011 and 2010 group tax relief
amounted to nil.
At March 31, 2011 the Group had tax loss carryforwards amounting to €1 253.7, compared with €1 294.8 million one
year earlier. These losses cannot be used to offset taxable income in countries other than those in which the losses
arose.
Tax credits arising from tax loss carry forwards can expire as follows:
(*) Under tax regulations in the United States, most US tax loss carryforwards are subject to significant restrictions, which the Group is
currently examining.
21.3. TAX PROOF
Corporate income tax for the year was calculated by applying the effective tax rate at the balance sheet date to pre-tax
profit for the year ended March 31, 2011. In France, deferred taxes were calculated based on a tax rate of 33.33% at
March 31, 2011 and 2010.
The table below provides a reconciliation between theoretical tax calculated on the basis of the standard tax rate
applicable in France and the Group's actual income tax expense:
(€ million) March 31, 2011 March 31, 2010
Tax loss carryforw ards - -
Temporary differences - 0.7
Deferred tax liabilities at March 31, 2011 - 0.7
(€ million) Total Within 1 year In more than 1
year but less
than 5 years
In 5 or more
years
France 204.5 - - 204.5
US (*) 212.5 - - 212.5
UK 2.4 - - 2.4
Australia 1.9 - - 1.9
Other 3.9 - - 3.9
425.2 - - 425.2