DHL 1999 Annual Report Download - page 105

116
Notes to the Consolidated Income Statement
While income,especially in the form of interest income,
income from shares and marketable securities and
commission income, are disclosed under net revenue
and income from banking operations (see (7)), expen-
ses, especially in the form of interest and commission
expenses, are disclosed under raw material and con-
sumables used and expenses from banking operations
(see (9)).
(15) Income taxes
Income taxes consisted of:
Due to a high deferred-tax income,an all-in-all positive
profit contribution is disclosed under “Income Tax”.
Deferred tax income is the result of tax loss carry for-
wards (especially those of Deutsche Post AG and Deut-
sche Postbank AG) requiring deferred tax assets affect-
ing net income. They are also the result of a rise in tax
deferrals on temporary differences between valuations
applied in the commercial balance sheet and the tax
balance sheet. The rise in deferred tax liabilities, affect-
ing net expenses, is overcompensated by the rise in
deferred tax assets, affecting net income. For details on
deferred tax assets and liabilities see (27) and (32).
In accordance with IAS 12 (Income Taxes), deferred
taxes are determined by applying the tax rates to be
expected at the point of time of realization.As no tax
rate changes were passed for future periods,the tax rates
valid on the balance sheet date are applied. The tax rate
for Deutsche Post AG and all other group companies
was fixed at 44.2 percent. This rate includes the corpo-
ration tax distribution rate including the “solidarity
levy”(reunification tax) and the trade tax rate. Foreign
Group companies use individual income tax rates to
compute their deferred tax items.
In the 1999 financial year, tax income will actually be
generated, although the profit on ordinary activities
predicts a calculatory tax expense amounting to EUR
382 million (1998:EUR 384 million). This results in the
following tax reconciliation:
The difference between calculatory tax expense and
actual/current tax income is based almost exclusively
on temporary differences between Deutsche Post AG
and Deutsche Postbank AG’s IAS balance sheets, com-
mercial balance sheets and tax balance sheets, that have
not resulted in the formation and subsequent retransfer
of deferred taxes (especially deferred tax assets). In
accordance with IAS 12.15 (b) and IAS 12.24 (b) defer-
red taxes shall not be recognized for temporary differ-
ences resulting from initial recognition in the opening
tax balance sheet as of January 1,1996.
Current taxes on profit
Deferred tax expenses
resulting from tax loss carry forwards
resulting from timing differences
1999 1998
19 46
– 111 – 75
– 161 – 26
– 253 – 55
EUR mill.
Profit from ordinary
activities
Calculatory income tax
Deferred taxes not recognized for
temporary differences
Tax rate differences
betw een calculatory and
actual tax rate
Actual income tax
1999 1998
864 870
381 384
– 632 – 438
–2 –1
– 253 – 55
EUR mill.