DHL 2000 Annual Report Download - page 107

99
Notes
The €764 million increase in income taxes largely re-
sults from the change in deferred taxes on tax loss carry
forwards.Whereas,in fiscal year 1999,deferred tax in-
come of €111 million could be realized form the
setting up of tax loss carry forwards, fiscal year 2000
saw a deferred tax expense totaling €470 million from
reduction of tax loss carry forwards.
In accordance with IAS 12 (Income Taxes), deferred
taxes are measured at the tax rates that are expected to
apply in the period when the asset is realized. On July
14,2000,the German Federal Council passed a bill re-
lating to the reduction in the rate of tax and on the cor-
porate tax reform (Gesetz zur Senkung der Steuersätze
und zur Reform der Unternehmensbesteuerung).
Accordingly, for Deutsche Post AG and all other remain-
ing German Group companies, the tax rate decreased
from 44.2% (in 1999) to 39.9% for the current fiscal year.
This decrease in the tax rate, relative to the deferred taxes
inventory as at December 31, 2000, resulted in an addi-
tional deferred tax expense of € 114 million.
The tax rate applicable for German Group companies
consists of the standard tax rate of 25% plus solidarity
surcharge and an average trade tax rate.Foreign Group
companies apply their individual income tax rate in
their calculations of deferred tax items.The income tax
rates applied by foreign companies vary between 15%
and 48%.
On the basis of the results of ordinary activities and
computed income taxes the reconciliation to the actual
income tax expense is as follows:
The difference between the computed income tax
expense and the actual income tax benefits is in
particular due to temporary differences between
Deutsche Post AG’s and Deutsche Postbank’s re-
spective IAS commercial balance sheets and tax bal-
ance sheets resulting from different valuation in the
tax opening balance sheet as of January 1,1996 (Ini-
tial Differences). In accordance with IAS 12.15 (b)
and IAS 12.24 (b),the Group has not set up deferred
tax assets on these temporary differences which large-
ly relate to property, plant and equipment, the good-
will reported in the tax balance sheet and to pensions
and similar commitments.If deferred taxes on tem-
porary differences had been set up as of January 1,
1996,the tax expense in 2000 would have approximat-
ed the computed income tax rate if effects from the
tax reform had been ignored.
Profit from ordinary activities 2,038
Computed income tax 813
Deferred tax assets not set up for temporary
differences from
Initial Differences – 510
Goodwill amortization 64
Reversal negative goodwill – 95
Other assets and liabilities – 18
Deferred tax liabilities not set up for
temporary differences from
Initial differences 8
Other assets and liabilities 8
Deferred tax assets not set up for tax loss carry forwards
of foreign Group companies 147
Tax-exempt income – 2
Tax rate differences foreign companies – 16
Tax rate differences from domestic income taxes – 2
Effects from the tax reform on domestic deferred taxes 114
Actual taxes on income 511
2000
19 9 9
Profit from ordinary activities 776
Computed income tax 343
Deferred taxes not set up for temporary differences – 594
Tax rate difference between computed and
actual tax rate – 2
Actual taxes on income – 253
in € millions
in € millions