ING Direct 2009 Annual Report Download - page 189

Other operating expenses include lease and sublease payments in respect of operating leases of EUR 169 million (2008: EUR 172 million;
2007: EUR 156 million) in which ING Group is the lessee. In 2009 other operating expenses also include EUR 22 million related to
integration costs of CitiStreet, EUR 21 million related to the sale of ING Advisors Network and EUR 59 million related to premium taxes.
Other operating expenses also includes the expenses related to the industry-wide deposit guarantee scheme in the Netherlands due to the
bankruptcy of DSB Bank and premiums for deposit guarantee schemes in other countries.
For Addition/(releases) of provision for reorganisations and relocations reference is made to the disclosure on the reorganisation provision
in Note 21 ‘Other liabilities’.
No individual operating lease has terms and conditions that materially affect the amount, timing and certainty of the consolidated cash
flows of the Group.
The External advisory fees include fees for audit services and non-audit services provided by the Group’s auditors.
Fees of Group’s auditors
2009 2008 2007
Audit fees 35 46 61
Audit related fees 63 7
Tax fees 23 5
All other fees 27 2
Total 45 59 75
48 TAXATION
Taxation by type
Netherlands International Total
2009 2008 2007 2009 2008 2007 2009 2008 2007
Current taxation 159 –296 6598 830 1,069 757 534 1,075
Deferred taxation –1,051 –197 133 –178 –1,058 327 –1,229 –1,255 460
–892 –493 139 420 –228 1,396 –472 –721 1,535
Reconciliation of the weighted average statutory income tax rate to ING Group’s effective income tax rate
2009 2008 2007
Result before taxation –1,525 –1,487 11,0 43
Weighted average statutory tax rate 36.3% 49.9% 28.7%
Weighted average statutory tax amount –554 –742 3,169
Associates exemption –135 69 –814
Other income not subject to tax –227 –210 –577
Expenses not deductible for tax purposes 47 106 93
Impact on deferred tax from change in tax rates –25 –9
Deferred tax benefit from previously unrecognised amounts –32 –64
Current tax benefit from previously unrecognised amounts –222
Write down/reversal of deferred tax assets 546 360 8
Adjustment to prior periods –117 –279 –49
Effective tax amount –472 –721 1,535
Effective tax rate 30.9% 48.5% 13.9%
The weighted average statutory tax rate decreased in 2009 compared to 2008 mainly caused by the fact that a smaller part of the losses
was incurred in high tax jurisdictions than in 2008.
The weighted average statutory tax rate increased significantly in 2008 compared to 2007 caused by the fact that most of the losses in
2008 were incurred in high tax jurisdictions.
The effective tax rate in 2009 was lower than the weighted average statutory tax rate, resulting in a lower tax benefit for the pre-tax loss.
This is caused by the fact that a reduction of the carrying value of deferred tax assets and non-deductible expenses exceeded tax exempt
income and releases from tax provisions.
The effective tax rate in 2008 was slightly lower than the weighted average statutory tax. Main reasons for this are tax exempt income and
releases of tax provisions, partly offset by non deductible expenses and a reduction of the deferred tax assets.
2.1 Consolidated annual accounts
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Notes to the consolidated profit and loss account of ING Group (continued)