ING Direct 2015 Annual Report Download - page 104

Contents
Who we are
Report of the
Management
Board
Corporate
Governance
Consolidated
annual accounts
Parent company
annual accounts
Other
information
Additional
information
Notes to the Consolidated annual accounts of ING Bank - continued
In 2014, Changes in the composition of the group and other changes included EUR 61 million as a result of the deconsolidation of ING
Vysya. Reference is made to Note 50 ‘Other events’.
2015
2014
Total unused tax losses carried forward
1,560
2,456
Unused tax losses carried forward not recognised as a deferred tax asset
969
1,127
Unused tax losses carried forward recognised as a deferred tax asset
591
1,329
Average tax rate
20.0%
24.8%
Deferred tax asset
118
330
The following tax losses carried forward and tax credits will expire as follows as at 31 December:
No deferred tax asset
recognised
Deferred tax asset
recognised
2015
2014
2015
2014
Within 1 year
41
More than 1 year but less than 5 years
190
145
7
4
More than 5 years but less than 10 years
118
48
1
More than 10 years but less than 20 years
34
347
6
Unlimited
586
587
583
1,319
969
1,127
591
1,329
Deferred tax assets are recognised for temporary deductible differences, for tax losses carried forward and unused tax credits only to
the extent that realisation of the related tax benefit is probable.
2015
2014
Netherlands
132
358
Belgium
1
Slovakia
2
Luxembourg
8
17
Italy
129
62
269
440
The table above includes a breakdown of certain net deferred tax asset positions by jurisdiction for which the utilisation is dependent
on future taxable profits whilst the related entities have incurred losses in either the current or the preceding year. In 2015, the
aggregate amount for the most significant entities is EUR 269 million (2014: EUR 440 million).
In 2015, the deferred tax asset in the Netherlands decreased compared to 2014 mainly due to the positive result for the year.
In 2014, the Netherlands is included in the table above mainly due to the impact of the pension settlement and restructuring charges
on the result. The three year medium term plan was used to substantiate the deferred tax assets in the Netherlands.
Recognition is based on the fact that it is probable that the entity will have taxable profits and/or can utilise tax planning opportunities
before expiration of the deferred tax assets. Changes in circumstances in future periods may adversely impact the assessment of the
recoverability. The uncertainty of the recoverability is taken into account in establishing the deferred tax assets.
As at 31 December 2015 and 31 December 2014, ING Bank had no significant temporary differences associated with the parent
company’s investments in subsidiaries as any economic benefit from those investments will not be taxable at parent company level.
Deferred tax in connection with unused tax losses carried forward
Total unused tax losses carried forward analysed by expiry terms
Breakdown of certain net deferred tax asset positions by jurisdiction
ING Bank Annual Report 2015 102