Incredimail 2008 Annual Report Download - page 90

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F - 23
Deferred tax assets
478
694
Deferred tax liability
(18
)
(4
)
$
460
$
690
*) The Company recorded a valuation allowance with respect to deferred tax assets related to other-than-
temporary impairment
on marketable securities and ARS, due to current uncertainty of whether the Company will produce sufficient gains from
marketable securities in the future, which are considered a source of income required to offset losses from marketable
securities under the Israeli Tax Law.
All deferred tax assets and liabilities are domestic.
INCREDIMAIL LTD. AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 9:
-
INCOME TAXES (Cont.)
d.
A reconciliation of the Company
’
s effective tax rate to the statutory tax rate in Israel is as follows:
Year ended December 31,
2006
2007
2008
U.S. dollars in thousands
Income (loss) before taxes on income
$
3,242
$
(1,369
)
$
4,714
Statutory tax rate in Israel
31
%
29
%
27
%
Theoretical income tax expense
$
1,005
$
(397
)
$
1,273
Increase (decrease) in tax expenses resulting
from:
"Approved Enterprise" benefits
(409
)
(77
)
(536
)
Non
-
deductible expenses
234
358
374
Previous years taxes
(68
)
-
(234
)
Other
-
than
-
temporary impairment on
marketable securities and ARS
-
1,493
258
Gain on sale of ARS, previously impaired
-
-
(1,323
)
Other
3
16
477
Taxes on income
$
765
$
1,393
$
289
Net earnings (loss) per Ordinary share
-
benefit
resulting from "Approved Enterprise" status:
Basic
$
0.05
$
(0.01
)
$
(0.06
)
Diluted
$
0.04
$
(0.01
)
$
(0.06
)
e.
Income taxes are comprised as follows:
Deferred tax benefit (expense)
$
(70
)
$
106
$
(216
)
Current taxes
903
1,191
739
Previous years taxes
(68
)
88
(234
)
$
765
$
1,393
$
289