Isuzu 2015 Annual Report Download - page 32

30
2015 2014
Effective statutory tax rate
Tax credit
Net valuation allowance
Difference in tax rates applied at foreign subsidiaries
Loss for this fiscal year by consolidated subsidiaries
Equity in earnings of unconsolidated subsidiaries
Foreign withholding tax
Per capital levy of inhabitant tax
Retained earnings in subsidiaries
Decrease in deferred tax assets due to
change in corporate tax rates
Others
Effective tax rate
A reconciliation between effective statutory tax rate and the effective
tax rate reflected in the accompanying consolidated statements of
income for the years ended March 31, 2015 and 2014 are as follows:
Revision of Amounts of Deferred Tax Assets and Deferred Tax
Liabilities due to Changes in Tax Rate such as Corporate Tax, Etc.
The “Act for Partial Revision of the Income Tax, etc.” (Act No.9 of
2015) and the “Act for Partial Revision of the Local Tax, etc.” (Act No.2
of 2015) were promulgated on March 31, 2015 and the corporate
income tax rate has been reduced from the consolidated fiscal year
beginning April 1, 2015. As a result the effective tax rate used for the
measurement of a deferred tax asset and a deferred tax liability will
be 33.0% for deductive temporary differences which is expected to
be realized by the consolidated fiscal year starting April 1, 2015 and
32.2% for those expected to be cleared by the consolidated fiscal year
beginning April 1, 2016 or further.
By this tax rate changes the amount of deferred tax asset (after
deferred tax liability was deducted) was decreased by 2,906 million
yen ($24,189 thousands), and that of income taxes adjustment and
valuation difference on other securities increased by 3,439 million
yen ($28,620 thousands) and 1,046 million yen ($8,708 thousands)
respectively, while accumulated adjustment for retirement benefits
decreased by 518 million yen ($4,315 thousands) as of and for the year
ended March 31, 2015.
In addition, deferred tax liability for re-evaluation of land was down
4,606 million yen ($38,333 thousands), adding the same amount to
difference in re-evaluation of land.
38.0%
(5.0)
0.5
(11.3)
0.6
(2.2)
1.7
0.1
0.4
0.7
0.2
23.7%
35.6%
(5.3)
(4.3)
(9.5)
0.9
(1.9)
1.6
0.2
2.9
1.9
1.9
24.0%
2015 2014
The ratio of contributions of the Company and
its consolidated subsidiaries’ in the total
contributions of multi-employer pension plan
11.2%
—
The rate, indicated above, is not equal to the actual percentage
of contributions the Company and its subsidiaries have made to the
multi-employer system.
6. Income Taxes
Accrued income taxes in the balance sheets include corporation tax,
inhabitant tax and enterprise tax.
The significant components of the Company and its consolidated
subsidiaries’ deferred tax assets and liabilities as of March 31, 2015 and
2014 are as follows:
Thousands of
Millions of yen U.S. dollars
2015 2014 2015
Deferred tax assets:
Net defined benefit liability
Loss on write-down of investments
in subsidiaries and allowance for
doubtful accounts
Accrued expenses
Accrued bonus
Loss on inventory write-down
Loss carry-forward
Unrealized profit eliminated
in consolidation etc.
Others
Total gross deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Reserve for reduction entry
of fixed assets
Unrealized holding gain
on securities
Retained earnings in subsidiaries
Others
Total deferred tax liabilities
Net deferred tax assets
Deferred tax liabilities:
Reserve for reduction entry
of fixed assets
Unrealized holding gain
on securities
Subsidiaries’ land evaluation
Others
Net deferred tax liabilities
¥ 33,573
11,475
12,032
5,934
2,068
4,405
19,228
12,475
¥ 101,193
(22,498)
¥ 78,695
(984)
(10, 211)
(6,156)
(2,503)
¥ (19,856)
¥ 58,839
(99)
(214)
(1,954)
(478)
¥ (2,746)
¥ 32,398
12,766
11,0 8 4
5,981
1,158
4,934
16,684
13,006
¥ 98,015
(34,992)
¥ 63,022
(310)
(5,757)
—
(1,184)
¥ (7,151)
¥ 55,770
(900)
(140)
(2,161)
(650)
¥ (3,852)
$ 279,386
95,494
100,131
49,381
17, 210
36,664
160,008
103,812
$ 842,089
(187, 221)
$ 654,868
(8,196)
(84,973)
(51,227)
(20,835)
$ (165,233)
$ 489,635
(829)
(1,785)
(16,260)
(3,983)
$ (22,857)