Porsche 2005 Annual Report Download - page 129

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125
2005/06 2004/05
T€ T€
Income from equity investments – 401
Other interest and similar income 181,098 171,906
Other interest and similar expenses – 158,448 – 125,554
Interest expenses from compounding of provisions – 40,468 – 31,590
Interest and similar expenses – 198,916 – 157,144
Other financial result 10,955 4,886
– 6,863 20,049
(8) Other financial income
On account of tax rate changes, additional income of T€ 17 compared to the previous year was recorded
from deferred taxes (previous year: T€ 1,009).
The current tax expense was reduced by T€ 2,196 (previous year: T€ 1,548) owing to previously unused
tax losses. This did not lead to any material changes for deferred taxes in either reporting period.
Current taxes relating to other periods amounted to T€ 4,632 (previous year: T€ 12,079).
The write-ups of deferred taxes in the reporting year amounted to T€ 1,690 while write-downs came to
T€ 2,893. In the previous year, write-ups and write-downs of deferred taxes had not been necessary.
The deferred taxes offset against equity without effect on income changed by T€ 38,375 in the reporting
year (previous year: T€ 128,325).
The tax rate for deferred taxes is determined on the basis of the current legal situation. An average income
tax rate of 39% (previous year: 39%) applies for the German entities. The income tax rates applied for
foreign entities range from 0% to 41% (previous year: from 0% to 41%).
There are unused tax losses and credits of T€ 8,848 (previous year: T€ 29,469), for which no deferred tax
assets have been recorded. The unused tax losses in the reporting year can be carried forward indefinitely.
In the previous year T€ 2,793 could be carried forward indefinitely, while the remainder could only be
carried forward for a limited period of three years.
The interest income is mainly attributable to fixed-interest securities and time deposits. In addition,
it includes income on interest-bearing receivables and loans. Interest and similar expenses comprises
interest expenses from operations, the issue of bonds and compounding of provisions.
The other financial result stems exclusively from the disposal of investments classified as available for sale.
(9) Income taxes
The income tax expense disclosed comprises the following:
2005/06 2004/05
T€ T€
Current taxes 572,230 463,027
Deferred taxes 141,348 – 10,129
Income tax from continuing operations 713,578 452,898
Income tax from discontinued operations 3,422 6,102
Income taxes 717,000 459,000