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Financial Statements
4.25 Income & deferred tax liabilities
Income tax liabilities
The amount reflects the income tax payable on the dividends declared for distribution, although the
Company is in a tax loss position, in accordance with paragraph 1 of article 99 of law 8/1994.
At the balance sheet date the recognition of the income tax liability amounting to € 0.000.000 (006 €
.669.014) was determined by applying the following formula:
Dividends declared for distribution * Income Tax Rate / (1- Income Tax Rate)
Deferred tax assets & liabilities
The following are the primary deferred tax assets and liabilities recognised by the Company during the
current and prior reporting periods:
Analysis of deferred tax assets & liabilities 2007 2006 Restated
Deferred tax assets
Employee retirement benefits 1.005.764 796.917
Provisions .04.196 16.941.717
Cohesion fund 69.71. 7.68.666
Long term liabilities 0.84.588 0.04.786
Other current liabilities 4.67.5 .48.094
Other fixed assets 119.971 11.817
Other long term receivables 51.668 5.19
Tax losses recognised 14.449.940 8.89.586
Total deferred tax assets 332.873.712 353.536.722
Deferred tax liabilities
Buildings & technical works (.594.900) (50.987.685)
Other fixed assets 0 (40.00)
Usufruct of the site (80.976) 0
Grant of rights fee (11.6.769) (11.871.484)
Other current receivables 0 (97.750)
Available for sale financial assets (0.761) 0
Total deferred tax liabilities (345.141.406) (363.836.922)
Net deferred tax asset/(liability) (12.267.694) (10.300.200)
Deferred tax liabilities as at 1 December 007 include the tax effects of taxable temporary differences
amounting to €0.761 resulting from the subsequent re-measurement of available for sale financial assets
to their fair value. This amount has been charged directly to equity.
At the balance sheet date the Company has unused tax losses of €857.799.761 available for offset against
future taxable profits. A deferred tax asset amounting to €14.449.940 (006: €8.89.586) has been
recognised in respect to these tax losses. According to the provisions of article 5.1..(k) of the ADA, (law
8/1995) tax losses can be carried forward to relieve future taxable profits without time limit.
Tax losses have primarily arisen from the application of the accelerated depreciation method as
provided by paragraph 8 of article 6 of law 09/199. In addition, according to article 5.1..(j) of
the ADA the accelerated depreciation method provided by law 09/199 refers to tax depreciation
and constitutes an allowable deduction for tax purposes even though the depreciation in the annual
statutory accounts of the Company may differ from year to year. At the balance sheet date the
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4.25 Income & deferred tax liabilities
Income tax liabilities
The amount reflects the income tax payable on the dividends declared for distribution, although the
Company is in a tax loss position, in accordance with paragraph 1 of article 99 of law 8/1994.
At the balance sheet date the recognition of the income tax liability amounting to € 0.000.000 (006 €
.669.014) was determined by applying the following formula:
Dividends declared for distribution * Income Tax Rate / (1- Income Tax Rate)
Deferred tax assets & liabilities
The following are the primary deferred tax assets and liabilities recognised by the Company during the
current and prior reporting periods:
Analysis of deferred tax assets & liabilities 2007 2006 Restated
Deferred tax assets
Employee retirement benefits 1.005.764 796.917
Provisions .04.196 16.941.717
Cohesion fund 69.71. 7.68.666
Long term liabilities 0.84.588 0.04.786
Other current liabilities 4.67.5 .48.094
Other fixed assets 119.971 11.817
Other long term receivables 51.668 5.19
Tax losses recognised 14.449.940 8.89.586
Total deferred tax assets 332.873.712 353.536.722
Deferred tax liabilities
Buildings & technical works (.594.900) (50.987.685)
Other fixed assets 0 (40.00)
Usufruct of the site (80.976) 0
Grant of rights fee (11.6.769) (11.871.484)
Other current receivables 0 (97.750)
Available for sale financial assets (0.761) 0
Total deferred tax liabilities (345.141.406) (363.836.922)
Net deferred tax asset/(liability) (12.267.694) (10.300.200)
Deferred tax liabilities as at 1 December 007 include the tax effects of taxable temporary differences
amounting to €0.761 resulting from the subsequent re-measurement of available for sale financial assets
to their fair value. This amount has been charged directly to equity.
At the balance sheet date the Company has unused tax losses of €857.799.761 available for offset against
future taxable profits. A deferred tax asset amounting to €14.449.940 (006: €8.89.586) has been
recognised in respect to these tax losses. According to the provisions of article 5.1..(k) of the ADA, (law
8/1995) tax losses can be carried forward to relieve future taxable profits without time limit.
Tax losses have primarily arisen from the application of the accelerated depreciation method as
provided by paragraph 8 of article 6 of law 09/199. In addition, according to article 5.1..(j) of
the ADA the accelerated depreciation method provided by law 09/199 refers to tax depreciation
and constitutes an allowable deduction for tax purposes even though the depreciation in the annual
statutory accounts of the Company may differ from year to year. At the balance sheet date the
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