Key Figures Comparison
Investors' Website
27
Income tax expense |
 |
|||
|---|---|---|---|---|
€m |
2005 |
2006 |
||
|
|
|
||
Current income tax expense |
–500 |
–338 |
||
Current recoverable income tax |
7 |
62 |
||
|
–493 |
–276 |
||
Deferred tax expense (previous year: tax income) from temporary differences |
54 |
–221 |
||
Deferred tax expense from the reduction in deferred tax assets from tax loss carryforwards |
–166 |
–63 |
||
|
–112 |
–284 |
||
|
–605 |
–560 |
||
The reconciliation to the effective income tax expense is shown below, based on consolidated net profit before income taxes, and the expected income tax expense:
Reconciliation to effective income tax expense |
|
|||
|---|---|---|---|---|
€m |
2005 |
2006 |
||
|
|
|
||
Consolidated net profit before income taxes |
3,053 |
2,842 |
||
Expected income tax expense |
1,218 |
1,134 |
||
Deferred tax assets from temporary differences not recognized for |
|
|
||
Initial differences |
–915 |
–483 |
||
Goodwill amortization |
175 |
0 |
||
Restructuring provisions |
–79 |
–70 |
||
Deferred tax assets of German Group companies not recognized for tax loss carryforwards |
–175 |
139 |
||
Deferred tax assets of foreign Group companies not recognized for tax loss carryforwards |
201 |
440 |
||
Effect of taxes from previous years |
265 |
–31 |
||
Tax-exempt income and non-deductible expenses, effects from Section 8b KStG (German Corporate Income Tax Act) |
–72 |
–503 |
||
Differences in tax rates at foreign companies |
–33 |
–50 |
||
Other |
20 |
–16 |
||
Effective income tax expense |
605 |
560 |
||
The difference between the expected and the effective income tax expense is due in particular to temporary differences between the carrying amounts in the IFRS financial statements and in the tax accounts of Deutsche Post AG resulting from initial differences in the opening tax accounts as of January 1, 1995. In accordance with IAS 12.15 (b) and IAS 12.24 (b), the Group did not recognize any deferred tax assets on these temporary differences, which relate mainly to property, plant, and equipment as well as to provisions for pensions and other employee benefits.
The remaining temporary differences between the carrying amounts in the IFRS financial statements and in the opening tax accounts amount to €5.2 billion as of December 31, 2006 (previous year: €6.4 billion).
The effects from deferred tax assets not recognized on tax loss carryforwards also include €44 million (previous year: €310 million) from the reduction of income tax expense resulting from the use of tax loss carryforwards for which no deferred tax assets were recognized.
The effects from Section 8b Körperschaftssteuergesetz (KStG – German Corporate Income Tax Act) relate primarily to the effect from the exchangeable bond at Deutsche Post AG, as well as to special funds, shares, and equity investments of the Deutsche Postbank Group.