Deutsche Post DHL - Annual Report 2009

19 Income taxes


€m
	2008	2009
Current income tax expense	–352	–324
Current recoverable income tax	25	40
	–327	–284
Deferred tax income from temporary differences	140	172
Deferred tax income (previous year: tax expense) from the reduction in deferred tax assets from tax loss carryforwards	–13	97
	127	269
Income tax expense	–200	–15

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
€m
	2008	2009
Profit/loss from continuing operations before income taxes	–1,066	276
Expected income tax expense	318	–82
Deferred tax assets not recognised for initial differences	420	304
Deferred tax assets of German Group companies not recognised for tax loss carryforwards and temporary differences	–469	–280
Deferred tax assets of foreign Group companies not recognised for tax loss carryforwards and temporary differences	–424	–130
Effect of current taxes from previous years	45	5
Tax-exempt income and non-deductible expenses	–118	143
Differences in tax rates at foreign companies	30	27
Other	–2	–2
Effective income tax expense from continuing operations	–200	–15

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 at 1 January 1995. In accordance with IAS 12.15 (b) and IAS 12.24 (b), the Group did not recognise 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 amounted to €1.0 billion as at 31 December 2009 (previous year: €2.0 billion).

The effects from deferred tax assets of German Group companies not recognised on tax loss carryforwards and temporary differences relate primarily to Deutsche Post AG and members of its consolidated tax group. Effects from deferred tax assets of foreign companies not recognised on tax loss carryforwards and temporary differences relate primarily to the Americas region.

Effects from unrecognised deferred tax assets amounting to €648 million (previous year: €585 million, reversal) were due to a write-down of deferred tax assets. The income tax expense was reduced by €128 million (previous year: €17 million) as a result of the utilisation of tax losses not previously reflected in the financial statements.

A deferred tax asset for German companies in the amount of €472 million (previous year: €332 million) was recognised in the balance sheet as, based on tax planning, realisation of the tax asset is probable.

In financial year 2009, as in the previous year, German Group companies were not affected by tax rate changes. The change in the tax rate in some foreign tax jurisdictions did not lead to any significant effects.

The effective income tax expense includes prior-period tax income from German and foreign companies in the amount of €5 million (previous year: € –45 million).

The following table presents the tax effects on the components of other comprehensive income:

Other comprehensive Income
€m
	Before taxes	Income taxes	After taxes
2009
Currency translation reserve	196	0	196
Hedging reserve in accordance with IAS 39	–46	29	–17
Revaluation reserve in accordance with IAS 39	110	–29	81
Share of other comprehensive income of associates	123	0	123
Other comprehensive income	383	0	383
2008
Currency translation reserve	–502	0	–502
Hedging reserve in accordance with IAS 39	65	–28	37
Revaluation reserve in accordance with IAS 39	–263	82	–181
Revaluation reserve in accordance with IFRS 3	8	0	8
Other comprehensive income	–692	−54	–638

Print page