The balances of the “Deferred tax assets” item mainly correspond to the tax withholdings that arose as a consequence of the depreciation of certain assets,
and from the activation of negative tax bases.
The movements of the “Deferred tax assets” item in 2012 and 2011 are as follows:
€ Thousand
2012
2011
Opening balance
134,936
119,574
Asset impairment
12,184
(1,267)
Additions due to derivative instruments
(915)
2,409
Tax credits
57,686
11,242
Others
7,293
2,978
Total
211,184
134,936
The additions due to tax credits are mainly due to the negative tax bases generated by the Group’s companies, most of which were contributed by the
Spanish business unit.
At 31 December 2012, the Group had drawn up a plan to recover tax credits based on the Group’s business plan, considering a 2% annual growth in the tax
base from 2017, without taking fiscal planning actions or extraordinary transactions into account. Total compensation from these tax credits would end in 2020.
For this reason, the directors of the Parent Company have decided to book the deferred tax assets stated above.
Below is a sensitivity analysis based on the tax base used in the estimate:
Annual Tax Base Variation
(10%)
(20%)
(30%)
Year of Recovery
2020
2021
2022
Meanwhile, following the principle of prudence, the Group has not capitalised the financial expense of the financial burden, which exceeds 30% of the
operating income of the tax group calculated in accordance with Article 20 of the Revised Text of the Corporation Tax Act, approved by Royal Legislative
Decree 4/2004 of 5 March, since it is uncertain that sufficient income will be generated in the next 10 years to compensate for the financial loss in the sense
of the provisions of the foregoing Article 20. The amount based on the excess financial burden in 2012 is €31,345 thousand.
The composition of the credit balances with Public Administrations at 31 December 2012 and 2011 is as follows:
€ Thousand
2012
2011
Deferred tax liabilities
Reversal of asset re-valuations
233,939
246,204
Total
233,939
246,204
€ Thousand
2012
2011
Short-term taxes payable
Corporate Income Tax
14,482
9,376
Value Added Tax
7,641
5,364
Personal Income Tax
6,281
6,727
Capital Gains Tax
1,538
675
Social Security
6,987
7,888
Others
6,187
5,642
Total
43,116
35,672
The deferred tax balance mainly corresponds to re-valuations made to several assets belonging to the Group.
The movements in deferred tax liabilities during 2012 are as follows:
€ Thousand
2012
2011
Opening balance
246,204
257,155
Change due to withdrawals
-
(4,725)
Others
(12,265)
(6,226)
Ending balance
233,939
246,204
96
REPORT ON THE CONSOLIDATED
FINANCIAL STATEMENTS
