Thousand euros
2013
2012
Opening balance
210,939
134,961
Asset impairment
(1,856)
12,184
Disposals due to derivative instruments
(10,932)
(915)
Tax credits
(761)
57,686
Others
1,392
7,293
Total
198,782
210,939
The additions due to other deferred tax assets are due mainly to the recognised provisions not considered as an expense for tax purposes.
At 31 December 2013, the Group had updated the tax credit recovery plan based on the Group’s business plan, considering an annual increase in the tax base of 2% as of
2018,
in which tax planning actions or extraordinary transactions are not taken into account. In accordance with the results of said recovery plan, the tax credits will be
carried forward in 2021. Therefore, the Parent’s directors have decided to carry forward tax losses recognised in prior years, but not activate the tax credits generated in
2013
in accordance with the principle of prudence.
Below is a sensitivity analysis based on the tax base used in the estimate:
Annual Tax Base Variation
(10%)
(20%)
(30%)
Year of Recovery
2022
2023
2024
Further, also in accordance with the principle of prudence, the Group did not capitalise the finance costs not deductible for Spanish corporation tax purposes due to
exceeding 30% of the profit from operations of the tax group calculated in accordance with Article 20 of the Consolidated Spanish Corporation Tax Law, approved by
Royal Legislative-Decree 4/2004, of 5March, due to not having the required degree of certainty that sufficient profit from operations will be generated over the next ten
years to offset said result pursuant to Article 20. The amount of the financial costs exceeded in 2013 was EUR 53,344 thousand (2012: EUR 42,501 thousand) and may
be offset for tax purposes within a period of 18 months from their generation.
Italian tax legislation is similar to Spanish legislation in terms of the limitation on the deductibility of finance costs, due to which the Italy Business Unit incurred
non-deductible finance costs between 2008 and 2012 amounting to EUR 33,199 thousand. Finance income of EUR 2,331 thousand was offset in 2013, which was not
deductible in prior years. In accordance with Italian legislation, there is no deadline for offsetting non-deductible finance costs.
The composition of the credit balances with Public Administrations at 31 December 2013 and 2012 is as follows:
Thousand euros
2013
2012
Deferred tax liabilities
Revaluation of assets
201,225
233,939
Total
201,225
233,939
Thousand euros
2013
2012
Short term taxes payable
Corporation Tax
7,314
14,482
Value Added Tax
12,009
7,584
Personal Income Tax
5,124
6,281
Capital Gains Tax
1,196
1,538
Social Security
6,695
6,987
Others
5,157
6,185
Total
37,495
43,059
The deferred tax balance mainly corresponds to revaluations made to several assets belonging to the Group.
REPORT ONTHE CONSOLIDATED FINANCIAL STATEMENTS
93
