94
At 31 December 2014, 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% starting in 2020, in which extraordinary transactions are not taken into account. In accordance with the results of said recovery plan,
the tax credits will be fully offset in 2024. For this reason, the directors of the Parent Company have decided to capitalise the tax losses registered
for the year.
Below is a sensitivity analysis based on the tax base used in the estimate:
Annual Tax Base Variation
(10%)
(20%)
(30%)
Year of Recovery
2025
2026
2028
At 31 December 2014 and 2013 the Group had tax credits worth €574,544,000 that had not been entered in the accompanying balance statement
because the Directors considered they did not meet accounting standard requirements. These assets are grouped as follows:
€Thousand
2014
2013
Non-deductible financial expenses in Spain
138,113
96,575
Non-deductible financial expenses in Italy
28,519
30,298
Non-deductible financial expenses in Germany
12,900
11,400
Tax bases generated by the Spanish entities before consolidation
108,790
11,976
Tax bases generated in Spain
31,213
31,213
Tax bases generated in Italy
43,762
39,016
Tax bases generated in Germany
168,700
192,000
Deductions generated in Spain
42,548
45,463
Total
574,544
557,940
Financial expenses that cannot be deducted from Spanish Corporate Income Tax, due to exceeding 30% of the operating income of the tax group,
calculated according to Article 20 of the Redrafted Text of the Corporate Income Tax Act, approved by Legislative Royal Decree 4/2004, of 5
March, were €41,538 thousand in 2014 (€54,074 thousand in 2013). In accordance with the new stipulations of Law 27/2014, there is no deadline
for offsetting non-deductible finance costs. Regarding Italian and German Corporate Income Tax, tax regulations in those countries are similar to
those of Spain on the deductibility limit of financial expenses. In accordance with Italian and German legislation, there is no deadline for offsetting
non-deductible finance costs.
The composition of the credit balances with Public Administrations at 31 December 2014 and 2013 is as follows:
€Thousand
2014
2013
Deferred tax liabilities
Revaluation of assets and other valuation differences
179,730
201,225
Total
179,730
201,225
€Thousand
2014
2013
Short-term taxes payable
Corporate Income Tax
15,412
7,314
Value Added Tax
1,763
12,009
Personal Income Tax
8,321
5,124
Tax on Income from Capital
90
1,196
Social Security
8,196
6,695
Others
6,312
5,157
Total
40,094
37,495
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
