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REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
18.- TAX NOTE
Balances with Public Administrations
The composition of the debit balances with Public Administrations at 31 December 2015 and 2014 is as follows:
Thousands of euros
2015
2014
Deferred tax assets
Tax credits
114,452
105,449
Tax assets due to asset impairment
30,987
35,353
Tax withholdings of workforce
2,185
1,703
Other prepaid taxes
18,173
15,353
Total
165,797
157,858
Thousands of euros
2015
2014
Short-term taxes receivable
Income tax
11,296
11,068
Value Added Tax
26,789
18,405
Other tax receivables
7,888
5,650
Total
45,973
35,123
The movements of the “Deferred tax assets” item in 2015 and 2014 were as follows:
Thousands of euros
2015
2014
Opening balance
157,858
198,782
Settlements due to reversal of impairments
(4,366)
(3,382)
Additions of assets due to the entry into the consolidation
8,518
(28,708)
Asset disposals due to tax rate changes
(1,104)
(21,861)
Settlements of assets due to tax losses
(11,370)
-
Activation of deductions
11,267
-
Tax loss carry-forward for the year
9,107
12,056
Others
(4,113)
971
Total
165,797
157,858
El reconocimiento de activos se debe a la activación de las pérdidas fiscales del ejercicio y a la entrada en el grupo de consolidación contable de
Recognition of assets due to the activation of tax losses for the year and the entry of Hoteles Royal into the accounting of the consolidation group
(see Note 2.5.4.)
The settlement of assets resulting from a change in rates is due to the reduction of the tax rate on Italian companies (IRES) from 27.5% to 24%, to
take effect in the year 2017. As a result of this change, the Group has adjusted its deferred tax assets and liabilities and its tax loss assets, using the
type of rate which is likely to be applicable in the period when it estimates the asset will be realised or the liability will be settled.
At 31 December 2015, the Group updated the tax credit recovery plan based on the Group’s business plan for five years and estimating an increase
in the tax base of 2% per year from 2021. In this tax credit recovery plan, asset sale transactions that may result in taxable income have not been
taken into account.
