98 REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
In accordance with the results of the recovery plan, the tax credits will be fully offset in 2023. The analysis of sensitivity to a reduction in the tax base
used in said recovery plan yields the following results:
Annual Tax Base Variation
(10.0%)
(20.0%)
(30.0%)
Year of Recovery
2024
2025
2027
Given that the results of the tax credit recovery plan are satisfactory, the Directors of the Parent Company have decided to activate the tax losses
recorded during the year by the Spanish tax group.
At 31 December 2015 the Group had tax credits worth 607,525 thousand euros (636,963 thousand euros at 31 December 2014) that had not been
n
entered in the accompanying consolidated profit and loss statement because the Directors considered they did not to meet accounting standard
requirements. These assets are grouped as follows:
Thousands of euros
2015
2014
Finance costs and negative tax bases
Non-deductible financial expenses in Spain
180,467
130,840
Non-deductible financial expenses in Italy
17,243
28,519
Non-deductible financial expenses in Germany
12,900
12,900
Tax losses generated by the Spanish entities before tax consolidation
108,750
108,750
Tax losses generated in Austria
23,400
23,400
Tax losses generated in Latin America
2,765
2,765
Tax losses generated in Luxembourg
53,231
70,250
Tax losses generated in Spain
-
31,213
Tax losses generated in Italy
13,801
22,091
Tax losses generated in Germany
164,900
164,900
Total
577,457
595,628
Deductions
Deductions generated in Spain
30,068
41,335
Total
30,068
41,335
Total
607,525
636,963
Finance costs, which are not considered deductible in the Spanish corporate income tax when exceeding 30% of the operating revenue of the tax
group calculated in accordance with Article 16 of Law 27/2014 of 27 December, on Corporate Income Tax, amount to 49,627 thousand euros in 2015
(36,645 thousand euros in 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 variation of unregistered credits results from, in Italy, offsetting losses and deducting finance costs during the year 2015, and, in Spain, registering
negative taxable bases and deductions to avoid the double taxation that passed the tax credit recovery test.
The composition of the credit balances with Public Administrations at 31 December 2015 and 2014 is as follows:
Thousands of euros
2015
2014
Deferred tax liabilities
Revaluation of assets and other valuation differences
196,711
179,730
Total
196,711
179,730
