APC 2005 Annual Report Download - page 91

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89
Consolidated Financial Statements
Note 12 - Income tax
Whenever possible, Group entities file consolidated
tax returns. Schneider Electric SA files a consolidated
tax return with its French subsidiaries held directly or
indirectly through Schneider Electric Industries SAS.
Note 11 - Other receivables and prepaid expenses
Dec. 31, 2005 Jan. 1, 2005 Dec. 1, 2004
Précompte
Equalization tax credit* 76.0 - -
Carryback credit** 97.0 97.0 97.0
Derivative instruments 14.8 21.7 -
Pension assets** 7.0 - -
Prepaid expenses 107.1 80.5 80.5
Other receivables 481.1 351.6 351.6
Other receivables and prepaid expenses 783.0 550.8 529.1
*Including long-term portion:
50.7 million. ** Maturity over one year.
12.1 Analysis of
income tax expense for the year
2005 2004
Current taxes
France (15.7) (13.5)
International (314.8) (265.9)
Total (330.5) (279.4)
Deferred taxes
France (93.8) (72.7)
International (3.2) (13.0)
Total (97.0) (85.8)
Income tax (427.5) (365.2)
The
précompte
equalization tax credit corresponds to a 76 million payment to the French Treasury to cover the
exceptional 25% exit tax on dividends distributed in 2005 following the repeal of the equalization tax and
avoir
fiscal
tax credit.
The Group also has a 97 million carryback credit with the French Treasury in addition to tax loss carryforwards
recorded under deferred tax assets (see note 12).
12.2 - Tax proof
2005 2004
Profit attributable to equity holders of the parent 994.3 823.9
Income tax (expense)/benefit (427.5) (365.2)
Goodwill impairment (8.4) -
Minority interests (35.2) (34.4)
Share of profit of associates (3.6) (3.6)
Profit before tax and goodwill impairment 1,469.0 1,227.1
Statutory tax rate 34.93% 35.43%
Income tax expense calculated at the statutory rate (513.1) (434.8)
Reconciling items
Difference between French and foreign tax rates 51.2 46.2
Impact of tax rate reduction in France*- (14.3)
Tax credits and other tax reductions 32.8 24.4
Impact of tax losses 1.0 1.2
Other permanent differences 0.6 12.1
Income tax (expense)/benefit (427.5) (365.2)
Effective tax rate 29.10% 29.76%
* Applicable in 2005 and beyond.