APC 2007 Annual Report Download - page 125

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5
Consolidated financial statements at December 31, 2007
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.
12.1 - Analysis of income tax expense for the year
Note 12 - Income tax
12.2 - Tax proof
2007 2006
Current taxes France (31.8) (38.1)
International (556.8) (393.6)
Total (588.6) (431.7)
Deferred taxes France (35.5) (197.2)
International 24.1 93.8
Total (11.4) (103.4)
Income tax (expense)/benefit (600.0) (535.1)
2007 2006
Profit attributable to equity holders of the parent 1,583.1 1,309.4
Income tax (expense)/benefit (600.0) (535.1)
Minority interests (38.4) (37.2)
Share of profit of associates 4.3 1.9
Profit before tax 2,217.2 1,879.8
Statutory tax rate 34.43 % 34.43 %
Income tax expense calculated at the statutory rate (763.4) (647.2)
Reconciling items:
Difference between French and foreign tax rates 123.2 65.2
Tax credits and other tax reductions 79.9 35.4
Impact of tax losses (0.1) 20.3
Other permenant differences (39.6) (8.7)
Income tax (expense)/benefit (600.0) (535.0)
Effective tax rate 27.06 % 28.46 %
Note 11 - Other receivables and prepaid expenses
Dec. 31, 2007 Dec. 31, 2006
Other receivables 238.6 311.5
Précompte
Equalization tax credit* 25.3 50.0
Carryback credit 97.0 97.0
Other tax credits 415.2 421.0
Derivative instruments 46.9 -
Prepaid expenses 127.4 115.3
Total 950.4 994.8
*Including long term portion: none in 2007 and
25.3 million
in 2006
The
précompte
equalization tax credit corresponds to a
76.0 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 first one-third installment was refunded to
Schneider Electric SA in 2006 and the second in 2007,
bringing the balance of this receivable to 25.3 million at
December 31, 2007.
The Group also has a 97.0 million carryback credit with
the French Treasury in addition to tax loss carryforwards
recorded under deferred tax assets (note 12). This credit
becomes reimbursable in 2008.
123