BMW 2001 Annual Report Download - page 70

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69
The carrying value of deferred tax assets is
reduced when recoverability is uncertain. In deter-
mining the level of the write-down, all positive and
negative factors concerning the likely existence of
sufficient taxable profit in the future are taken into
account. These estimates can change depending
on the actual course of events. Write-downs in-
cludes euro 425 million (2000: euro 383 million) re-
lating to tax loss carry forwards and euro 523 million
(2000: euro 539 million) on losses on disposals (so-
called capital losses) in Great Britain, which can
only be set off against capital gains, but not against
trading profits. In addition there is a write-down of
euro 653 million (2000: euro 552 million) on capital
allowances in Great Britain, which are shown above
in intangible assets and property, plant and equip-
ment and a write-down of euro 40 million (2000:
euro 0 million) on consolidations.
In the year under report, deferred taxes recog-
nised directly against equity reduced by euro 44 mil-
lion (2000: euro 12 million).
The actual tax expense in fiscal year 2001 of
euro 1,376 million (2000: euro 823 million) is euro
115 million higher (2000: euro 234 million lower)
than the expected tax expense of euro 1,261 million
(2000: euro 1,057 million) which would theoretically
arise if the tax rate of 38.9% (2000: 52.0%), applica-
ble for German companies, was applied across the
Group. The difference between the expected and
actual tax expense is attributable to the following:
in euro million Deferred tax assets Deferred tax liabilities
2001 2000 2001 2000
Intangible assets and property, plant and equipment 1,464 1,082 3,859 3,651
Financial assets 27 109 52 95
Current assets 1,555 719 2,755 1,388
Tax loss carry forwards 2,263 2,502
Provisions 1,213 1,121 536 177
Liabilities 2,395 2,011 433 364
Consolidations 942 1,018 98 149
9,859 8,562 7,733 5,824
Write-downs  1,641  1,474
Netting 7,393  5,625 7,393  5,625
Total 825 1,463 340 199