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Annual Statements

Financial reporting

Price winner 2012 in the category non-listed

Home Annual Statements Financial Statements 2012 Notes to the consolidated financial statements Notes to the consolidated balance sheet Deferred tax

18. Deferred tax

Schiphol Group has been subject to corporate income tax since 1 January 2002. On 8 September 2006, Schiphol Group and the tax authorities signed a tax ruling that specified the opening balance sheet for tax purposes and certain other arrangements for determining Schiphol Group’s taxable profit. These give rise to the following measurement differences:

  • Assets used for operating activities and assets under construction are carried at cost for both reporting and tax purposes but the tax ruling resulted in differences between the cost for reporting and tax purposes of assets held at 1 January 2002. The balance sheet for tax purposes equates cost with the market value at 1 January 2002, whereas the balance sheet for reporting purposes equates cost with the historical cost, which may be lower.
  • Property investments, derivative financial instruments and borrowings in foreign currencies are measured at fair value for reporting purposes and at cost for tax purposes.
  • Property investments are depreciated for tax purposes (with a residual value of 25%) but not for reporting purposes.
  • The Working on Profit Act came into force with effect from the financial year 2007. This Act restricts the depreciation for tax purposes of both commercial and operational buildings to a base value. The base value is 50% of the WOZ value (i.e., the value under the Valuation of Immovable Property Act) for operational buildings and 100% of the WOZ value for commercial buildings.
  • Differences in the measurement of employee benefits because of differences in the actuarial assumptions applied.

Deferred tax assets and liabilities are recognised in respect of all these differences and in respect of the deferred tax liability resulting from the expansion of Schiphol Group’s interest in JFK IAT LLC in 2010.

The deferred tax assets and liabilities arise from the following balance sheet items:

(in thousands of euros)

2012

2011

Deferred tax assets (fiscal unity)

Assets used for operating activities

171,856

185,930

Assets under construction or development

83,707

78,878

Derivative financial instruments and borrowings

36,944

13,236

Employee benefits

3,056

3,294

Investment property

- 29,142

- 26,187

266,421

255,151

Deferred tax liabilities (outside fiscal unity)

Investments in associates

- 13,777

- 11,799

Investment property

- 277

-

- 14,054

- 11,799

Total deferred tax (net asset)

252,367

243,352

Non-current (settlement is not expected)

83,574

83,574

Non-current (expected to be recovered or settled after longer than 1 year)

168,567

158,200

Current (expected to be recovered or settled within 1 year)

226

1,578

252,367

243,352

Under IAS 12, Income Taxes, a deferred tax asset has to be recognised if it is probable that sufficient taxable profit will be available against which the deductible temporary difference can be utilised. However, it is not expected that the deferred tax assets relating to certain operating assets (EUR 83.6 million) will actually be realised because the difference in the values for reporting and tax purposes will be realised only in the event of a sale (resulting in a lower profit for tax purposes and a lower corporate income tax liability), impairment (resulting in higher costs for tax purposes and a lower corporate income tax liability) or termination of the aviation activities (resulting in higher costs for tax purposes because compensation will only be obtained up to the carrying amount for reporting purposes). Schiphol Group is not authorised to sell the land for operating activities, forecasts of future cash flows do not suggest that impairment losses will be necessary and it is unlikely that the activities will be terminated.

Deferred tax assets and liabilities are netted if they relate to the same fiscal unity and the company at the head of this fiscal unity has a legally enforceable right to do so.

The movements in the deferred tax assets and liabilities during the year were as follows:

(in thousands of euros)

Assets used for operating activities

Assets under construction or development

Investment property

Derivative financial instruments

Employee benefits

Associates

Total

Carrying amount as at 31 December 2010

190,184

78,987

- 25,198

- 7,209

2,890

- 11,007

228,647

Movements in 2011

Deferred tax on depreciation for tax purposes on investment property

- 4,254

-

- 1,701

-

-

-

- 5,955

Deferred tax recognised in the income statement

-

- 109

- 228

926

404

- 792

201

Deferred tax recognised in equity

-

-

-

19,519

-

-

19,519

Other movements

-

-

940

-

-

-

940

Total movements in the year

- 4,254

- 109

- 989

20,445

404

- 792

14,705

Carrying amount as at 31 December 2011

185,930

78,878

- 26,187

13,236

3,294

- 11,799

243,352

Movements in 2012

Deferred tax on depreciation for tax purposes on investment property

- 14,074

-

- 2,265

-

-

-

- 16,339

Deferred tax recognised in the income statement

-

4,829

- 1,302

2,587

- 664

- 1,978

3,472

Deferred tax recognised in equity

-

-

-

21,121

-

-

21,121

Other movements

-

-

335

-

426

-

761

Total movements in the year

- 14,074

4,829

- 3,232

23,708

- 238

- 1,978

9,015

Carrying amount as at 31 December 2012

171,856

83,707

- 29,419

36,944

3,056

- 13,777

252,367