Pallet-Management-Services - AFM

9. Income taxes
The major components of the Company’s income tax provision
for the years ended December 31, 2006 and 2005 are:
US $ in thousands Year ended December 31,
2006 2005
Current income tax provision:
Germany:
Current income tax charge 2,218 556
Adjustments in respect of current income tax of previous years (8) (12)
2,210 544
Foreign:
Current income tax charge 4,629 3,152
Adjustments in respect of current income tax of previous years – (738)
4,629 2,414
Net current income tax provision 6,839 2,958
Net deferred income tax benefit (354) (952)
Income tax provision reported in the consolidated income statement 6,485 2,006
The differences in income taxes provided and the amounts
determined by applying the appropriate group tax rates to
income from continuing operations before income taxes
result from the following:
| FINANCIAL REPORTING | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
US $ in thousands Year ended December 31,
2006 2005
Net profit before tax from continuing operations 44,438 46,562
Tax provision at group rate (38.0% for each 2006 and 2005) 16,886 17,694
Increase (decrease) resulting from:
Unrecognized tax losses (7,362) (13,635)
Differences between group tax rates and local statutory tax rates (3,001) (2,823)
Change in tax rates – 166
Non-income based taxes – 587
Non-deductible expenses 604 977
Tax adjustments from prior years (8) (750)
Other (634) (210)
Income tax provision reported in the consolidated income statement 6,485 2,006
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