ACCIONA, S.A. AND SUBSIDIARIES (Consolidated Group ...

Reconciliation of the accounting profit to the taxable profit
The reconciliation of the income tax expense for 2011 and 2010 is as follows:
Thousands of euros
2011 2010
Consolidated profit before tax 223,873 240,189
Profit before tax from discontinued operations -- --
Permanent differences 54,953 73,230
Temporary differences 17,558 (242,161)
Offset of tax losses 6,315 3,777
Taxable profit 302,699 75,035
Adjusted accounting profit 294,741 317,312
Tax rate 30% 30%
Adjusted expense at the tax rate 88,422 95,194
Tax credits (38,580) (37,500)
Effect of different tax rates and adjustments 3,609 (1,715)
Tax expense per the income statement 53,451 55,979
Tax expense of discontinued operations 54,953 --
In 2011 the main permanent differences related to non-deductible provisions and consolidation
adjustments, which basically affect subsidiaries which do not belong to the tax group.
The temporary differences were due mainly to provisions that will become deductible in future
periods and to the application of accelerated depreciation for tax purposes, as described later in
this Note.
“Offset of Tax Losses” includes, on the one hand, a negative component due to the offset of tax
losses incurred in prior years amounting to EUR 10,876 thousand, of which EUR 1,276 thousand
had not been recognised and, on the other, a positive component of EUR 17,191 thousand
originating mainly from subsidiaries which do not belong to the tax Group and in relation to
which it is estimated that the taxable profit obtainable in the foreseeable future would be sufficient
to offset their tax losses.
The consolidated companies abroad calculate their income tax expense in accordance with the
applicable legislation. The Spanish companies governed by tax regulations in the Basque Country
or Navarre take into account the particular features of these regulations when calculating their
income tax expense.
Tax recognised in equity
In addition to the income tax recognised in the consolidated income statement, in 2011 and 2010
the Group recognised the following amounts in consolidated equity:
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