Recipharm Annual Report 2006

Tax according to Parent Company's current tax
rate, 28%
Reported profit before taxes
84,733,290 65,691,919
Tax revenue/ tax expense -23,725,321 -18,393,745
Tax effect of non-deductible expenses -1,008,967 -2,067,601
Tax effect of non-taxable income 10,904,093 4,591,915
Tax revenue -418,727 0
Corrections from previous assessment period -94,662 0
Change in temporary differences 852,336 -647,922
Current tax expense (28%) -13,491,248 -16,517,353
PARENT COMPANY 2006 2005
Current tax -94,662 -6,659,987
Deferred tax referring to temporary differences 0 -1,563,267
Tax on Group contributions 29,946,000 17,777,511
29,851,338 9,554 257
Difference between tax according to current tax rates and actual tax
Reported profit/loss before taxes
Tax according to Parent Company's current tax
rate, 28%
Tax revenue / Tax expense
-147,881,135
537,203,665
41,406,718 -150,417,026
Tax effect of non-deductible expenses -11,301,861 -1,115,242
Tax effect of non-taxable income 65,142 162,649,793
Tax revenue -223,999 0
Corrections from previous assessment period -94,662 0
Change in temporary differences 0 -1,563,268
Current tax expense (28%) 29,851,338 9,554,257
Note 7 Product rights
GROUP
31 Dec 2006
31 Dec 2005
Opening acquisition cost 113,022,100 36,282,000
Purchases 183,854,125 76,740,100
Sales/disposals -14,583,126 0
Closing accumulated acquisition cost 282,293,099 13,022,100
Opening amortisation -29,308,342 -22,782,000
Sales/disposals 0 0
Amortisation for the year -20,970,305 , 6,526,342
Closing accumulated amortisation -50,278,647 -29,308,342
Book value 232,014,452 83,713,758
Amortisation according to plan is estimated according to a useful lifetime of 9 - 10 years.