Annual Report 2005 - Tenaris

16. Income tax and social contribution
a. Nature of deferred taxes
The parent company and subsidiaries recorded tax credits
as a result of temporary timing differences relating to income
tax losses and negative social contribution base. These
credits have been recorded in current and long term assets
DEFERRED TAX ASSET
Taxes challenged in court
Non-deductible provisions
Tax loss and negative base
Total Parent company
Subsidiaries
Consolidated Total
DEFERRED TAX LIABILITY
Revaluation reserves
Public company profit
Total Parent company and consolidated
Net change in result
Current
–
9,961
1,358
11,319
101
11,420
–
–
–
based on the expected date of their realization, taking into
account projections of future profits approved by the
Administrative Council, as well as finalization dates and
the restriction of offsets to 30% of annual taxable income
under the law in force.
Long term
asset/
liability
7,370
11,012
–
18,382
86
18,468
2,423
–
2,423
2005
Change
in result
–
9,475
(14,246)
(4,771)
116
(4,655)
809
423
1,232
(3,423)
Current
–
8,108
15,604
23,712
71
23,783
–
–
–
Long term
asset/
liability
7,370
3,390
–
10,760
–
10,760
3,232
423
3,655
2004
Change
in result
145
1,058
(2,007)
(804)
(3,174)
(3,978)
364
51
415
(3,563)
75. Financial Statements 2005