Panalpina Annual Report 2006

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Taxes on income
Consolidated and Annual Financial Statements 2006
in thousand CHF 2006 2005
Current income taxes 56,123 42,598
Deferred income taxes 438 (5,022)
Total taxes on income 56,561 37,576
The following table reconciles expected and disclose the actual tax expenses. The expected tax expenses are determined by
multiplying the result before income taxes and the tax rate applicable in Switzerland.
in thousand CHF 2006 2005
Earnings before taxes 240,071 157,882
Tax at the applicable tax rate of 25% (2005: 25%) 60,018 39,471
Effect of differing national tax rates (8,921) (14,294)
Utilization of non-capitalized tax loss carry-forwards (559) (1,854)
Capitalization of deferred tax assets from previous periods 0 (1,794)
Not recognized loss carry-forwards 4,934 4,557
Effect of changes in the tax rate on temporary differences (349) 2,872
Withholding tax on dividends received 1,257 1,233
Expenses not deductible for tax purposes and non taxable income 1,303 4,317
Miscellaneous (1,122) 3,068
Actual tax charge 56,561 37,576
Expenses not deductible for tax purposes were primarily in Indonesia, Columbia, Argentina, Belgium, the USA and Italy
(2005: in Australia, Germany, Russia, UK, Venezuela, the USA and Italy).
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the net earnings attributable to equity holders of the Company by the
weighted average number of ordinary shares outstanding during the year, excluding ordinary shares purchased by the
Company and held as treasury shares (see note 20).
in thousand CHF 2006 2005
Consolidated net earnings attributable to equity holders of the Company 181,599 117,355
Weighted average number of ordinary shares outstanding 24,744 24,932
Basic earnings per share (in CHF) 7.34 4.71
Panalpina Annual Report 2006 91