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➔ Note 12 - Operating expenses - finance companies
(in millions of euros) 2002 2001 2000
Interest expense and bank charges (783) (791) (644)
Commission expense (212) (192) (152)
Other business acquisition costs (21) (18) (22)
Other operating expenses (303) (270) (253)
Credit losses (62) (68) (52)
Total (1,381) (1,339) (1,123)
➔ Note 13 - Income taxes
a) Income taxes of fully consolidated companies can be analyzed as follows:
(in millions of euros) 2002 2001 2000
Current taxes (note 13-b)
- Corporate income taxes (726) (982) (741)
- Tax on intercompany dividends (8) (3) (9)
Deferred taxes
- Deferred taxes for the period (30) 135 44
- Tax on planned intercompany distributions 4 4 (10)
- Valuation allowances – deferred tax assets (note 13-d) (17) (16) (31)
- Effect of change in the French tax rate (note 13-c) - 27 34
(777) (835) (713)
Manufacturing and sales companies (666) (750) (601)
Finance companies (111) (85) (112)
b) Income taxes currently payable represent the amounts paid or currently
due to the tax authorities for the year, calculated in accordance with the
tax regulations and rates in effect in the various countries. Effective from
January 1, 2000, Peugeot S.A. and its French subsidiaries that are at least
95%-owned have renewed their election to determine French income taxes
on a consolidated basis according to Article 223 A of the French Tax Code.
c) Deferred taxes are determined as described in note 1-o.
The French statutory income tax rate is 33.33%. The December 30, 2000
Finance Act (Act no. 2000.1352) reduced the 10% surtax to 6% in 2001
and 3% as from 2002. Net deferred taxes at December 31, 2000 and
December 31, 2001 have been reduced to reflect the new rates.
Act no. 99-1140 of December 29, 1999 dealing with the financing of
the social security system provided for the introduction of a surtax equal
to 3.3% of the corporate income tax liablity of French companies.
This surtax had the effect of raising the French corporate income tax
rate by 1.1 points.
d) Deferred tax assets corresponding to tax loss carryforwards break
down as follows at December 31, 2002, 2001 and 2000:
(in millions of euros) 2002 2001 2000
Gross 419 263 136
Less: valuation allowances (165) (132) (115)
Net 254 131 21
Valuation allowances are recorded against deferred tax assets that are
not certain to be utilized in the foreseeable future.
e) Deferred taxes recognized on undiscounted bases represent a net
liability. They have not been discounted because of the high level of
uncertainty concerning the period in which the related temporary
differences are likely to reverse.
f) The following table reconciles the statutory tax rate in France to the
effective rate of tax paid by the Group:
2002 2001 2000
French statutory
income tax rate (35.4) (36.4) (37.8)
- Change in French tax rate
(note 13-c) - 1.0 1.6
- Permanent differences (0.9) (0.5) 1.3
- Income taxable at
reduced rates (France) 1.4 0.6 0.7
- Tax credits 0.9 0.8 0.6
- Effect of differences in
foreign tax rates and others 5.1 3.6 2.8
- Deferred tax assets
covered by valuation
allowances (note 13-d) (0.7) (0.6) (1.4)
(29.6) (31.5) (32.2)
PSA PEUGEOT CITROËN - APPENDICES TO THE MANAGING BOARD REPORT 151