CzeCh airlines - České aerolinie

NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2010
annual report 2010 | 81
17. TAXATION
During the 2010 tax period, the Company did not expect income tax payable. During
2009, the income tax was zero. In 2009, the provision for income tax in the amount of
CZK 25,000 thousand was released after the determination of the actual tax payable
for 2008.
The deferred tax asset/(liability) is calculated at the 19% rate (2009: 19%). The deferred
tax asset/(liability) can be analysed as follows:
Deferred tax liability:
Hedging derivative instruments – short-term
Equity
CZK’000
(14,429)
31 December 2010 31 December 2009
Profit and loss account
Equity
CZK’000
CZK’000
Profit and loss account
CZK’000
(14,429)
Deferred tax asset:
Difference between tax and accounting net book values of fixed assets 57,712 42,621
Allowances 12,199 135,109
Provisions 313,310 356,396
Hedging derivative instruments – short-term 259 27,597
Hedging derivative instruments – long-term 78,794 87,900
Tax losses 444,329
A deferred tax asset of CZK 115,497 thousand as at 31 December 2009 relating to
items recorded directly to equity was recorded to equity (Note 11).
79,053 827,550 115,497 534,126
Net deferred tax asset / (liability) 64,624 827,550 115,497 534,126
Recognized deferred tax assets / (liability) 115,497
In 2010, the deferred tax asset in the amount of CZK 115,497 thousand was derecognized.
The total deferred tax asset in the amount of CZK 892,174 thousand was not
recognized as the Company does not have reasonable certainty that the amount will
be recoverable in following periods.
The accounting value of deferred tax transferred to the subsidiaries as non-monetary
contribution during 2010 is mentioned in Note 28.