VÝROČNÍ ZPRÁVA ANNUAL REPORT - Philip Morris

ANNUAL REPORT 2008 | CONSOLIDATED FINANCIAL RESULTS
2007
(in CZK million) Receivables Cash Payables Total
Financial expense
Interest expense - (13) - (13)
Net loss - (13) - (13)
22. INCOME TAX EXPENSE
(in CZK million) 2008 2007
Current tax (450) (812)
Deferred tax (Note 14) (36) 167
Total (486) (645)
The statutory income tax rate in the Czech Republic for the 2008 assessment period was 21% (2007: 24%). Effective from January 1, 2009, the rate in the Czech
Republic will be 20% and effective from January 1, 2010 the rate will be 19%.
The tax on the Group’s profit before taxes differs from the theoretical amount that would arise upon using the tax rate applicable to profits of the Group
as follows:
(in CZK million) 2008 2007
Profit before tax 2 178 2 613
Applicable tax rate 21% 24%
Tax calculated at local tax rate applicable to profit before tax (457) (627)
Expenses not deductible for tax purposes (26) (39)
Effect of the change in tax rates (21%, 20% and 19%) - 33
Other (3) (12)
Tax charge (486) (645)
The effect of a lower enacted income tax rate in 2007 results from the stepped change in tax legislation for future years approved by the president of the Czech
Republic in October 2007. The Company used the newly enacted tax rates for the deferred tax calculation as at December 31, 2007.
23. EARNINGS PER SHARE
Basic and diluted earnings per share is calculated by dividing the net profit attributable to shareholders of the Group by the weighed average number of
ordinary shares in issue during the year.
December 31, 2008 December 31, 2007
Income attributable to shareholders in CZK million 1 692 1 968
Weighted average number of ordinary shares in issue in thousands 2 745 2 745
Basic earning per share in CZK 616 717
24. DIVIDENDS PER SHARE
The dividends approved by the Annual General Meeting in April 2008 and April 2007 were CZK 2 416 million (CZK 880 per share) and CZK 1 647 million
(CZK 600 per share), respectively.
Disbursement of dividends from the 2008 results will be decided at the Annual General Meeting scheduled for April 29, 2009.
25. CONTINGENCIES
The Group does not have any pending legal, administrative or arbitration proceedings that had or might have a substantial effect on the financial situation of
the Group.
The tax authorities have carried out full-scope tax audits at the Company up to the year 2006. The tax authorities may at any time inspect the books and
records within 4 years subsequent to the reported tax year, and may impose additional tax assessments and penalties. The Group‘s management is not aware
of any circumstances which may give rise to a potential material liability in this respect.
As at December 31, 2008, the banks have provided guarantees for the security of liability for fiscal stamps and for the security of transit operations within EU
countries in the amount of CZK 5 063 million (2007: CZK 7 980 million) and for the Group’s current or future lease obligations in the amount of CZK 41 million,
equivalent to EUR 1.6 million (2007: CZK 39 million, equivalent to EUR 1.5 million).
On February 2, 2009 the Customs Office in Kolín issued payment order relating to the assessment of additional excise tax in the amount of CZK 21 million
concerning cigarettes sold from January 18, 2008 to January 31, 2008. On March 5, 2009 Philip Morris ČR a.s. filed an appeal against this payment order.
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