Annual report 2008 - Altarea Cogedim

n Effective tax rate
12/31/2008 12/31/2007
(in € thousand) SIIC Non–SIIC Total SIIC Non–SIIC Total
Profit before tax of companies included
in the cons. financial statements
(60,095) (469,338) (529,433) 402,223 48,557 450,780
Tax rate in France 34.43% 34.43% 34.43% 34.43% 34.43% 34.43%
Tax at standard rate 20,691 161,593 182,284 (138,486) (16,718) (155,204)
Permanent differences
Profits of companies with SIIC status (16,213) – (16,213) 138,730 – 138,730
Other 120,688 70,369 191,057 – (1,168) (1,168)
Loss carryforwards on tax losses before profit for the year – 97,051 97,051
Loss carryforwards and other timing differences
not recognised as assets
(120,820) (157,616) (278,436) (1,275) (1,963) (3,238)
Offset of prior losses not recognised as assets – 298 298
Earnings taxable at a rate other than the standard rate – (2,794) (2,794) 95 1,390 1,485
Other taxes (1,072) 0 (1,071) – – –
Tax at standard rate 3,274 168,902 172,176 561 (18,722) (18,161)
Tax at reduced rate – – –
Group tax saving/(expense) 3,274 168,902 172,176 561 (18,722) (18,161)
Effective tax rate 5.4% 36.0% 32.5% –0.1% 38.6% 4.0%
For Group companies that have elected to adopt SIIC status, permanent differences correspond to profits that are not taxed
by virtue of the SIIC exemption.
Tax incurred by the SIIC sector corresponds to current and deferred tax on the taxable activities of companies that have
elected to adopt SIIC status.
Other permanent differences primarily reflect the impairment of goodwill and investments in equity associates.
In 2008, a deferred tax gain of €97 million was recognised in respect of the tax losses generated at Cogedim SAS in the
wake of the merger between Compagnie ALTAREA Habitation and Cogedim attributable to the impairment in Cogedim’s value.
This deferred tax gain was measured on the basis of the recovery in taxable income projected by the Group by the property
development for third parties business between 2009 and 2013. The tax saving is to be recognised as follows: €44 million
over the first three years, i.e. from 2009 to 2011, and €53 million over the following two years, i.e. in 2012 and 2013.
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