Annual Report 2012 - Swiss Life

In CHF million
2012 2011
In CHF million
2012 2011
201 Consolidated Financial Statements
25 Income Taxes
Income tax expense
Current income tax expense 145 18
Deferred income tax expense –9 –39
Total income tax expense 137 –21
The expected weighted-average tax rate for the Group in 2012 before impairment losses on the intangible
assets relating to the “AWD” segment was 26.1% and after these impairment losses 10.9% (2011: 26.5%).
This rate was derived by obtaining a weighted average of the expected income tax rates in the various
jurisdictions in which the Group operates. The change of the weighted-average tax rate is due to the
geographical allocation of the profits and the different tax rates in these jurisdictions. The actual
income tax expense differs from the expected amount as follows:
Reconciliation of Income Tax Expense
Profit before income tax 229 585
Income tax calculated using the expected weighted-average tax rate 25 155
Increase/reduction in taxes resulting from
lower taxed income –141 –169
non-deductible expenses 239 112
other income taxes (incl. withholding taxes) 6 20
change in unrecognised tax losses 10 28
adjustments for current tax of prior periods 20 –96
changes in tax rates 0 –41
intercompany effects –24 –26
other 2 –4
Income tax expense 137 –21
In 2012, non-deductible expenses include CHF 123 million relating to the impairment loss on the
“AWD” goodwill.
In 2011, the Swiss Life Group realised a tax benefit of CHF 90 million due to the final assessment of
the disposal of business activities in prior periods.
In 2011, a change in the tax rate in Switzerland led to a positive income tax effect of CHF 41 million.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset
current tax assets against current tax liabilities and when the deferred income taxes relate to the same
tax authority.
Swiss Life – Annual Report 2012