Südzucker International Finance B. V. Südzucker AG ... - Xetra

Consolidated financial statements2.11 Taxes on incomeIncome tax expense for 2002/03 decreased to D 58.3 million compared with D 106.8 million for the previousyear. Current income tax expense declined by D 12.9 million to D 89.3 million, and there was a net deferred taxcredit of D 31.0 million in 2002/03 (D 4.6 million deferred tax expense in 2001/02), partly due to a reduction inthe Belgian income tax rate from 40.2 % to 34.0 %.Deferred taxes are calculated on temporary differences between items in the group balance sheet and the balanceof the same items in the local tax balance sheet. Deferred tax liabilities of D 342.7 million relate primarily tomeasurement differences for items in non-current assets and inventories. Deferred taxes are calculated based onthe local tax rate (37.4 % for Germany). Deferred tax assets include D 6.2 million for tax loss carryforwards.A reconciliation of deferred taxes in the balance sheet and deferred taxes in the income statement is as follows:2002/03D millionChange in deferred tax assets in the balance sheet 4.0of which change in companies consolidated 0.0of which income 4.0Change in deferred tax liabilities in the balance sheet 51.2of which change in companies consolidated 18.0of which expense 33.2Change in deferred taxes charged or credited direct to equity (6.2)Deferred taxes per statement of income 31.0F-32