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4Financial position – resultsNotes to the consolidated financial statementsNote 27 - Income tax benefit (expense)(€ millions) 2012 2011Current taxes (18) (19)Deferred taxes 18 (16)INCOME TAX EXPENSE – (35)The tax proof breaks down as follows:(€ millions) 2012 2011Operating loss (68) (3)Net financial loss (51) (40)Pre-tax loss of consolidated companies (119) (43)Standard tax rate in France 36.10% 36.10%Effective tax rate for the Group 0.00% -81.40%Theoretical tax expense (a) 43 16Actual tax expense (b) – (35)DIFFERENCE (B)-(A) (43) (51)This difference can be analysed as follows:Differences in tax rates (standard rate, reduced rate, other) (2) 3Permanent differences related to impairment losses recognised on goodwill (7) (7)Other permanent differences (9) 3Recognition/(non-recognition) of deferred tax assets (1) (25) (40)Cancellation of deferred tax assets (2) – (14)Tax saving on unrecognised prior-year tax losses 3 3Other movements (3) (3) 1DIFFERENCE (43) (51)(1) In 2012, these amounts represent the combined impact of impairment losses recognised on property, plant and equipment, tax losses and restructuring expensesin the Arjowiggins group totalling €13 million (2011: €28 million), and tax losses in the Antalis group totalling €10 million (2011: €6 million) and in the holding companyfor an amount of €2 million (2011: €6 million).(2) In 2011, most of this amount concerned the cancellation of deferred tax assets relating to Arjowiggins Appleton in the US for a negative amount of €9 million.(3) This item includes negative amounts of €3 million and €2 million for 2012 and 2011, respectively, relating to the levy based on companies’ “value added” (CVAE)(see Note 2B26).150 | Sequana | 2012 Document de référence (English version)