Danubius Hotel and Spa Rt - Danubius Hotels Group

Danubius Hotel and Spa Rt. and Subsidiaries
Notes to the Consolidated Financial Statements
(All amounts in million HUF)
19. Income tax
The tax charge / (benefit) for the year comprises:
2004 2003
Current tax 358 271
Deferred tax (371) (744)
(13) (473)
The deferred tax charge / (benefit) comprises:
2004 2003
Origination and reversal of temporary differences (148) (225)
Reduction in tax rate (143) (213)
Benefit of tax losses recognized (80) (306)
(371) (744)
A reconciliation of the difference between the income tax expense and taxation at the statutory
tax rate, is shown in the following table:
2004 2004 2003 2003
Profit / (loss) before tax and minority interest 1,554 (126)
Income tax using the domestic corporation tax rate 16.0% 249 18.0% (23)
Effect of tax rates in foreign jurisdictions 47 60
Non-deductible expenses 35 61
Tax exempt revenues (23) -
Tax incentives not recognised in the income statement (25) (14)
Effect of tax losses utilised / (deferred) (207) (405)
Impact of changed income tax rates on deferred tax (143) (213)
Under provided in prior years 9 12
Others 45 49
(13) (473)
Current corporate income tax receivables
Corporate income taxes receivables include overpayments of HUF 391 million (2003: HUF 439
million) as a result of advance payments required by the tax authorities for certain group
companies in 2004, based on the actual income taxes paid for 2003.
27