consolidated annual report - Gruppo Banca Sella

Changes in caption 80/b “Provisions for risks and charges - Provisions for taxes and fees”
Balance as at 31/12/2003 39.858
decreases
- Payments made during the year 37.988
- Transfer to out-of-period income of the exceeding part 103
- Use of deferred taxation fund for accrued taxation 184
- Other decreases 83
increases
Provisions for the financial year:
- Income taxes 36.234
- Indirect taxes and levies 737
- Deferred taxation 340
- Other increases 665
Balance as at 31/12/2004 39.476
Deferred taxation
As regards deferred taxation, please refer also to Part A, Section 1, Accounting Policies, Provisions for risks and charges, Provision for taxes and fees section.
The main assets related to taxes paid in advance (deferred tax assets) as at end 2004 are in particular related to the following items:
1. fiscal losses for the financial year, which can be offset with future fiscal profits: € 1,15 million;
2. depreciation of due from customers for the part exceeding the maximum annual limit, deductible in various financial years: € 4,56 million;
3. depreciation of equity investments, for the amount deductible in subsequent financial years: € 3,36 million;
4. provision for risks and charges of different nature, deductible in the financial year in which the charges become certain: € 5,73 million.
Liabilities for deferred taxation as at end 2004 are in particular related to the following items:
1. capital gains deriving from the sale of investments, kept for at least three financial years, taxable in five years: € 0,2 million;
2. charges for the incentive of early retirement, deductible at the moment of actual disbursement: € 0,14 million.
Where the conditions pointed out by the injunction of Banca d’Italia were fulfilled, liabilities for deferred taxation are totally offset with the assets for deferred taxation.
As regards tax rates used for the calculation of deferred taxation, reference was made to weighted average rates in case of fractions of the same income taxed with different rates.
Amounts and variations related to liabilities for deferred taxation not included in sub-caption 80/b “Provisions for taxes and fees”.
Deferred taxation on reserve for possible loan losses for default interest, in which was set aside the recoverable part of default interests,was deducted from capital for supervisory
purposes.
Total deferred taxation on reserve for possible loan losses for default interest as at 31/12/2004: € 3,1 million.
Amounts and variations of temporary taxable differences for which do not apply the requirements for recording among liabilities for deferred taxation.
Reserves in tax suspension: these are reserves for shareholders’ net capital in suspension of taxation, for which it was not undertaken, and it is believed it is not likely to be undertaken
in the future, any behaviour so as to integrate the requirements for the taxation of the same.
Fixed assets revalued in tax suspension: these are fixed assets which have been revalued in suspension of taxation according to special laws. For such assets no behaviour directed to
integrate the requirements for the taxation of the same was undertaken, nor it is believed will be undertaken in the future.
Consolidated annual report 2004 - 247