Annual Report 2006 ISS Global A/S

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 January – 31 December. Amounts in DKK millions
8. Taxes
Income
taxes
Balance at 1 January -
Foreign exchange adjustments -
Additions from acquired companies, net -
Adjustments relating to prior years, net (6)
Tax regarding warrants and options -
Tax regarding other equity movements
Tax on profit before impairment/
-
amortisation of intangibles 1)
(608)
Subtotal (614)
Tax effect of impairment/
amortisation of intangibles 100
Reclassification of joint taxation contribution -
Tax paid, net -
Taxes at 31 December (514)
Tax
payables/
(receivables)
(49)
(3)
30
6
-
19
476
479
-
(181)
(347)
(49)
Tax receivables/deferred tax assets (216)
Tax payables/deferred tax liabilities 167
Income tax, net/deferred tax, net (49)
2006 2005
Deferred
tax
liabilities/
(assets)
(172)
(2)
163
-
-
13
132
134
(100)
-
-
34
(606)
640
Income
taxes
-
-
-
(7)
-
-
(497)
(504)
58
-
-
(446)
Tax
payables/
(receivables)
Computation of effective tax rate 2006
34
78
1
51
7
(7)
(80)
593
643
-
88
(780)
(49)
(130)
81
(49)
Deferred
tax
liabilities/
(assets)
Statutory income tax rate in Denmark 28.0 % 28.0 %
Foreign tax rate differential, net 0.4 % 0.9 %
28.4 % 28.9 %
Non-tax deductible expenses less non-taxable income 2)
2.6 % 0.6 %
Adjustments relating to prior years, net 0.3 % 0.4 %
Change of valuation of net tax assets 6.6 % (0.5)%
Effect of changes in tax rates 0.5 % 0.3 %
Tax impact of result after tax in associates 0.0 % (0.4)%
Effective tax rate (excluding effect from impairment/amortisation of intangibles) 38.4 % 29.3 %
1)
Intangibles cover the value of goodwill and customer contract portfolios and related customer relationships.
2)
In 2005, Non-tax deductible expenses less non-taxable income included the effect of tax free gain regarding the sale of Health Care operations and
costs related to the change of ownership of ISS in 2005.
_____________________________________________________________________________________________________________
ANNUAL REPORT 2006 / Consolidated Financial Statements
62
(118)
(1)
121
-
-
(20)
(96)
(114)
(58)
-
-
(172)
(645)
473
(172)
2005